CTOs are driving the Gen AI strategy
Brian opened with data from eMarketer and Google showing that CTOs and CIOs are now responsible for driving generative AI strategy at most companies. Among hundreds of companies surveyed, 59% said the CTO or CIO owned the Gen AI strategy, followed by the CEO. The CMO was at the bottom of the list at 18%. Andy noted that this mirrors the early days of ecommerce and CRM, when new technologies were treated as technical projects before being distributed across the business. He predicted that within five to ten years, Gen AI ownership will shift to the business side, but for now it remains a technology-led initiative.
The traditional role of inside sales
The main topic was whether ecommerce is replacing inside sales in B2B. The hosts started by defining what inside sales traditionally handles: lead generation and outbound prospecting, inbound lead handling, transactional and one-time purchases like reorders, serving smaller or long-tail customers, and handling simpler questions or problems. These are the functions that require less field presence than outside sales but more human interaction than a self-service ecommerce site.
Inside sales covers more at lower cost
Brian shared data from a McKinsey study on the economics of inside sales.
McKinsey found that inside sales can cover four times the number of prospects at 50% of the cost of a traditional field rep.
Brian Beck, Master B2B
The function grew out of the reality that outside sales reps are expensive, well-trained, and busy. They cannot take every call, qualify every prospect, or serve infrequent, small-ticket customers. Inside sales bridged that gap, and digital tools have made the function even more powerful. Inside sales can now access the same information as outside sales and answer questions at the same level of depth.
The buyer is changing
Andy noted that the B2B buyer is shifting away from traditional sales interactions. Data from Activate Marketing Services shows that 74% of millennials avoid sales calls and outreach efforts. Millennials are now in their 40s and represent the majority of B2B buyers, with Gen Z entering the workforce behind them. The outbound sales model is under pressure as fewer people answer the phone. The inbound model, where customers contact the company through a portal or website, is becoming more important.
AI chatbots enter the picture
The hosts raised a new dimension: AI chatbots. When a customer asks a question on the website, a chatbot can now reply, answer the question, and ask if they would like to complete the transaction. If the customer says yes, the deal closes without ever touching inside sales, customer service, or outside sales. Andy called this the new kitten in town. The chatbot does not replace the need for human expertise on complex purchases, but it handles routine transactions at scale and eliminates friction for the buyer.
Most companies are increasing inside sales
A LinkedIn poll asked whether B2B companies are increasing or decreasing their use of inside sales in the age of digital. The result: 72% said they are increasing. This was the opposite of what Andy’s Death of a B2B Salesman thesis might have predicted. The hosts noted that they did not ask the same question about outside sales, which might have produced a different answer. The data suggests that inside sales is being supercharged, not replaced, by digital.
Order placement is being pushed to ecommerce, changing the ratio of accounts that can be covered by both inside and outside sales. A lot of accounts that now have an assigned field rep are being covered by inside sales, and accounts being directed to inside sales are now being pushed to ecom.
James Wallen, Vice President of Sales, Credit Key
Customers marry their inside rep
Jared Ailson from Simpson Strong-Tie offered a memorable line.
In our industry, customers date their outside rep but marry their inside rep.
Jared Ailson, Simpson Strong-Tie
Andy connected this to research showing that buyers trust inside sales reps more than outside sales reps. The perception is that inside sales, like customer service, is more of an honest broker and less focused on closing a sale. Over time, that trust translates into stronger relationships and more revenue.
The open question: career paths
Andy closed with a question that did not have a clear answer. The traditional career path for an inside sales rep was to become an outside sales rep. If outside sales roles shrink or evolve, where does inside sales go? Customer success, account management, and hybrid roles are possibilities. The question used to be asked about outside sales. Now it is being asked about inside sales, which may be revealing about where the function is headed.