The effect of inside sales and hybrid sales structures on customer value creation

Abstract

As business-to-business (B2B) sales become digital and multichannel, firms develop inside sales (IS) channels to serve customers and combine such channels with outside sales (OS) and distributor channels in new sales structures. Although IS may offer gains, extant research lacks empirical evidence on their effectiveness in customer value creation when used independently – discrete structures – and in combination with OS and distributors – hybrid structures. This study aims to assess the value creation performance of IS in discrete and hybrid structures. Results from regression estimations of 13,210 B2B customers over two years in a single-firm research design unveil how IS increase value creation when used independently; yet, using IS together with OS or distributors in hybrid structures, decreases performance. IS are more effective in historically less valuable customers and less complex sales processes. This study advances knowledge on multichannel IS structures’ effectiveness in value creation, helping sales managers allocating resources across channels.