Every business and industry has its own sales process. Some are intricate and complicated, while others are not. Some even require specific actions that are specific only to their industry.
But despite these differences, a general rule of thumb is that at every start of any sales process, leads generation usually comes first. And on the front-line of lead generation are your Sales Development Representatives (SDRs).
According to a 2019 research by TOPO, 22% of leads generated by SDRs become closed sales as opposed to when quota-bearing sales reps alone handle leads qualifying.
As important as a team like this, you need to have excellent people at the helm.
Listed below are a few more things to keep in mind why you need high performing Sales Development Representatives.
Qualifying potential customers takes time – a lot of it!
SDRs spend a significant amount of time talking to potential clients. According to Vorsight, it takes 22.5 phone dials to have one conversation with a lead from a prospects list.
Out of all the conversations that an SDR has with prospects, only one conversation out of 20 will lead to an appointment. That could easily be over 400+ dials to secure one sales call.
If this work falls on your quota-bearing sales reps, it will eat a considerable amount of time from them. Sales reps will then have lesser time closing sales leading to lower closed sales.
They’re better in qualifying leads
It is important to note that SDRs’ job is to sift through multitudes of prospects from cold outreach; this takes away a significant amount of time from quota-bearing sales reps to solely focus on warm opportunities, therefore strengthen your sales process.
Now, when an individual focuses on a single process, they become better at doing their job. By repeating the lead qualifying process, SDRs grow a gut feel on the propensity of lead conversion.
Excellent SDRs produce quality leads. However, SDRs must follow specific KPIs for lead quantity and quality. When SDRs focus alone on the number of leads, they might let unqualified leads pass to hit quota. In effect, the poor lead quality will then cause sales reps to discard leads given.
In a study by TOPO, SDRs are the most significant drivers of leads down the pipeline. In top companies, SDRs generate an average of USD 415,000.00 in pipeline per month.
SDRs can provide customer and business insights
Since SDRs will be the first to interact with potential clients in the sales process, they learn a lot from them. Through repetitive communication with leads, SDRs become more familiar with the buying process of clients. They’ll be able to determine the bottlenecks and pain points when it comes to the customers’ buying journey.
Their insights will benefit not only sales reps but also marketing. SDRs get a real-time and honest response from leads concerning the company.
Productive sales reps generate more revenue for the company
Client meetings, proposals, negotiations, and accounts management are only a few of the activities that take up a sales reps’ working day. When they are more focused on doing their function, which is the rest of the sales cycle, they become more productive.
It makes economic sense for businesses to free up sales reps’ time and focus more on their targets.
The Marketo Definitive Guide to Leads Qualification and Sales Development provides the following data:
- A 5% increase in selling time may result in a 20% revenue increase.
- 15% shorter sales cycle length may lead to a 30% revenue increase.
SDRs can quickly adapt to changes
With today’s fast-paced business setting, those who are part of the sales process need to be flexible. Employees focused on doing a single task are better at adapting any changes. They can easily apply adjustments to the current system in place.
In contrast, quota-bearing sales reps might be slower in adapting and overcoming changes. The workload sales reps cause the delay has, being responsible for the whole sales process.
They can become a sales representative
According to a small sample study, almost 30% of SDRs transition to being sales reps. Who else would be better at facing clients and closing sales than the ones who were interacting with them in the first step of the sales process?
They are already engaged with the company and have substantial product knowledge. They would also need lesser training than sales representatives who are outside hires.
A high number of a company’s success lies in its people. Moreso, those who communicate with your clients first. Look for qualified employees, invest in them, and success will surely follow!