How to Build a World-Class SDR Team
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The document discusses best practices for building a world-class sales development representative (SDR) team, emphasizing the importance of sales specialization to drive revenue growth. It highlights key metrics for lead response times and conversion rates, and suggests a specialized model for inbound and outbound SDR functions. The document also covers recruitment strategies, compensation structures, and the impact of coaching on sales performance.
How to Build a World-Class SDR Team
- 1. How to Build a World-Class SDR Team
- 2. Mike Plante VP, Demand Marketing, InsideS ales.com Tom Pilkington VP, Business Development, Insid eSales.com About InsideSales.com • HQ in Silicon Slopes, Utah • Leader in sales acceleration technology • Salesforce App Exchange top 5 paid app • 3 years of 100%+ annual revenue growth • Recently announced Series C of $100M • Always On top 100 private companies @insidesales | #salesacceleration
- 3. today‟s webinar • Sales specialization can accelerate revenue growth • About half of B2B companies have embraced some form of a sales specialist model that includes an SDR function • What are the best practices to build, incent, and measure an SDR function? • What kind of impact should you expect, based on what some of our customers have seen? @insidesales | #salesacceleration
- 4. Sales wants all “leads” fast Marketing feels the love and hits the “more” button Sales doesn’t follow up Marketing: “Why no follow up?” Sales: The “leads” are no good Marketing: Wasted effort, poor performance, bitterness, despair © 2014 SiriusDecisions.
- 5. lead response @insidesales | #salesacceleration
- 11. how are we doing as a discipline? • Immediate response: Goal < respond within 5 minutes Average across 14,000 companies evaluated in 2014: 61 hours • Persistence: Goal - at least 6 attempts Average across 14,000 companies evaluated in 2014: 2.2 attempts unique companies representing 329 responses (Media & Internet) to 3,008 unique companies respresenting 9,538 responses (Telecommunications). Regarding the industry variations for median first response time overall, we find several interesting trends, as represented below in Figure 8. For industries aggregated. We find that Healthcare, Retail, and Manufacturing industries are slowest, while the Telecommunications, Media & Internet, and Business Services industries are fastest. Figure 8 Median First Response Time Overall, By Industry 2:05 1:55 1:51 1:05 1:02 0:56 0:56 0:44 0:35 0:16 0:00 0:15 0:30 0:45 1:00 1:15 1:30 1:45 2:00 2:15 ResponseTime(hours:minutes) Source for all results: 2014 Lead Response Report, InsideSales.com, February 2014
- 13. sales specialization Closer Inbound SDR Outbound SDR SE Client management Implementation
- 14. insidesales.com specialization model Inbound lead response reps Leads from marketing Cold calling, prospecting reps Closers SEs Implementation Account mgmt MID SMB ENT MID MID ENT “BUSINESS DEVELOPMENT” (SDR) SALES CLIENT SERVICES
- 15. specialization drives results Improved Conversion • Immediate, persiste nt response drives better conversion rates on inbound demand Lower Cost of Sales • Specialization leverages lower- cost headcount for lower value-add activities Enriched Data for Closers • Can manage SDRs to better enrich data about contacts and opportunities when they get to sales Talent Development • Specialized model creates a talent “farm league” for your entire organization
- 18. Inbound lead response reps Leads from marketing Cold calling, prospecting reps Focused exclusively on contacting inbound demand generated by marketing All pooled into one team; inbound leads distributed round robin Focused on generating new demand through cold calling, social selling, etc. Divided into teams that serve specific segments (SMB, midmarket, enterprise) Enterprise team assigned to specific territories and closer counterparts; other teams round robin
- 19. SDR recruiting • Key sources: employee referrals, social recruiting (LinkedIn), local universities • Requirements College degree strongly preferred 6-12 months of some sales experience (phone, door to door, retail, etc.) Naturally competitive Leadership @insidesales | #salesacceleration
- 20. SDR compensation Inbound lead response reps Generally 65% base/35% variable Variable is calculated • 90% on qualified opportunities from appointments set • 5% bookings value from appointments set • 5% effort Generally 60% base/40% variable Variable is calculated • 90% on qualified opportunities from appointments set • 5% bookings value from appointments set • 5% effort Cold calling, prospecting reps @insidesales | #salesacceleration
- 21. strong investment in coaching 17%Quota attainment increase with 3 hours a month of coaching @insidesales | #salesacceleration
- 22. a farm league for talent development Inbound SDR Outbound SDR Closer MID MID ENT Customer account manager
- 24. assigning leads and setting appointments Inbound lead response reps Leads from marketing Cold calling, prospecting reps Webinar, event leads Enterprise leads All other leads SMB closer MID closer ENT closer Appts from inbound leads Appts for mid Appts for enterprise
- 25. monitoring / rewarding EFFORT as predictor of impact • Targeted dials per day Inbound: 160 Outbound (varies by customer segment): 80-100 • Leads required for the inbound team Dial capacity / average penetration = # new leads 160 dials per day or 800 dials per week / 6 avg attempts = 133 new leads per inbound rep
- 26. driving qualified opportunities (TQOs) • Totally qualified opportunity (TQO) scoring model governs handoff between SDR and closers Scores the company and the contact for fit urgency timeline budget Scores the contact for behavior indicating buying signals Inbound lead response reps Cold calling, prospecting reps Goal: 35-40 TQOs per month Goal: 8-12 TQOs per month
- 27. rewarding for opportunities that close (ACV) Inbound lead response reps Cold calling, prospecting reps Goal: $40K-$60K bookings per month Goal: $75K-$100K bookings per month @insidesales | #salesacceleration
- 29. communication gamification prediction data visualization
- 30. voice | email | sms | fax @insidesales | #salesacceleration
- 32. • Local Presence • Leave Voice Message
- 33. • Local Presence • Leave Voice Message • Native Salesforce Reporting
- 34. • Local Presence • Leave Voice Message • Native Salesforce Reporting • Dynamic SEEK Lists 8 AM 9 AM 10 AM Typical Approach 11 AM 12 P
- 35. • Local Presence • Leave Voice Message • Native Salesforce Reporting • Dynamic SEEK Lists 8 AM 9 AM 10 AM Dynamic Seek Lists 11 AM 12 P • VP Marketing • 10am-11am local time • East coast • Latest trade show • Dialed less than 6 times • Last dial at least 3 days ago Dynamic Seek Lists
- 36. • Local Presence • Leave Voice Message • Native Salesforce Reporting • Dynamic SEEK Lists • Immediate Response 100x more likely to contact 21x more likely to qualify
- 37. $40B Fortune 500 Company “Since implementing InsideSales.com, we doubled our call volume with the same amount of reps. That is ten reps we did not have to hire.” With InsideSales.com, everyone is answering our calls, InsideSales.com is a winner! During our 90 day pilot with 100 users, we increased sales by 30%! @insidesales | #salesacceleration
- 38. IS Accelerate „14 – Park City, May 27-29