A sales development representative (SDR) is an inside agent who handles scope, prospecting and qualifying leads. SDRs, unlike BDRs, focus on closing deals, but rather on contacting as many potential customers as possible and determining if they are a good fit for a company's customer profile, BDRs interact with potential customers through the sales channel. By contacting them, they learn about the businesses, challenges, and goals of these potential customers.
SDRs teach, answer questions, and send interesting resources to potential customers. They contact each of them and determine who stays and who goes. Also, SDRs are evaluated based on the number of qualified leads they manage through the pipeline. Their commission is determined by the number of deals they go through compared to their goal or quota.
The SDR role is typically an entry-level position. In a sales department, SDRs are the entry-level: they access all leads and filter out those that don't fit well with the qualified lead profile. After speaking with an SDR, qualified leads are routed to higher-level sales representatives, such as Account Representatives (ARs) or Account Executives (AEs).
In some larger business companies, SDRs may work alongside Business Development Representatives (BDRs). BDRs typically focus on outbound lead generation and qualification, while SDRs focus on inbound leads.
ARs and AEs need a constant stream of qualified leads to become customers. Without the SDR qualification process, the sales cycle takes much longer (because people who focus on closing deals talk to potential customers who aren't looking to buy) and potential customers are passed over or go to a competitor.
There are several functions that SDRs perform within the activity that includes preparing prospects for sales. These can be classified into:
SDRs can contact potential customers through different channels, such as phone calls, emails, LinkedIn connections, voicemails, messages on social networks, personalized videos, and events. Within this function, customer research is included, which is divided into two subgroups: market research and individual prospect research.
Market research: it is the process of defining the target audience. It identifies ideal customers and knows the problems that they normally have to promote specific actions to solve them.
Research of individual prospects: it is the process of learning about a specific prospect. Preparation ensures trust and shows different perspectives that you can analyze to get to know prospects from their position.
The SDR qualification process has two components:
SDRs learn from their prospects before sending them to the next step in the sales process.
SDRs learn about potential customers. Sales reps are trained in what makes a good fit as a customer. If a lead's information matches the profile of a good customer, then the lead moves on. SDRs also train by answering a prospect's questions.
When yours is a growing business, you probably have one or two salespeople who handle sales from start to finish. But as your business grows, hiring just one salesperson will no longer work. With leads reaching the top of the funnel and an unclear sales process, it will get harder and harder for salespeople to prospect and close deals.
With leads falling through the cracks and your sales funnel littered with junk offers, there's a good chance your competition will surpass you in your ability to effectively engage leads, causing damage to the health of your company.
You must have a sales strategy that attracts potential buyers and nurtures them, and another sales strategy that closes the sale. To do that, two main roles must be part of your sales team: SDRs and sales executives.
You know you need to hire an SDR team when:
An SDR, unlike a BDR, is an agent who is at the beginning of the interaction with potential customers. It involves first contact with the lead before they engage with BDRs, and then with a sales representative who will engage with them once the lead becomes a qualified lead.