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How to Build a
World-Class SDR Team
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
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
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.
lead response
@insidesales | #salesacceleration
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
@insidesales | #salesacceleration
sales specialization
Closer
Inbound SDR
Outbound SDR SE Client
management
Implementation
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
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
@insidesales | #salesacceleration
sales specialist models
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
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
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
strong
investment
in coaching
17%Quota attainment increase with
3 hours a month of coaching
@insidesales | #salesacceleration
a farm league for talent development
Inbound SDR
Outbound SDR
Closer
MID
MID
ENT
Customer account manager
@insidesales | #salesacceleration
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
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
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
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
@insidesales | #salesacceleration
communication gamification prediction data visualization
voice | email | sms | fax
@insidesales | #salesacceleration
• Local Presence
• Leave Voice Message
• Local Presence
• Leave Voice Message
• Native Salesforce Reporting
• Local Presence
• Leave Voice Message
• Native Salesforce Reporting
• Dynamic SEEK Lists
8 AM 9 AM 10 AM
Typical Approach
11 AM 12 P
• 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
• Local Presence
• Leave Voice Message
• Native Salesforce Reporting
• Dynamic SEEK Lists
• Immediate Response
100x
more likely to contact
21x
more likely to qualify
$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
IS Accelerate „14 – Park City, May 27-29
How to Build a World-Class SDR Team

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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
  • 6.
  • 7.
  • 8.
  • 9.
  • 10.
  • 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
  • 30. voice | email | sms | fax @insidesales | #salesacceleration
  • 31.
  • 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