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How to Build a

World-Class SDR Team

Mike Plante
VP, Demand
Marketing,
InsideSales.com

Tom Pilkington
VP, Business
Development,
InsideSales.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

todays 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 doesnt follow up

Sales: The leads are


no good

Marketing: Why no
follow up?

Marketing:

Wasted effort, poor


performance, bitterness,
despair
2014 SiriusDecisions.

lead response

@insidesales | #salesacceleration

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

how are we doing as a discipline?

industries aggregated. We find that Healthcare, Retail, and Manufacturing


industries are slowest, while the Telecommunications, Media & Internet,
and Business Services industries are fastest.

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

Response Time (hours: minutes)

Immediate response:

Median First Response Time Overall, By Industry


2:15
2:00
1:45
1:30
1:15
1:00
0:45
0:30
0:15
0:00

2:05

1:55

1:51

1:05

1:02

0:56

0:56
0:44

0:35
0:16

Figure 8

Source for all results: 2014 Lead Response Report,


InsideSales.com, February 2014

how to get more


out of your current leads?
how to get more out of
sales-sourced?
@insidesales | #salesacceleration

sales specialization
Closer

Inbound SDR
Outbound SDR

SE

Client
management

Implementation

insidesales.com specialization model


Leads
Leads from
from
marketing
marketing

MID

SMB
ENT
Inbound lead response reps

Closers

MID

MID

Implementation
ENT

Account mgmt

SEs

Cold calling, prospecting reps


BUSINESS DEVELOPMENT (SDR)

SALES

CLIENT SERVICES

specialization drives results

best practices for


building an SDR
@insidesales | #salesacceleration

sales specialist models

our SDR team


Focused exclusively on contacting inbound
demand generated by marketing
All pooled into one team; inbound leads distributed
round robin

Leads
Leads from
from
marketing
marketing

Inbound lead response reps

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
Cold calling, prospecting reps

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

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a farm league for talent development

Inbound SDR

MID

MID
ENT

Outbound SDR

Closer

Customer account manager

organization and KPIs

@insidesales | #salesacceleration

assigning leads and setting appointments


Leads
Leads from
from
marketing
marketing

All other leads

Appts from inbound leads

SMB closer
Inbound lead response reps
Webinar, event leads

Appts for mid


MID closer

Enterprise leads
Appts for enterprise
Cold calling, prospecting reps
ENT closer

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

Goal: 35-40
TQOs per month
Inbound lead response reps

Goal: 8-12 TQOs


per month
Cold calling, prospecting reps

rewarding for opportunities that close (ACV)

Goal: $40K-$60K bookings per month

Inbound lead response reps

Goal: $75K-$100K bookings per month

Cold calling, prospecting reps


@insidesales | #salesacceleration

equip an SDR team


for success
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communication

gamification

prediction

Sales Acceleration Platform

data visualization

voice | email | sms | fax

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PowerDialer

PowerDialer
Local Presence
Leave Voice Message

PowerDialer
Local Presence
Leave Voice Message
Native Salesforce Reporting

PowerDialer

Typical Approach

Local Presence
Leave Voice Message
Native Salesforce Reporting
Dynamic SEEK Lists
8 AM

9 AM

10 AM

11 AM

12 P

PowerDialer

Dynamic Seek Lists


VP Marketing

Local Presence

10am-11am local time

Leave Voice Message

East coast

Native Salesforce Reporting

Dialed less than 6 times

Dynamic SEEK Lists

Latest trade show


Last dial at least 3 days ago
8 AM

9 AM

10 AM

11 AM

12 P

PowerDialer
Local Presence

100x

more likely to contact

Leave Voice Message


Native Salesforce Reporting
Dynamic SEEK Lists
Immediate Response

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