Editor’s note: This is the first part of a six part e-book on why sales development teams are necessary for growth and how to create one in your organization. This piece was originally published on LinkedIn. You can download the full eBook PDF HERE!
Organizations that deploy Sales Development teams can increase the conversion rate to opportunity from lead by 40%, and increase ARR exponentially. SDRs are the link between marketing and sales. They are one of the most important pieces to building an efficient and scalable revenue machine.
You need a process in place to create consistency year-over-year and generate growth based on a formulaic process, that can be repeated over and over again with confidence.
Sales development teams identify, get in touch with, and then qualify leads who get passed off to a sales person.
If you’re thinking,
“I don’t need a team simply focused on prospecting.”
Here are a few examples to take into account:
- Salesforce added an extra $100M in revenue after deploying a team focused on prospecting
- EchoSign Grew from $0 in revenue in 2006 to $144 million in revenue in 2013 after building out an SDR team
- Responsys Grew 10x from $20 million to $200 million within 5 years of bringing in SDR’s
The proof is in the pudding on this one. Salesforce, EchoSign, and Responsys all realized that in order to achieve the very aggressive IPO-track or $100 million+ revenue growth goals, they couldn’t depend only on inbound leads coming to them through Marketing, they needed a team to focus on prospecting.
In B2B sales, SDR teams have never been more important for growth. A relatively recent Bridge Group study, which surveyed 342 B2B SaaS businesses found that 60% have an in-house SDR team. What’s even more pertinent is that when they excluded companies that were below $5M in revenue, that number jumped to 67%.
Finally, amongst those with an ACV above $100k, that number was at 89%. What each of these figures should tell you is that a team focused primarily on prospecting and building pipeline is integral to success, and can take your company to the next level.
The purpose of this guide is to help startup founders, sales leaders, and operational investors, navigate through an integral phase of business development where a majority of them consistently fail to innovate.
The goal is to let those in the trenches of Sales Development do the talking. I drilled deep into each section from my own experience as the first Sales Development hire at Socedo.
I’ve spent the last year meticulously studying the profession, tinkering with various prospecting strategies, and collaborating with Marketing. I’ve also combined research from leading industry blogs and thought leaders, to tighten it up. In my line of work, I get to work with marketing and sales teams all over the world. And let me tell you — the most successful companies have a process to follow up with and convert leads.
I can’t tell you the amount of times I’ve been on a call with a CEO, marketing manager, or sales leader who does not have a prospecting team or process to follow up with the hundreds of great leads in their database. The following chapters are for them!
You can download the full eBook PDF HERE!