There are a variety of roles in sales. Each role contributes to a company’s revenue operations. The Sales Development Representative (SDR) is one role that's particularly important.
A Sales Development Representative fill sales funnels with leads. They also follow up to help qualify those leads and nurture them. As such, the SDR lays the foundation for any sales system.
What is an SDR?
An SDR handles the early stages of the sales process. Their main job isn't to close deals, but rather to qualify leads.
They contact possible clients through phone calls, emails, and social media platforms. Then they assess the client's interest level and see if the client needs what the company offers, qualifying the lead.
An SDR often works together with marketing channel owners. They may directly use sales tools and influence marketing strategy, too. Their role overlaps with, but is different to, a business development rep’s.
Why is an SDR Important?
An SDR provides leads. This helps senior sales professionals focus on driving revenue through the rest of the sales cycle. This results in a better sales process with higher conversion rates and less time wasted.
Another reason SDRs are important is their department-spanning ability. For example, a company’s marketing department might make a list of broad leads. The SDR then identifies the high-quality ones which reps can then reach out to. This is a key role.
An SDR is most important in businesses with long sales cycles or expensive offers. The higher the opportunity cost of failed sales, the more important leads become. This makes an SDR’s role even more important than usual.
The Key Responsibilities of an SDR
An SDR’s responsibilities include:
Lead Generation
Using a combination of tools, databases, and inbound marketing leads to identify potential customers.
Lead Qualification
Evaluating leads based on specific criteria to see if potential clients actually need the company's product or service.
Outreach and Appointment Setting
Engaging with leads through cold calls, individual emails, and other communication methods. Scheduling client meetings with the company's sales team where appropriate.
Feedback and Collaboration
Working with marketing teams to improve lead generation strategies and provides the sales team with leads.
SDR vs. Account Executive
SDRs and Account Executives (AEs) are both essential parts of the sales process. However, they have different roles in the sales funnel.
SDRs work at the top of the sales funnel, generating and qualifying leads. Meanwhile, the job of an AE is to handle qualified leads, guide them through the sales process, and then close the deal.
Simply put, SDRs search for opportunities and AEs close deals. Compensation also differs between the two roles. SDRs often earn a base salary with performance bonuses. AEs usually earn more from sales commissions.
Challenges Faced by Sales Development Representatives
An SDR will face many challenges in their career. People don’t always respond well to cold calls and emails, so SDRs face rejection as part of their work. They must also keep up with new sales technologies, using the best tools available for lead generation.
Another factor is that it can be challenging to work with a constantly rotating roster of leads. In B2B especially, being an SDR can mean figuring out prospects’ changing needs all the time.
Last but not least, quality vs quantity is a challenge. It’s not only the number of leads that matters, but also the quality of leads. At the same time, what’s incentivized is often the total lead number - which can make life tough for an SDR.
