Why Outsource Your SDR Team
As a head of sales for a tech company, you want to spend more time closing the deal rather than generating leads and prospecting. Sound like you? Then it may be time to think about outsourcing your SDR team. Read on to find out exactly what an outsourced SDR team can do and how it can fit into your organization.
What does an SDR Team Do?
An SDR (Sales Development Representative) team is dedicated exclusively to top-of-the-funnel activities that contribute to your pipeline. Their job is to generate outbound leads and cultivate cold leads. Great examples of what an SDR team can do is to follow-up on people who have downloaded content from your website, in addition to calling into a targeted list. This frees up sales teams to focus more on closing deals. SDR teams can set appointments with contacts while they are on the phone, paving the way for you or one of your team members to dazzle them with your company’s products and services. What’s more, SDR teams get a true sense of whether or not your marketing and sales messaging is actually working, and can give your team timely feedback.
SDRs research potential leads thoroughly, especially if they are working from a targeted list. They can uncover potential pain points quickly and pass them along to the sales team sooner. This sets your team up for success because the SDR team ensures that highly qualified and interested leads move through the sales cycle at a faster pace.
Cold calling isn’t dead — in fact, it’s one of the best ways to reach your exact target buyer.
The problem is that most tech companies do not have the bandwidth to research and cold call leads.
That leaves many potential opportunities withering on the vine. But you and your sales team can’t spend time on the phone when you should be working on closing deals. And it’s possible you’re so busy closing deals that you don’t even have a cold calling strategy in place. This is why SDR teams are crucial.
Outsourcing an SDR team
When you outsource an SDR team, you gain access to a group of thoroughly vetted and trained professionals. They concentrate exclusively on lead development, cold calling and setting up appointments for your sales team. They know how to complete all of the legwork and find the most qualified leads. When you put professionals on the phone with your leads early on in the process, the more likely it is you can accelerate the sales cycle.
On the flip side, when you hire internally, you’re generally dealing with newbies. These hires usually aren’t just new to your company, they’re often new to calling. They might have stage fright or be hesitant to pick up the phone. This hesitation can cost you big down the line.
While your outsourced SDR team is researching pain points, following up on people who have downloaded content, generating qualified leads, and setting up appointments, you are able to focus on other critical sales activities. A professional SDR team is also comfortable with many industries and technologies. In other words, they can have meaningful conversations with decision-makers right away. Because of this, onboarding and training will be minimal and you will start to see results much faster than if you are working with a team who does not have that experience.
Reduced hiring costs
When you outsource your SDR team, you significantly reduce in-house hiring and training costs. The hiring process is dramatically simplified and new employee costs are kept down. Conservative estimates state that hiring an in-house SDR rep can cost as much as $100,000 during the first year. Also, the average turnover for an in-house SDR is only 14 months–barely more than a year. This pushes the cost of having an in-house SDR team even higher. That’s why many companies find it more cost-effective to outsource their SDR teams.
And the SDRs that do last? They want to get promoted. And they likely want to do more than traditional SDR work–they want to start closing deals. That means you’re back to square one with finding new SDRs and training new hires.
Simplified or eliminated training process
The training process for in-house SDR teams is such a drain on internal resources.
First, you have to develop the training.
Then you have to invest in the technology to support those training efforts, including the time it takes to set up those training sessions. When SDRs are training, they’re not on the phones.That means they’re not setting up valuable meetings for your sales team.
In fact, HubSpot reports that it takes an average of 3.3 months for an SDR to reach full productivity. And your company will be operating at a loss during that time.
Familiarity with the infrastructure
On the other hand, outsourcing an SDR team that works in their own space eliminates or greatly reduces your training costs. The members of an outsourced SDR team are experienced and pre-trained. They’re already familiar with the technologies that their company provides.
And if turnover does happen? It’s not your problem to deal with. You continue to benefit from having dedicated SDRs without dealing with the renewed headache of hiring and onboarding.
Focus on what’s important
The right SDR team provides significant benefits almost immediately. Onboarding is minimal. So is training. A professional SDR team will start asking you the right questions and help you uncover ideas you may not have thought of to help you get to the right prospects for your product or service. What this does is empower you to focus your attention where it needs to be: Selling.
Bottom line, a professional outsourced SDR team will already be up and running far sooner than hiring an internal SDR team for a fraction of the cost.
DemandZEN is not just a leader in SDR solutions for software and technology companies. We’re an end-to-end demand generation company. We save our clients valuable time and money by providing the expertise of fully trained and vetted SDR professionals–our cold calling soccer moms–as well as digital marketers with a knack for testing–our marketing ninjas. To learn more about how DemandZEN can help your sales and marketing teams get better results, please contact us.
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Welcome To DemandZEN
DemandZEN specializes in Account-Based Demand Generation and solving the challenges around finding, engaging and converting target accounts into real opportunities for B2B Technology and Services companies.