Sales development

Last updated

Sales development is an organization that sits between the marketing and sales functions of a business and is in charge of the front-end of the sales cycle: identifying, connecting with, and qualifying leads. Simply put, this organization is tasked with setting up qualified meetings between a salesperson and a potential buyer with a high probability of purchasing a product. A lead that meets this criterion is called a Sales Qualified Lead (SQL). Once a lead is determined to be qualified, it is then passed to a salesperson, typically an Account Executive, who takes ownership of the lead and conducts the rest of the sales process.

Contents

History

The concept of sales development can be traced back as far as the early 1980s, with roots at Oracle. The original Oracle Direct team (DMD), started by Anneke Seley in the early 1980s, is among the earliest sales development teams on record. Throughout the 1980s and 1990s, it has been one of the key organizational strategies for most famous B2B technology companies, including Sun Microsystems, and Cisco. [1] In the late 1990s the sales development role was developed within Computer Associates as a bridge between sales and marketing groups with an emphasis on direct/indirect Channel partner support

Process

Types of leads

Sales development handles two types of leads. The first, often referred to as an inbound lead, is generated by marketing and sent to a Sales Development Representative (SDR). The SDR will then engage that lead, qualify their interest in purchasing a product and determine whether it is worth spending further resources selling to this lead. If an SDR determines a lead is worth spending sales resources on, the lead is handed off to a salesperson to conduct the rest of the sales process. The second type of lead, often referred to as an outbound prospect, is a lead an SDR discovers by identifying potential buyers that would benefit from the product the SDR is selling. The universe of potential buyers a business can sell to is called a total addressable market (TAM). The criteria for a customer that a business has defined as an ideal fit is often described in an Ideal Customer Profile (ICP), which an SDR will use to identify outbound prospects.

SDR outreach

Once an SDR has identified the leads, whether inbound or outbound, that they wish to engage in a sales discussion, they must find a way to connect with that lead. Traditionally, this is done through phone-based outreach, which remains the primary channel by which most teams attempt to connect to leads. The email has become the other essential channel by which an SDR attempts to connect with a lead. In recent years, social media has become more prevalent, as an increasing number of teams use LinkedIn, Twitter, and other social media platforms to connect with buyers. Most SDRs teams combine phone, email, and social media outreach in a multi-channel touch pattern to improve the probability that they will connect with their buyers. Outreach to a specific lead is often guided by a touch pattern, which is a cadence of touchpoints at specific intervals over a defined period of time before an SDR ceases outreach and moves on to another lead.

The typical output of SDR's work is a qualified meeting or appointment setting, scheduled for an inside sales team member, usually an account executive. The most common quota element for SDR's is the held meeting, which bonus payments are set to as part of On-Target Earnings (OTE) compensation plans for SDR's.[ citation needed ]

Connecting with the buyer

Successful SDR outreach results in connecting with a lead. Connections can occur in any of the channels the SDR is using for outreach: phone, email, or social media. If over a channel other than the phone, an SDR will schedule a phone call, in which the SDR will qualify the lead and interest them in moving forward in the sales process with a salesperson. Qualification criteria are most often described in a Sales Qualified Lead (SQL) definition, which outlines the minimum information an SDR must gather before advancing a lead to the next step in the sales process with a salesperson. Most commonly, the criteria include information on available funds the lead has for a product (budget), the lead's ability to make a decision on purchasing a product (authority), how the lead need and the company will benefit from purchasing the product (need), and when the lead will be able to make a decision to buy (timeline).

Once an SDR gathers enough information to meet the criteria in the SQL definition, and the lead agrees to take the next step in the sales process, an SDR will schedule the next meeting between the lead and a salesperson and hand ownership off to that salesperson, who then conducts the rest of the sales process.

Related Research Articles

<span class="mw-page-title-main">Call centre</span> Office dealing with a large volume of enquiries by telephone

A call centre or call center is a managed capability that can be centralised or remote that is used for receiving or transmitting a large volume of enquiries by telephone. An inbound call centre is operated by a company to administer incoming product or service support or information inquiries from consumers. Outbound call centres are usually operated for sales purposes such as telemarketing, for solicitation of charitable or political donations, debt collection, market research, emergency notifications, and urgent/critical needs blood banks. A contact centre is a further extension of call centres telephony based capabilities, administers centralised handling of individual communications, including letters, faxes, live support software, social media, instant message, and email.

<span class="mw-page-title-main">Sales</span> Activities related to the exchange of goods

Sales are activities related to selling or the number of goods sold in a given targeted time period. The delivery of a service for a cost is also considered a sale. A period during which goods are sold for a reduced price may also be referred to as a "sale".

<span class="mw-page-title-main">Telemarketing</span> Method of direct marketing

Telemarketing is a method of direct marketing in which a salesperson solicits prospective customers to buy products, subscriptions or services, either over the phone or through a subsequent face to face or web conferencing appointment scheduled during the call. Telemarketing can also include recorded sales pitches programmed to be played over the phone via automatic dialing.

Sales promotion is one of the elements of the promotional mix. The primary elements in the promotional mix are advertising, personal selling, direct marketing and publicity/public relations. Sales promotion uses both media and non-media marketing communications for a pre-determined, limited time to increase consumer demand, stimulate market demand or improve product availability. Examples include contests, coupons, freebies, loss leaders, point of purchase displays, premiums, prizes, product samples, and rebates.

<span class="mw-page-title-main">Direct marketing</span> Model of communicating discounts and other sales offers

Direct marketing is a form of communicating an offer, where organizations communicate directly to a pre-selected customer and supply a method for a direct response. Among practitioners, it is also known as direct response marketing. In contrast to direct marketing, advertising is more of a mass-message nature.

Marketing communications refers to the use of different marketing channels and tools in combination. Marketing communication channels focus on how businesses communicate a message to its desired market, or the market in general. It is also in charge of the internal communications of the organization. Marketing communication tools include advertising, personal selling, direct marketing, sponsorship, communication, public relations, social media, customer journey and promotion.

Purchasing is the procurement process a business or organization uses to acquire goods or services to accomplish its goals. Although there are several organizations that attempt to set standards in the purchasing process, processes can vary greatly between organizations.

Email filtering is the processing of email to organize it according to specified criteria. The term can apply to the intervention of human intelligence, but most often refers to the automatic processing of messages at an SMTP server, possibly applying anti-spam techniques. Filtering can be applied to incoming emails as well as to outgoing ones.

<span class="mw-page-title-main">Personal selling</span> When a sales representative meets with a potential client for the purpose of transacting a sale

Personal selling occurs when a sales representative meets with a potential client for the purpose of transacting a sale. Many sales representatives rely on a sequential sales process that typically includes nine steps. Some sales representatives develop scripts for all or part of the sales process. The sales process can be used in face-to-face encounters and in telemarketing.

In marketing, lead generation is the process of creating consumer interest or inquiry into the products or services of a business. A lead is the contact information and, in some cases, demographic information of a customer who is interested in a specific product or service.

Industrial marketing or business-to-business marketing is the marketing of goods and services by one business to another. Industrial goods are those an industry uses to produce an end product from one or more raw material. The term, industrial marketing has largely been replaced by the term B2B marketing.

Lead management is a set of methodologies, systems, and practices designed to generate new potential business clientele, generally operated through a variety of marketing campaigns or programs. Lead management facilitates a business's connection between its outgoing consumer advertising and the responses to that advertising. These processes are designed for business-to-business and direct-to-consumer strategies. Lead management is in many cases a precursor to sales management, customer relationship management and customer experience management. This critical connectivity facilitates business profitability through the acquisition of new customers, selling to existing customers, and creating a market brand. This process has also accurately been referred to as customer acquisition management.

Lead scoring is a methodology used to rank prospects against a scale that represents the perceived value each lead represents to the organization. The resulting score is used to determine which leads a receiving function will engage, in order of priority.

Demand generation is the focus of targeted marketing programs to drive awareness and interest in a company's products and/or services. Commonly used in business-to-business, business-to-government, or longer business-to-consumer sales cycles, demand generation involves multiple areas of marketing and is really the marriage of marketing programs coupled with a structured sales process.

Interruption marketing or outbound marketing is promoting a product through continued advertising, promotions, public relations and sales. It's the opposite of permission marketing. It is considered to be an annoying version of the traditional way of doing marketing whereby companies focus on finding customers through advertising.

Social CRM is the use of social media services, techniques and technology to enable organizations to engage with their customers.

Voice-based marketing automation (VBMA) refers to software platforms designed for marketing, sales, and support departments to measure, manage, and automate their phone conversations. Marketing departments, sales teams, and support agents use VBMA to initiate, manage, monitor, track, route, record, and report on sales and support phone conversations.

Marketing automation refers to software platforms and technologies designed for marketing departments and organizations automate repetitive tasks and consolidate multi-channel interactions, tracking and web analytics, lead scoring, campaign management and reporting into one system. It often integrates with customer relationship management (CRM) and customer data platform (CDP) software.

Social selling is the process of developing relationships as part of the sales process. Today this often takes place via social networks such as LinkedIn, Twitter, Facebook, and Pinterest, but can take place either online or offline. Examples of social selling techniques include sharing relevant content, interacting directly with potential buyers and customers, personal branding, and social listening. Social Selling is gaining popularity in a variety of industries, though it is used primarily for B2B (business-to-business) selling or highly considered consumer purchases. C2C companies have been using social selling techniques since far before the Internet existed. B2B and B2C companies are now adopting many of those techniques as they are translated to social media platforms.

In marketing, contact center telephony is the communication and collaboration system used by businesses to either manage high volumes of inbound queries or outbound telephone calls keeping their workforce or agents productive and in control to serve or acquire customers. This business communication system is an extension of computer telephony integration (CTI).

References

  1. "Sales Development Team: Most Important Sales Process Innovation in 10 Years". 7 April 2014.