Evolving the Vision: Transforming SDR Roles and Sales Practices
August 13, 2024
In the ever-changing landscape of sales, staying ahead requires continuous adaptation and innovation. The vision and strategy of sales practices have evolved, including a shift in the role of Sales Development Representatives (what we refer to as "SDRs 2.0"), and there is a critical need for sellers to understand marketing concepts.
Meanwhile, there is a significant buzz in the market today about leveraging advancements in Artificial Intelligence and automation to fully replace entire SDR teams. But is this the best approach? This article aims to explore that question, drawing on Profitbl's experience in executing over 30 comprehensive go-to-market campaigns.
Adaptation and Growth
Embracing AI and Automation
Advancements in AI and automation have significantly impacted the sales industry. We recognized early on that while AI can enhance the output of skilled individuals by reducing time spent on administrative tasks, it is not a substitute for the human touch required in crafting effective cold emails. (We are open to being challenged on this, though. If you have A/B test data that suggests otherwise, please reach out to us, and we will revise this paragraph accordingly.) The true value of AI lies in improving the quality of interactions rather than merely increasing their quantity.
Enhancing Personalization
The rise of automation and AI presents an opportunity for those who focus on making client interactions more personal. Leveraging AI to personalize messages, enhance the quality of conversations, and align sales strategies with buyer behavior may lead to better results. However, ensuring that touchpoints are relevant to the specific target is crucial for success and can only be achieved by a human.
We have observed an increasing number of junior SDRs or marketers sending emails that reference data not necessarily aligned with the solution being offered. For example, they might mention in the first line of an email that both they and the prospect attended the same college. Unless the solution being offered is specifically for alumni of that college, this information is not relevant.
Personalizing without genuine intent can come across as insincere, and buyers are often able to recognize this. While AI is excellent for automating and enhancing personalization, maintaining a human touch and ensuring relevancy through technology is essential for better engagement.
Insights Gained Through Experience
Our experience in running over 30 comprehensive go-to-market programs across six countries, two continents, and various niches has shown us that aligning sales strategies with broader market trends and continuously innovating is essential. A key insight we've gained is the importance of effectively integrating AI and automation into sales processes without losing sight of personal engagement—an approach that is deeply embedded in Profitbl's DNA.
Innovation in Sales Practices
Introduction of New Concepts: SDR 2.0 and GTM Engineers
Simplifying the SDR Role
SDRs have traditionally been overburdened with numerous tasks, many of which they haven’t been trained for, leading to decreased effectiveness and frustration for both the sellers and their managers or clients. A study by Salesforce found that SDRs spend less than 30% of their time on actual selling activities because they are also expected to master copywriting, become social selling extroverts, handle list-building, and excel in reporting, among other tasks. This seems like too much for a single role, doesn't it?
That's why at Profitbl, we developed the SDR 2.0 concept, which aims to simplify their role and allow them to focus on cold calling and engaging with decision-makers—activities we’ve identified as the most profitable for both the SDR and the business. This is the one skill that makes everything else easier or unnecessary. By reducing the need for SDRs to juggle numerous tasks, we enable them to spend more time on what they do best and what generates the most revenue: talking to decision-makers.
Companies often need fewer SDRs than they might think, as long as these SDRs are focused on covering the Serviceable Addressable Market. Through the programs we've run, we've seen that, for some companies, this can be achieved within just a few months. It's important to keep in mind that some aspects need to be adjusted according to the right context to make this work, such as:
- Resources must be adapted to the type and niche of the company. Engaging with an enterprise is different from engaging with an SMB or a list of strategic accounts.
- Language, including tone of voice and cultural nuances, needs to be adapted. In a world where many of us work remotely and interact with people from different cultures daily, some flexibility is naturally expected. However, the closer you align with a certain culture, the more engaging you'll be, and the easier it will be to stay top-of-mind with your prospects.
The Rise of GTM Engineers
The concept of Go-to-Market (GTM) Engineers is not entirely new, but it still needs to be fully understood and widely adopted by several companies. In the past, we saw the emergence of Growth Marketers and Growth Hackers. While their definitions vary, these roles generally encompass a broad set of skills, including SEO, Ads, landing page creation, and direct marketing, among others. These roles have been precious for some tech companies that adopted the model early on. However, they do not fully capture what a GTM Engineer represents.
A GTM Engineer is a new role born out of the latest advancements in technology. When it comes to AI and automation, there are two major schools of thought:
- One suggests turning every SDR into a technical wizard on top of their existing responsibilities—a notion we believe is unrealistic.
- The second advocates for separating the tasks and having a new team member leverage the new technology. At Profitbl, we strongly believe in this model.
It’s nearly impossible for every SDR on a team to excel in technical skills, copywriting, social media influence, phone interactions, and strategic thinking all at once. Instead, we decided to transfer some of these responsibilities to a different role.
Our GTM Engineers work closely with sales directors to develop and execute strategies. Their responsibilities include:
- Target Identification:
- Leveraging AI and automation to build and enrich contact lists with hundreds of individuals matching the Ideal Customer Profile (ICP), scoring leads, gathering relevant news articles or PR posts, and enriching accounts with relevant information at scale.
- List Creation:
- Collecting and enriching lead lists using over 50 providers in a waterfall fashion, ensuring that salespeople have the most up-to-date data for quality outreach, including mobile numbers, direct lines, and verified email addresses.
- Messaging Definition:
- Crafting compelling and human-centered messages tailored to the audience (persona, industry, business size, etc.), which is crucial for the success of campaigns.
- Campaign Management:
- Creating email and LinkedIn campaigns for initial touchpoints, saving time for salespeople and enabling them to engage in quality conversations.
- Market Intelligence:
- Quickly and accurately estimate the Total Addressable Market (TAM) and Serviceable Addressable Market (SAM) by leveraging tools like Clay, Ocean.io, and job posting signals.
- The primary objective is not to increase quantity but to eliminate noise and focus on precise targeting. The GTM Engineer’s role is critical in enhancing the quality of outreach efforts, allowing salespeople to concentrate on high-impact activities.
Skills Required for GTM Engineers
The role of a GTM Engineer is where go-to-market strategy, AI, automation, and copywriting skills converge. To be effective, GTM Engineers need to:
- Understand the big picture and what drives revenue for the company.
- Be well-versed in direct marketing and technologically savvy to leverage emerging tools.
- Be highly attentive to details: with great power comes great responsibility. The tools available today allow GTM Engineers to create a targeted list of contacts in 30 minutes, a task that used to take an SDR 10 to 15 hours. Paying close attention to details is crucial.
- Possess empathy and curiosity to deeply understand the ICP and conduct thorough research.
- Have a keen eye for great messaging and strong data analysis skills to continuously improve campaigns. Messaging must resonate with the ICP's urgent and important needs. Iterating on messaging is common, and the GTM Engineer must be adept at analyzing quantitative feedback to achieve message-market fit.
Scaling with Technology
Scaling sales efforts while maintaining high quality requires the strategic use of technology. Automation should handle the manual tasks that top performers typically perform, allowing them to focus on more valuable activities. Technology should always be the enabler, not the strategy itself. The goal is to refine targeting, messaging, and differentiators to improve conversion ratios rather than relying solely on automation. It's important to note that many companies fall into the trap of being swayed by vendors who promise to automate the entire sales outreach. Be cautious!
Common Challenges to Be Aware of
The role of GTM Engineer is currently being diluted by inexperienced marketers who focus on gimmicks, clickbait email titles, and vanity metrics. They prioritize open rates, reply rates, and click rates, often boasting about booking numerous meetings, many of which hold little value. Additionally, it's essential to have clear answers to the following questions:
- Are you meeting with the right people who have decision-making power relevant to your solution?
- Do they have a need that your solution can fulfill?
- Are they actively seeking a solution (consideration stage, decision stage), or are they simply aware they have a problem?
- Do they show up for the meeting?
- Do you have the next steps planned post-meeting, or did they drop off?
- Are they part of a vertical with a high propensity to purchase and eventually generate revenue?
It's crucial to examine the entire sales funnel, all the way to revenue. Without this, you may find yourself overwhelmed with meetings that don’t translate into revenue.
Addressing Client Needs More Effectively
Innovative sales practices like SDR 2.0 and GTM engineering address client needs more effectively by:
- Personalized Outreach:
- Delivering tailored and relevant communications to prospects.
- Data-Driven Insights:
- Utilizing advanced tools and data to refine targeting and messaging.
- Enhanced Efficiency:
- Automating repetitive tasks, allowing sales professionals to focus on building meaningful relationships.
These innovations ensure that sales efforts are both targeted and effective, leading to stronger client relationships and sustainable growth.
Conclusion
The role of SDRs is rapidly evolving, making it increasingly important for sellers to understand and integrate marketing concepts into their approach. By simplifying the SDR role and introducing specialized functions like GTM Engineers, companies can significantly enhance the effectiveness of their sales teams. Strategic use of AI and automation, combined with a focus on personalized and high-quality interactions, can drive substantial improvements in sales performance.
Adapting to these changes and continuously innovating will ensure that your sales efforts remain aligned with market trends and client needs. This alignment is crucial for sustained success in a competitive landscape. Whether you're considering B2B sales outsourcing, software sales outsourcing, or expanding your reach in sales outsourcing across Europe, these practices will be instrumental in helping you achieve your goals. By embracing these strategies, your organization can navigate the complexities of modern sales with greater agility and effectiveness.