SDR VS BDR: What You Should Know

March 3, 2022
Business Development

Sales Development Representatives (SDRs) and Business Development Representatives (BDRs) have become key components within today's sales organizations. But what's the difference between the two? Can we have one without the other? Let's look into the key differences between SDRs vs BDRs.

What is a Sales Development Representative?

Sales Development Representatives are responsible for reaching prospects, communicating with potential buyers, and generating leads for their team. SDRs' main job will be to communicate with candidates to find out if they are a perfect fit. SDRs are responsible for moving leads into the sales pipeline. Their job is focuses on the potential customers and book meetings with them.

Why Are SDRs Important to the Sales Cycle?

SDRs are a crucial component of the sales cycle. Here are a few reasons why: 

  1. Lead generation and qualification

The first step in the sales cycle is lead generation. SDRs are responsible for identifying potential customers and reaching out to them to generate interest in the product or service. They use various tools and techniques such as cold calling, email outreach, and social media to reach out to potential customers.

Once a lead has been generated, SDRs then qualify them to ensure that they are a good fit for the product or service. They do this by asking relevant questions to determine the prospect's level of interest, budget, and decision-making authority. Qualifying leads ensure that the sales team focuses their efforts on the prospects most likely to convert, which saves time and resources. Generating leads is important to the sales process and a great way to get into sales without any prior experience. The role can be demanding on any sales team, so some companies should know the traits to look for when considering hiring a SDR.

  1. Appointment setting

After a lead has been generated and qualified, the next step is to schedule a meeting or call with the sales team. SDRs are responsible for setting appointments and ensuring that both the sales team and the prospect are available at the designated time.

The appointment-setting process requires a certain level of finesse and expertise. SDRs need to communicate effectively with the prospect to ensure that they understand the value of the product or service and the benefits of meeting with the sales team. They also need to be persistent in following up with the prospect to confirm the appointment.

  1. Sales enablement

SDRs also play a crucial role in sales enablement. They are responsible for providing the sales team with the information and tools they need to succeed. This includes market research, competitive intelligence, and insights into prospect behavior.

SDRs also act as a liaison between the sales team and other departments within the organization, such as marketing and product development. They provide feedback on customer needs and pain points, which helps the organization to develop better products and services.

  1. Pipeline management

Finally, SDRs are responsible for managing the sales pipeline. They track the progress of each lead and ensure that they are moving through the pipeline in a timely and efficient manner. This includes identifying bottlenecks and working with the sales team to overcome them.Effective pipeline management ensures that the sales team has a steady stream of qualified leads to work with, which increases their chances of closing deals and achieving their sales targets.

What is a Business Development Representative?

Business Development Representatives, aim to create new business opportunities and add new contacts to the sales pipeline. The process involves out-of-door prospecting or “cold outreach”. A BDR continuously looks for potential prospects in your funnel every day. This can be achieved by cold calling or email and involves coordinating marketing campaigns.

BDRs are generally hired when companies are preparing to grow from a small startup into a thriving business and if inbound leads do not suffice. In the case of businesses that need leads more efficiently than the marketing of digital marketing, BDRs create more opportunities to engage potential buyers.

Why Are BDRs Important to the Sales Cycle?

  1. Relationship Building:

Building and maintaining relationships with potential clients is a key responsibility of BDRs. They work closely with prospects to understand their needs and pain points and provide them with information about the company's products or services that could help solve their problems. This helps establish a relationship of trust and credibility, which is essential for any successful business partnership.

  1. Sales Pipeline Development: 

BDRs are also responsible for developing and nurturing the sales pipeline. They keep track of all the leads they generate and work closely with the sales team to move them through the pipeline. By doing so, they ensure that the sales team has a consistent flow of high-quality leads that are ready to be closed.

  1. Market Intelligence: 

BDRs have a unique perspective on the market, as they are the first point of contact with potential clients. They gather valuable insights into the needs and pain points of prospects, which can be used to improve the company's products or services. They also stay up-to-date with market trends and competitive intelligence, which is crucial for developing a winning sales strategy.

  1. Increased Revenue: 

Ultimately, the role of BDRs is to generate revenue for the company. By identifying and developing new business opportunities, BDRs help to grow the company's customer base and increase its revenue. They are an essential part of any organization's sales strategy, as they help to drive growth and ensure long-term success.

Should I Outsource My SDRs and BDRs? 

Depending on what your goals are, your sales strategy will be different compared to other companies. Having an internal BDR and SDR on your team is beneficial to growing your business. But it also requires you to take time to hire the best candidates, train them, and provide them with the tools or tech for them to succeed. It's important to consider whether you're looking to build your sales team internally or if you should outsource your SDR and BDR needs.

Outsourcing BDRs

If you are lacking in the technology, tools, and expertise to train your BDRs, outsourcing for the role could be beneficial for you. Here are some pros and cons of outsourcing your BDRs.

Pros of Outsourcing a BDR:

  1. Cost Savings: 

One of the primary benefits of outsourcing a BDR is cost savings. Instead of hiring and training an in-house BDR, you can leverage the expertise of a third-party provider who can provide trained and experienced BDRs at a fraction of the cost.

  1. Flexibility: 

Outsourcing a BDR can offer flexibility, especially when it comes to scaling up or down. If you need to increase or decrease the number of BDRs, you can easily do so without any long-term commitments or expensive hiring processes.

  1. Access to Expertise: 

Outsourcing a BDR provides access to a team of experts who have extensive experience in lead generation, sales, and customer engagement. This can be especially valuable if you're a small or medium-sized business that doesn't have the resources to build an in-house team of experts.

  1. Improved Efficiency: 

With an outsourced BDR team, you can focus on your core business operations while the experts handle your lead generation and sales processes. This can improve your overall efficiency and allow you to focus on other areas of your business that need attention.

Cons of Outsourcing a BDR:

  1. Lack of Control: 

Outsourcing a BDR can result in a lack of control over the process, including the quality of leads generated, sales tactics used, and overall customer engagement. This can be especially concerning for businesses that are highly focused on their brand and reputation.

  1. Communication Barriers:

Communication is critical in any sales process, and outsourcing a BDR can result in communication barriers that could hinder the success of the sales process. It can be challenging to ensure that the outsourced team understands your brand, message, and target audience, which can result in a misalignment in the sales process.

  1. Cultural Differences: 

Outsourcing a BDR can also create challenges due to cultural differences. For example, different countries have different business cultures, and these differences could affect the sales process. Additionally, language barriers could lead to communication issues and misunderstandings.

  1. Security Risks: 

Outsourcing a BDR can create security risks as you will need to provide access to your customer data and other confidential information to the outsourced team. This can be concerning for businesses that deal with sensitive information.

Outsourcing a BDR can be a cost-effective and efficient way to generate more leads and sales for your business. However, it's important to consider the potential drawbacks and ensure that you choose the right outsourcing partner. If you're considering outsourcing your BDR, make sure to weigh the pros and cons and consider the potential impact on your business.

Outsourcing SDRs

If you are looking to build up your pipeline, and discover contacts, without the cost of hiring internally, an outsourced SDR team can be very beneficial to your business. Here are some pros and cons of outsourcing your SDRs:

Pros of Outsourcing an SDR:

  1. Cost Savings: 

Outsourcing an SDR can be a cost-effective solution for companies that want to save money on recruitment, training, and employee benefits. By outsourcing, you can access a team of experienced SDRs without incurring the costs associated with hiring and training an in-house team.

  1. Scalability: 

Outsourcing an SDR provides the flexibility to scale up or down based on your business needs. You can easily adjust the number of SDRs working on your account without having to worry about the time and expense of recruiting and training new staff.

  1. Access to Expertise: 

By outsourcing your SDR function, you gain access to a team of experts who have experience in generating qualified leads and sales. This can be especially valuable for smaller businesses that lack the resources to hire and train an in-house team.

  1. Improved Efficiency: 

Outsourcing an SDR can lead to improved efficiency in your lead generation process. You can focus on other areas of your business, while the outsourced team handles the time-consuming and tedious task of lead generation.

Cons of Outsourcing an SDR:

  1. Quality Control:

When you outsource your SDR function, you may have less control over the quality of the leads generated. It can be difficult to ensure that the outsourced team understands your target audience and messaging, which could result in low-quality leads and missed opportunities.

  1. Communication Challenges: 

Communication can be a challenge when outsourcing your SDR function. The outsourced team may not be familiar with your company culture, communication style, or preferred methods of communication. This can result in misunderstandings and missed opportunities.

  1. Security Risks: 

Outsourcing your SDR function can also pose security risks. You will need to provide the outsourced team with access to your customer data and other confidential information. This can be a concern for businesses that deal with sensitive information.

  1. Cultural Differences: 

Cultural differences can create challenges when outsourcing your SDR function. The outsourced team may be located in a different country and have a different business culture, which could affect their understanding of your target audience and messaging.

Outsourcing your SDR function can be a cost-effective and efficient way to improve your lead generation and qualification processes. However, it's important to consider the potential drawbacks and ensure that you choose the right outsourcing partner. If you're considering outsourcing to a great SDR/BDR service and are ready to invest in a great SDR team, contact Key Outreach today to learn about our lead generation services and how we've helped set over 400 meetings in a month.

While sales development representatives (SDRs) and business development representatives (BDRs) have different roles and responsibilities, both are essential pieces to the sales process. Choosing the right mix of SDRs and BDRs will depend on your business goals and sales strategy. By understanding the unique strengths of each role and how they work together, businesses can optimize their sales process and achieve greater success.

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