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22/07/23
10
min read

Do you need (more) opportunities in your sales pipeline from cold outbound strategies?

Ok then, let’s evaluate your options in simple terms:

  1. Hire a Sales Development Representative (SDR) on the payroll.
  2. Work with an Outbound Sales Agency to get the job done.
  3. Have faith in the Gods of Inbound (it’s a surprise at the end)

So, as an Outbound Sales Agency, we will deeply analyse these strategies to assist your quest when searching for business growth. This is our take on the different options of hiring or outsourcing SDRs focused on 4 main topics - Costs, Time, Expertise, and Insights - to understand the impacts of the two paths. Being aware of some challenges companies face when Outsourcing, we will highlight those too and show you how we overcome them.

Costs

The first aspect that comes to mind when considering hiring is the salary on the proposal, and this goes both ways for the employee and the employer. Adding a new team member will also add a monthly cost to the company’s accounts (taxes). Plus, bonus and all the other benefits, such as resources, insurance, … Let’s not forget the multiple tools and platforms (tech stack) needed nowadays to be successful in a very competitive sales world (we all know free subscriptions are never enough).

Average SDR Monthly Cost:

Feel free to check our services - always good to have all cards on the table.

Besides salary and benefits allocated to a new hire, it’s also important to mention all the costs and resources necessary for the hiring, onboarding and training. Even if you don’t ‘pay’ anything for these stages, seniors are investing their precious time - so that the new internal SDR could bring value as soon as possible - instead of focusing on other valuable tasks. What’s the problem here? The average tenure of an SDR is 18 months, meaning that your investment will go down the drain, probably when the SDR is starting to become its most productive version. Now, multiply this for all the SDRs on your team. Our mindset is different: achieve partnership extensions and focus on long-term relationships.

At this stage, it’s important to mention that, on average, companies look for junior SDRs, meaning they will need time to learn about the business, which is fine. But, their work is less efficient at the beginning - translating to maths, the cost per meeting will be very high, and will only decrease with time. Related to this, working with us is a clear advantage because you’ll pay per call/meeting - performance based!

Finally, a significant weight in the balance is the remote working aspect, which avoids costs related to in-office tasks, plus relocation fees and extras. Our team works remotely, which means you don’t need to worry about the costs of buying table tennis balls and rackets.

Time

SDRs hiring processes are time-consuming and demanding for people’s calendars. After all the CVs you’ll analyse (+ application steps), you still need to book interviews with the chosen candidates; entering now the problem of finding a time suitable for both sides, the interviewer and the interviewee. Shorten this process to a couple of meetings with us, where we can brainstorm your sales processes and plans - you even will have spare time to do due diligence.

Ok, you finally hired the new SDR, but do not get ahead of yourself. There are still two stages ahead: onboarding and training/coaching. A newly hired SDR only starts successfully contributing to Account Executives (AEs) with valuable leads, and qualified demos after 3 months (on average) - especially if it’s a junior. Years of experience can shorten the onboarding time, that’s correct, but don’t underestimate the process of adapting to business methods and company culture. Agencies like us have streamlined onboarding processes, which allow you to smoothly follow rather than plan and always be on top of it. Just ride the waves.

Yes, it is a considerable time investment, but by hiring SDRs, you’re expanding your team and adding valuable members to the organisation - that is right! But let’s not forget the cold, harsh truth of employee churn (18 months), or in the worst-case scenario, the onboarding/training phase is interrupted by any other reason (employee dropout, early poor fit, …). We respect contracts, and during this period, our priority is just one: create as much value in your sales pipeline as possible.

Ok then, you decide not to hire and divide responsibilities within your sales department to compensate for not having a dedicated SDR prospecting. Is this the solution? Instead of focusing on closing deals, the rest of the sales team will now have more tasks, not to mention all the hours (or even days) they need to dedicate to finding and qualifying leads. In small teams, where there’s an urgency to precisely allocate the limited resources in the most efficient way possible, this will be impactful.

And here’s more not-so-great news:

  • 42% of salespeople say prospecting is the most challenging part of the process.
    (source: HubSpot)

Why not relieve your team members from this full responsibility and team up with us on your top of the sales funnel tasks?

Let's mix up your inputs with our expertise. Or even, if you're undecided, why not have 1 SDR and 1 outsourced SDR? It can help you understand the benefits of both (70% of our clients have internal SDRs and leverage our expertise to add additional value in the pipeline).

Experience

A designed structure funnel is necessary to comprehend the complex process of sales. Each stage should have different specialists with specific skills - SDRs initiate this path by generating and qualifying leads for the next step. When working with outsourced SDRs, you gain a specialised team that knows what works and what doesn’t in outbound sales, focused exclusively on valuable prospects. In our case, we developed a relevant network in diverse industries and with various clients, plus improved our approaches along the way (trying and failing were a big part of the learning process).

There are specific methods, practices, and even tools that only SDRs dominate because if that’s not the case, results will not come. Therefore there will be no leads to go forward. We might say we have a specific ‘language’ to enhance prospects’ interest. Sometimes it only appears after a detailed and carefully implemented follow-up.

  • 48% of salespeople never even make a single follow-up attempt.
  • 44% of salespeople give up after one follow-up call.
  • 60% of customers say “no” four times before saying “yes”.

(source: HubSpot)

It requires patience, training, dedication, and knowledge, but this is our ‘world’ - we know what we are doing, trust us.

Even related to experience, let's consider one final aspect that covers the other two mentioned above - most inside SDRs are juniors beginning their sales career. In these cases, they still aren't comfortable with the specific ‘language’ to enhance prospects’ interest, nor dominate the “do’s“ and “don'ts“ of lead generation processes. In addition to this, problems in internal communication can also surge due to the lack of experience with this ‘language’. For example, in the reports (it’s not as simple as copy-pasting), you'll need to interpret results and develop action plans. The main problem is as they get better and more familiar, their goal is to be promoted and move on to the next role. Our team counts 10+ years of experience in SDR tasks and continues to learn and improve.

Insights

We like to name this category ‘fresh minds’ because, as it suggests, an outsourced SDR team is a combination of creative inputs added to the whiteboard of ideas.

There are 2 paths to follow:

A. Include the outsourced SDRs in ongoing processes, adding new insights and inputs.

  • Best case scenario: you gained new efficient strategies to start implementing by the rest of the team and including them for new hires.
  • Worst case scenario: you cement your decision, recognising that your ‘old’ approaches are more efficient than ‘new’ ones.

B. Give them the authority to try new processes, products, markets, ...

  • Best case scenario: due to SDRaaS's quick and comfortable adaptability to new business, you’ll have more qualified leads and meetings booked.
  • Worst case scenario: you don’t achieve quota, but now you know probably there’s no room for new strategies, eliminating this scenario.

We value your input and expertise, incorporating them into our approaches. Regardless of the path you choose, for us, the mindset is always the same: an extension of your team. Something important to add here - based on what we’ve seen - a qualified lead can be different in a company between SDRs and Account Executives. This misunderstanding can lead to internal conflicts and poor team chemistry. Our initial focus is to perfectly define your ICP (Ideal Customer Profile) and what you consider a qualified demo.

Outsourcing

From our experience, companies still complain that despite an Outbound Agency having more expertise for a lower price, they're still likely less dedicated compared to an Internal Rep (in-house SDR) - focused on your cause only and is always available. So, there’s always uncertainty about outsourcing because of the feeling of less commitment to your business when you’re not part of the organisation. Knowing this and intending to tackle it, we extend our dedication and availability beyond pre-defined clients’ sync meetings. So, every time is necessary to adapt, improve, or change an approach - we can immediately implement it due to our close relationship with the clients, which is always one of our goals.

And finally, probably one of the most crucial topics is data sharing. When working with sales agencies, enterprises leave the faith of their business in others’ hands. And this is when and where questions start to emerge:

  • How do we know if they are doing a good job?
  • Are we getting the expected results?
  • Is this partnership successful?

Answer: Share all the data! 

Not only do we do that, as well as integrate it with your CRM, making it seamless and allowing us to provide insights and action plans. Everything during meetings where both sides can brainstorm and define what’s next. Communication and teamwork are essential!

To conclude...

Outsourcing an SDR (or SDRaaS company) can be challenging and time-consuming, just like an in-house recruitment process. You’ll need to connect perfectly with the new partner because they will start to be part of your business, meaning your success is their success. So, schedule the necessary meetings to ensure everything is aligned, even before it begins. Also, define an onboarding plan structure to get them levelheaded with the culture, product, target (ICP - ideal customer profile) and goals to start the prospect outbound as soon as possible.

Researching to get valuable information - it’s a good start.

At Revenue Precision, we’re proud to say that we can offer you an extra option to get (more) opportunities in your sales pipeline from cold outbound strategies - the surprise third option mentioned at the beginning.

3. Mix it up! - your in-house SDRs + our expert outsourcing team.

Finding a perfect match with SDR as a service (SDRaaS) can be challenging, but we’re here to help you create more opportunities in your pipeline.

Written by
Tomás Silva