Top SDR Metrics for B2B Sales and Marketing

For a company to generate consistent income, it must have a strong sales development team in place.

SDRs are responsible for 30–45% of a company’s new business income, demonstrating the importance of the function and the stakes involved in doing it well.

Why should you hire Sales Development Reps (SDRs)?

So, what exactly is a special drawing right, and why should you worry about it? Inside salespeople that are entirely concerned with finding new leads and guiding them along the sales pipeline are known as Sales Development Representatives (SDRs). A sales executive or B2B salesperson works to finalize agreements once a lead has been qualified according to the company’s criteria. An SDR’s primary responsibility is to guide a lead through the sales process’s first steps.

Engaging customers before they feel the need to contact a seller increases a sales team’s odds of meeting their quota by 56 percent. The goal of a sales development team, or SDR, is to initiate contact with potential customers and begin developing a rapport with them long before they are ready to make a purchase. An SDR’s responsibilities also include making contact with and qualifying potential new leads. Therefore, an SDR is typically a prospect’s initial point of contact with your organization.

A sales development organization’s conversion rate can be categorized into three categories:

Conversion rate from marketing qualified lead (MQL) to sales qualified lead (SQL) refers to how quickly SDRs transform unqualified leads into MQLs using the company’s qualifying criteria.

The rate at which qualifying leads enter the sales funnel (SQL to opportunity).

The rate at which leads produced by SDRs are converted into concluded deals

SDRs need extensive expertise in a number of areas, including but not limited to: communication; time management;

  • Prospecting
  • The prospect’s industry
  • Your organization’s sales process
  • Your product and how it can add value to other businesses
  • The right questions to ask on a call
  • Qualifying and disqualifying leads
  • Other compelling events to make for good conversation
  • How to get the prospect to speak NOW

Pipeline Generation

The SDR role has been more valued than ever, and the competition to attract high-quality SDRs is tough, as our analysis of data from more than 500 organizations we’ve assisted over the past decade shows that SDRs generate 30–45 percent of the sales funnel for B2B SaaS businesses.

According to research by The Bridge Group, the average annual pipeline value created per SDR is $3 million. Some businesses generate less than $750K in pipeline per SDR yearly, while others generate more than $10M.

Now that we know why SDRs are crucial to a company’s success, what type of activity and output you can anticipate from a Sales Development team, and which KPIs to track, let’s dive into the SDR metrics that really matter.

Inbound SDR Metrics

We must first differentiate between Inbound and Outbound Representatives. Follow-up with marketing-generated leads that require more qualification and analysis to see whether they are a viable customer and if they meet your company’s ICP will be the primary emphasis of inbound SDRs (also known as BDRs, LDRs, or MDRs; see glossary below for decoding acronyms).

Inbound SDRs can effectively manage 15 leads per day. Downloads of white papers, requests for product demonstrations, visitors to events, emails, online forms filled out, webinar signups, etc. all qualify as potential customers.

SDR metrics and KPIs

It is crucial to establish measurable goals and objectives for sales development teams to achieve in order to measure their progress and prove the value they add to the bottom line.

When it comes to identifying the most useful SDR metrics, where should we go first?

The solution is straightforward: income should always be your first focus.

Flipping the sales funnel

Flipping the marketing and sales funnel and calculating the conversion rates across stages allows businesses to establish concrete goals for their sales development teams in a reasonably predictable manner.

To illustrate how to work it out backward, here is an example:

One possible revenue goal for a business is $1 million. With an average contract size of $100,000, the firm must close 10 deals every quarter to meet its target.

The company needs $4 million in the pipeline to create $1 million in revenue if its opportunity-to-close rate is 25%.

To reach their $4 million pipeline goal, they must first identify their pipeline sources.

Let’s suppose, for the sake of argument, that the Inbound SDR team will be responsible for qualifying and converting leads created by the marketing department, and that the outbound SDR team will be responsible for generating the other 50% of the pipeline.

This implies that the combined goal for both the outward and incoming teams is $2 million.

If businesses know how much pipeline each team is responsible for creating, they can determine how many sales interactions must take place.

Activity levels of outbound SDRs

In order for outbound SDRs to complete their monthly quota of 15 meetings, a certain number of touchpoints and engagements must be carried out every day.

Sales development: What you can expect

Understanding how to establish SDR measurements and KPIs that may assist identify what success looks like and what levels of productivity can be expected from SDR teams is crucial given the critical role sales development teams play in creating sales pipelines.

On average, outbound SDRs should be able to schedule 15 meetings per month, whereas inbound teams may expect conversion rates that range widely based on factors such as lead quality and quality of intent (5 percent to 10 percent conversion for low-intent leads, and 75 percent to 80 percent for high-intent leads).

A Factor of Quality vs. a Factor of Quantity

Putting together an SDR team requires significant effort. There is more to do after you have a team in place, such as matching sales development representatives with salespeople, keeping tabs on key performance indicators for peak sales performance, and eventually reaching a point where a certain percentage of nurtured leads are closed every month. The importance of an SDR team to your company may be summed up as follows:

High-quality leads from the excellent prospecting result in meetings with customers that fit your desired customer profile and a better show rate.

Your salespeople will have more opportunities to close deals and generate more income if your show rate is better.

More revenue = business growth.

For exclusive insight into the B2B SaaS industry, reach us now!

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