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Sales development representatives (SDRs) play a critical role in the growth of any company by identifying and qualifying leads, scheduling appointments and demos, and nurturing relationships with potential customers. However, managing and training an in-house SDR team can be a time-consuming and costly endeavor, which is why more and more companies are turning to Outsourced SDR services.
In this blog post, we will explore the growing demand for SDR outsourcing, its benefits, and how it can help businesses achieve their sales goals more efficiently and cost-effectively.
We'll also take a look at the different ways you can leverage Outsourced SDR services and choose the right service provider for your business. By the end of this post, readers will have a better understanding of why SDR outsourcing is becoming increasingly popular and how it can help their business grow.
Clutch surveyed 500 organizations in the U.S. and discovered that 80% of B2B businesses planned to outsource their work for benefits, including improved efficiency, business growth, and the chance to work with experts.
Top 4 reasons why outsourced SDRs services
- Faster and Significant ROI
- Giving your account executives (AEs) the space to do what they do best
- Creating a better guideline for building outsourced SDR team
- Better resources
1. and Significant ROIs Faster
Typically explained as the third party doing a more cost-effective job recruiting, developing, and training a sales team. Why? Because usually, it would take up a lot more resources than necessary and a slower start than just outsourcing it to another company.
2. Giving your AEs the space to do what they do best
This means that the outsourced Sales Development focuses on tasks that take up more of your time and energy. While your better AEs can focus on expert work like closing deals without wasting time on less important tasks like prospecting.
3. Creating a better guideline for building in-house SDR
Poorly executed strategies lead to repeated failures until your company develops a more successful approach. By starting with an already well-developed outsourced SDR team as a model, the new in-house sales staff can quickly be forged into something that works.
4. Better resources.
The main reason why a lot of in-house SDRs are leaving their positions is the lack of resources that the company can direct to them and the shortage of the support they need. While giving that responsibility to an outsourcing company with all the resources and support it can offer. It will keep everybody satisfied without wasting money, time, and energy.
Four advantages of Outsourced SDR services
According to recent surveys of technology organizations, 53% engage in a mix of in-house and outsourced sales development. The reasons:
1. Cost Savings
The first reason why a lot of companies started to outsource their sales development is the cost of making and keeping SDRs. If you want your business to be successful, you need to be finance, well-train, and educate your employees, and after developing them, you need to maintain and support them properly.
On that note, Hiring an employee can cost as much as seven times what you pay for the same work done by an external service. Outsourcing eliminates these ongoing costs, saving companies up to 70% of their marketing cost.
Outsourcing your SDRs is a great way to avoid that for a much lower cost that only accounts for money. Third-party companies would be more than happy to give you already prepared and fully supported SDRs for a fee that is incomparable to the alternative. Also, you could develop your SDRs if the company needs them without losing leads or the flow of the workplace.
2. Access to a larger pool of Talent
Another reason why everybody should pursue this option is access to a larger pool of talent that could not be done without outsourcing the Sales Development division. Employers often recruit their talent through word of mouth, surveys, employment forums, and so on.
And employers have a lot of trouble finding what they need and adhering to the needs of the company, which can be very specific. This is where outsourcing comes in handy, with their time, money, and energy invested in organizing, managing, and putting out quality and numerous talent that your company wants.
3. Improved efficiency and productivity
With the focus of the company being scattered around in different sectors of your company, not everything and everyone will get the most attention, resources, and value that they deserve to work efficiently. Sadly, this means that your company is risking sacrificing its success with the cause being a lack of quality employees.
To avoid this, companies have turned their attention to out-of-the-box solutions that will benefit the company in profitable ways that almost seem like cheating. Outsourcing your work has been proven to be an effective way to find workers, in this case, SDRs, that will have their full attention and capability at your disposal without the hassle of doing everything else before that. Outsourcing your work also increases productivity because the companies that provide this service will not waste energy and time on unwanted tasks they are not interested in paying attention to. Their goal is clear, and they ensure their quality.
Since the way how outsourcing SDRs work, their flexibility can be one of their biggest assets. If you need to make any changes in your company, your outsourced work will not appear as a problem in your attempt to do so. Allocating resources to a new area can be done without a problem since it can be very noticeable and halt all other activities.
Furthermore, if you need to change the number of people on your staff, like letting go, hiring new employees, or even shifting them around. Outsourcing can do it so easily and subtly that it will not interfere with the ongoing operations of your company. Flexibility is one of the most appealing aspects of outsourcing that people take advantage of more frequently than ever before.
The Best Four Outsourcing SDR Practices
Like anything in this world, to fully understand something, you need time to adapt to it. An outsourced SDR company is no exception, as they will need time to catch up on all the latest operations and information that the original firm is working with.
During this time, the outsourced company will primarily focus on doing all the necessary procedures. To be useful like training their team, learning how to communicate, and about your business.
With that being said, your firm must be open to communication and sharing your thoughts and insights on the process so the outsourcing company can succeed.
2. Company Size
Experience is what sets companies apart from one another. To benefit from your outsourced company while minimizing risk is to find a company that has dealt with companies of similar size.
Suppose your company usually targets companies with a certain size and capacity. In that case, the outsourced SDR company needs to have experience and knowledge of dealing with approximately the same kind of companies.
This is important because if the outsourced firm is inexperienced, you risk your company. For example, booking appointments can cause issues if you are not ready to handle them.
3. ICP Similarity
One of the crucial things that the third-party firm needs to have is experience with working with similar ICPs as your company. Meeting the requirements of knowing your firm's targets and managing them is one of the fundamental goals of the outsourcing company.
On that note, not all targets are the same, and not all potential clients will have the same needs, but having a third-party company with similar targets would always ease your work.
4. Outreached Expertise
Knowing how to utilize all the ways you can reach out to your potential clients is mandatory for any company that works in sales. Only some targets will have the same methods of communicating, and only some companies will be open to the idea of changing.
An outsourced SDR company specializing in a multichannel approach would cover all the bases for reaching prospects.
How to Choose the Right SDR Outsourcing Company
1. Proven Track Record
One of the key moments that separate and ranks companies from each other is their reputation as a company and success in the field. As a potential provider, having a clean and positive track record in every aspect will always appeal to potential customers and will surely increase your chances of getting hired.
Also, a good reputation indicates to people that you must be doing something right and have the necessary skills to get the job done. If a company has a record of failures, every company would think twice before even considering the possibility.
2. Training and Managing their team
Before considering hiring a third-party company to help out with your own company, you need to do your research about how the outsourced SDR company works and deals with its affairs.
One of the key aspects of any company is its approach to refining its product or service and the ways they handle its business.
As an outsourcing company, the company should primarily focus on its approach to training and development of its sales development reps. Considering this, you can evaluate if the company is best suited to your standards and make your decision from there.
3. Technology and Tools
Another critical feature that will differentiate outsourcing companies from one another is their resources. An appealing point is when the third-party company is well-equipped to handle any situation with the latest technology and tools the market can offer.
Resources are one of the most vital points that your firm will consider and may even be a deal breaker.
Another thing to pay attention to is the place and time where the outsourced company is based. Typically, offshore companies are cheaper than local companies, while local companies are better suited to the need of your company.
For example, the language requirement will determine the company's hiring factor. If the third-party company speaks the same language as the original company and to the required level, then they will have a higher chance of being more successful. On the other hand, a company that speaks a different mother language than your company would be less effective.
Implementing Outsourced SDR services
Target market and ideal customer
Implementing SDR as a Service Target market and ideal customer To implement outsourced SDR functions properly, your outsourcing company needs to understand, analyze, and define your chosen target market. Additionally, your company has to provide all the details that they require for their analysis.
Developing brand messaging and scripts
Another point the outsourcing company needs to do is to match the standard of your company. A way to do this is to improve the development of messaging and scripts by looking at your ICP and existing customer base.
Setting clear expectations and goals
One of the things that your company needs to master is the power to set clear and realistic expectations and goals.
This is because realistic expectations are less risky, while keeping confusing high expectations would always be a recipe for failure. Thus, the purpose of the companies both need to be made clear.
Monitoring and adjusting the program
Like in any business, fluctuations are destined to happen - moments where the business angle changes. While this happens, the company’s team needs to adjust the program constantly and monitor it without stopping in case something happens that could interfere.
Omnichannel Outsourced SDR process
These 3 SDR Outsourcing methods are standard and used to find prospects
Cold Calling Campaign
Cold Calling is a method to reach prospects directly. This method is an outbound marketing technique that has been proven successful for B2B lead generation strategy. These calls aim not to sell something in the first call but to plan an appointment booking with the potential customer.
You should outsource this work to an outsourcing company because they prepare a new database full of intent-based contact information of your target ICPs. They do it in real-time and make your life easier by prospecting and nurturing your buyer personas.
Cold Email Marketing Campaign
Cold Email is an outbound marketing technique to reach prospects like cold calling. It is almost the same method, but you send an email instead of calling.
The major difference between Cold calling and Cold Emailing is that with emails is that you have freedom and precision. You will have more control in email campaigns because you can target who you want, can see when they open it, and can track the engagement.
By doing A/B testing you can also measure the success rate of each variation and change your messaging accordingly.
LinkedIn Outreach Campaign
LinkedIn outreach is another effective strategy used by SDR outsourcing companies to set up appointments with your decision makers. Direct or one-to-one messaging is the main form of communication on LinkedIn, called in-mail. To reach out to prospects, outsourced SDRs use LinkedIn in-mails. The process consists of the following five steps:
- Identifying the sector of your target market's consumers
- Building customized prospect list by using sales navigator which includes contact details of your ICPs like name, email addresses, phone number, location, company size, etc.
- Sending a series of messages to build rapport and eventually, an urge of buying your product or service.
- Keeping track of their responses and booking appointments for you.
Disadvantages of the Outsourced SDR process
Too much data tracking
One of the downsides to outsourcing your work to a different company is that you would need to do a lot of data tracking.
If you hire a third-party firm, that may not directly link to your company. Notably, that would mean you would need to do even more data tracking than usual.
Information going unchecked or unnoticed
When you hire an SDR outsourcing company, you may miss opportunities to solicit valuable customer feedback.
When you hire an SDR outsourcing company, you may miss opportunities to solicit valuable customer feedback.
When you outsource your work, you are giving responsibilities to a company to solely focus on that task. A lot of work would be done, but a lot of information may be lost or unchecked in the process.
Here are some of the common mistakes:
- The company has no time to check if the reps are actually talking about what they're supposed to talk about
- Your prospects have not enough information about the product/service being sold
- The reps have no idea what they are talking about because they have not trained properly
- The caller doesn't know how to handle objections or respond promptly.
Lack of Transparency
An additional disadvantage of hiring an SDR outsourcing company is that you do not have control over everything they do. Making sure you can trust the people you hire is crucial to outsourcing your work.
Full transparency is impossible to achieve, but setting the ground rules of how things will work and who controls what can be the best ways to solidify your work relationship with the company you are outsourcing to.
Wrapping It Up
The benefits of outsourcing will always outweigh the disadvantages. Thus, outsourcing your SDR work to a third-party company is always a good idea you can have.
The amount of money you could save for the quality of work you can get is unmatched. Also, Outsourcing the work to another company opens up possibilities for meeting a lot of new talent that would lead to new potential prospects because of the flexibility SDR outsourcing offers.
If this tactic is implemented and managed the right way, then your company would experience a lot of improvement and benefits that they wouldn’t have experienced before.
Once they experience the financial benefits of this practice, just 35% of companies don’t plan to expand on it.
All the disadvantages you would not face if you outsource your work to a company like us. Revnew has a strict work policy that applies to all customers they work with. Mutual benefit is the primary goal of Revnew, and they achieve it through complete transparency and fairness with their clients.