Is the SDR role really dead?

What is the future of the SDR role?

Gartner¹ research suggests that "over the next five years, an exponential rise in digital interactions between buyers and suppliers will break traditional sales models"

Contents

Current business landscape

How will AI impact the SDR role? 

The future of the SDR role

In recent times, there has been a lot of chatter around the potential of AI and ChatGPT to revolutionise industries and enhance productivity. One particular area that stands out as a prime target for disruption is the go-to-market strategy and execution, along with the role of Sales Development Representatives (SDRs).

Why is it important to look closely at the SDR Role? Well, the inception of the SDR role took place approximately two decades ago, and at the time, it made perfect sense. Gathering prospect data and contact information was a daunting task, so having a dedicated role to construct databases, reach out to potential buyers, and screen/qualify them alleviated the burden on Account Executives (AEs). This approach enabled AEs to focus on qualified meetings, leading to a higher number of closed deals. Back then, email overflow was not a concern, people actually picked up their phones, and the internet did not hold the same level of dominance as it does today in the purchasing process. AEs were regarded as sales experts, and collaborating with SDRs to increase meeting quantities proved to be advantageous.

What's going on with business today?

The business landscape is very different today, with most buyers frustrated with the SDR/AE experience and most SDRs struggling to get consistent results.  This naturally leads to the old SDR/AE model becoming obsolete.  As organisations strive to streamline their tech stack and optimise their operations, previously deemed essential roles are now under scrutiny. Sales teams that experienced tremendous growth and success just a year ago are now confronted with new challenges.

There is a growing argument that relying on the least experienced, least resourced, and least supported members of the sales team to handle the responsibility of opening deals may not be the most effective approach. As costs rise and returns diminish, along with a less-than-optimal customer experience, the drawbacks of the SDR role often outweigh its advantages.

Current base and OTE earnings for an SDR: Source Repvue

The headline news is buyers are smarter and harder to reach. One of the most remarkable changes in recent years is the astounding level of buyer education. Nowadays, buyers almost always come prepared with a wealth of information (Gartner B2B Buyer Report) conducting thorough research on products and services even before engaging with a sales representative.

This shift has raised the expectations for sales representatives, with buyers now demanding a depth of knowledge that goes beyond mere product specifications. While being an expert in the product is still crucial, it is now considered the bare minimum. Buyers desire salespeople who possess industry knowledge, understand their business challenges, and can demonstrate how their products and services solve similar challenges for other companies.

Conversion rates for traditional outbound methods, such as emails and calls, have witnessed a decline across various industries. Buyers have become accustomed to receiving a deluge of generic communications, rendering them immune to these conventional approaches. Consequently, SDRs are encountering difficulties in securing the same number of high-quality meetings. This decline not only affects revenue but also has a negative impact on customer acquisition costs (CAC) payback. Let's delve into the underlying reasons behind this trend in more detail.

• Productivity: The new working norms include remote and hybrid working a move away from a traditional office environment to remote work which is also having a significant impact on the productivity of SDRs. While it's true that the conversion rates for phone outreach have decreased, there is also a decrease in overall productivity when you're no longer surrounded by colleagues who can provide guidance and motivation.

In the past, SDRs were primarily concerned with meeting activity metrics and reaching out to a specific number of accounts or buyers based on general ICP data collected over time. Due to the manual nature of pulling results, the most effective way to manage this was through a combination of targeting and activity. However, with the advancements in technology, we now have the ability to score and prioritise accounts/leads, which means our focus should shift towards generating high-quality opportunities instead of simply engaging in activity. This shift in focus is better suited for AEs who can leverage their expertise to convert these opportunities effectively.