SDR vs BDR, what's the difference?
Business Topics

SDR vs BDR, what's the difference?

SDR and BDR positions are now an integral part of new sales team organizations. These anglicized job titles can be confusing, so the aim of this article is to define their scope of action.

January 4, 2023

8

min reading

With the digitization of businesses, commercial professions have evolved significantly in recent years. Numerous digital tools have been developed to facilitate tasks that used to require a great deal of time and resources. Sales teams can now use CRM (Customer Relationship Management) software to track customer interactions and schedule appointments. They can also use online platforms to prospect for new customers and communicate with them more effectively. 

 

Among the structural changes in sales force organization that have become apparent with the digitization of sales processes, the new division of tasks between the various positions working together within the same sales team is the result. 

 

SDR vs BDR

One of the most effective and popular of these new sales team divisions is the SDR - BDR - AE composition. Defining these 3 different positions and delimiting their scope of action is difficult, since each of these functions has similar tasks. However, this division between these positions is bearing fruit for many companies, so it's worth trying to understand what defines these different functions and what makes such a sales organization possible. 

  

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SDR: 

A Sales Development Representative (SDR ) is an employee responsible for generating business opportunities for a company. Their job is generally to contact prospects, establish relationships with them and encourage them to buy the company's products or services. 

This prospecting work takes place in the early stages of the sales cycle, when the prospect is at the beginning of his or her buying decision. SDR generally takes place just after marketing teams have identified a lead as an MQL (=Marketing Qualified Lead). This means that the lead is retained because the prospect corresponds to a desired persona and/or purchase intent. 

The leads that enter SDRs' prospecting lists are also often the result of inbound marketing practices. Marketing teams create lists based on prospect data collected via the website and marketing practices carried out throughout the year. 

On the basis of these identifications, the SDR will use various methods to try to make contact with this prospect in order to move him forward in the conversion tunnel, in a logic of commercial nurturing. When the SDR's prospecting and seduction work has matured the prospect's desire to buy, the AE takes over the commercial relationship with the prospect, bringing it through to the closing of the sale. 

Prospecting channels can be multiple and depend on the company's sales development practices, as well as on the type of personas you're trying to address. Cold calls if the prospect is cold, marketing automation with mailing software, prospecting on Linkedin... , all these tools must enable SDRs to qualify a maximum number of leads, so that the AE (Account Executive) can pick out the hottest leads from all those prospected. 

SDR prospecting

 

BDR: 

The scope of action of a BDR (Business Development Representative) , who, like the SDR, contributes to the company's growth by increasing sales, differs from that of the SDR in the type of leads they prospect. Where the SDR deals with inbound leads (via inbound marketing practices implemented by marketing teams) or a pre-established list of contacts, BDRs have a certain autonomy in their lead generation strategies

The objective for the person in this function is to go hunting for business opportunities that have not yet been touched by the company's business development. In this way, the BDR has access to more time and has to be more imaginative and inventive in implementing the right strategies for new prospects. 

Most of the time, the BDR's scope of intervention extends, like that of the SDR, to the first stages of the sales cycle, until the lead becomes hot. Once the lead's intention to buy has been properly qualified by the BDR, the lead returns to an AE. However, the position of BDR is generally held by more experienced and competent salespeople, and their scope of intervention in the sales tunnel sometimes extends to more advanced stages than SDRs, before the commercial relationship is transferred to the Account Executive. 

 

Differences to remember : 

While both positions target leads in the same stages of the sales cycle, the choice of leads is based on other typologies:  

 

  • Inbound vs: SDRs are generally responsible for identifying and qualifying sales opportunities from the inbound channel. Prospecting is done on bases generated by them. A BDR, on the other hand, focuses primarily on finding new business and developing new markets through external channels. The prospecting carried out by BDRs is therefore generally more "cold" than that undertaken by SDRs. The BDR has to find the right contact in the target company, even if no previous relationship or contact has been established. 
  • Levels in the sales tunnel: While BDRs generally prospect more coldly than SDRs, their relationships with new prospects often extend further than those maintained by SDRs after transfer to an Account Manager. 
  • Differences in practices and expected results: Because the majority of leads processed by SDRs come from inbound marketing, prospects are warm and have left behind a lot of data that can be exploited by marketing teams, such as professional e-mails or even telephone numbers. As a result, prospecting is done on a sound basis. The BDR doesn't have all this information at his disposal, so he has to opt for other techniques such as mass mailings or calls, and endure many failures before making a first contact. Where the relationship with prospects already exists, thanks to marketing, when SDRs prospect the bases supplied to them, the commercial relationship that the BDR wants to create with his prospects is most of the time completely cold. 

Finally, it's also important to bear in mind that some companies try to define mixed SDR/BDR roles. Both roles have many tasks and know-how that are common to their respective activities, and can therefore generally transition with ease from one role to the other. 

 The complexity of your product and the size of your audience, among other factors, determine whether you need to keep these roles separate or not. 

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This division of commercial services with the SDR/BDR - AE organization has developed considerably over the last decade. It may be motivated by considerations of business strategy, productivity and efficiency.

It enables the company to effectively target the different segments of its market and maximize its chances of developing sales. By entrusting the prospecting of new inbound customers to SDRs and the development of new business opportunities to BDRs, the company can optimize its use of human and financial resources, concentrating on activities that are most likely to generate revenue.

This new sales force organization is not imperative for all structures, but must be the fruit of reflection on its relevance to the structure in question, as well as to the competitive market in question. 

Differentiating between BDR and SDR positions within the same company can sometimes be difficult, as the positions are sometimes so similar, their objectives being more or less the same. 

SDR and BDR: differences

Last but not least, the effectiveness of this SDR/BDR division is mainly determined by the prospecting methods used by each position, and the relevance of these to each prospect at each respective stage of a sales tunnel. The greater the variety of levers a sales force has at its disposal to establish contacts and maintain a quality commercial relationship with its prospects, the greater the likelihood of contact and, ultimately, of conversion.

This wealth of diversified methods is sometimes not fully exploited, due to a lack of resources and/or even the necessary skills. This raises the issue of outsourcing and/or seeking advice from market experts. 

 

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What are the challenges of outsourcing?

 

There are several issues to consider when you decide to outsource your sales force to an outsourced SDR and BDR agency:

  • Cost: Outsourcing your sales force can be less expensive than recruiting and training in-house employees. This can be particularly advantageous for small businesses or start-ups that can't afford an in-house sales team.
  • Flexibility: An agency can be more flexible and responsive than your own in-house team, which can be an asset for companies that need support to manage fluctuations in demand. An agency specializing in SDR outsourcing would be particularly suitable for a company suffering from handling all those inbound leads. What's more, this outsourcing can be short-term, lasting only until the influx of inbound leads can be handled in-house again. 
  • Expertise: An outsourced SDR and BDR agency can provide specialized resources and skills that your company may not have in-house. This can help you reach your sales targets faster and more effectively. An experienced agency will provide you with the acquisition levers (social networks, marketing automation, cold calling, etc.) that match your sales and marketing strategies. 
  • Responsibility: Outsourcing your sales force can enable you to delegate responsibility for prospecting and lead generation to an experienced agency, allowing you to concentrate not only on closing the leads generated by the agency, but also on other aspects of your business. 

It's important to note that sales force outsourcing also entails risks and challenges, particularly when it comes to communication and coordination with the outsourced agency. So it's important to weigh up the pros and cons before making a decision.

Sales outsourcing SDR and BDR Lalaleads

  What are the 3 rules of good outsourcing?

Here are three rules to follow to ensure your sales force outsourcing goes as smoothly as possible:

  • Establish clear objectives and performance indicators: before you start working with an outsourced SDR and BDR agency, it's important to clearly define your objectives and expectations. This may include sales targets, conversion rates, sales cycle times, etc. Make sure you also define performance indicators to measure the agency's effectiveness and the achievement of your objectives.
  • Communicate effectively with the agency: for your sales force outsourcing to be successful, it's essential to maintain clear and open communication with the agency. Make sure you provide clear and precise information about your company, your products or services, your target customer base and your sales objectives. Don't hesitate to ask for regular updates on the agency's progress, and to discuss any problems or concerns you may have.
  • Manage expectations: it's important to manage the expectations of both your in-house team and your outsourced agency to avoid any confusion or frustration. Make sure everyone understands each other's roles and responsibilities, and discuss how you'll work together to achieve your sales goals.

Contents
What is the difference between SDR and BDR positions? Why this division of tasks between different positions?Why outsource your sales prospecting to an outsourced SDR agency?

What is the difference between SDR and BDR positions?

Why this division of tasks between different positions?

Why outsource your sales prospecting to an outsourced SDR agency?

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