Why Outbound SDR Models Are Failing

What factors are contributing to the decline of outbound SDR models?

The decline of outbound SDR models can be attributed to several factors.

First, there are high costs associated with outbound sales development. Companies can no longer afford to spend $10 to make a dollar, making this model financially unsustainable.

Second, there's growing inefficiency in reaching potential customers. The traditional methods of mass cold-calling and generic emails are no longer effective.

Moreover, the market is saturated. With thousands of companies targeting the same buyers, standing out is harder than ever.

Lastly, the rise of AI in sales is shifting outbound tasks back under marketing, further pushing the decline.

These factors combined indicate that traditional methods are evolving, and businesses must adapt to survive.

How is AI impacting outbound sales?

AI is significantly transforming outbound sales by making processes more efficient and targeted.

• Automating Tasks: AI can handle repetitive tasks such as data entry, follow-up emails, and meeting scheduling. This automation frees up Sales Development Representatives (SDRs) to focus on more strategic activities.

• Improving Targeting: AI algorithms analyze vast amounts of data to identify high-potential leads. By understanding buyer behavior and preferences, AI enables better targeting and personalization.

• Shifting SDR Function to Marketing: AI's capabilities are pushing the SDR function back under marketing. AI tools can manage the top-of-funnel activities traditionally handled by SDRs, streamlining the sales pipeline.

In summary, AI is revolutionizing outbound sales by automating tasks, enhancing targeting, and reallocating SDR responsibilities to marketing. These changes aim to improve efficiency and effectiveness in the sales process.

What should be included in a modern sales playbook?

1. Customer Profiles

   • Detail your ideal customer profiles.
   • Include demographic information and pain points.

2. Understanding Customer Pain Points

   • Identify key issues your product or service solves.
   • Focus on emotional drivers and logical needs.

3. Sales Process Steps

   • Outline each step from lead generation to closing deals.
   • Provide scripts or templates for common scenarios.

4. Personalized Approaches

   • Offer guidelines for personalizing interactions.
   • Include examples of personalized emails or messages.

5. Objection Handling

   • List common objections and successful rebuttals.
   • Provide real-life scenarios and responses.

6. Metrics and KPIs

   • Define key performance indicators to track.
   • Include goals for each sales stage.

7. Training and Development

   • Offer resources for continuous learning.
   • Provide a schedule for onboarding and training sessions.

8. Technology Tools

   • List essential tools and software for the sales team.
   • Include guides on how to use these tools effectively.

A modern sales playbook should focus on understanding the customer, addressing their pain points, and employing personalized approaches for better engagement.

Should founders create the first sales playbook?

To set the groundwork, founders should indeed create the initial sales playbook.

"The principles of the playbook. Yeah, for sure. Like the broad stroke, the outline, whatever you want to call it, right?"

Creating a foundational outline with key plays and strategies ensures that early sales efforts are consistent and aligned with the company's vision.

However, the playbook should not be written in permanent ink.

"Ultimately, the playbook in ink should probably be written by the VP of Sales."

The VP of Sales should refine and evolve the playbook based on practical insights and market feedback.

In summary, founders should provide a strategic outline, while the VP of Sales refines it into a comprehensive, actionable document.

What are the best practices for hiring and onboarding sales reps?

Hiring and onboarding sales reps can be daunting, but following best practices can set your team up for success.

Hire Within Your Network:

• Trust is Key: Hire people you know or those vouched for by trusted colleagues.
• Minimize Risk: Sales resumes can be misleading. Network-based hiring ensures foundational hires are reliable.

Effective Onboarding Strategies:

• Shadowing and Osmosis: New hires should shadow founders or experienced sales reps. This hands-on experience is invaluable.
• Use Technology: Tools like Gong can record and analyze sales calls to help new reps understand successful tactics.
• Structured Training: Provide a clear training schedule that includes call listening, product demos, and role-playing exercises.

Early Performance Gauging:

• Trial Periods: Assess reps within a quarter. Look for early signs of success or struggle.
• Constant Communication: Regular one-on-one meetings to review performance, give feedback, and set goals.

By leveraging your network for hires and providing immersive onboarding, you can build a robust and effective sales team.

How should sales teams handle lost deals?

Analyzing lost deals is essential for any sales team. It's not just about accepting failure but learning from it.

First, conduct a detailed post-mortem on each lost deal. Identify what went wrong at each stage. Were there missed opportunities or unmet customer needs?

Next, gather feedback directly from the prospective customer. Understand their reasons for going with a competitor.

"Usually when you lose deals, it’s not about what you did in the final stages but what you didn’t do earlier."

Document these findings and use them to refine your sales playbook. Adjust strategies to address uncovered weaknesses.

Consistent review and adaptation can transform lost opportunities into future wins. It helps sales teams improve their strategies, making them more effective in closing future deals.

By learning from mistakes, you boost your team's ability to succeed in a competitive market.