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2016 SDR Metrics Bridge Group
2016 SDR Metrics Bridge Group
2016 SDR Metrics Bridge Group
2 Introduction
7 Group Structure
Since 2007, we’ve been tracking the SDR role with a focus on how
metrics and compensation change over time.
• Pipeline generation
• Inbound lead qualification and/or outbound prospecting
We hope this report will provide guidance as you build out your
strategy and/or allow you to make changes that will bring you into
alignment with industry standards.
With help from an aspiring data scientist (thanks CS!), we’ve taken
a stab at scoring effectiveness. This year we are introducing the
Pipeline Power Score (PPS).
Group Structure
Here is our take: it isn’t about sales versus marketing per se. Your
team should report to whoever has the bandwidth, expertise, and
passion to lead it. Success hinges on who leads the group, not
where it sits in the org chart.
Don’t believe anyone who says you should consider only one or
the other. There are hundreds of companies successfully setting
introductory meetings. Hundreds more are productively generating
qualified opportunities. And more still are utilizing a blended
approach for different products, market segments, or territories
To help you along the way, here are a few general principles on
when each model is most effective.
Each model has its place and neither is always the right choice. As a
rule of thumb, you should deploy an introductory meeting model
when the market for your product is immature and/or when your
Account Executives are suffering from empty calendar syndrome.
If your sales team is screaming for more “at-bats,” then break glass
and set meetings. Conversion rates, qualification criteria, and cost
per meeting all go out the window when your AEs’ calendars are
anemic.
Attitude and aptitude- Not every rep who excels in one area is
well suited for the other. Some who thrive on cultivating inbound
leads aren’t always built for hunting the big game of outbound.
You can read how three executives have tackled this challenge in
the article Rethinking Sales Territories.
Four times as many companies are hiring reps with “Less than 1 year
sales experience” in 2016 as did in 2010.
In short, yes.
Nearly one quarter offer two of the above and 16% have built all
three.
For one, it requires hard work and smart management to hit the
company’s SDR-sourced pipeline goal. It’s doubly difficult if you
can’t elevate average rep tenure above 12 months. Finally, you’re
doing your reps a disservice if you promote them before they’re
ready. Your reps are more than “warm bodies,” and you owe it to
them to set them up for success.
One solution is to have the flexibility to build steps within roles. For
example, you might hire a junior SDR, promote to associate SDR,
and then elevate to senior SDR. I call these in-role advancements
micro-promotions.
Compensation and
Quota
1. Experience
Reps with less than one year’s sales experience earn 15%
below the average. Reps with three+ earn roughly 16% above it.
2. ASP
Even controlling for required experience, SDRs prospecting for
higher ticket solutions earn higher salaries.
3. Region + market
The Northeast and the Pacific Coast report highest average
comp. The Great Plains and the Southeast report the lowest. A
competitive hiring market (think: Austin, Boston, San Francisco,
etc.) impacts the going rate for SDR talent above and beyond
region.
4. Charter
Reps setting appointments earn slightly less than those
generating qualified opportunities.
We’ve built a tool to do the heavy lifting for you. If you are interested,
please take a look at our SDR Compensation Calculator updated with
2016 data.
Quotas are roughly 27% higher than in 2014. Please note these
are the averages and the responses ranged widely. For example,
quota for an outbound SDR with an ASP of $100K+ went as low as
3 opportunities per month. While quota for an inbound SDR with an
ASP of less than $5K went as high as 50.
To give you a sense of what’s at play, here are four variables you
should take into consideration:
There is no way around it. Setting quotas is tough work. You can
use the meeting setting (21) and qualified opportunity (13) numbers
as benchmarks. Adjust up or down based on the four factors
highlighted above.
We recently wrote more about this topic on our blog. If you are
interested in grading your team you can use this tool.
Having said that, one metric was very clearly associated with
higher PPS: number of QCs per day. Those groups that average
seven or more quality conversations per day had 17% higher PPS,
on average.
Groups using dialing technology reported 28% more dials and 30%
quality conversations per day.
Sales Development
Leadership
Think about just how rare it is to find someone who combines vision,
business acumen, and the ability to inspire others. But that is exactly
what a sales development leader needs to possess. To set the stage,
here’s our take on the levels of sales development leadership.
Surprisingly, no.
Despite increased competition for talent, despite hiring less and less
experienced reps, despite greater numbers of reps rolling up to a
single first-line leader, today’s sales development leaders are rising
to meet the challenge.
And after what we’ve just seen above, can’t we all agree they are
worth every last penny?
2014 2016
Manager $122K $129K
Additionally, they are developing bench strength for talent that will
either move into sales or other parts of your organization. A great
SDR leader is worth their weight in gold.
The first thing that jumps out is that productivity and performance
dropped seven percentage points. While still a top challenge, there
is a growing realization that rock solid process matters.