Redefining the SDR Model for Sales Success in 2024

The sales development representative (SDR) role has become a cornerstone for predictable revenue growth. Yet many SDR teams struggle to deliver sufficient pipeline and align to broader revenue goals.

Why the disconnect? In short, the SDR model hasn't evolved along with changes in the market. The traditional SDR approach is totally broken and we know the right way to fix it.

In this guide, we'll cover the pitfalls of the current SDR model and how to redefine the role for sales success in 2024. We guarantee this will 10x your SDR performance.

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The Flaws of the Current SDR Model

Before we can reshape the SDR function into the revenue-driving machine it should be, we need to understand what's broken in most sales development teams today.

There are four primary problem areas plaguing SDR teams across the industry:

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#1 Key Metrics are Skewed Toward Volume Over Quality

The majority of SDR teams still use meetings (or talks/demos etc.) as their "north star" metric. This drives short-term behaviors focused on high activity and booking volumes vs lead quality.

Relying on meetings as the primary metric leads to a bunch of issues:

It totally ignores other valuable lead outcomes like referrals and activated pipeline opportunities. Focusing only on meetings leaves money on the table.
It focuses only on the small segment of buyers actively looking vs nurturing the whole market. You end up fighting over the same 3% of buyers ready to talk now.
It encourages awful behaviors like spamming and over-pitching just to hit quota. Ever get a message from an SDR that was more annoying than helpful? This is why.

In essence, a meetings quota shifts focus from pipeline impact to activity quotas. It's a broken system.

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#2 Low Quality Leads and Lack of Seller Follow Up

With an emphasis on meeting volume, SDRs treat each prospect touch as a one-off task rather than lead nurturing.

Once a meeting is booked, the lead gets tossed to sales. No context on the conversation is handed off.

This results in a complete mess:

Missed opportunities to nurture prospects that aren't ready to talk yet. Leaving money on the table.
No insights captured on prospect needs or common objections. Going in blind.
A total lack of context for sales making follow up less effective. SDRs and AEs misaligned.
Weak lead scoring models unable to distinguish high vs low quality leads. Garbage in, garbage out.

By treating every conversation as a generic touch point, lead quality and sales follow up suffer big time.

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#3 SDRs Misaligned from Revenue Impact

When SDRs are focused on activity metrics, they become completely misaligned from broader revenue goals. This leads to:

No insight into downstream revenue from SDR generated opportunities.
Activities and quotas unrelated to pipeline and revenue creation. SDRs focused on the wrong things.
Lack of visibility for sales into SDR prospect conversations. AEs operating blind.

This prevents leadership from assessing and coaching SDRs on business impact. It also reduces motivation for SDRs to nurture prospects that may require longer sales cycles.

Ultimately, SDRs act as lead generators rather than strategic pipeline builders. Misalignment kills results.

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#4 Outdated Compensation Models

Most SDR compensation plans remain way behind the market. It creates a "check-box" mentality, where SDRs are solely focused on hitting their quotas and earning incentives:

Commission rates based on meetings favor volume over nurturing. More spamming.
Small commissions spread thinly over many activities. Nickel and diming SDRs.
Little or no payouts for downstream revenue impact. No incentive to build strategic pipeline.
Finally, low base salaries below market rates make hiring and retention difficult. Good SDRs go elsewhere.

This discourages talented SDRs and fails to reward strategic prospecting focused on pipeline. The model is totally outdated.

While not every SDR team exhibits all of these gaps, most contend with a few. It exposes systemic issues with the traditional approach that simply does not work anymore.

Next we'll explore how to completely reshape the SDR role to solve these problems. This is where the magic happens.

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Redefining the SDR Role for the Future

To evolve SDRs from basic lead generators to strategic revenue drivers requires reframing their entire purpose.

Rather than meeting bookers, SDRs need to become market sensors gathering insights that fuel pipeline growth.

Here are four ways to redefine the SDR role for sales excellence:

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#1 Completions Over Meetings

The first shift is to replace meetings with "completions" as the core KPI.

A completion is finishing the full sales pitch regardless of the prospect's interest level.

The benefits of using completions include:

Removes pressure to push unqualified prospects into meetings just to hit quota.
Lets SDRs nurture prospects not ready to talk yet versus annoying them.
Captures way more intelligence through fuller conversations versus canned pitches.
Values all prospect interactions not just booked meetings. Stop ignoring leads.

Completions should be categorized across four buckets:

Booked meeting - Contact interested in learning more. Finally, a qualified lead.
Referred - Contact referred to a colleague as better fit. Get insights on buying team.
Not interested now - Valid opportunity but not looking currently. Nurture for future.
Not interested ever - Low potential account or contact. Don't waste more time.

Each completion type offers insights to advance the sale and is weighted equally. This balances quality conversations with booking meetings. Meetings become the cherry on top versus the sole focus.

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#2 Conversational Insights Drive Follow Up

With completions as the focus, SDRs can have way more strategic conversations. Instead of trying to push for a meeting, they can gather information and insights that will be valuable in future follow up:

Intrigue - "This concept seems interesting, tell me more." Get them hooked.
Interest - "Yes, we have a need related to this." Find the pain points.
Intent - "We plan to evaluate solutions in this space next quarter." Identify projects.
Info - "Here's some useful context about our requirements." Gather intel.

These insights help sales nurture and prioritize leads for faster pipeline velocity. No more going in blind.

To capture them, SDRs should:

Take detailed call notes on prospect needs and priorities. Go beyond canned pitches.
Codify insights into lead scoring models. Know who's hot.
Rate leads based on revenue potential. Identify whales.
Frame insights in summary notes for sales follow up. Set AEs up for success.

Quality conversations generate the context to accelerate sales cycles. Way more valuable than a generic meeting.

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#3 Connect SDR Impact to Downstream Revenue

To enhance SDR strategic value, their activities should tie directly to revenue. A common practice to achieve this is by implementing revenue attribution models that track the impact of SDR efforts on downstream sales:

Tracking downstream won revenue from SDR-generated leads. Make them accountable.
Correlating lead quality to sales cycle length and win rates. Coach them on impact.
Setting quotas based on pipeline creation not just activities. Align to revenue goals.
Structuring commissions around pipeline and revenue generation. Incentivize the right behaviors.

This revenue orientation focuses SDRs on conversations that inspire action from sales. It also makes lead follow up a shared priority between SDRs and AEs.

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#4 Elevate Role from Lead Generator to Revenue Driver

To drive growth, SDRs need to elevate from meeting bookers to strategic advisors. This requires a shift in mindset and skill set:

Balancing SDR responsibilities between marketing and sales. Hybrid role driving revenue.
Developing consultative questioning skills to unearth needs. Go beyond pitching.
Having SDRs research prospects and provide context to sales. Set AEs up for success.
Coaching SDRs to position solutions not just pitch services. Talk value.
Creating pathways for high performers to grow into sales roles. Motivate star SDRs.

With the right blend of sales and marketing abilities, SDRs become vital revenue generators and consultants.

Evolving the SDR Model for a New Era of Growth

The traditional SDR model is fundamentally broken. Focusing solely on meetings over pipeline, misaligned priorities, poor lead quality, and outdated incentives are throttling revenue growth.

To unlock the true potential of SDR teams requires completely reframing their purpose and abilities. SDRs need to elevate from basic lead generators to strategic revenue drivers serving as hybrids between marketing and sales.

By shifting core metrics toward quality conversations, implementing revenue attribution models, and developing consultative skillsets, SDRs transform into indispensable revenue engines. They drive predictable pipeline through deeper buyer insights and tighter sales alignment.

This reimagined SDR function is essential for sales leaders aiming to 10x revenue growth amid rising market complexity. Take the critical first step by redefining what success looks like for your sales development team this year. Focus them up the value chain on business impact using the frameworks outlined above.

With strategic SDRs fueled by the right behaviors and abilities in place, unstoppable growth awaits. The time for change is now - book a call today.

Redefining the SDR Model for Sales Success in 2024

Joey Gilkey

How To Master Sales Prospecting For High-Profile Executives

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Stay in Touch

Redefining the SDR Model for Sales Success in 2024

Joey Gilkey

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How To Master Sales Prospecting For High-Profile Executives

How to Generate Leads With Telemarketing in 2024

How to Hire an SDR & Future-Proof Your Sales Team

Stay in Touch