Dec 21, 2024
The difference between a BDR and SDR and AE role varies greatly. These role descriptions depend on team and company structures, and sales roles in particular aren’t as closely defined as they once were.
Modern companies – especially in the tech and startup spaces – tend to lean towards full-cycle sales models, where a single sales rep covers everything from lead generation to closing.
However, the traditional model still has its benefits. Splitting the sales cycle into specialized roles means there is expertise at every stage of the funnel and prevents sales reps getting too overwhelmed or burned out. Full-cycle models are supposed to make sales processes more efficient, but this only happens when certain parts of the funnel are automated.
In this article, we’ll look at the BDR, SDR and AE roles in detail and explore how AI can make them more efficient, or help teams transition into a full-cycle model.
What’s the Difference Between a BDR and SDR and AE?
In modern sales teams, the difference between a BDR and SDR and AE can be difficult to ascertain. These roles often get merged into one full-sales cycle approach to help streamline processes and make teams more agile.
A BDR – or Business Development Representative – tends to focus on reaching out to new leads and cold contacts, warming up new prospects.
An SDR generally stands for Sales Development Representative. SDRs handle inbound leads and qualify them for the next stage in the sales cycle.
AEs – Account Executives – are then responsible for closing deals and managing ongoing customer relationships.
In a typical sales team, this means a BDR will find leads, an SDR will qualify them and an AE will close deals and onboard new clients.
Of course, this is just a general example of how a traditional sales team might be structured. In truth, all companies are structured differently, and there is no one-size-fits-all approach.
In a small business, a Director or CEO might handle everything from business development to closing deals. In a startup or tech company with 50-200 employees, BDRs and SDRs might be combined into one role, while AEs remain separate – or they might all be merged into one central sales role.
Improving Sales Performance: Role Benchmarks and Metrics
Another key difference between a BDR and SDR and AE is their KPIs. In a traditional sales setting, each sales representative will have different benchmarks and goals to ensure a successful and streamlined sales funnel.
BDR Benchmarks
Benchmarks in business development focus on generating prospects, including those in new markets and verticals.
Benchmarks and performance metrics might include a target number of outbound sales calls or emails per week/month, as well as qualified leads passed to SDRs or AEs, booked meetings, social media touches (i.e., LinkedIn messages), lead conversion rates and revenue attribution.
SDR Benchmarks
SDR performance metrics will be more focused on getting inbound and outbound leads ready for conversion, to be passed over to the AE.
They might include a certain number of qualified leads per week/month, as well as calls and emails, discovery meetings, time taken to follow up with leads and conversion rates.
AE Benchmarks
AEs will focus on taking qualified leads through the sales pipeline, closing deals, signing contracts and nurturing relationships.
Key performance metrics include total pipeline value, number of deals managed per week/month, revenue targets, win rates, average deal sizes, sales cycle length and contracts signed.
How These Roles Work Together
In a traditional sales team, a BDR might generate new leads and then pass them to the SDR to qualify. The AE would then use notes from the SDR to tailor their final sales pitch.
But the difference between a BDR and SDR and AE isn’t always clearly defined, and these roles can work together in different ways. They might take a collaborative approach, where they qualify new leads and close deals together, especially for large or particularly niche accounts.
They may also prioritize feedback loops, where information is passed between teams or roles to help refine their targeting and prospecting techniques.
The Rise of The Full Cycle Sales Model
The full-cycle sales model is a modern approach, born out of better technical resources and a need for leaner teams. It’s especially prevalent in smaller companies and startups with less than 200 employees.
In full-cycle sales, the difference between a BDR and SDR and AE isn’t clearly defined. Instead, a single representative handles the entire sales process, from prospecting to closing.
The approach is largely driven by automation, with AI handling manual or repetitive early-stage tasks, such as generating new leads.
Now, there is an increasing demand for versatile sales reps who can multitask across the funnel and specialize in multiple areas.
Of course, with every new approach, there will be pros and cons to consider.
Pros of the full-cycle sales model:
Faster ramp up times
Less handoffs between teams
Better efficiency
Cost savings
Improved customer relationships
More expertise across the sales funnel
Consistency in communication
Cons of the full-cycle sales model:
Skill gaps in certain areas
Risk of employee burnout due to high workloads
Difficult to implement without the right tech
Addressing Common Challenges of Full-Cycle Sales with AI
Skill Gaps
You can help to reduce skill gaps by providing structured onboarding with the right AI software.
An AI sales tool like Topo will also help bridge gaps in the sales cycle through intelligent lead qualification, data enrichment and by providing context-specific insights into prospects.
Offloading dull and repetitive tasks to AI will help clear the path for your sales reps to succeed and progress, leading to better employee training and retention.
Risk of Burnout
Topo acts as an AI SDR for your business, automating everything from prospecting to booking meetings and sending emails.
Your AI SDR won’t replace your human representatives, but it will assist them in streamlining their daily tasks, taking care of a lot of the data enrichment and management tasks that would otherwise weigh them down.
Leveraging AI will help your employees avoid burnout and increase productivity and job satisfaction. Your team will be free to focus on high-value, rewarding tasks like strategy and customer relationship building.
Need for Intelligent Automation
A full-cycle sales model will only work if you automate correctly. Luckily, Topo is an end-to-end growth engine that covers everything from lead generation and enrichment to signal detection and sending emails.
We’ve had great success with early stage companies and scale-ups, helping them test out new markets, iterate quickly and send more leads through the pipeline.
Revolutionize Your Sales Teams with Topo
Role specialization and acknowledging the difference between a BDR and SDR and AE still has its advantages, but many modern sales teams are moving to a full-cycle model to increase efficiency and automate repetitive tasks.
The best structure for your sales team will depend on the team size, your target customers and your business goals, but hopefully we’ve given you some food for thought in this article.
Whether you’re sticking with specialized roles or looking to transition to a full-cycle model, Topo can help.
We provide custom-trained AI agents that can handle outbound tasks quickly and effectively, streamlining collaboration between roles and helping your processes run smoothly.
For more information about Topo’s scalable, cost-effective sales support, explore our features or book a free demo.