A common problem that plagues organizations is the disconnect that exists between marketing and sales.
Marketing teams may be working their hardest to generate interest so they can draw in leads and prospects for the sales team.
However, sales teams may feel like they are toiling most of the day prospecting and lead qualifying when they should be working on closing deals. Or they’re struggling to close marketing qualified leads (MQLs) that are not good fits.
This is difficult for the two departments to remedy on their own because sales may say that the leads coming in aren’t qualified, and marketing may say that sales team members just need to work on closing techniques.
The metrics may look good to marketing teams, but there is no system to distinguish high quality leads from the low quality leads. Even worse, there is no visibility into where the disconnect is happening.
The solution? Create and implement business development processes into your marketing and sales process to solve this.
Key Takeaways on the Business Development Process:
- Integrate Business Development: Implement processes to connect marketing efforts with sales execution, improving lead quality and closing rates.
- Focus on Strategic Activities: Activities like prospecting, engagement, and research early in the sales cycle prepare leads for future purchasing decisions.
- Differentiate from Sales: Understand business development’s role in identifying strategic opportunities versus sales’ focus on direct customer transactions.
- Essential Preparations: Before starting, ensure a good lead qualification system, the right CRM platform, accessible content management, and a dedicated team are in place.
- 4-Step Process: Identify the right leads, connect with them effectively, discover their core needs, and secure a commitment for further engagement.
- Role of BDRs: Business Development Representatives (BDRs) play a crucial role in generating new business opportunities, qualifying leads, and setting the stage for sales success.
- Create a Plan: Develop a comprehensive business development plan outlining strategies for market expansion, customer engagement, and operational support for growth initiatives.
What Is a Business Development Process?
A business development process refers to the activities that take place at the beginning of the sales cycle. These activities include prospecting, initial engagement, customer research, and lead qualification.
The business development process helps warm up leads or prospects for future purchasing decisions.
It is essential to have a process dedicated to business development so you can capture and nurture prospects at the beginning stages of the buyer’s journey who are not ready for sales outreach yet.
This allows sales reps to focus their attention on closing deals instead of misusing their time on a phone call.
A well-executed business development process boosts the amount of sales your reps close.
Business Development vs. Sales
Business Development and Sales are two crucial aspects of a company’s growth and revenue generation, but they serve different functions and objectives.
Business Development is focused on identifying and implementing strategic opportunities for a company.
This includes forming partnerships, expanding into new markets, developing new channels, and exploring new ways to reach existing markets. Business Development is about long-term value creation for an organization through customers, markets, and relationships.
Sales, on the other hand, is primarily concerned with directly promoting and selling products or services to customers.
The primary objective of sales is to meet short-term targets and quotas by converting leads or prospects into paying customers. Sales strategies involve understanding customer needs, offering solutions to those needs, and closing deals to meet revenue targets.
In essence, while Business Development strategizes for long-term growth and sustainability through various partnerships and market expansion techniques, sales focuses on achieving immediate revenue targets through direct customer engagement and transactions. Both roles are interdependent and critical for the overall success of a business.
What You Need Before Creating a Business Development Process
Here are some of the essential components you need before you can launch a successful business development process.
A Good Lead Qualification System
The lead qualification system represents the way leads move through the stages of the buyer’s journey. Clearly defined processes for qualifying leads are needed for your business development process to be effective.
For instance, you need to know what qualifies a lead, when a lead becomes a prospect, and when a prospect becomes ready for a sales meeting with your account executives (AEs).
Sending prospects to sales reps or AEs when they haven’t been properly educated on products or services can cause them to waste precious time they could be using on targeted prospects who are more likely to convert.
The Right CRM Platform
Your CRM should be able to support your business development reps’ (BDRs) workflows and methods to make the process more streamlined. You don’t want your BDRs spending time on additional administrative tasks that don’t contribute to a sale.
A combination of the right sales software and CRM allows BDRs to gather lead information and carry out prospecting activities efficiently.
An Easily Accessible Content Management Portal
Business development representatives often make use of content and collateral in order to qualify leads and educate prospects. The content they need may often exist in a library that acts more as a silo, which causes BDRs to waste their time searching for the content they need.
A central content management system (CMS) database with approved content that is clearly labeled, classified, and filed away makes it easy for your team to find the resources they need that can help impact a prospect’s buying decision.
A Business Development Team
This essential component may seem quite obvious. What is less obvious is who you should look for to become a part of your business development team.
You have three options:
- Build from within
- Hire new professionals
- Outsource
No matter which option you choose for your business development, you should search for BDRs that:
- Have a growth-mindset
- Are coachable
- Are collaborative
- Are self-starters
- Manage their time wisely
- Think critically
- Actively listen
Train your BDRs well and don’t rush the training process. Provide them with hands-on training and feedback, and allow them to practice.
Playbooks and sales battlecards can help your new recruits get up to speed on your organization quickly and can serve as a quick reference for them on calls.
Easy-to-Use Email Templates
Email is a primary form of outreach, next to phone calls. Crafting emails takes time and effort that could be better spent on more important tasks.
Speed this process up for BDRs by providing them with great email tools that include a library of attractive templates. In some cases, your CRM will come fully quipped with everything you need to draft, schedule, and send attractive emails to leads and prospects.
Conversational Scripts for BDRs to Reference
Conversational scripts are a great resources for BDRs to use so they can learn how to lead conversations with prospects.
Most often, your potential clients won’t have time to talk for lengthy periods of time. Your BDRs need to know how to get through a conversation quickly while maintaining a steady pace that still allows them to hit all of the necessary points.
Conversational call scripts can help them do just that.
Sales Analytics to Track Progress
Sales analytics provide great insight into what works and what doesn’t.
Use sales reporting to provide your BDRs with data that informs them on critical aspects of each deal, like which sales materials are the most effective to align with buyer personas throughout different stages in the buyer’s journey.
Collaboration Between Marketing and Sales
Business development bridges the gap between marketing and sales. The ongoing dialogue between both departments is needed for improvement and continuous growth.
A good practice is to develop a method for feedback. Both teams should provide feedback to each other about the nuances and challenges related to their roles.
Sales-Marketing Service Level Agreements (SLA)
Along with the collaborative efforts of sales and marketing, an SLA should be put in place.
A sales-marketing service level agreement (SLA) is a contract that sets specific deliverables that one party has agreed to provide the other party.
Between sales and marketing departments, an SLA includes critical metrics, like marketing goals and the sales activities that uphold or support those goals. This document is used as a commitment between the two departments to support each other based on numerical goals.
A Prospect Fit Matrix
A prospect fit matrix is a cheat sheet that helps you to evaluate who your product fits, who it doesn’t fit, and who it could possibly fit.
The matrix is typically laid out in a grid formation with three rows and three columns. Some of the qualifies are good, fit, neutral, and bad fit along one side. And the other side has qualifiers that are interested, neutral, and not interested.
Some of the items inside the matrix are contact, contact immediately, nurture, and remove prospect. This resources provides an if-then scenario for qualifying prospects based on their needs and their fit.
The 4 Steps of Your Business Development Process
Business development becomes simple and methodical when you adopt steps for your team to follow. Here are the four steps you can follow to start serving up prospects that close to your sales team.
1. Identify: Identifying the Right Leads
Determining who your right leads are starts with assessing your website analytics.
Which visitors have been to your site more than once? What content have they engaged with? Have they downloaded any of your offers? Do they frequently open and engage with emails from your drip campaigns?
If the answer is yes, then you know they have some interest in what you do and what you offer.
Assess all of the relevant data you need within your marketing automation software to find the right leads to start connecting with.
2. Connect: Connecting With the Right Leads
This is the second step where your BDR kicks off the sales process by connecting with leads via phone call or email.
The connection portion of the business development process is when the BDR begins to build a relationship with a lead. It is a casual conversation where BDRs can collect information and answer any questions the lead may have.
During this step, they may also begin offering them collateral or content that provides them with value.
3. Discover: Discovering the Root Cause and Impact of the Lead’s Problems
Next, BDRs ask value-based questions in order to identify the lead’s true pain points and the source of those pain points. This helps them to better understand how to position your products and services for each individual customer.
It also allows BDRs to weed out unqualified leads from qualified leads.
4. Commitment: Scheduling a Meeting and Gaining Their Commitment of Time
After business development reps determine the product fit for prospects, they ask to set up a meeting between the lead and a sales closer. The lead is then passed on to sales for the sales meeting where a sales rep is responsible for closing the deal.
A commitment isn’t always made immediately after discovery calls. Sometimes it takes some follow up and nurturing before a lead will schedule a meeting.
What Is A Business Development Representative?
A Business Development Representative (BDR) is a specialized role within an organization’s sales and marketing team.
This role is crucial in generating new business opportunities by identifying, qualifying, and nurturing potential leads for the sales team. BDRs are often the first point of contact between a company and potential new clients, playing a key role in the initial stages of the sales process.
Business Development Representative Responsibilities
- Lead Generation: Identifying and researching potential clients, markets, and business opportunities.
- Outreach and Networking: Initiating contact with potential leads through cold calls, emails, and social media strategies. Attending industry events, conferences, and networking meetups can also be part of their responsibilities.
- Qualifying Leads: Assessing the potential of leads to determine whether they fit the company’s ideal customer profile and if they have a genuine interest or need for the product or service.
- Scheduling Meetings: Setting up meetings or calls between qualified leads and sales executives.
- Collaboration with Sales and Marketing Teams: Working closely with sales and marketing departments to refine lead generation and outreach strategies, and to understand the features and benefits of products or services being offered.
- Market Research: Staying informed about market trends, industry changes, and competitive landscape to identify new business opportunities and enhance outreach strategies.
- Maintaining CRM Systems: Regularly updating customer relationship management (CRM) systems with information on leads and the status of ongoing interactions.
- Meeting Targets and Goals: Striving to meet or exceed any quotas or targets set by the organization in terms of lead generation and business development activities.
In summary, the role of a Business Development Representative is focused on the early stages of the sales pipeline, building a foundation for potential sales by identifying, engaging, and qualifying leads. Their work is essential in driving the overall growth and revenue generation of a company.
How to Create a Business Development Plan
A Business Development Plan is a comprehensive document that outlines an organization’s strategy for growth and expansion. It serves as a roadmap for a business to increase its market reach, customer base, and overall profitability.
This plan typically includes detailed steps, goals, and tactics for identifying and capitalizing on new business opportunities.
Key Components of a Business Development Plan
- Executive Summary: A concise overview of the business, including its mission, vision, and the goals of the development plan.
- Market Analysis: Detailed research on the current market conditions, including industry trends, target market demographics, and competitive analysis.
- SWOT Analysis: An evaluation of the company’s Strengths, Weaknesses, Opportunities, and Threats to understand its position in the market and identify areas for growth.
- Business Development Goals: Specific, measurable, achievable, relevant, and time-bound (SMART) goals that the company aims to achieve through its business development activities.
- Target Markets and Customer Segmentation: Identification of specific market segments and potential customers the business plans to target.
- Marketing and Sales Strategies: Detailed plans for marketing campaigns, sales approaches, and customer engagement tactics to attract and retain customers.
- Partnership and Relationship Strategies: Strategies for building and maintaining partnerships, alliances, and relationships with other businesses, organizations, or stakeholders.
- New Product or Service Development: If applicable, plans for the development of new products or services to meet market demands or to create new market opportunities.
- Operational Plan: Outline of the operational changes or improvements needed to support business development, such as staffing, technology upgrades, or process improvements.
- Financial Projections: Detailed financial forecasts including expected revenue growth, profitability, and budget requirements for business development activities.
- Risk Management Plan: Identification and assessment of potential risks and challenges associated with the business development plan, along with strategies to mitigate these risks.
- Implementation Timeline: A timeline for implementing the various elements of the business development plan, including key milestones and deadlines.
- Monitoring and Evaluation: Methods and metrics for tracking progress, evaluating the effectiveness of business development activities, and making necessary adjustments.
A well-crafted Business Development Plan not only guides a company towards growth but also helps in attracting investors, partners, and key talent by demonstrating a clear vision and strategy for success.
Top Recommended Business Development Resources
Business Development Resources encompass a variety of tools, platforms, and educational materials designed to aid in the growth and expansion of businesses.
Here are specific examples within each category:
Educational Materials and Knowledge Resources
- Books: “The Lean Startup” by Eric Ries, “Good to Great” by Jim Collins.
- Online Courses: Coursera’s “Business Development & Sales” specialization, LinkedIn Learning’s “Strategic Planning Foundations”.
- Industry Reports: Gartner’s annual technology trends report, Nielsen’s consumer research reports.
- Podcasts/Blogs: “Masters of Scale” hosted by Reid Hoffman, Seth Godin’s marketing blog.
Networking and Relationship Building Platforms
- Professional Networking Sites: LinkedIn for building professional connections.
- Online Communities: Industry-specific groups on Reddit or Facebook.
- Events: Annual conferences like TechCrunch Disrupt for technology startups, local Chamber of Commerce events.
- Trade Associations: The National Association for Business Development.
Marketing and Sales Tools
- CRM Software: Salesforce for customer management, HubSpot for inbound marketing and sales.
- Email Marketing: Mailchimp for email campaigns, Constant Contact for small business marketing.
- Social Media Management: Hootsuite for scheduling posts, Buffer for analytics and engagement.
- Analytics Tools: Google Analytics for website traffic analysis, Tableau for data visualization.
Strategy and Planning Tools
- Templates: Business Model Canvas from Strategyzer, SWOT analysis templates from Bplans.
- Project Management: Asana for task management, Trello for visual project tracking.
- Financial Planning: QuickBooks for accounting, Xero for financial collaboration.
- Brainstorming Tools: MindMeister for mind mapping, Lucidchart for flowcharts.
Legal and Compliance Resources
- Document Templates: LegalZoom for legal document preparation, Rocket Lawyer for custom legal forms.
- Compliance Guides: OSHA guidelines for workplace safety, GDPR compliance resources for data protection.
- IP Management: USPTO’s website for patent searches, WIPO for international IP resources.
Funding and Financial Resources
- Venture Capital: Websites of firms like Sequoia Capital, Andreessen Horowitz.
- Crowdfunding: Kickstarter for product funding, Indiegogo for creative projects.
- Financial Tools: Excel for financial modeling, Intuit QuickBooks for budgeting.
Wrapping Up
It is likely that your organization already applies some of the elements involved in the business development process.
The more you refine your processes and expectations throughout the business development processes and the more you train your teams on these processes, the more qualified leads your BDRs can pump out for sales reps to close.
Invest your time into business development and reap the benefits, such as improved efficiency, greater returns on your investment in sales activities, and, most notably, an increase in customers and revenue.