2023 Sales Development Representative (SDR) Conversion Rate Benchmark

A Sales Development Representative (SDR) is a role within a sales organization that is focused on identifying and developing new sales opportunities. SDRs are often the first point of contact for potential customers, and they are responsible for building relationships with prospects and generating qualified leads for the sales team.

In terms of metrics, one important measure of an SDR's performance is their conversion rate, which refers to the percentage of sales qualified leads (SQL) that they are able to successfully turn into opportunities for the Account Executives (AEs). A high conversion rate is generally seen as a sign of an effective SDR, while a low conversion rate may indicate that there is room for improvement.

As we approach the 2023 SDR conversion rate benchmark, it is important for sales organizations to track and analyze their SDRs' conversion rates in order to identify areas for improvement. There are a number of factors that can impact an SDR's conversion rate, including the quality of the leads they are working with, the strength of their sales pitch, and their ability to build relationships with potential customers.

Sales organizations can use a variety of tools and techniques to improve their SDRs' conversion rates. For example, they may invest in training programs to help SDRs develop the skills and knowledge they need to be more effective at their jobs. They may also implement systems for tracking and analyzing SDR performance, in order to identify trends and patterns that can be used to improve performance.

The following conversion rates should be considered when assessing the success of an SDR team in 2023:

• Marketing Qualified Lead (MQL) to Sales Qualified Lead (SQL): The rate at which an SDR turns raw leads into qualified ones. Your company’s key success indicators (KSI) should be kept in mind when analyzing this
• SQL to Opportunity: The rate at which qualified leads are fed into your company’s sales pipeline
• Opportunity to Close: The rate at which opportunities generated by an SDR end up as closed deals

The average conversion rates for these metrics are as follows:

• MQL to SQL: 30%
• SQL to Opportunity: 25%
• Opportunity to Close: 33-25%

In case you are not hitting these numbers, here is where you should improve

• MQL to SQL: It may indicate that the inbound leads from your marketing team are of poor quality - "hot air". You should work with your demand generation team to help them better understand the audience they should target vs the one they send you leads - seniority, company size, role, country etc.
• SQL to Opportunity: This is where the SDR should shine. If you fail here, you should practice the sales story, record your session and watch yourself, ask for help from your team or manager.
• Opportunity to Close: This is mostly the responsibility of the AE. However, if the conversion rate remains low, you should work together to better define the criteria for an opportunity.

Ultimately, the key to a successful SDR conversion rate benchmark in 2023 will be a combination of strong sales skills, effective training and development programs, and robust systems for tracking and analyzing performance. By focusing on these areas, sales organizations can help their SDRs achieve the highest possible conversion rates and drive strong results for the business.