Lifecycle Management – what’s in it for me? – BDR ROI Calculator

This is the ninth post in a series called “Lifecycle Management – what’s in it for me?”, which shows how to audit and transform your process at every stage of the sales cycle. 

Link to the first article – Introduction

Link to the second article – Prospect or Suspect Stage

Link to the third article – Lead Stage

Link to the fourth article – Opportunity Stage

Link to the fifth article – Cosed-Won 🙂

Link to the sixth article – Closed-Lost 🙁 

Link to the seventh article – Renewal Stage

Link to eighth article – Unified Reporting

If you reduce the amount of time spent on BDRs’ administrative tasks, the team can spend more time on consultative selling - increasing BDR ROI per rep. This chapter will show you how to calculate exactly how much value your organization could save by leveraging Lifecycle Automation.

Below is an example of value to be saved if your BDRs are managing a $1M pipeline. We have also built a calculator to instantly demonstrate how much money your organization would save per BDR per week by implementing the recommendations in this guide. Read through the example first to get an understanding of what numbers you need to input into the calculator.

Let’s look at an example of anticipated value per BDR hour

• Calculate the average pipeline value per BDR. In this example we’ll use $1m
• Divide by the typical number of hours worked in a year, 1920 – (2080-160 (4 weeks of PTO)), example: $520.83
• So $520.83 is the estimated pipeline value generated per hour per BDR

How much time would automation save?

You can determine the amount of time saved for more productive, revenue-generating activities, based on automating a number of tasks that are currently handled manually by BDRs. Here’s a calculation based on what we’ve seen at several clients:

• Manually adding Leads after a conference or event: 1 hr per week
• Nurturing leas and weeding out tire-kickers: 10 hrs per week
• Communicating with various departments during the Opportunity phase: 2 hrs per week
• Sending out renewal notifications: 1 hr per week
• Sending out second chance lead follow-ups: 1 hr per week
• Total: 15 hrs/week

Now multiply this number of hours by the amount of revenue generated per hour:
15 x $520.83 = $7812.45 per week per BDR

It gets better…

If your BDR is working on average 48 weeks in the year, then multiply $7812.45 x 48 = $374,997.60 per year in potential sales pipeline additions.

How many BDRs do you have…?

With the estimated 15 hrs/week per BDR…

Now multiply this number of hours by the amount of revenue generated per hour:
15 x $520.83 = $7812.45 per week per business development representative

Conclusion

Marketing automation within a CRM is a powerful tool that can help you streamline your marketing efforts, improve customer engagement, and increase your ROI. With the right automation in place, your business development team can relinquish most of the non-value-add administrative tasks and focus on key areas of the sales pipeline process where their business savvy and consultative selling skills can benefit your organization most: initial conversations with interested customers, determining if an opportunity is available now, and closing/winning opportunities. Meanwhile, you can create a better customer experience and build stronger relationships with your customers.

Overall, implementing marketing automation can have a significant impact on your company’s revenue, lead generation, efficiency, and ability to make data-driven decisions.

In our final post in the “Lifecycle Management – what’s in it for me?” series, we will post the Long-Form Guide of this content for you to download.

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MRM can help

Let Measured Results Marketing transform your end-to-end sales pipeline process and return 15 hours per BDR back to your team so they can focus on revenue-generating activities instead of administration. Click here to learn more about MRM’s Revenue Operations Ecosystem™ and see if it is a good fit for your goals. You can also call us at 571-606-3106 or leave a comment on LinkedIn.