Does Outbound Still Work? 49% Say No

Does Outbound Still Work? 49% Say No

The effectiveness of outbound sales is a topic of hot debate among sales leaders
today. The strategies that worked over the past decade in SaaS appear to be
faltering. The traditional approach of hiring a large number of SDRs (Sales
Development Representatives) straight out of school to send uniform email
sequences to secure meetings for more experienced AEs (Account Executives) is
losing its edge, with over 90% of these efforts underperforming.

However, there is still a case to be made for outbound sales. Despite the declining
success rates of conventional methods, CEOs and buyers continue to open and
engage with the best emails they receive daily.

Email Engagement: Insights from a Tech Giant

One tech industry insider conducted an informal study to determine if top executives actually read their emails. The findings were surprising. Despite the sheer volume of correspondence, these senior execs were consistently engaged with their email. This engagement is crucial; even at the highest levels of tech companies, effective email communication remains a powerful tool.

A Tale of Two Investments

Consider two rapidly growing investments targeting SMBs with low ACVs and
requiring 1-2 call closes. One company has largely abandoned outbound efforts,
finding them more distracting than beneficial. In contrast, the other has doubled
down on outbound, which now accounts for over 30% of its new customers. These
divergent outcomes highlight the importance of context: different industries, different teams, and most critically, different CROs (Chief Revenue Officers) with distinct DNAs.

The Evolution of Outbound

While the old “break-up email” sequences are largely ineffective today, this doesn’t
mean outbound is dead. The key to success in 2024 lies in ensuring outbound efforts truly add value to the prospect. The traditional scatter-shot approach is outdated; instead, a more focused and personalized strategy is necessary.

The Magic of Email

Email remains a potent tool. Strong, value-driven emails get opened and read. This
underscores the importance of quality over quantity in outbound efforts. A more
thoughtful, less frequent approach can be more effective.

Tactical Insights for Modern Outbound

1. Evaluate Outbound Emails: Regularly review the emails being sent. If the recipient wouldn't respond positively, it’s time to revise the approach.

2. Revive Lost Deals: Consider assigning SDRs to follow up on deals labelled as
“lost.” Often, these deals aren’t truly lost; the timing might have just been off.

3. Pair AEs with SDR: Most AEs are reluctant to do outbound themselves. Partnering them with SDRs can enhance effectiveness, creating a dynamic that allows AEs to focus on closing deals while SDRs generate leads.

4. Personalize Pitches: Slow down outreach efforts. Aim for 50 highly personalized
pitches and strive for a 10% meeting rate. This indicates a compelling value
proposition that stands out amidst the noise.

5. Learn from Successful Models: Examine successful outbound strategies from
leading companies. For instance, one notable company's head of outbound has shared valuable insights on making outbound work effectively today.

Conclusion

While outbound sales strategies of the past may no longer be as
effective, there remains significant potential for success with a revised approach.
Personalized, value-driven communication, along with strategic use of SDRs and
AEs, can rejuvenate outbound efforts and drive growth.