At Piperfest, the AI SDR event of the year, the differences between Inbound and Outbound AI SDRs and what roles they play to generate pipeline was a hot topic. 

Our CEO and Co-Founder, Kraig Swensrud, delved into the evolution of the sales development roles over the last decade, what the sales structure of the future looks like, and why we’re so excited about Piper the AI SDR. 

Learn the difference between Inbound AI SDRs and Outbound AI SDRs and how these new AI teammates are working together to help modern marketing and sales teams generate more pipeline. 

The classical definitions: SDRs vs. BDRs

Let’s start with the world we’re most familiar with. Historically, SDRs and BDRs had distinct functions within a sales team:

• Inbound SDRs (Sales Development Representatives): SDRs were primarily focused on inbound lead conversion. Their role was to handle leads that came through various channels like live chat, email, or phone calls. They engaged with prospects who had already shown interest by attending events or filling out forms. Their goal was to nurture these leads and schedule meetings.
• Outbound BDRs (Business Development Representatives): On the other hand, BDRs were tasked with outbound prospecting. They were responsible for identifying and reaching out to potential new customers. This involved researching target accounts, finding contact information, and crafting personalized outreach to initiate conversations and secure meetings.

Over time, the lines between SDRs and BDRs have blurred, and different companies have adopted various terminologies. Terms like ISR (Inside Sales Representative), OSR (Outside Sales Representative), ADR (Account Development Representative), and others have emerged, often used interchangeably and as catch-alls. 

So let’s just agree as an industry, moving forward, these roles can be clarified as Inbound SDRs, and Outbound SDRs. 

Good? Good.

The problem with the SDR model and how AI is evolving it

Historically, the Inbound SDR and Outbound SDR roles have been entry level roles that get someone’s foot in the door in sales. Most companies rely on these roles to build out their sales orgs and fill their pipeline when it is time to hire more Account Executives. It makes sense. Hire someone fresh, get them fully trained on the ins and outs of your product and sales motion by testing the waters in the SDR function, and then take the ones who excel and promote them. 

The ones who can’t hack it leave for greener pastures. 

But this causes a revolving door, and you’re left with SDR seats to fill either way. 

Evolving the terminology aside, an even bigger shift is happening right now that’s completely revolutionizing the role of the SDR, no matter if they’re inbound, outbound, or all-the-way-around bound. 

The role of an SDR as we know it today is ripe for automation, because the tasks that most SDRs are doing day in and day out are repetitive and communication based–two things today’s AI models are excellent at automating. 

Whether inbound or outbound, these roles are rapidly being replaced by AI SDRs because the processes we've built over the last 15 years are no longer working for buyers. AI SDRs have made the buyer experience marketers crave attainable.

The Rise of the AI SDR

The advent of AI has brought about a new wave of transformation in so many areas of our businesses, but none so much as the SDR. AI SDRs are designed to automate various aspects of the SDR role, both inbound and outbound. Here’s why this transition is gaining momentum:

• Efficiency and consistency: AI can handle repetitive tasks with greater speed and accuracy. For instance, an AI can manage live chat, respond to emails, and follow up with leads 24/7 without fatigue. This efficiency helps in addressing the speed-to-lead challenge, where faster responses can significantly increase conversion rates.
• Cost-Effectiveness: Traditional SDR roles often involve high turnover rates and significant training costs. AI-driven solutions can reduce these costs by performing many of the same tasks without the need for constant hiring and training.
• Data Handling: AI excels at processing large volumes of data quickly. This capability is crucial for lead scoring, personalization, and segmentation, enabling more targeted and effective outreach.

There’s not a forward-thinking CMO out there that isn’t eyeing the recent influx of AI SDRs and thinking it might be time to consider automating portions of their sales orgs. The key is understanding exactly what the different use cases for AI SDRs are, where they fit into your sales org today, and where they’ll take your sales org in the future.

Inbound AI SDRs vs. Outbound AI SDRs: What’s the difference?

Just like their human counterparts, AI SDRs can be categorized into inbound and outbound roles. The functions of the jobs don’t really change, but the mechanics move from repetitive, time-consuming tasks for people to fully automated AI-powered engagement that only requires human oversight to manage and tweak as things within your sales motions change. 

• Inbound AI SDRs: These AI systems engage with prospects who have already expressed interest. They handle tasks such as live chat interactions, email follow-ups, and scheduling meetings with website visitors. Inbound AISDRs are designed to be knowledgeable about the company’s products and services and capable of guiding prospects through the initial stages of the sales funnel.
• Outbound AI SDRs: These systems focus on initiating contact with potential customers who have not yet interacted with the company. They perform tasks like researching target accounts, finding contact information, and crafting personalized outreach messages. The goal is to break into new accounts and generate new leads.

As they say, team work makes the dream work. Inbound and Outbound SDRs work together to prospect and engage buyers all the time, and the same is true for their AI counterparts.

For example, an Outbound AI SDR might identify a prospect who shows initial interest, which then triggers follow-up actions from an Inbound AI SDR. This seamless hand off ensures a smooth transition from prospecting to engagement, enhancing the overall efficiency of the sales process.

The future of the Sales Org in the age of AI

The implementation of AI SDRs is already here. We’re seeing tons of both Inbound and Outbound AI SDRs hit the market, and our very own Inbound AI SDR, Piper, is already hitting the top of our customers’ leaderboards. 

The efficiency, cost-effectiveness, and data handling capabilities of AI make these AI Workers an attractive option for many companies. This shift is happening already and modern marketing and sales leaders have to start rethinking their sales orgs now to stay ahead. Wondering what the future of sales teams looks like? Check out our guide for Building Winning Sales Teams in the Age of AI to learn how to think about integrating AI SDRs into your team now. 

For CMOs and sales leaders, embracing AI SDRs is not just about keeping up with technological trends but also about unlocking new levels of efficiency and effectiveness in sales processes. As we move forward, the integration of AI SDRs will likely reshape the landscape of sales development, offering exciting new possibilities for scaling operations and enhancing performance.

Learn more about Piper the AI SDR here.