If you're in business, you've undoubtedly heard the terms "sales" and "business development." But what do they actually mean? And how do you know which one you should be focusing on? In this post, we'll break down the key differences between sales and business development, so you can figure out which one is right for you.
Sales and business development are both critical to the success of any company.
But sales professionals work on generating revenue through sales, while business developers focus more on growing revenue by finding new customers.
These two roles are often misconstrued as one another, which can be a costly mistake for companies that don't know how to effectively manage sales and development strategies.
In this guide, you will learn about the similarities between sales and business development, what they do differently from each other, and how to optimize your sales process with effective use of a sales professional or a qualified business developer.
Sales and business development are two very different functions in a company, but they both work to grow the business.
Sales professionals generate revenue by closing sales transactions, while business developers look for new customers and opportunities to increase sales growth.
It's important to understand the key differences between these two roles if you want your company to be successful.
In this article, you will learn the differences between sales development and business development, which is a common mistake that companies make when trying to grow their revenue.
You might think sales professionals are essentially the same thing as business developers because they both generate sales growth for your company.
But sales is actually quite different from business development because sales focuses on closing transactions with existing customers, while business development looks for new customers and opportunities to increase sales.
If you're looking to hire someone in sales or business development, it's important to understand the key differences between these two roles.
Sales professionals are great at generating revenue by closing sales with existing customers, while business developers are good at finding new customers and growing sales through new revenue streams.
With sales and business development, it's not as simple as just hiring one person to handle both functions because they do two different things for your company.
The most precise definition of business development is a set of actions and processes aimed at developing and implementing sustainable and lucrative growth prospects within (and across) firms.
Most firms, however, use the term differently in practise, depending on what they need that function to do for them. In a SaaS scaleup, for example, Business Development normally entails a lot of cold outreach to new clients.
Business Development in a large, global corporation, on the other hand, may do market research in preparation for a new market entry or a new product line.
Regardless of their variations, business developers in all firms have one purpose in mind: to identify and implement new growth prospects.
It's not always easy to tell the difference between business development and marketing, and it's made much more difficult by the fact that business development can appear very different from company to firm.
Here's the distinction: The primary goal of marketing is to attract new leads and customers. Building relationships with organisations in order to generate new prospects is what business development is all about. But let's delve a little deeper into this.
Promotional Activities Your company's marketing department is the one that interacts with customers. The major purpose, as previously said, is to attract clients.
This can be accomplished in three ways: Creating an Idea Customer Profile to identify your ideal customers (ICP)
Maintaining a consistent brand and utilising numerous platforms (website, social media, advertisements, etc.) to stay top of mind with your ideal customers.
Customers are being educated about your company, products, and services.
In general, BDRs work with the sales and marketing departments, providing support so they can reach their goals. This requires a unique blend of marketing, communication, and sales skills:
1. Marketing Skills-
A sales development rep must possess the ability to communicate with prospects, understand their needs and build rapport quickly.
This is why many companies see marketing as a vital skill for sales development reps.
They are skilled at creating content that attracts new leads, publicly announcing it on social media platforms or through some other form of promotion so people can find out about it.
Additionally, sales development reps must be able to track their progress and analyse what is and isn't working so they can improve their methods over time.
Some reasons why you should be doing marketing certifications.
2. Communication Skills-
A sales development rep must be able to articulate the value of a product or service in a way that is clear, concise and persuasive.
They need to be able to have intelligent conversations with potential customers and build relationships by engaging them in dialogue.
This also includes active listening so they can understand customer needs and requirements.
3. Sales Skills-
Sales development reps need sales skills like the ability to ask strategic questions that will help them qualify leads.
They must be able to close sales and provide value for customers, plus follow up with prospects who aren't ready yet.
As a result, we're the ideal people to gather market intelligence firsthand. That's why, when coupled with other teams — particularly the sales team, which is normally entrusted with seizing chances — this job may be incredibly effective.
What's the Difference? What is the distinction between sales and business development?
As you may expect, there is often confusion about how this function varies from sales roles because there is no agreed-upon description. Business developers are frequently mistaken for sales reps with a more prestigious position.
The opposite could not be further from the truth. In reality, treating business development as if it were a part of the sales team can lead to misconceptions and dissatisfaction, particularly when it comes to revenue.
For example, management might believe that a new business development will close transactions quickly.
But, for a variety of reasons, this is an unrealistic expectation. Business developers are mostly interested in new prospects, which take longer to close.
Sales are not the same as business development. As a result, you shouldn't expect your BDRs to close agreements in a timely manner. (In a moment, we'll go over this in further detail.)
1. BDRs and SDRs work in different stages of the customer journey-
Sales development reps (SDRs) work in the early stages of the customer journey by identifying potential customers and building relationships.
They gather information about leads to hand off to sales reps, who are responsible for moving opportunities through the sales process until they're closed.
BDRs, on the other hand, typically focus on warm leads that have already been identified as potential customers. BDRs nurture these leads by providing value and deepening the relationship until they're ready to buy.
This is an important distinction, because sales development reps need to have a different skillset than business development representatives.
2. BDRs and SDRs have different responsibilities-
BDRs and SDRs execute different types of activities since they work at different phases of the sales funnel.
Did you know that only 28% of sales professionals consider marketing to be their best lead source?
This is where business development comes in to help bridge the sales-marketing divide. Cold leads are usually where Business Developers begin their talks.
As a result, they devote a significant amount of time to: Participating in events Using social media to connect Taking on new projects Marketing and sales efforts must be coordinated with business growth initiatives.
Warm leads, or customers who are already investigating a specific solution, are typically approached by sales personnel. As a result, they devote their time to:
Calls, demonstrations, and meetings Prospective client consultation and problem-solving Persuading potential clients to pick them
3. BDRs and SDRs aren't always on the same page when it comes to their aim
However, they should! Despite their differences, sales reps and business developers follow the same sales process.
This means that in order to achieve quick results, the two teams must agree on one important element: the ICP and buyer persona. Business developers must know who their ideal target is in order to focus on leads that can be closed by the sales team.
Similarly, sales reps must rapidly determine whether a lead is worth pursuing. Surprisingly, not every organisation knows who they're going after.
They might have a hazy sense of who they want to target. They haven't sorted out the details because they haven't built an Ideal Customer Profile or Buyer Persona.
And this has a direct impact on how sales and company development are conducted. If business developers don't know who they're targeting, they'll end up with a lot of leads that aren't relevant. These leads will not convert into paying clients, causing your sales team stress.
Despite the fact that business development and sales are two independent careers and, in some cases, divisions, these individuals collaborate and rely on one another.
The marketing staff interacts with business development and sales specialists, forming a vital team for success.
The following steps are frequently followed in the business development, marketing, and sales processes:
Jobs in sales and business development
There are two types of sales jobs: inside sales and development. If you're interested in one of these jobs, it's critical that you grasp the differences.
Jobs in business development
Occupational titles:
Representative for business development
Example of a job posting for a sales development representative:
I'm looking for a business development professional who can help me find new leads. You'll be in charge of networking, industry research, and uncovering undiscovered niche markets for new clients.
You'll work with the marketing department to create campaigns that target these locations' potential leads.
Once qualified leads have been discovered, you will send them on to the sales team, working together with them to determine the best method to move these leads through the sales funnel.
Traveling to trade exhibitions and industry gatherings to network with possible buyers will take up about 15% of your time.
Essential abilities include:
Willingness to travel and the ability to handle many projects at the same time Organization and the capacity to manage multiple projects at the same time
An example of a job posting:
To contact prospects, offer items, organise demonstrations, and close sales, we're looking for a sales person.
You'll be in charge of phoning or emailing leads to determine their needs and make recommendations for the best products and services for each one.
You'll give sales presentations, complete deals, and follow up with consumers who have already bought something. We're searching for people who are results-oriented and can build long-term partnerships with our clients, converting shoppers into loyal customers.
Essential abilities include:
