AI is seriously killing outbound

(but it's not dead)

Read time: 2 min

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Last month, I had the chance to be on Harry Sims’ podcast, Just an SDR.

During our chat, he asked me a question that’s still on my mind: What’s the future of outbound and SDR teams?

P.S. Harry was also on my podcast a few months back. If you missed it, we talked about Harry’s 10 Rules for Outbound. You can listen to it here .

Here’s my take:

AI is seriously killing outbound right now (but it's not dead).

Outbound is less effective and more expensive

1: Too much noise

AI tools have flooded the market, causing a flood of outbound messages and making it tougher than ever for real sales efforts to stand out.

2: Wasted time

Reps waste 20-50% of their time on tasks that don’t drive revenue, like chasing bad leads, calling bad numbers, or drowning in research.

3: Targeting the wrong account

A lot of companies mix up their Total Addressable Market (TAM) with their Ideal Customer Profile (ICP), wasting time on the wrong accounts.

4: Lack of business acumen

SDRs often aren’t trained to talk to executives, so their pitches focus on the company instead of solving real problems.

5: Poor Deal Management

Outbound deals are often treated the same as inbound, leading to missed opportunities and lower close rates.

The Impact on Sales Performance and Costs

Plummeting Conversion Rates

According to Jacco van der Kooij, CEO of Winning by Design, SaaS companies have seen a sharp drop in GTM efficiency:

• 2015: you needed 100 cold emails to get one opportunity (1% conversion rate)
• 2018: Took 200 outbound attempts (0.5% conversion rate)
• 2023: it took over 1,000 attempts (0.1%)

Rising Costs

While results are dropping, SDR salaries have almost doubled, jumping from $44K in 2015 to $85K by 2024.

Decreased ROI

Lower conversions combined with higher costs mean outbound sales efforts are delivering far less return on investment.

Wasted Resources

Companies are pouring time and money into strategies that just aren’t delivering.

Missed Opportunities

With ineffective outbound tactics, high-value prospects are slipping through the cracks or heading to competitors.

So, what's the future for outbound? The short answer:

Focus on efficiency, and building the right processes.

1. Refine Your ICP

Smaller, targeted lists: Cut your list from 10,000 down to 1,000 highly qualified accounts, identified by founders and GTM leadership—not reps.

Focus on High-Value Accounts: focus on accounts with the highest LTV and ACV potential.

2. Optimize SDR Teams

Smaller, sharper teams: Prioritize quality over quantity.

Elevate the SDR role: Shift from a junior role to a more senior position, requiring strong business acumen.

3. Improve Processes

Account-based strategy: Prioritize accounts based on familiarity and actionable signals.

Effective messaging: Create problem-focused messaging with separate strategies for Above-The-Line and Below-The-Line personas.

Two sales processes: Develop distinct processes for outbound and inbound deals.

Leverage SDRs: Use them to find expansion opportunities within your existing customer base.

4. Invest in outbound training

Train to close outbound deals: AEs, CSMs, and AMs need to handle outbound leads differently from inbound demo requests.

Boost business acumen: Develop executive-level communication skills to elevate outbound conversations.

5. Building a strong outbound data system

AI-powered infrastructure: Use AI to reduce time spent on non-revenue-generating tasks.

Better research, better results: AI can provide high-quality, relevant data for more personalized, effective outreach.

Set up a system that taps into multiple data and validation providers to boost the accuracy of phone numbers and cold emails.

P.S. What are your thoughts on the future of outbound?

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