25 Business Development Manager Interview Questions & Answers
Behavioral
1. What are your must-haves for a successful sales pitch?
How to Answer
A sales pitch can make or break the deal, so every salesperson is expected to have their own framework. A successful answer will outline two essential elements: the problem and the solution. All other factors will fall under either, so take this opportunity to make yourself stand out by peppering in techniques that have worked well for you in the past.
Answer Example
"In my experience, storytelling is a compelling technique in pitching sales. My usual structure is to start with an anecdote, highlight the problem, and explain how I can solve that problem. The key is to make it relatable to the client. I'll pick an anecdote from a competitor or from within the industry. When I explain the solution, it's also tailored to the client's space or directly connected to the anecdote. To top it all off, I will tie everything back with our proof of success where the numbers are relevant to them, as well."
Behavioral
2. Would you sell a product or service that you do not believe in?
How to Answer
Most people in sales would agree that one of the worst sales situations is selling something that goes against your ethics. With this question, the interviewer is gauging your integrity as a business development manager. Be honest with your answer. If you've experienced this before, talk about how you felt about the situation and how you proceeded.
Answer Example
"No matter how much money is on the table, I don't think I can sell a product or service that I personally don't believe in. If I do, I would feel as if I'm deceiving customers. However, it would also depend on why I don't believe in the product. If it's just a couple of things that I'm not too confident about, I could probably highlight benefits and features and still be honest about any shortcomings. It's important to be realistic and upfront with customer expectations. If I wholeheartedly feel that what I'm selling is fraudulent, I would walk away from the job. It's not worth the guilt I would feel later on, plus the possibility of being sued is not enticing at all."
Behavioral
3. Tell me about a time you disagreed with your superior. How did you handle it?
How to Answer
Business development managers are held up to high leadership standards, even when their role doesn't require them to manage subordinates. Show the interviewer that you are adept in conflict resolution and that you can respectfully challenge decisions even when doing so is uncomfortable or exhausting. The interviewer will want to learn that you were rational in your opposition. They will also want to hear that you were determined to commit wholly to your decision.
Answer Example
"During my time as a marketing strategist at XYZ group, I was in charge of providing marketing direction for five large clients. One time, an unhappy client contacted my superior about a lead generation campaign that was recently launched. My boss was clearly upset as he told me that he's on the client's side and that it was not the right strategy. We were in a disagreement. I had spent weeks digging up and researching data for the campaign. At first, I acted very defensively, but I took a second to compose myself. I explained my thought process and showed him my data sets. Then, I showed a visualization of the campaign workflow and the success measures that we put in place. These were targets that the client indicated when they initiated the project. After hearing me out, my boss noticeably eased up. He still disagreed with a few of the steps the team took and was unhappy that the client felt as if they had to escalate to him. I asked him to give me at least two months to run the campaign and prove myself. We agreed to make some adjustments based on his feedback. He and I met with the client to present the changes. The client was visibly relieved, and we were able to salvage the relationship."
Behavioral
4. What would you do if a client constantly tries to avoid you?
How to Answer
There are numerous reasons for clients to avoid you, whether they're receiving so many pitches, find your proposal not to be strong enough, or they're just too busy. Assure the interviewer that while you are after the sale, you're also capable of empathizing with the prospect. Talk about what you might do differently to follow up with the client without getting aggressive.
Answer Example
"There are a couple of ways that I've tried to stand out to clients when they seem like they're avoiding me or when they become unresponsive. Instead of calling them again, I'll shoot them a follow-up email. In the email, I'll include social proof, like testimonials from previous clients. Sometimes, I'll add links to success stories that show how our product or service positively impacted the clients' bottom line. Then, I'd sign the email simply with my contact information. In some instances, it may be a waste of time to bombard the client with too many follow-ups. Also, if there's a next best person I can reach out to, then I'll try them as well."
Behavioral
5. How would your previous clients describe you?
How to Answer
Business development requires a good balance of decisiveness, strategic thinking, and effective communication skills. When crafting your answer, assure the interviewer that you can make decisions quickly in a high-pressure, constantly changing work environment. Another element that you'll want to touch on is your ability to negotiate with colleagues and clients to keep projects on track.
Answer Example
"I selected a broad range of people; supervisors, peers as well as members of my team. I feel that you would get all positive yet differing perspectives from each person. I know they would all recommend that you hire mas I have the proper skill set to succeed in this position."
Behavioral
6. Do you prefer to be an individual contributor or as a leader?
How to Answer
Assure the interviewer that you understand the needs of the job you're applying to and be honest in your answer. If you see yourself as someone who can mentor others and care for their success, the company may want to invest in your leadership potential. On the other hand, if your goal is to refine your sales skills further as an individual contributor, then the interviewer will want to learn that you are an independent worker who can deliver consistent results.
Answer Example
"At the moment, I see myself thriving in an individual contributor role. I'm a highly driven salesperson, and I enjoy the freedom of managing my own time. Don't get me wrong; I enjoy collaborating with others, and I'm very adept at managing relationships, whether with colleagues or with clients. I prefer being responsible for my own goals, working within a flat organizational structure."
Behavioral
7. How do you see yourself in the next five years?
How to Answer
With this question, your dedication to a career path in business development is being gauged. Further, the interviewer also wants to hear that you are looking forward to contributing to the company's success. Depending on the company's organizational structure, talk about the different specialties or concentrations that may become available to you. Be honest, but emphasize that you plan to continue building your business development skills. Talk about how you might align your growth with the growth of the business itself.
Answer Example
"In the next few years, I'm looking to grow my marketing and sales strategy skills. On the marketing side, I want to better grasp acquisition and retention tactics, especially in the business-to-customer market. On the sales side, I really want to explore automation more and leverage data to optimize our chances when prospecting and winning clients. I imagine that once I can consider myself an expert in these, then I can be in an excellent position to lead marketing and sales as an aligned team, possibly as a director for business development or something similar."
Behavioral
8. What do you like about your current position and what would you like to see change?
How to Answer
The interviewer wants to learn about your motivations. In addition, they're also interested in whether you have any desire to scale your skills and capabilities. A successful answer will clearly outline what you are missing in your current position. Avoid any mention of personal conflicts or dissatisfaction with compensation. Focus on the job description and expectations instead.
Answer Example
"In my current role, I enjoy a lot of independence. As long as I hit my goals, it's up to me to strategize how to optimize marketing and target the best prospects. I also like that I have access to experts within the company I can collaborate with as needed. However, I really want to be able to develop my skills in managing the entire sales pipeline. For example, I can only prospect certain types of clients who are forwarded to me through the contact management system. I think that by utilizing the right tools, and with the right research work, I can really expand our horizon in terms of business development."
Behavioral
9. Describe a time when you went above and beyond for a deal to go through.
How to Answer
With this question, the interviewer is assessing your commitment to closing a sale. When crafting your answer, keep in mind that while it's admirable to go through great lengths to win a client, not all prospects are worth it. Talk about your reasons for going above and beyond for the deal, and assure the interviewer that you can keep your professionalism, even when the going gets tough.
Answer Example
"Once, I had a high-value client who was going out of the country for business for a couple of weeks. She and her team showed a lot of interest during the initial pitch. She told me that she would reach out to me once she was back because she would be working in a different time zone. I didn't want to lose momentum, so I proposed to follow up while she was away. It meant that I would have to be on video calls with her late at night, but I assured her that I was a night owl and happy to accommodate. The entire negotiation went over three long days and a total of six hours. In the end, the client was really impressed with us, and we were able to close the deal a few days after she returned."
Behavioral
10. Tell me about a time when you lost an important deal. What was the reason and how did you move on from it?
How to Answer
Your failures as a business development manager are just as important to discuss as your successes. The interviewer will want to learn that you are not averse to rejection. Rejection is so common in sales that most industries set their close rate goal between 15% and 30%. Talk about the client, why you didn't win them, and what you learned from the ordeal.
Answer Example
"When I worked for Acme Company, I nurtured a $2M deal with a manufacturing prospect for three months. The automation software that I was selling had only been in the business for two years, but it had great promise. Our founders worked for our main competitor, XYZ, for years so that we could present solutions to known issues with their software. However, the client still chose to renew their contract with XYZ because of their long history. It was heartbreaking to lose a deal that large, but that experience taught me that it's important to build trust not only during the pitching and closing stages but, more importantly, after the sale has closed. Sales can take form in customer support and relationship building."
Behavioral
11. Describe your ideal client or customer. What qualities do they have?
How to Answer
With this question, the interviewer wants to uncover your priorities when seeking out clients. They will also want to learn about how you expect customers to react to your proposals. In your answer, speak about the high-level qualities of an ideal client. In addition, you will want to assure the interviewer that you are motivated to winning clients even when the situation is not ideal.
Answer Example
"In a perfect world, all my leads would fall within the right demographic, are open to new solutions, and have the budget to purchase our service or product. For me, the right demographic means they fit into any one of our buyer personas. If they are not the right demographic, then I can still keep them in mind for future business or mine them for references. Second, being open to new solutions is great; the challenge will be to out-pitch the competition. Lastly, if the client can't afford what I'm selling, then it won't be a good fit at the moment. However, I will let them know that I'll be reaching out in the future when their situation changes."
Behavioral
12. Tell me about a time when you had to sell an unpopular idea.
How to Answer
A proficient business development manager focuses on the positive aspects of an idea and then points out its benefits. While the idea itself might be unpopular, the outcomes are often welcomed once people understand what is being proposed. Assure the interviewer that you have the skills to persuade people of different levels of knowledge, expertise, and influence. When crafting your answer, keep a structure in mind like the STAR format: situation, task, action, result.
Answer Example
"When I was at ABC group, most of our proposal meetings and pitches were done in person with clients. All proceeding meetings were also done in person, with some team members joining in by phone. This was common practice for everyone, including our competitors. When video conferencing rose in popularity, I proposed that we start adopting the technology. Not only would we start consultations through video, but account managers would also have to schedule regular account meetings with clients through video. We would record meetings, with the clients' approval of course, to have a definitive paper trail for all client-related activities. This proposal was met with a lot of objections. The sales reps felt that it would take away from the human connection. Account managers thought that clients would feel their privacy is somewhat violated.
So, I presented the entire team with a few benefits. Because we would slash travel time and expenses down for physical client meetings, this meant that we would all be more productive. I showed the team statistics from other organizations that showed how much time and money their teams have saved after going at least 50% virtual. For the account managers, I showed them that most clients actually prefer recordings because it holds both parties accountable. Recording calls helped to minimize conflicts that would arise from miscommunication. In the end, we all agreed to keep some of our meetings in-person if the client so requests, especially if the dollar amount was high, and if we needed to perform demonstrations live."
Competency
13. What are the qualities of a healthy sales pipeline?
How to Answer
BDMs constantly monitor their sales pipeline. A lack of quality prospects in the sales process today can spell trouble for the business tomorrow. When forming your answer, think about the different metrics you've analyzed to determine the health of your sales pipeline. Further, expound on the elements you consider for each of them.
Answer Example
"The most common qualities that I measure to determine pipeline health are its size and shape. When it comes to size, bigger isn't always better. I prefer to look at the quality of leads at every stage to prioritize the more desirable ones. For the pipeline shape, it's ideal to keep the pipe more like a pipe with the same circumference throughout the process. This is the ideal situation, but in reality, it usually resembles a cocktail glass tapered at the bottom. That means that as leads go further down the line, they're culled, and the number is pared down based on viability. In addition, I also like to measure the duration of the sales cycle and how much leads drag from one stage to the next. A healthy pipeline moves leads along as quickly as possible."
Competency
14. What is your business development strategy during an economic downturn?
How to Answer
Large-scale economic downturns and micro recessions can lead to panic. The interviewer wants to learn that you have the skillset to strategize for such an overwhelming curveball. A successful answer will present a few options and look at business growth from different aspects.
Answer Example
"Although I've never been hardly hit by a recession myself, I can imagine how difficult it would be to be working in sales or business development when people aren't in a great position to be buying. The first thing I would do is check on our current clientele and what's in the pipeline. My colleagues and I will connect with clients and prospects to find out how they're doing and if they foresee any budget cuts that may affect our relationship with them. This way, we can better plan for the long term and set realistic revenue and profit margin goals. We'll also work with our best customers to strengthen those relationships and help their businesses thrive through the downturn.
Another aspect I could look at is our product or service cost structure. I can find out if there's anything we can change to make it more accessible to a wider client base. There's no need to develop new offerings because that means we have to spend. We have to make our current ones more agile for the economy. We have to be careful about sustainability, though. Overall, my strategy will be to think about everything for the long haul and not be overly reactive."
Competency
15. In your previous roles, how did you typically get leads?
How to Answer
The interviewer wants to learn how you process leads and whether you get them yourself. They will want to hear that you can go beyond standard if this process is automated.
Answer Example
"Contact management system."
Competency
16. Talk about the top three factors you evaluate in a prospect.
How to Answer
Veterans in the business development field can smell bad prospects from a mile away. With this question, the interviewer is gauging your prospecting savvy. Talk about what factors you evaluate and why. A strong response will define these factors and talk about how they might impact sales success.
Answer Example
"The three main factors I assess in a prospect are if they fit any of our buyer personas, whether they have a real need for my solution, and if they are willing to spend on my solution. They have to fit our buyer personas that are already tailored in terms of prospects' industry, size, challenges, and goals. Next, I have to be certain that I can address their pain points directly with whatever it is I'm selling. Otherwise, there is no value to talk about. And lastly, I have to find out one way or another if they can afford the solution. Sometimes, this boils down to timing. For example, if it's toward the end of their fiscal year, then they have a chance to shop around. On the flip side, if their budget has just been approved for the next fiscal year, then I may have to reach out some other time."
Competency
17. What are ways to identify a new market to enter? Give at least two examples.
How to Answer
Identifying new markets to enter is a major business development task. The interviewer will want to hear about known strategies, such as consumer or buyer segmentation, competition analysis, market analysis, among others. Talk about the different methods you have employed previously in deciding which new markets to enter and how these methods have worked for you in the past.
Answer Example
"My go-to methods for identifying new markets are competition analysis and complementary product or service analysis. Because of the myriad market research data available for every industry, direct or indirect competition analysis makes it really easy to determine the market size and growth potential. Additionally, because most companies make their products and services accessible, one can purchase the competitor's product or get a free trial of a service. On the other hand, complementary products or services help widen the horizon for new markets. For example, if I'm looking to sell internet service in a new area, I would also look at the current offerings in TV services there. If I were selling furniture, I could look at sales data in real estate and property management, like vacancy and turnover rates."
Competency
18. Walk me through your ideal business development workflow for a service firm or for a product. Describe how leads enter the pipeline, how they are processed, including tools and collaborators.
How to Answer
A business development workflow encompasses the entire marketing and sales process. With this in mind, every industry and every business is different. Base your answer on the industry or company that you are applying to. The interviewer will want to hear you speak articulately about the phases that take place throughout the workflow. Talk about tools, such as customer relationship systems or similar software, and collaborators, such as marketing and sales team members involved in each phase.
Answer Example
"My ideal workflow starts with setting the goal. For example, if we're introducing a new service, let's determine the market penetration rate for the first fiscal year. We'll need the buy-in from the executives and the business development team. From there, the marketing and sales teams work backward and set metrics for sales and marketing activities. The marketing strategists will formulate a brand position and a new service offering strategy. The result is a cohesive message across all of the activities and touchpoints we have with the clientele.
Then, together, we map out the marketing channels for lead generation. In a perfect world, we would have all the data captured automatically depending on the media channel. Then, these leads are qualified by marketing analysts and then sales strategists through a CRM like SalesForce or HubSpot. From there, the sales team executes sales tactics, such as direct outbound sales, inbound, and others."
Competency
19. Why is a market segmentation strategy important?
How to Answer
Market segmentation is traditionally a marketing function. However, the benefits of a correct, well-defined market segmentation strategy can be enjoyed by the company's marketers, salespeople, and the overall business development group. Describe these benefits and the impact they have on the work that you do.
Answer Example
"A market segmentation strategy impacts marketing, sales, and after-sales activities greatly. During the earlier stages in the buyer's journey, a great strategy informs the planning of marketing campaigns, as it helps to focus efforts and money on specific groups instead of targeting the mass market. Market segmentation also allows us to learn more about our customers and help us better understand their needs and wants, which we can directly address during the selling stages. As a whole, we can plan our resources better once we identify the total addressable market and understand the different groups within."
Competency
20. What are your key performance indicators as a business development manager?
How to Answer
Many variables determine key performance indicators for business development managers. Some organizations will separate the marketing function from the role, and therefore separating marketing KPIs. Another variable is the industry and type of product or service being sold. However, high-level measures of success, such as bookings, proposals, contacts, and sales pipeline numbers, apply to all business development teams. In your answer, talk about your specific target metrics and relate them to these high-level KPIs.
Answer Example
"Booking rate, win rate, average purchase value. qualified leads whether marketing or sales qualified, lead to client conversion, retention rate."
Competency
21. How do you balance prospecting new customers with retaining existing ones?
How to Answer
In this question, the interviewer is assessing your task management skills. Further, your ability to manage multiple relationships is also being evaluated. Because nothing you do as a business development manager should be random, you should always have a method or a plan to nurture client relationships, whether current or future. A successful response will outline this method or plan in balancing prospecting with client retention.
Answer Example
"I'm very fortunate to be a BDM in a time when everything can be automated. Through a customer relationship system, I'm able to plan out my days, weeks, and even months to spread my time out between prospecting and customer retention. Each of my prospects is categorized based on where they are in the pipeline. Depending on how those prospects prefer to communicate and their specific needs, I can set scheduled tasks and reminders to reach out to them. Typically, I'm less involved in customer retention because I transition clients out to account managers and the like. However, I still schedule tasks to reach out to them regularly to be that extra pair of hands for them and get feedback about the relationship. I let my clients know that my line is always open to them. When the time comes, I will need to be pulled in for contract renewals, extensions, changes, or addenda. But there are also those unfortunate times when I have to step in because the relationship takes a negative turn, and I have to salvage it."
Competency
22. How do you sell against the competitor without maligning them?
How to Answer
Salespeople are notorious for directly and aggressively addressing their competition. Trashing or badmouthing others is easy, but it's hardly ethical. The interviewer will want to learn that you can sell products or services without being malicious. A successful response will demonstrate ways in which you can appeal to reason.
Answer Example
"In my experience, there is value to comparing what you're selling with what your competitor is selling. Clients who are well informed will want to know that your product is bigger, better, faster, or more cost-effective. The way I go about it is by visualizing the numbers. I'll present data comparing our performance versus the client. With this approach, we're looking at the competition objectively. While not all of our numbers might point to us being the better choice, there are ways to show where compromise between features may lie. Further, it's always useful to emphasize the customer experience. I'll talk about what we do differently to take care of the client once the sale is made. After all, we are all human and need that connection."
Scenario Based
23. It's two hours before the close of business. You've hit your targets, and you've marked everything on your task list for the day. What do you do with this extra time?
How to Answer
Business development managers typically divide their time between certain priorities: marketing and sales strategy, market research, and reporting. In your response, demonstrate time management skills by naming a few activities that will ultimately impact your productivity and the business's bottom line. Another factor you may want to consider is that BDMs are also looked to for creativity and resourcefulness.
Answer Example
"Extra time is scarce when it comes to this role. There's always work to catch up on. On the rare occasion that I do get a few hours with no looming deadlines, I have two fun go-to activities. The first one is looking at competitors' social media and blog content. It's entertaining but also very informative. It gives me a better idea of their brand position and how their audience consumes their content. Another thing I like to do in my downtime at work is looking at innovation opportunities. I like to research new automation tools, trending software, and the like. I like to think of new ways to make everyone's work easier."
Scenario Based
24. Describe a negative experience you had with pitching to a client. What did you learn from it?
How to Answer
Business development managers and salespeople are a resilient bunch. The interviewer wants to learn that you have the resilience to go through the wringer and deal with rejection regularly without taking anything personally. Provide an example of a pitch that went sideways and the reason behind your choosing that specific experience. Further, discuss the lessons you learned and how the incident has impacted your attitude towards the job.
Answer Example
"A few years ago at XYZ solutions, our prospects were mainly government organizations. One time, we were pitching at a city hall. The service offering was cloud HR and payroll solutions, and the audience was comprised of the mayor and his staff. At the get-go, the engagement was already low. It just went downhill from there to a point where the mayor was scrolling on his phone, and the rest of the group was yawning. I tried to engage them a little more and inject some energy into the presentation. Then I elicited them for questions, and it suddenly made sense. They were uninterested because they didn't understand much of it. I realized that I used too much jargon and forgot to discuss some of the basics. I was so used to pitching to private sectors who are already using similar tools. Needless to say, we didn't win the contract. Although it wasn't a typical negative experience because there wasn't any obvious resistance or confrontation, I still consider it to be my worst pitch because of the large dollar amount associated with it. After that experience, I learned to take a few more steps in understanding my prospects' needs and really tailor my proposal to them and their level of knowledge."
Technical
25. What customer relationship management (CRM) software have you utilized in your past roles?
How to Answer
There's a multitude of CRM software that aligns business development activities. The interviewer will want to hear that you have utilized at least one of these tools. Describe how you've leveraged them in the past and what role you think they play in making the business development process successful.
Answer Example
"In my previous roles, I've mainly used SalesForce with Pardot. I've also utilized HubSpot. Customer relationship management tools are crucial in automating business development activities. It saves everyone in the team a lot of time and effort for marketing campaigns, lead management, and overall pipeline management. The most important functionality for me is the ability to capture and analyze data. It helps the business make educated business decisions. It also helps concretize strategies for the team and make goal-setting realistic."