Why it's essential to align your sales and marketing functions
The functions of Sales and Marketing share almost identical goals – to drive revenue, increase profits and delight customers. And yet, in many (especially B2B) businesses, getting the two departments to actually work together and align their processes, remains a monumental challenge.
In some cases, the two are simply divided by an invisible wall, working with their own disparate systems and goals, and sharing precious little communication. In others, there’s flat-out rivalry and distrust between them. How can this be?
The alignment of Sales and Marketing is a growing focus within many organizations. In this article, we’ll explain what it is, why it’s important, and give you a few ideas to get started within your own organization.
What is Sales and Marketing Alignment?
We see Sales and Marketing alignment simply as organizational co-operation between the sales and marketing functions, linked by common definitions, shared performance indicators, and ongoing communication. In the simplest possible terms, it’s sales and marketing working together to achieve company goals!
Marketing has branched off in a wide variety of different directions in recent years – social, mobile, content and more – and, while brand storytelling is crucial, it’s important to remember that it’s lead generation and conversion that are the bedrocks of business success. That’s why it’s crucial that marketing and sales are marching to the same beat to help and support each other to achieve these goals.
Why is it important?
Grows Revenue
MarketingProfs suggested that companies with aligned sales and marketing can generate up to 208% more revenue from marketing; and back in 2010, Aberdeen Research suggested that companies which are best-in-class at aligning Marketing and Sales experienced an average of 20% growth in annual revenue – compared to a 4% decline in ‘laggard’ organizations.
Wins Sales and Boosts Customer Retention
MarketingProfs reports that organizations with tightly aligned sales and marketing functions enjoyed 36% higher customer retention rates, and 38% higher sales win rates.
Acknowledges Changing Buyer Journeys
According to The Corporate Executive Board, the buyer completes as much as 57% of the sales journey before he or she ever engages a salesperson. Without sales/marketing alignment, the sales team has no input into over half of the actual buying process.
Helps Close Deals
Marketo report that, when sales and marketing teams are in sync, companies are up to 67% better at closing deals.
Saves Time
50% of sales time is wasted on unproductive prospecting (101 B2B Marketing and Sales Tips from The B2B Lead)
Increases Collaboration
Sales reps ignore 50% of marketing leads (101 B2B Marketing and Sales Tips from The B2B Lead)
How to align Sales and Marketing
Shared Goals
As we’ve already touched on, the overarching goals of the sales and marketing function should be pretty much identical, but, all too often, we see these teams preoccupied with their own departmental goals and targets. It’s important that mutual goals are agreed upon and measured often. Everyone should know the end game and have the same marching orders.
Shared Definitions
There are a number of different terms thrown around in sales and marketing, and it’s important to ensure that both teams agree on what constitutes each one of these. For example, what constitutes a lead? What constitutes a qualified lead? There needs to be consensus and understanding regarding what these words really mean and who has responsibility at each stage of the buying process. Where does marketing end and sales begin?
TOP TIP: work to put together an inter-departmental glossary which defines a number of key operational words and phrases
Collaboration
It’s extremely important to include each department in the development process. Sales is the front line to the customer, and, with so much customer interaction comes a great deal of valuable insight. It’s essential that sales should consistently provide feedback to marketing. Marketing, for their part, should constantly solicit input and feedback from sales.
Communication
Once the two departments are aligned in terms of their definitions and goals, it’s important to encourage an ongoing dialog. At a minimum, you should look to hold weekly meetings or produce inter-departmental updates, solicit feedback, answer questions. But, more to the point, teams should be encouraged to interact and work with each other closely and whenever required.
Closing Thoughts
If there’s one takeaway from this article, we hope it’s this: the alignment of Sales and Marketing is a business imperative, and any kind of disconnect between these two functions can be costly to your organization. If you’re looking to improve ROI, boost sales activity and fuel company growth, then it’s crucial to make alignment a core focus.
The ways to do this are by collaborating and communicating efficiently; using a single customer view and shared platforms; and agreeing on mutually acceptable goals and metrics, rather than letting departmental goals get in the way!
Continue reading here: How Content Marketing has changed the game
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