Do Your Marketing and Sales KPI’s Align?
Sales and marketing have a lot of overlapping goals, but the managers and department heads aren’t always on the same page. If you’ve noticed key problems between sales and marketing, it’s probably not personal issues; in fact, it’s probably using the wrong metrics to determine the success of each team.
Signs that Your Sales and Marketing Teams Aren’t Aligned
There are a few tell-tale signs that your teams are not working together towards company goals, although this problem doesn’t arise out of any particular issue with staff or management, but rather a lack of focus when it comes to the bigger picture.
While the company may have sales or revenue figures on its goals list, the individual teams will likely only focus on their daily quota or publication goals. The issue here is that this misalignment will wreak havoc on the business’s ability to achieve goals at all. It can be a waste of resources, resulting in poor marketing ROI and lost sales.
The first sign is that your sales team isn’t ready to handle leads. When a big marketing move hits and ads are on TV or live on Google, your sales team should be at the ready, not spending 21% of their day writing emails.
The second sign is that the marketing team is unresponsive to sales requests. Sales teams often look to the marketing department for support. But, if they aren’t willing to provide the support because they’re too focused on their own goals, it means lost money all around.
Finally, look out for poor content creation. Marketing is now relying on content to cultivate leads and transfer them over to sales teams. But, if they’re just posting information to have something up on social media and it’s not useful, or of high-quality, then it’s doing more harm than good.
MQL to SAL Percentage
The percent of Marketing Qualified Leads that make their way to a Sales Accepted Lead should be fairly high. Essentially, this metric or KPI is looking specifically at the hand-off between marketing and sales. It should stand to answer questions about whether the sales team is using marketing leads, and if the marketing team is handling their leads in a good time period.
Number of Touches
Your sales should require multiple employees to be working with the customer. Even in B2B situations where your company may have someone meeting with new clients, another person interviewing them for their needs, and a sales rep making the actual order, the number of touchpoints should be minimal.
People should whiz through the marketing funnel, into the sales funnel, and become a happy customer quickly. There is no bigger killer than time when it comes to closing a sale. If you’re waiting for approval or review from a particular person such as a sales team member, then the company will likely lose that sale.
Anything that bottlenecks or slows down the purchasing process from lead to conversion needs reevaluation. Keep careful track of how long it takes new leads to make it through these funnels and convert if they convert at all.
Opportunity to Customer Ratio
If every click or page visit is an opportunity, then how many are you missing? Marketing teams will often see page visits and clicks as a positive metric, but it could be quite telling if they are far away from the customer ratio.
Using this ratio, you can determine if your salespeople aren’t using the efforts of the marketing team by engaging qualified leads. Or, you can identify through bounce rates if the marketing team is letting the sales team down with lackluster content.
Use these two metrics together to gain substantial insight into both your sales and marketing efforts. Then make meaningful changes to boost growth.