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Key Metrics to Measure Sales and Marketing Alignment

Hello Sales and Marketing leaders. If you're feeling like your teams are living on different planets, you're not alone. Misalignment between Sales and Marketing is a common struggle for many B2B companies. But don't worry, we've got your back with some key metrics to help you get both teams on the same page.

Why does alignment even matter? 

Well, when Sales and Marketing aren't working together, it's like having a flat tire on your car. Sure, you can still get around (for a little while), but it's going to be a slower, bumpier ride for sure. According to a study by Improvado, organizations with aligned marketing and sales processes have reported up to 208% more returns from their marketing efforts, as well as a 32% YoY revenue growth compared to those with poor alignment. (Source: https://improvado.io/blog/sales-and-marketing-alignment)

So, what exactly should you be measuring? Let's dive in.

Lead Quality and Conversion Rates 

This one's crucial because it shows how well your Marketing efforts are translating into actual Sales opportunities. Keep an eye on metrics like:

  • Marketing Qualified Leads (MQLs) - Leads that match your ideal customer profile and are ready for Sales follow-up.
  • Sales Accepted Leads (SALs) - The percentage of MQLs that Sales actually accepts as viable opportunities.
  • Lead-to-Customer Conversion Rate - How many leads ultimately become paying customers.

According to Hubspot,"20.3% of marketing sales teams said increased win rates were the biggest benefit of sales and marketing alignment." (Source: https://blog.hubspot.com/sales/stats-that-prove-the-power-of-smarketing-slideshare)

Sales Funnel Performance 

Here, you'll want to look at how smoothly (or not) prospects are moving through your Sales process. Key metrics include:

  • Opportunity-to-Win Ratio - The percentage of opportunities that actually result in closed deals.
  • Average Sales Cycle Length - How long it typically takes to convert a lead into a customer.
  • Revenue Attribution by Source - Understanding which Marketing channels are driving the most revenue.

In a study by LXAHub, businesses with aligned marketing and sales teams are up to 67% more efficient at closing deals. (Source: https://www.lxahub.com/stories/sales-and-marketing-alignment-stats-and-trends-2023)

Content Engagement and Utilization 

Are your Marketing materials actually being used and found helpful by your Sales team? Metrics to watch:

  • Content Consumption and Sharing - How often Sales is accessing and sharing your Marketing content with prospects.
  • Sales Team Feedback on Content Effectiveness - Regularly gather qualitative feedback from your Sales reps on what's working (or not) with your content.

Revenue and Growth Metrics 

At the end of the day, it all comes down to driving revenue growth. Key performance indicators (KPIs) to track include:

  • Customer Acquisition Cost (CAC) - How much it costs to acquire each new customer.
  • Customer Lifetime Value (CLV) - The projected revenue a customer will generate during their lifetime with your company.
  • Revenue Growth Rate - The rate at which your company's revenue is increasing (or decreasing) over time.

According to LinkedIn, "87% of sales and marketing leaders say collaboration between sales and marketing enables critical business growth." (Source: https://blog.hubspot.com/sales/stats-that-prove-the-power-of-smarketing-slideshare)

Establishing a Shared Dashboard and Regular Reporting 

Okay, so you know what to measure, but how do you actually keep both teams on the same page? The answer: transparency and data visibility. Set up a shared dashboard or reporting system where both Sales and Marketing can access the same, real-time metrics. Then, make sure you're regularly reviewing this data together and using it to drive your decisions and strategies.

Building a Culture of Collaboration and Continuous Improvement

Alignment isn't just about numbers—it's also about fostering a shared mindset and constant communication between your teams. Some ways to do this:

  • Cross-functional training and knowledge sharing sessions
  • Joint strategic planning and campaign execution
  • Closed-loop feedback systems for continuous optimization

According to a survey by Salesforce, 80% of customers say the experience a company provides is as important as its products and services. (Source: https://www.Salesforce.com/research/customer-expectations/)

At the end of the day, measuring and improving Sales and Marketing alignment isn't just a nice-to-have—it's a must-have for driving sustainable revenue growth in today's competitive B2B landscape. So what are you waiting for? Start tracking these key metrics, open up those lines of communication, and watch as your Sales and Marketing efforts start firing on all cylinders!

Want to learn more? Contact us today to learn how our sales and marketing alignment services can benefit your business!

Matt Walde
Post by Matt Walde
May 14, 2024

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