There's a gap, well more than a gap. A gaping chasm between sales and marketing that doesn't seem to be getting narrower.
I've just read the State of Sales & Marketing Alignment reportwhich brutally highlights the fragmentation of attitudes between sales and marketing.
I think this post from LinkedIn summarises it perfectly though. Sales talks about pipelines and marketing talks about funnels. Sales are measured on closed deals/revenue and marketing are measured on cost per lead.
What's the point in measuring cost per lead if those low cost leads don't convert into customers and revenue?
Sales and marketing need to do more than just Smarketing because, there's a trust issue.
Sales folks routinely ignore 80% of marketing-generated leads due to lack of confidence in their colleagues’ methods and information. 30% of marketers want sales to use systems more consistently so the data is better quality.
The fact is, alignment drives value for the business:
- 36% more business growth according to SiriusDecisions
- 36% higher customer retention according to MarketingProfs
- 27% faster profit growth according to SiriusDecisions
- 38% higher sales win rates according to MarketingProfs
- 10% more reps hitting quota according to SiriusDecisions
Something has to happen (beyond weekly Smarketing meetings) to shift the behaviour that is impacting business results.
Marketing’s number-one marching order is to generate and nurture leads. They’re focused on buying lists and sending large-scale campaigns intended to get prospective buyers to raise their hands and push them down the purchase path. The data that indicates success is response rate and an optimal Cost Per Lead (CPL). Sales is focused on developing relationships with buyers to ultimately drive purchases. Their success is reflected in data around pipeline health, forecasting accuracy, and closed deals. In other words, they speak different languages. Sales talks about pipelines, while marketing talks about funnels. The fact that CPL is a major marketing measure exacerbates the alignment issue. CPL isn’t a business objective – it’s a tactic tied to a cost-center mentality. At the end of the day, a low CPL is meaningless if those low-cost leads don’t convert to customers and revenue.