Sales and marketing alignment is a hot topic in the B2B world, and for good reason. Organizations with robust alignment can grow by 20% annually and 3x their revenue. Unfortunately, only about 8% of businesses surveyed said they have “fully aligned” sales-marketing alignment.
For growing companies, the alignment between sales and marketing teams is not just a nice-to-have—it’s crucial for driving sustained revenue growth. When these teams are on the same page, they can better understand their target audiences, streamline their strategies, and optimize their efforts to close more deals.
Hence, the mad dash to find some kind of magic beans that will grow into perfect sales-marketing alignment overnight.
Instead of looking for a quick fix or another set of interdepartmental meetings, getting your sales and marketing teams on the same page really just requires a shared focus on specific, actionable metrics.
Here’s a look at the key metrics sales and marketing teams should share to ensure they’re working toward the common goals.
Marketing Qualified Leads (MQLs) to Sales Qualified Leads (SQLs) Conversion Rate
One of the most critical metrics that bridges the gap between sales reps and marketing efforts is the conversion rate from MQLs to SQLs.
This metric measures the effectiveness of marketing in generating leads that are actually ready for sales rep engagement. A high conversion rate indicates that marketing is targeting the right audience in the right channels and that the handoff process between the two teams is seamless.
On the flip side, a low conversion rate might signal misalignment in lead qualification criteria or issues with the lead nurturing process.
Why It Matters: This metric helps both teams identify bottlenecks in the sales funnel and adjust strategies to improve lead quality and nurturing.
Lead Response Time
Speed is crucial in the sales process, and he who hesitates ends up at the bottom of the pile. In fact, about 78% of customers make their purchase from the first business that responds to their form submission, information request, or other opt-in. Measuring and consistently improving your lead response time is key to growth.
Lead response time measures how quickly sales follows up on leads provided by marketing. Your marketing team should use your marketing technology to set up alerts, tasks, and reminders for the sales team, and your sales team should take their response times seriously.
Marketing teams should track and report this metric to ensure that their efforts in generating and nurturing leads aren’t wasted by delayed follow-up from sales teams.
Why It Matters: Quick response times can significantly increase the chances of closing deals, ensuring that leads generated by marketing are fully capitalized on by sales.
Customer Acquisition Cost (CAC)
CAC is a vital metric that both sales and marketing need to monitor closely. It calculates the total cost of acquiring a new customer, including all marketing and sales expenses. By tracking CAC, companies can assess the efficiency of their sales and marketing efforts and ensure that customer acquisition strategies are financially sustainable.
Why It Matters: Monitoring CAC helps teams stay focused on acquiring customers cost-effectively, ensuring that both sales and marketing are contributing to a healthy bottom line.
Lifetime Value (LTV) of a Customer
LTV measures the total revenue a business can expect from a customer over the lifetime of their relationship. This metric is essential for understanding the long-term value generated from marketing and sales efforts. Sales and marketing teams should work together to ensure they’re not just acquiring customers but acquiring the right customers who will generate the most value over time.
Why It Matters: LTV provides insights into the quality of leads and customers being acquired and helps in optimizing marketing and sales strategies for long-term success.
Sales Cycle Length
Sales cycle length is the average time it takes for a lead to move from initial contact to closing a deal. This metric is important for both teams as it provides insights into the efficiency of the sales process. If the sales cycle is too long, it could indicate that the leads aren’t sufficiently qualified, or that sales strategies need refinement. By tracking this metric, marketing can better tailor content and campaigns to shorten the sales cycle.
Why It Matters: Understanding and reducing sales cycle length helps in speeding up the time to revenue, which is crucial for growth.
Revenue Attribution
Revenue attribution involves tracking and analyzing which marketing and sales activities are directly contributing to revenue. This metric allows teams to identify the most effective strategies and optimize them for better results. Both teams need to be transparent about their contributions to revenue, using data to make informed decisions on where to invest time and resources.
Why It Matters: Revenue attribution clarifies the ROI of marketing and sales efforts, helping to justify budgets and align future strategies.
Customer Feedback and Net Promoter Score (NPS)
Finally, customer feedback and NPS provide qualitative insights into customer satisfaction and loyalty. This feedback is invaluable for both teams—marketing can use it to refine messaging and targeting, while sales can use it to improve customer interactions and closing strategies. NPS, in particular, can serve as a leading indicator of future revenue growth and customer retention.
Why It Matters: Understanding customer sentiment helps in refining both sales and marketing approaches, leading to higher customer retention and better customer experiences.
Better Alignment, More Opportunity to Grow
Aligning sales and marketing departments around shared metrics is an essential first step to scaling your business effectively.
By focusing on these 7 key metrics, both teams can ensure they’re working in harmony, driving growth, and delivering value to the business. Regularly reviewing these metrics together can help identify opportunities for improvement and keep everyone focused on the ultimate goal: growing the company’s revenue.
Aligning your sales and marketing teams might not happen overnight, but by sharing and acting on these key metrics, your teams can move closer to working as a cohesive, revenue-generating unit.
Ready for the next steps? Keep reading to see how your team can perfect the Marketing-to-Sales Handoff Process for maximum lead retention.
