Unlock scalable growth with Sales-Marketing alignment
The convergence of digital sales and marketing
In the traditional business framework, the sales process was linear — from lead acquisition to customer conversion, it was all a straightforward sequence. Yet, the digital age has drastically revolutionized buyer behaviour, especially in the B2B space.
Gartner emphasizes the complexities of the B2B purchasing journey, noting that potential customers now oscillate between digital channels and internal decision-making processes, thus debunking the linearity myth.
Enter COVID-19, and the move toward digital was not just accelerated; it became essential for survival. According to McKinsey, today’s B2B customers are even more at ease with utilizing digital and online platforms in their buying process. In many cases, they engage with more than 10 channels, both online and digital.
The change in the buying process underscores why sales and marketing functions can no longer afford to work in silos. To maximize the predictability and effectiveness of digital sales, it's imperative to align all the critical digital customer journey touchpoints under a unified sales marketing (or revenue operations) function.
This not only enhances efficiency but also boosts ROI. In terms of revenue operations, this alignment allows for more accurate forecasting and streamlined resource allocation, translating into a leaner yet more effective operation.
9 Steps to sales marketing alignment to boost digital sales
Unify goal setting: Both sales and marketing strategies should be geared towards achieving the same organisational objectives, with key performance indicators (KPIs) tied back to revenue. No longer can marketing be just about 'brand awareness' without clear alignment to revenue targets.
Drive the digital customer funnel: A well-defined customer funnel should be collaboratively built and managed by both sales and marketing teams. Each phase of the funnel—from awareness to conversion—needs a well-coordinated effort to drive target audiences toward customer acquisition.
Data-driven management: It's crucial to establish which data points will be monitored to evaluate the funnel's efficiency. For instance, metrics like conversion rates can provide invaluable insights. It is important to benchmark and improve the funnel conversion rates such as SQL to opportunity %, and opportunity to customer %.
Performance optimization: Both teams need to constantly monitor and analyze the key metrics to optimize their strategies. Tools like predictive analytics can significantly enhance the predictability and optimization of the sales process.
Budget allocation: Understanding the customer acquisition cost (CAC) is critical. A balanced budget allocation between sales and marketing based on calculated CAC provides a more sustainable growth trajectory.
Measuring ROI: In a B2B setting, measuring ROI is often complex, involving factors beyond immediate sales like lifetime value to customer acquisition cost (LTV: CAC) ratios. A good LTV: CAC ratio is generally considered to be 3:1 or better.
Sales marketing processes: Change management plays a crucial role in aligning sales and marketing. Whether it's through new teams or reallocation of existing resources, the goal is to create a seamless workflow that complements each team’s strengths. Sales marketing processes, responsibilities, roles and incentives must be aligned to drive revenue. This can be improved by creating an SLA for sales and marketing team collaboration.
Team sizing: The size of your sales and marketing teams should be dictated by your business goals, current revenue streams, and growth projections. This is often a balance between operational overheads and expected ROI.
Talent acquisition: As you scale, the need for specialists in specific domains becomes crucial. Knowing when to bring in seasoned professionals is a balancing act and is often indicative of your business's maturity level.
Clarity in hierarchical or flat structures
Whether a company opts for a hierarchical or loosely organized structure, the imperative is clear: roles, responsibilities, KPIs, and reporting lines must be unequivocally defined. This is especially important in growth companies where board members and investors are closely watching operational efficiency.
Timing is everything
For growth companies, timing is often the difference between scaling effectively or stagnating. Understanding when to bring in external expertise in sales, marketing, or product management is critical not just for internal processes but also for the perception of the company’s maturity level by external stakeholders.
In summary, aligning sales and marketing isn’t just a good-to-have; it’s a must-have strategy for any SaaS or B2B organisation aiming to scale efficiently in today's digital-first landscape. By focusing on unified goals, data-driven strategies, and efficient resource allocation, companies can significantly enhance their revenue operations for sustainable growth.
