Sales and Marketing Alignment: Why it Matters

Written by Sakti Kumar

April 06, 2023

The Importance of Sales and Marketing Alignment


Achieving sales and marketing alignment, also known as “smarketing,” as coined by Hubspot in the early 2000s, is regarded as the ultimate requisite for businesses seeking to boost their performance. By fostering a sense of harmony between these two important departments, businesses can experience better productivity and greater results. In this article, we will dive into the fundamentals of sales and marketing alignment and offer advice on how to integrate this invaluable collaboration into your business.

In this article, we will cover:

1. Defining Sales and Marketing Alignment

2. The Advantages: When Sales and Marketing Align

3. What Causes Misalignment Between Sales and Marketing?

4. Strategies for Enhancing Sales and Marketing Alignment

5. Measuring Sales and Marketing Performance

Let’s get right to it!

Defining Sales and Marketing Alignment

Sales and marketing alignment refers to the process of creating a cohesive, unified approach between your sales and marketing teams. This includes making sure that both departments have the same goals, strategies, and performance metrics. When sales and marketing teams are aligned, they can collaborate to better understand the customer journey and deliver a more targeted, personalised experience that drives results.

The Advantages: When Sales and Marketing Align

Advantages of Sales and Marketing Alignment

There are numerous benefits to achieving sales and marketing alignment within your organisation. Some of these include:

Increased revenue:

Highly aligned teams generate 208% more revenue as a result of their marketing efforts.

Improved lead conversion:

Aligned sales and marketing teams are 67% more effective at closing deals, as reported by Marketo.

Enhanced customer retention:

Organisations with aligned sales and marketing teams enjoy a 36% higher customer retention rate, according to MarketingProfs.

Streamlined processes and communication: Alignment fosters better collaboration, which leads to streamlined processes and improved communication between teams.

What Causes Misalignment Between Sales and Marketing?

Sales and marketing misalignment occurs when these two departments within a company fail to work together effectively and agreeably. When misalignment persists, businesses can suffer from suboptimal lead conversion rates, lost revenue opportunities, longer sales cycles, and decreased customer retention. 

Causes of Misalignment Between Sales and Marketing

Misalignment between sales and marketing can be attributed to various factors: 

Lack of shared goals and objectives:

When sales and marketing teams operate independently or with an egocentric focus, they may not share a common understanding of the company’s overall business goals and objectives. This lack of unity can hinder collaboration and prevent both teams from working towards the same targets.

Ineffective communication:

When communication between teams isn’t effective, it can cause confusion and let opportunities slip away. Regular and open communication channels are necessary to ensure that both teams are aware of each other’s activities, progress, and challenges, which enables them to adapt and coordinate their efforts effectively.

Insufficient lead management:

Without a well-defined lead management process in place, teams might struggle to identify, nurture, and convert leads successfully. A clear process helps both sales and marketing teams to understand their roles in managing leads, ensuring that potential customers receive the attention and information they need to progress through the sales funnel.

Different performance metrics:

If sales and marketing teams rely on separate metrics to evaluate their success, it becomes difficult to align their efforts and work towards common goals. Adopting shared performance metrics allows both teams to track their progress and adjust their strategies as needed, fostering a collaborative environment that drives results.

Strategies for Enhancing Sales and Marketing Alignment

To strengthen sales and marketing alignment, consider implementing the following strategies:

Develop unified goals and objectives:

Make sure that both teams fully understand the company’s long-term goals and are actively working on fulfilling them. This can be achieved by holding joint planning sessions where each team can contribute to setting shared targets and establishing a roadmap for collaboration. Creating a shared vision helps ensure that both teams are working in harmony towards the same desired outcomes.

Foster better communication:

Open communication is crucial in building trust, promoting transparency, and breaking down silos between teams. Start advocating for routine meetings, open communication channels, and the exchange of knowledge between the sales and marketing teams. Encourage the use of collaboration tools that can facilitate real-time communication, file sharing, and project management. This helps keep everyone informed about ongoing campaigns, updates in strategies, and any challenges that need to be addressed. 

Create a clear lead management framework:

Formulate a well-defined process for recognising, nurturing, and converting leads, which both teams can follow. This involves defining lead qualification criteria, lead scoring methods, and a clear handoff process between marketing and sales. By having a transparent and agreed-upon system, both teams can work cohesively to ensure that leads are effectively managed and converted into customers.

Standardise performance indicators:

Employ the same set of metrics to assess the success of both teams, ensuring that they are collaborating effectively to attain shared objectives. Determine a set of key performance indicators (KPIs) that reflect the joint efforts of sales and marketing, such as the number of qualified leads, conversion rates, and revenue growth. Regularly review these metrics and discuss any discrepancies or areas for improvement, allowing both teams to align their strategies and optimise their combined efforts.

Measuring Sales and Marketing Performance

Factors Involved in Measuring Sales and Marketing Performance

To ensure that your sales and marketing alignment efforts are successful, it’s essential to track key performance metrics. These may include:

1 Marketing-Qualified Leads (MQLs): These are leads that marketing teams deem likely to become customers based on their engagement with marketing content, activities, or interactions.

2 Sales-Qualified Leads (SQLs): These are leads that the sales team considers to have a strong potential to convert into actual customers, based on additional evaluation or direct interactions.

3 Lead Conversion Rate: This metric calculates the percentage of leads that ultimately become customers, demonstrating the effectiveness of both sales and marketing teams in converting prospects.

4 Sales Cycle Length: This KPI measures the average time it takes for a lead to progress through the sales funnel, from the initial point of contact to the final conversion into a customer.

5 Customer Acquisition Cost (CAC): This KPI quantifies the average expenses associated with acquiring a new customer, taking into account both marketing and sales efforts.

6 Customer Lifetime Value (CLV): This metric estimates the total revenue generated by a customer over the course of their relationship with your business, helping you understand the long-term value of your customer base.

7 Marketing Return on Investment (ROI): This KPI evaluates the effectiveness of marketing initiatives by comparing the revenue generated from these activities to the costs associated with them.

By tracking these metrics, you can identify areas of improvement and make data-driven decisions to enhance sales and marketing alignment within your organisation.

The Point Company’s Sales and Marketing Outsourcing Services

As all the above points have demonstrated, the importance of sales and marketing alignment cannot be overstated. By achieving it, your organisation can benefit from increased revenue, improved lead conversion, enhanced customer retention, and streamlined processes and communication. Additionally, to improve sales and marketing alignment, you should establish shared goals and objectives, improve communication, define a lead management process, and align performance metrics.

In fact, in numerous instances, outsourcing can prove to be more advantageous than recruiting and training your own staff to cover every specialised area.

If you’re looking for help in sales and marketing alignment, consider The Point Company’s sales and marketing outsourcing services. By partnering with an outsourced provider like us, you can experience a smooth sales and marketing journey that is as responsive, all-encompassing, and transparent as working with a traditional team.

With a team of experienced professionals who work in tandem, The Point Company can help you implement effective strategies and track or analyse key performance metrics to guarantee that your business flourishes.

Want to learn more about outsourcing? Check out the previous article: Everything You Need to Know About Lead Generation Services

Schedule a meeting with us today and discover how our outsourcing services can help propel your business forward.