Align Sales & Marketing Support Services
In assessing the alignment of sales and marketing support services, it's helpful to delve into key metrics that underpin the success of a sales pipeline. Your close ratio, for instance, serves as a barometer of the effectiveness of both sales and marketing efforts. By closely scrutinizing this ratio, you can pinpoint areas for improvement and realignment within your strategies. Consider that your annual goals provide a broader perspective on the trajectory of your business and how sales and marketing activities can be synchronized to achieve these objectives. Whether it involves lead generation, nurturing, or conversion, aligning sales and marketing support services ensures that every step in the pipeline contributes synergistically toward meeting these goals.
Understanding the dynamics of your average sale sheds light on the nuances of customer interactions and purchasing behaviors. Integrating this insight into the alignment of sales and marketing support services enables a more targeted approach in engaging with prospects and customers throughout the sales journey. By harmonizing these services, businesses can enhance customer experience, streamline processes, and ultimately drive higher revenue generation. A comprehensive examination of the alignment between sales and marketing support services offers a strategic roadmap for optimizing the sales pipeline and maximizing business growth potential.
First, Your Close Ratio
A high-performing organization is closing at an average of 30% most of the time. Underperformers are closing at 20%.
*For this example we will be using 25%.
25%
Next, Your Annual Goal
Do you have mandated goals? Or do you determine your own annual goals?
*For this example we are going to use $1M
$1M
Pipeline
With a goal of $1M, and a close ratio of 25%, the pipeline needs to be $4M.
But WAIT this is just for sales, not marketing, RIGHT?
WRONG
Shared Goals
Needing $4M in the pipeline, there is a requirement for a certain number of leads. How much is sales responsible for and how much is marketing responsible for?
*For this example we are going to use a 50/50 split
50 / 50
Sales
Relationships. Networking. Outbound.
Marketing
Calls to Action. Advertising. Events. Channel Partners. Inbound.
*For this example we are going to use a 50/50 split
50% x 2
What's Your Average Sale?
Look at everything in previous pipelines paying special attention to the won opportunities. Determine the average.
*For this example we will use $50,000
$50K
Finally: How Many Leads Are Needed?
Reverse engineering starting with revenue goals provide actual lead generation goals. It is important that the team agrees on the objectives and goals and has transparency to see progress into each month's pipeline.
80
A final word about sales & marketing alignment
Aligning sales and marketing support services is crucial for optimizing your sales pipeline and achieving business growth. By closely monitoring key metrics such as your close ratio and average sale, you can identify areas for improvement and ensure that your strategies are effectively synchronized. This alignment allows for a more targeted and cohesive approach to lead generation, nurturing, and conversion, ultimately enhancing the customer experience and driving higher revenue. A thorough assessment and realignment of your sales and marketing efforts provide a strategic roadmap to maximize your business’s growth potential and achieve your annual objectives.
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