How to nail sales and marketing alignment in 2023
Posted on: January 5, 2023
Reading Time: 10 minutes
Category: B2B marketing
How to nail sales and marketing alignment in 2023
Sales and marketing alignment (known as ‘smarketing’) is an area ripe for improvement in many companies. Despite their similar purposes in driving new business, it’s surprisingly common that they dance to slightly different beats.
Unaligned sales and marketing teams are like picking a trolley at the supermarket, only to find that its wonky wheels keep steering you into the stacks of own-brand beans. Sure, you can keep it on track with effort, but it would be a lot easier with wheels that all head in the same direction.
In this blog
- What is sales and marketing alignment?
- Why is sales and marketing alignment important?
- Sales and marketing alignment statistics
- How aligned are other businesses’ sales and marketing departments?
- Alignment case studies
- The challenge with smarketing
- How to align sales and marketing in 2023
What is sales and marketing alignment?
Sales and marketing alignment describes the goal of the two teams working with better collaboration, more transparency, better communication, and greater efficiency.
The end goal is to convert leads and achieve sales at an enhanced rate and profitability.
Historically, these two closely-related departments have developed independently of each other, using different systems, sitting separately in offices, and reporting with separate metrics.
Sales and marketing alignment to break down these barriers and allow sales and marketing to work collaboratively.
When marketing and sales teams drive towards the same goals, return on investment (ROI) dramatically improves, as does sales productivity, and ultimately, revenue.
Why is sales and marketing alignment important?
So, what’s the obsession with aligning sales and marketing? Well, it’s driven by the dawning of a new reality: the age of the customer.
the customer-centric approach has fundamentally changed how businesses communicate with their customers, even in the B2B world.
B2B customers are increasingly choosing to only engage with sales teams later in the sales funnel – being happy to carry out their own research through the interest phase and on into the consideration phase.
Buyers want to source their own information, and with social media and user reviews at their fingertips, they can find that with or without a brand’s input.
So if you want to continue the conversations with your prospects, you need to hold off on the sales pitch and use marketing to satisfy that quest for information.
This means that, more than ever, sales and marketing teams needed to be working together to nurture leads and ensure timely handovers from one team to another.
Sales and marketing alignment statistics
Although the above explains the historical need behind the drive for alignment, the below statistics show the current scale of the problem, and the potential size of the prize if done well.
- 90% of sales and marketing professionals say they are misaligned across strategy, process, content and culture.
- 60% agree that this misalignment between sales and marketing damages financial performance.
- 23% of salespeople cited better quality leads as their top requirement from the marketing team. 15% ranked more leads as their top priority from the marketing team.
- Only 7% of salespeople said the leads they received from marketing were very high quality.
- 59% of marketers claim to know what content sales teams want them to create, but only 35% of salespeople agree.
- 68% of marketers believe sales teams don’t use the content they do produce to its maximum potential.
- One-third of sales and marketing teams don’t hold regular meetings.
- 87% of sales and marketing leaders say collaboration between their departments enables business growth
B2B Organisations where sales and marketing teams are well aligned:
- Save 30% on their customer acquisition cost
- Enjoy a 36% higher customer retention rate
- Customers have a 20% higher lifetime value
- Get a 38% higher sales win rate than non-aligned teams
- Achieve 39% higher annual revenue growth than non-aligned teams
- See 27% faster profit growth
How aligned are other businesses’ sales and marketing departments?
With the above facts laid out, you might think companies are rushing to get this done, but the fact is that report after report suggests there’s still a long way to go.
HubSpot has revealed that while the C-suite may view their teams as aligned, it’s a different story when talking to the teams at ground level.
Many reports (for example Bridge, HubSpot, Green Hat and Aberdeen) have discovered that where sales and marketing alignment is concerned we are a lot less further forward than we like to think.
Here’s how one analyst sums up the current state of play:
“There’s a genuine absence of a relationship between the two functions. And this is holding back critical business growth. Aligning sales and marketing strategically and tactically around joint purpose and success is the only way to drive growth and realise a return from investments in both people and programmes.”
Alignment case studies
Of course, there are companies that have successfully aligned their departments, and reading these case studies can be a good way of thinking about improvements we can make.
- O2 recently restructured its sales and marketing processes and went on to smash its targets by 325%.
- BabelQuest found alignment significantly increased inbound inquiries from prospects who offered a perfect fit for their services. They went from three out of four poor quality inbound leads to two out of three inbound inquiries becoming SQLs or being placed into a nurture sequence.
The challenge with smarketing
As with most things in life, communication is often the biggest barrier in business. So getting two different teams to communicate effectively can be a huge hurdle to effectively aligning sales and marketing.
Sales reps tend to be driven by commission and closing deals. They want leads that are going to turn into cash, so when they receive a load of leads from marketing that they’ve got no context for, it can be frustrating.
Meanwhile, marketers are focused on driving the lead count. They’re getting those numbers while not necessarily always considering the potential revenue.
These fundamental differences can drive a wedge between departments and make smarketing a tough thing to achieve. But we’ve got some tips to bridging the gap and getting more aligned.
How to align sales and marketing in 2023
So how can you start to create a smarketing department, bridge the gap and align your sales and marketing teams?
There are some highly practical steps to begin the process, and they don’t have to involve any large-scale organisational change. Here’s some quick changes you can make right now to get your sales and marketing teams better aligned in 2023.
1. Jump on calls together
A simple way for marketing to begin better communication is to sit in on sales calls. Better still, you could take this one step further by inviting marketing team members to attend sales pitches.
Both are a great way to hear first-hand key barriers and concerns of potential customers, or even test out new messaging before it goes live.
2. Assign ambassadors from each team
How about nominating one person from sales and one from marketing to act as the bridge between the teams?
Their role would be to ‘sit between’ the teams, chase up on requests, initiate reviews and facilitate coordination and cooperation.
3. Meet up regularly
Whether it’s monthly or weekly, it is critical that there is a regular slot in everyone’s diary when the two teams can meet.
At these meetings:
- Sales can report honestly on challenges or successes, conversations they are having around competitors, and so on.
- Marketing can feedback on campaigns and strategies that are live or in the pipeline.
4. Brainstorm together
Make sure these meetings don’t become stale reporting exercises. Allow space to creatively solve challenges together and brainstorm topics.
Here are some ideas for starters:
- Use intel gained by the sales teams about what’s exciting and frustrating prospects. This is live market research and is incredibly valuable to marketers.
- You can look into funnel metrics such as lead generation, MQLs, and lead-to-customer conversion rate? Identify where the blockages are and pinpoint what may be causing them.
- Review and classify your accounts and customers with a view to setting responsibility within both sales and marketing for working these accounts. This is the basis for ‘account-based marketing’ (ABM), helping to ensure marketing collateral is targeted to customers and used by sales.
5. Socialise together
Whether it’s an event, conference or just a swift drink after work, the more time teams spend together in a casual setting the better the bonds are in the office.
A major part of aligning is simply allowing for easy conversations and information sharing across the teams. Our sales and marketing teams recently went go-karting as a bonding trip, and one particularly talented content specialist surprised everyone by finishing third.
6. Stay close
You don’t necessarily need to shake things up drastically and create a unified department under one ‘head’. Simply shifting a few office chairs so that sales and marketing sit together can help to foster unity.
When we did this recently, one thing that’s instantly noticeable is the amount of useful conversations that arise when one team has overheard the other talking about an idea or issue.
7. Create a group chat
Another way to ensure information is shared among the two teams is to simply create a channel or chat on whatever messaging system you use.
This should be used to share important information, but can also be used more generally to chat, share ideas, and follow up on project progress.
8. Make sure you get buy-in
“60% of content created in the marketing department was never used.
And 90% of the content we were creating was product-specific, despite the fact that most of our audience were in an early-stage part of the buyer stage and asking non-product specific questions.”
Michael Brenner, Head of Strategy at Newscred, speaking about his experience at SAP.
I’d like to guess that many organisations can relate to this – in fact, research by Sirius Decisions found that 60-70% of all B2B marketing content goes unused by sales.
The first issue to solve is to ensure that the content we create is timely and driven by prospect need. The second is to ensure the sales team are aware of and buy-in to the content created.
To do this you dedicate a section in your regular meeting, use a shared content calendar, post it in your Slack channel, or organise a way for sales to request content that aligns with their needs.
9. Create content for all of the funnel
Lead generation is a great place to start. But the average buyer is nearly two-thirds of their way through the buying cycle before speaking to a salesperson, so content needs to go beyond this.
Marketing needs to create content that targets prospects at all stages of the funnel, so relevant content can help move them further down the funnel until they are ready for sales.
It’s vital that content creation is distributed throughout the funnel – and this includes after the handover to sales, and even beyond closing the deal – marketing should continue once they are customers.