Sales & Marketing Alignment’s Importance, Now & Into the Future

I am thrilled to post my first article since joining Demandbase as the CMO a couple of months ago. While I’m new to the team here at Demandbase, I am not new to working cross-functionally with sales, so this topic has been a passion of mine throughout my career.

The B2B world has come a long way since the days when improving sales and marketing alignment was first a trendy topic. Even so, the problem hasn’t been completely solved. In fact, close to half of companies surveyed in the 2023 C-Suite Go-to-Market Benchmark Survey reported they still struggle in this area. 

Given that the coordination between marketing and sales is the #1 indicator of account-based success, we can’t rest on the laurels of our progress to date and consider it good enough. Alignment matters more than ever before. Here’s a look at how to prioritize it now and carry it with you into the future. 

The Nuts & Bolts 

Sometimes, organizations fail to achieve alignment because they think of it as a problem to be fixed between the sales and marketing departments alone. On the contrary, it’s a much larger issue that should start at the top with a business’ leadership. The CMO and the CSO/CRO should set the stage for healthy and ongoing collaboration, and model the type of interdepartmental cohesion they want to see throughout the company. 

In addition to starting at the top, true sales and marketing alignment requires: 

• The right kind of marketing to sales handoff

• Shared metrics and definitions of success 

• Transparency and communication 

Orchestration

Back when marketing automation was first becoming prevalent, handing over a lead from marketing to sales resembled a “baton pass” in a relay race. Marketing handled lead generation, then gave the lead to sales. They were two departments that owned two different parts of the funnel, with little overlap. 

Today, the account-based experience (ABX) means that marketing and sales organizations operate as a single team from the get-go. Players still have their own positions and objectives, but they work in tandem to pass the proverbial ball down the field. Getting this right requires recognizing that it’s no longer a handoff like it used to be, but more of an ongoing orchestration as one united team. (If you know me, then you know I find any excuse to talk about sports. That’s my other major passion.)

Aligning Around Metrics

Marketing and sales must all be aligned around the same ideal customer profile (ICP) and the same account list. If anyone on the team believes these shared targets are wrong, they need to feel comfortable enough to provide feedback to fix it and, in turn, be open to receiving feedback as well. 

Beyond this, the entire team needs to be aligned around their metrics to ensure accountability and that everyone is marching in the same direction. Some key metrics to unite around include:

• Revenue

• Total pipeline creation

• Conversion rates

• CAC (customer acquisition cost) payback and LTV (lifetime value)/CAC ratio 

• Average deal size

I recently spoke with Ray Rike (founder & CEO at Benchmarkit), who offered some great advice. He recommended that the head of marketing and head of sales should both own the goals attached to a company’s pipeline and revenue. He also advised having a dashboard related to pipeline and conversion that the CSO and CMO can view every day in order to stay on top of decreases, increases, and other trends. 

Communication Provides Solutions

Another beneficial aspect of sales and marketing alignment that makes a major impact in organizations is the fact that it means these teams are regularly talking. This reminded me of a situation I encountered at a past company, when communication alone quite literally solved a significant issue. We had solid pipeline that was growing every day. Leads were coming through and converting at a good rate. They were getting through to Stage 2, but then? They were sitting there. 

These leads never moved past Stage 2, and it was driving me crazy. I wondered why sales wasn’t taking them and running with them, but then I heard it might be a quality problem. If that was the case, though, then sales should have rejected them in the first place. I was baffled. I decided to sit with every sales leader and go down every line of our pipeline and ask what was wrong with each one. The answer? Nothing, except the timing. The quality was excellent, but there was nothing urgent driving these opportunities. 

Once we knew this, we were able to include a timing question in our BANT (budget, authority, need, timing) criteria at the SDR (sales development rep) qualification level. It fixed everything. This is worthy of note because this issue wouldn’t have shown up in a dashboard. So, yes, you need the metrics and the dashboards, but just as importantly, you need open communication. 

Alignment into the Future

Alignment has always been important, but we’ve only started scratching the surface of making it a priority and capitalizing on its value in recent years. In the future, it will only become more crucial to our success. 

As consumer behaviors and market dynamics evolve, collaboration between these departments will ensure a seamless customer journey, leveraging combined insights to understand and cater to consumer needs effectively. It will not only prevent redundant efforts but also optimize resource allocation, allowing for more targeted and efficient campaigns. More importantly, when sales and marketing are aligned, we see higher conversion and win rates, faster and easier close cycles, and more qualified leads. It’s a win-win for sales and marketing!

If you’re among the B2B organizations still struggling to master alignment, consider this your catalyst to make it happen. Coordination between marketing and sales will remain the #1 indicator of account-based success now and into the future; are you ready to get on board?