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Marketing Versus Sales: Metrics to Highlight Each Department’s Contribution To Revenue

March 09, 2017

By Today’s Industry Insider

So much has been written over the years about the “sales and marketing divide” – frankly it’s an exhausted discussion and one that’s never made much sense to me.

Don’t get me wrong; sales and marketing conflict exists in many organizations today. But in almost every organization I’ve encountered the success or failure of the sales and marketing teams are intertwined – these departments simply must learn to win or lose, collectively, as a team. Sales and marketing conflict stems from a lack of accountability from either a sales leader or a marketing leader, but to me the solution needs to come from the top (CEO) down. Here’s my recipe for solving these woes once and for all.

  1. Intelligently track a series of metrics around both sales’ and marketing’s contributions to revenue. This is not about creating an “us versus them” scenario – it’s about being intelligently and honestly informed on the role that each department plays at your company.
  2. Create incentives/bonus structures so that your sales and marketing teams succeed or fail together.
  3. Have your sales and marketing leaders jointly present all revenue related updates at your board, executive, and all-hands meetings. If you do this and your sales and marketing leaders are not on the same page, it will very quickly become apparent.

This post seeks to identify the process and metrics you can use to identify both sales’ and marketing’s contributions to revenue.

Start With Some Acknowledgements

Before jumping into a discussion around the metrics you’ll use to determine sales’ and marketing’s contributions to revenue, I think it’s worth having a discussion where you ask your leaders to make some common sense acknowledgements. This sets the tone that you’re here to have a reasonable, important discussion; not to argue over each person’s or department’s worth. There are four points that I like to start with that I think are universally applicable.

  1. The biggest shift in sales over the last decade has been buyer empowerment. According to Forrester, 57% of a buyer’s purchase decision is complete before a buyer ever talks to a sales rep. Online reputation management, product demo videos, product reviews – that’s part of the sales process that’s now typically owned by marketing.
  2. Your company could be selling to SMBs with an almost no-touch sales process, you could be selling to mid-market companies with a blended approach, or you’re selling to enterprise accounts with long and complex buying cycles. It’s worth acknowledging up front where your business tend to fall on this scale.
  3. Cold calling should always be a last resort. I feel strongly about this and am always curious why I often get pushback on this point. Anyone who has ever been tasked with cold calling will tell you it’s a brutal, frustrating gig. There is nothing at all efficient about calling someone who has shown no indication of wanting to talk to you, to attempt to sell them a product they may never have even heard of. When was the last time you bought a product like this? My point …read more

    Source:: Kiss Metrics Blog