In today’s fast-paced business environment, aligning sales and marketing isn’t just a nice-to-have—it’s a must if you want to stay competitive and hit your revenue goals. When sales reps engage, support, and cooperate with your marketing department and vice-versa, you not only supercharge your revenue team’s performance but also set your company up for real success.
As a business leader, one of the most effective ways to get these two teams on the same page is by having them focus on a shared set of metrics and KPIs. By looking at performance through the same lens, both sales and marketing teams can build trust, hold each other accountable, and ultimately drive your business forward.
In this article, we’ll dive into six marketing and sales metrics and key performance indicators (KPI) that both teams should track:
- Marketing Qualified Leads (MQLs) Generated
- Marketing Qualified Lead (MQL) to Sales Qualified Lead (SQL) Conversion Rate
- Time-to First Contact
- Sales Qualified Lead (SQL) to Customer Conversion Rate
- Length of Sales Cycle
- Customer Lifetime Value (CLV)
Why is Alignment with Sales Critical for Marketing Success?
Simply put, when sales and marketing work together, everyone wins. Studies show that companies with aligned teams can see a 38% boost in win rates and a 36% increase in customer retention. On the other side, if your teams are out of sync, you could see your annual revenue take a hit of at least 10%.
The Role of Trust and Accountability
Trust and accountability are essential for any successful sales and marketing partnership. Without them, it’s easy for friction to develop—something many marketing and sales leaders have experienced firsthand. For instance, it’s not uncommon to hear sales reps complain that marketing isn’t providing enough high-quality leads, while marketing counters that the leads they’re sending aren’t being worked properly. At its core, this disconnect stems from a lack of trust.
By aligning sales and marketing efforts around a shared set of metrics, you can help bridge this gap. When both teams are tracking the same KPIs and metrics, it becomes much easier to see where the strengths and weaknesses lie, making it clear which strategies are driving results. This transparency fosters trust, as both teams can confidently share insights and data, knowing they’re working toward the same goals.
Accountability also plays a crucial role. When everyone understands their responsibilities and is held to the same standards, it creates a culture where success is shared. This alignment between sales and marketing not only reduces friction but also boosts efficiency, allowing both teams to perform at their best and contribute to the company’s overall success.
The Impact of Misalignment on Revenue and Growth
When sales and marketing aren’t aligned, it can have a major impact on your company’s growth. Departmental silos often lead to poor communication and inaccurate revenue tracking, causing missed opportunities for growth. Without a shared understanding of KPIs, both teams may end up chasing different goals, which can lead to marketing campaigns that don’t quite gel with sales strategies.
Aligning sales and marketing is crucial for overall business success. When these teams work together, they can better track performance metrics, improve the sales process and customer engagement, and ultimately drive growth. By fostering alignment, you’re not just optimizing strategies—you’re laying the groundwork for a more prosperous future.
KPIs That Both Sales and Marketing Should Track
Key performance indicators (KPIs) and metrics are the glue that holds sales and marketing alignment together. While it’s possible your sales managers may already be watching these numbers along with their sales goals, by focusing on the right KPIs together, your two teams can communicate better and spot opportunities for growth. Here’s a look at the top KPIs both sales and marketing should be tracking:
1. Marketing Qualified Leads (MQLs) Generated
A Marketing Qualified Lead (MQL) is a contact that is a good fit for your offering and has demonstrated genuine interest, like downloading an eBook, signing up for a newsletter, or asking to speak to sales.
Before measuring MQLs, it’s essential that both sales and marketing agree on a clearly defined Ideal Customer Profile (ICP), Buyer Personas, and rules about what makes a lead a lead. This shared understanding helps to eliminate common frustrations, such as when sales teams feel that the leads provided by marketing aren’t high quality. Agreeing on what makes a contact both a fit and a lead ensures that the MQLs sent to sales are the right ones, paving the way for more productive follow-ups and higher conversion rates.
Tracking MQLs allows you to gauge the effectiveness of your marketing strategies and by analyzing which campaigns generate the most MQLs, you can refine your approach to better engage prospects.
2. MQL to SQL Conversion Rate
While MQLs are contacts that marketing deems are ready to be passed to sales, Sales Qualified Leads (or SQLs) are MQLs that sales agrees are both a fit and are ready to speak with sales.
The MQL to SQL conversion rate is a critical metric that shows how well sales and marketing teams are working together to collaborate and identify your ideal customers. A high conversion rate indicates that your marketing efforts are generating quality leads that are indeed ready for sales.
Tracking this KPI is easy with tools like CRM systems and marketing automation platforms, which provide real-time data on lead behavior and engagement. With these insights, your teams can refine their strategies, improve engagement, and make the lead nurturing process smoother.
3. Time to First Contact
Time to First Contact (TTFC) is all about how quickly your sales team reaches out to a lead after they’ve shown interest. The faster your sales reps contact, the better your chances of conversion. Whether it’s through an email, phone call, or social media message, the speed of this first engagement is crucial.
Tracking TTFC can give you valuable insights into which outreach methods are most effective. For example, a quick phone call might lead to better results than a delayed email, which shows the importance of timely and appropriate contact methods.
By understanding and optimizing this metric, you can ensure that your team is engaging leads effectively, increasing the chances of turning interest into long-term relationships and successful sales.
4. Sales Qualified Lead-to-Customer Conversion Rate
The SQL-to-Customer conversion rate is a key metric for understanding how well your sales teams are doing in turning SQLs into paying customers. A low conversion rate might indicate that your leads aren’t being properly qualified, leading to prospects entering the sales funnel who aren’t a good fit, however if your MQL to SQL conversion rate is high, the issue may lie elsewhere in your sales process.
Ask marketing to develop marketing collateral and content that addresses common objections heard in the sales process. Implement sales training programs for the sales department to help them learn to address customer needs more effectively. Additionally, use an integrated communications platform to make it easier for reps to nurture leads through the sales pipeline with personalized interactions.
5. Sales Cycle Length
Understanding your sales cycle length is vital for improving your business’s profitability. It’s a key indicator of how efficient your sales process is and helps you determine the ideal timeframe for closing deals. By knowing your average sales cycle, you can adjust your strategies to move leads through the funnel faster.
There’s also a strong link between sales cycle length, customer satisfaction, and retention. A streamlined sales cycle often leads to happier customers, who are more likely to return for future business and refer others.
6. Customer Lifetime Value (CLV)
Customer Lifetime Value (CLV) is a powerful metric that marketing and sales teams should closely monitor. CLV represents the total revenue your business can expect from a single customer over the course of their relationship with your company. It’s a key indicator of how well your teams are working together to attract and retain the right clients—those who see the value in what you offer and are willing to invest in it.
When sales and marketing teams are aligned from the first interaction with a new lead through to the post-sale experience, they can create a seamless journey that resonates with your ideal customers. This alignment of sales and marketing doesn’t just lead to more closed deals; it results in happier customers who are more likely to buy from you again and remain loyal over time.
By tracking CLV, you can gauge how effectively your sales and marketing efforts are driving long-term customer satisfaction and loyalty. A rising CLV indicates that your teams are not just closing sales but are also nurturing strong, enduring relationships with customers who see your value and stick around. In essence, measuring CLV is a way to prove that your alignment efforts are paying off—both in terms of immediate sales and in building a loyal customer base that contributes to sustainable business growth.
Using a Shared Tool for Measuring Metrics
For true sales and marketing alignment, it’s essential to have a single source of truth for measuring your KPIs and metrics. A shared software or CRM (Customer Relationship Management) ensures that both teams are working from the same data, making it easier to track performance and collaborate effectively. Tools like HubSpot offer a comprehensive platform where sales activities, marketing campaigns, and interactions with prospective and current customers can be seamlessly integrated. By using one sales and marketing tool, your teams can stay aligned on goals, streamline communication, and make data-driven decisions that drive growth.
Building a Culture of Continuous Improvement Through Aligned KPIs
Aligning your revenue teams around shared marketing and sales metrics is the foundation for continuous improvement. When both teams focus on the same metrics, they can collaborate more effectively, identify trends, and make data-driven adjustments that enhance performance. This alignment not only promotes accountability but also creates a growth-oriented culture where everyone is working toward common goals.
Ready to Align Your Sales and Marketing Team?
If you’re looking to improve your organization’s revenue but don’t know how to align sales and marketing, we’re here to help. As a HubSpot Platinum Partner, Farotech specializes in sales enablement solutions that drive collaboration and revenue growth. Our tailored approach is designed to reduce friction, enhance communication, and align your teams with a shared vision for success.
Contact us today to discuss how we can support your organization in achieving seamless sales and marketing alignment.