This post is for business owners, marketing directors/managers and sales directors/managers.
To achieve your business goals, you need sales and marketing to come behind a single company-wide shared revenue goal.
You need a sales enablement strategy.
But how do you create the revenue goal that’s such an important part of a sales enablement?
1. Bring Sales and Marketing Together Behind A Clear Shared Revenue Goal
Whether you’ve got one sales person or a large sales team; one marketing specialist, or a large marketing team; how can your sales and marketing truly work together to reach your revenue goals?
“The line between sales and marketing has been obliterated.” – Matthew Cook, CEO, Saleshub
Sales and marketing need to be working towards the same single goal. Make sure it’s a revenue goal.
Before Sales Enablement
In companies across the world, there can be a lot of competition and distrust between sales and marketing.
Get both to pull behind a single revenue goal and it will significantly help to reduce friction – if you do it right.
“Having a unified goal is great, but you need a system of accountability to make sure marketing and sales are both pulling their weight. You need to hold your teams accountable using a service-level agreement.” – Hubspot
How Do You Calculate The Figures For The Agreement?
To hold sales and marketing accountable you need them to sign up to a service-level agreement (SLA).
It’s widely agreed that you need three figures to create your SLA.
But if you’re only just starting out with this and don’t have the figures to hand, try and move forward with your best guesses.
Don’t get bogged down. It’s more important that you move forward with Sales Enablement, than get stuck with perfection.
Then refine it as soon as you can.
The three figures to create your agreement between marketing and sales are:
- The average conversion rate from lead to deal/opportunity.
- The average conversion rate from deal/opportunity to closed/won sale.
- The average value of a sale.
With those three figures you can calculate how many Marketing Qualified Leads (MQL) marketing needs to send to sales for them to hit the company wide revenue goal.
What’s a Marketing Qualified Lead (MQLs)?
An MQL is a lead that’s more likely to convert into a sale because of the activities that have preceded the sale. These are activities such as which web pages a person has visited, what they’ve downloaded, and similar engagement with the business’s content. If your marketing sends only MQLs to sales then their time will be better spent selling to the higher quality leads, rather than talking to poor quality prospects.
Marketing Qualified Leads will make the selling easier, as opposed to sending all leads to sales.
Is It Enough To Just Send ‘Marketing Qualified Leads’?
I talked earlier about having a clear goal in your agreement of a specific number of marketing qualified leads sent to sales from marketing per month.
But be careful. That approach can have big dangers.
- Let’s say that marketing simply have to provide 100x MQLs a month to the sales team.
- When marketing meets that goal, they’re ecstatic.
- But sales are less than happy.
- A chunk of those leads could easily be nowhere near good enough for sales – even if they’re marketing qualified.
Marketing have been more focused on the number of leads rather than the quality. They may be happy with 100 people who downloaded an ebook, but the sales team would not be happy with that.
Without that goal focus on lead quality, sales will still get a large number of poor quality leads.
How To Set Marketing Goals That Focus On Lead Quality
The best way to set goals for marketing is to provide a goal like: “Send £xxxx worth of leads per month to Sales”.
And you do that by knowing what different types of leads are worth.
For example, let’s say you know that 1% of the time that someone downloads an ebook on your website, they eventually convert to a customer and spend on average £1000.
So the eBook lead is worth £10 (1% of £1000).
We know that no two leads are the same. So in this example let’s see what other types of leads are worth.
Let’s say that you know the sales conversion rate of someone who attends a demo or showroom is 10% (for the sake of this example) and on average they spend £1000. So the showroom lead is worth £100.
You can now give marketing an extremely useful and accurate goal.
You know how much revenue you need in a month to meet your company’s goals and you figure out how many leads a month you need to hit that goal.
Instead of asking marketing to generate 800 leads per month, you tell marketing your target is £10,000 of lead value per month. That can be made up of 1000 eBook leads (£10,000 worth of leads), or 100x showroom appointments (£10,000 worth of leads). Or a mix of both.
You get the result that everyone wants:
Marketing get the credit they deserve for getting that higher value lead, or a lower value lead. Versus the previous situation where they may have met their goal when they got 800 ebook leads, but your sales team were given poor leads.
What Would The Agreement Look Like?
The agreement between sales and marketing might read something like:
Every month the marketing team will deliver £10,000 in lead value to sales, and the sales team will contact every marketing qualified lead within 24 hours of receiving it.
Setting goals like this for marketing could provide a significant revenue increase for your business.
For the first time, your marketing will be on a revenue target, just like sales.
This is significant for accountability and for achieving your company wide goals.
- How to make the selling easier and boost revenue with Sales Enablement
- How to increase website lead response times
Don’t Let Perfection Hold You Back
Some of the figures and maths we’ve used might seem complex (please ask if you need help with this), but don’t chase for perfection now. That can come later when you have more data in your hands.
For now, have the conversations you need with sales and marketing to get to the next step.
Whether you have one marketing specialist, or a team; one salesperson or a sales team, once you have a hang of it sales will enjoy a steadier stream of higher quality leads, and marketing will have more flexibility about the types of leads they provide.
Once you have the goal in place, marketing and sales working towards the same company wide goals will significantly increase your chances of hitting your revenue goals.
It won’t be plain sailing, but you need to do the difficult things to make the selling easier.
Stop seeing marketing and sales as different bodies in your business. The traditional boundaries between marketing and sales have been obliterated. Now is the time to get everyone working together towards a company wide shared revenue goal to boost sales and revenue.
Make the selling easier in your company and start the conversation about Sales Enablement.
Create a Sales Enablement Strategy.
If you need help please get in touch via email or give me a call on 01926 356300
I’ll be happy to answer your Sales Enablement questions as well as help you with your website and digital marketing.