Knowing these metrics allows you to understand whether your sales and marketing integration efforts are yielding good results or whether, instead, changes are needed to give the strategy momentum. Do you want to know what they are? We’ll tell you!
SMarketing, an approach that drives the growth of organizations
Sales and marketing have historically worked in a silo . What does this mean? Simply put, in most organizations these areas operate in a disconnected manner.
On the one hand, once the marketing department generates new leads and sends them to the sales department, it does not know how these leads progress.
On the other hand, sales cannot provide tangible information to marketing because they cannot relate incoming sales to the touchpoints previously offered by marketing.
This problem gives rise to SMarketing , an approach that focuses on the fusion of the words sales and marketing. This method aims to align both teams with the purpose of boosting organizational growth and increasing business profitability .
6 SMarketing KPIs to effectively align sales and marketing teams
There is no doubt that a well-constructed and well-adjusted SMarketing plan brings numerous benefits to organizations. However, one of the colombia phone number library reasons why sector alignment becomes difficult is because teams work on separate goals.
A simple way to align sales and marketing is through the establishment of shared Key Performance Indicators (KPIs) .
These SMarketing KPIs are metrics Sales Alignment that help determine whether efforts to foster closer collaboration between the two areas are bearing fruit .
Quantity and quality of Sales Qualified Leads (SQL)
Sales Qualified Leads (SQL) are leads that have been qualified by the sales team and should be specifically followed up on as they demonstrate potential for conversion.
To reach this stage, prospects must have moved you can create such working conditions that people past the engagement phase and interacted with sales efforts in a specific way, such as asking for a demo or trial.
The number of SQLs is an indicator that shows how the accountability between marketing and sales works. The path that a prospect takes to become a Sales Qualified Lead reflects the effectiveness of the work of the marketing department, as well as its ability to distinguish a business opportunity from that which is not .
How leads are passed to sales varies from company to company, but how many Marketing Qualified Leads (MQLs) are considered quality by sales? If this number germany phone number is low, there is definitely a problem.
On the other hand, SQL quality is also an excellent SMarketing KPI. When both departments work with aligned objectives, communicating with each other and sharing information, they obtain “good quality” leads , i.e., more likely to become customers.
In this sense, quality and quantity of SQL are metrics that allow us to measure the level of understanding that exists between both sectors .
MQL to SQL conversion rates for different lead sources
MQLs are potential customers who have shown interest in marketing materials describing a company’s products or services.
These leads—which can arise from events, white papers, email campaigns, webinars, and events, among others—are open to being contacted in a more personal way. Therefore, once the marketing department identifies an MQL, it is necessary to determine the potential client’s viability. If sales considers that the lead is qualified, it becomes an SQL.
This metric is an excellent SMarketing KPI because it is one of
the best ways to analyze whether the service level agreements
established by both areas are working properly and whether the leads that the marketing
department qualifies and passes on to sales guarantee the creation of a high-quality pipeline .
Percentage of leads that become customers
The lead conversion rate provides a complete overview of the success of your SMarketing strategy .
It clearly demonstrates whether marketing Sales Alignment
and sales teams are aligned and working in a coordinated manner to advance leads through each stage of the buyer’s journey .
Although this KPI is, in essence,
the sum of other indicators (percentage of leads that become MQLs, percentage of MQLs that constitute an opportunity and percentage of opportunities that become customers),
it allows the results of the sales and marketing integration strategy to be measured globally.
Average size of closed deals
This metric reveals how many deals the marketing and sales teams must generate together to achieve previously established revenue goals .
In addition to setting expectations about what is needed from
the SMarketing strategy, this KPI is useful for setting projections
and goals regarding the number of operations that departments need to perform to reach their quotas.
Customer Lifetime Value (CLV)
Customer Life Value (CLV) is an indicator that represents
the economic value that a consumer has for a company during the entire period of their relationship with the company .
In addition to demonstrating
the final performance of the investments made in the customer acquisition phase,
this metric also constitutes an excellent SMarketing KPI since it shows whether the strategy is delivering the expected results.