Sales-Marketing KPI Alignment Guide 2024

Boost your business in 2024 by aligning sales and marketing KPIs. Here's what you need to know:

• Only 8% of companies have truly aligned sales and marketing teams
• Aligned teams see 36% better customer retention and 67% higher deal closure rates
• Misalignment can cost companies 10% in annual revenue

Key steps to align your KPIs:

1. Focus on shared metrics like Customer Acquisition Cost (CAC) and Customer Lifetime Value (CLV)
2. Create unified dashboards for both teams
3. Connect data sources for real-time insights
4. Hold regular review meetings
5. Adjust KPIs based on results

By aligning your sales and marketing KPIs, you can expect:

• Up to 208% more marketing ROI
• 32% year-over-year revenue growth
• 19% faster overall growth

Start today: Get your sales and marketing leaders together, review your current KPIs, and build a unified strategy for 2024 and beyond.

Aspect	Old Approach	New Aligned Approach
Focus	Separate team goals	Shared revenue impact
Metrics	Siloed	Unified across teams
Reporting	Conflicting	Single source of truth
Results	Slower growth	Faster growth, higher profits

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KPI Basics for Sales and Marketing

In B2B, getting sales and marketing on the same page isn't just smart - it's crucial. Let's break down KPI alignment and why it's a game-changer for your business.

What is KPI Alignment

KPI alignment means your sales and marketing teams are tracking the same key metrics. It's about both teams celebrating the same wins - closed deals and happy customers - instead of operating in silos.

Current Measurement Methods

Many companies are stuck in a "two worlds" scenario:

• Marketing tracks lead volume, website traffic, and campaign engagement.
• Sales focuses on revenue, deal closure rates, and pipeline value.

This split can lead to friction and missed opportunities.

Problems with Mismatched KPIs

When KPIs don't match up, it's like trying to row a boat in opposite directions. Here's what happens:

• Marketing might waste money on campaigns that don't generate quality leads.
• Sales could ignore promising leads that don't fit their "qualified" criteria.
• When targets are missed, finger-pointing replaces problem-solving.

The cost? Companies can lose at least 10% in annual revenue due to misalignment. That's a big hit for not syncing up your teams.

Why Matched KPIs Work Better

Aligning KPIs isn't just about teamwork - it's about boosting your bottom line. Check out these stats:

• Companies with aligned teams see a 38% boost in win rates.
• Alignment leads to a 36% increase in customer retention.
• Aligned companies grow revenue 64% faster than their misaligned counterparts.

Take Cisco, for example. Their CMO got sales and marketing on the same page with shared goals and dashboards. The result? A significant performance boost.

To make this work for your company:

1. Agree on your ideal customer profile.
2. Use a common CRM or platform to share data.
3. Focus both teams on revenue contribution.

As content marketing expert Ana Cotet says: "The only way for a team to improve is if they know what to improve upon." Aligned KPIs give both sales and marketing a clear path to success.

Next up, we'll dive into the key metrics that matter most for aligned teams. Get ready to turn your sales and marketing into a revenue-generating machine.

Setting Shared Success Metrics

Let's talk about how to get sales and marketing on the same page. It all starts with picking the right numbers to track. Here's what you need to know:

Money Metrics That Matter

When it comes to cash, both sales and marketing need to keep an eye on these three biggies:

1. Customer Acquisition Cost (CAC)

This is how much you're shelling out to bring in new customers.

Here's a quick example: You spend $10,000 on marketing and sales in a month and snag 20 new customers. Your CAC? $500 per customer.

2. Customer Lifetime Value (CLV)

CLV is all about how much a customer's worth over their entire relationship with you.

Let's say a customer drops $1,000 a year and sticks around for 5 years. Their CLV? A cool $5,000.

3. Return on Marketing Investment (ROMI)

ROMI shows you how much bang you're getting for your marketing buck.

Picture this: You throw $50,000 at a campaign and it brings in $150,000 in sales. Your ROMI? A whopping 200%.

Alice de Courcy, CMO at Cognism, puts it this way:

"When reporting to the board, the revenue-focused marketer is also going to be looking to report on CAC - this is the customer acquisition cost. Break down your CAC across your 'channels'. For Cognism, those are inbound, paid and content. This enables you to see which channels are more efficient and scaling better."

Lead Tracking Numbers

To make sure marketing's handing off good leads to sales, keep tabs on these:

1. MQLs to SQLs Conversion Rate

This shows how many marketing leads are actually ready for sales. If it's low, your teams might not agree on what makes a good lead.

2. Average Lead Response Time

Harvard Business Review says companies usually take 42 hours to respond to leads. Beat that by using tools like social listening and website chat.

3. Sales Pipeline Velocity

This is about how fast leads move through your sales funnel. If it's slow, there might be hiccups in how marketing hands off to sales.

Customer Progress Markers

Both teams need to understand the customer journey. Here's what to watch:

1. Customer Retention Rate

For B2B, aim for 92-95%. This shows if you're bringing in good leads and if what sales promises matches what customers get.

2. Net Promoter Score (NPS)

NPS tells you if customers are happy and loyal. A high score means your sales and marketing messages line up with what customers actually experience.

3. Lead Velocity Rate (LVR)

LVR shows how fast your qualified leads are growing month-to-month. As one expert puts it:

"By tracking LVR, you can identify any bottlenecks or areas for improvement within your lead nurturing and conversion processes."

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Building a Single Report System

A unified reporting system is key for sales and marketing alignment. Here's how to create one that gives both teams a clear view of their joint performance:

Making Shared Dashboards

Shared dashboards are the heart of aligned reporting. They offer a single source of truth for sales and marketing teams.

To create effective shared dashboards:

1. Start with a few key metrics that matter to both teams. Think Customer Acquisition Cost (CAC), Customer Lifetime Value (CLV), and Return on Marketing Investment (ROMI).
2. Use charts and graphs. They make complex data easy to grasp at a glance.
3. Tailor your dashboard to your teams' needs. As Rachel Gilstrap from Shopmonkey puts it:

"With ClickUp, our marketing team has been able to build out dynamic thought-leadership marketing content to do exactly that."

ClickUp's dashboards let teams display various data points in one place, from sales pipeline overviews to customer satisfaction metrics.

Connecting Data Sources

To get a full picture of your sales and marketing efforts, you need to bring data together from multiple sources.

Here's how:

1. Identify your key data sources. These might include your CRM, marketing automation platform, website analytics, and social media insights.
2. Use data integration tools. Platforms like Coupler.io can automatically merge data from different sources. This process, called data stitching, organizes information logically.
3. Make sure your data updates in real-time. This way, your teams always have the latest info for decision-making.

Keeping Everyone Informed

A shared reporting system only works if people use it. Here's how to keep your teams in the loop:

Set up automated alerts for when key metrics hit certain thresholds. This keeps both teams aware of important changes without constant checking.

Hold regular review meetings. Get sales and marketing together weekly or bi-weekly to go over the dashboard. It helps both teams interpret the data consistently.

Provide ongoing training on using and interpreting the dashboard. It's crucial for new team members and when you add new metrics.

Ask for feedback regularly. It ensures the dashboard stays useful over time.

5 Steps to Match Your KPIs

Want to boost your bottom line? Align your sales and marketing KPIs. Here's how to get your teams working together:

Step 1: Check Current KPIs

First, take a good look at what you're measuring now. Get your sales and marketing leaders together and review your metrics. You might find some surprises.

Maybe marketing's all about lead volume, while sales is focused on closing deals. This mismatch can cause problems.

Here's what to do:

1. List all current KPIs for both teams
2. Spot the overlaps and differences
3. Talk about which metrics really impact revenue and customer happiness

The goal? Find common ground. As the Bardeen Team puts it:

"Effective sales and marketing alignment is critical for business success."

It all starts with agreeing on what success looks like.

Step 2: Connect Systems

Now that you've agreed on shared KPIs, it's time to set up a way to track them. This usually means connecting your CRM, marketing automation, and analytics tools.

Try this:

1. Figure out all your data sources (like Salesforce, HubSpot, Google Analytics)
2. Pick a tool to bring all your data together
3. Set up automatic data flows for real-time updates

Sounds tricky? Don't sweat it. Companies like Falcon Corporate Systems can help B2B firms get their tech in order. They can give you strategies and tools to make this process smoother.

Step 3: Track and Adjust

You've got your new KPIs and your systems are connected. Great! But don't just set it and forget it.

Keep things on track:

1. Have weekly check-ins with sales and marketing leaders
2. Look at how your KPIs are doing and talk about any issues
3. Be ready to make changes based on what's actually happening

Salesforce says:

"Communicate consistently: Establish a regular cadence to set, validate, and revise goals."

This ongoing chat helps both teams stay on the same page and adapt quickly when things change.

Old vs. New KPIs

Let's see how your new approach stacks up against the old way:

Aspect	Old Approach	New Aligned Approach
Focus	Marketing: Lead volume Sales: Closed deals	Shared: Revenue impact
Metrics	Separate for each team	Unified across both teams
Reporting	Siloed, often conflicting	Single source of truth
Accountability	Blame game when targets missed	Shared responsibility for outcomes
Result	Misaligned efforts, slower growth	19% faster growth, 15% increase in profitability

This isn't just theory. Highspot found:

"Businesses with strong sales and marketing alignment experience 19% faster growth and a 15% increase in profitability."

Conclusion

Aligning sales and marketing KPIs isn't optional - it's a must for B2B companies looking to grow in 2024 and beyond. Here's a quick recap of what we've covered:

When sales and marketing teams work together towards shared goals, the results speak for themselves. Companies with aligned teams see up to 208% more marketing ROI and 32% year-over-year revenue growth.

A unified reporting system is crucial. With a shared dashboard, both teams can access real-time data, leading to better teamwork and smarter decisions. Tools like ClickUp are great for building dashboards that work for both sales and marketing.

Regular check-ins between sales and marketing leaders make a big difference. Weekly or bi-weekly meetings keep everyone on the same page and ready to adapt to market changes.

Focus on KPIs that directly impact revenue, not just team-specific metrics. This shift can lead to 19% faster growth and 15% higher profits, according to Highspot.

Use CRM systems and marketing automation tools to share data and work together more easily. Companies like Falcon Corporate Systems can help B2B firms set up the right tech for better sales and marketing alignment.

Keep improving. Regularly review and update your KPIs based on real results. As Salesforce says:

"Establish a regular cadence to set, validate, and revise goals."

By following these strategies, you're setting your company up for major growth. Deniz Olcay, VP of Marketing at Allego, puts it well:

"Sales and marketing alignment ensures consistent messaging across all channels, from website copy to social media posts to the conversion sales calls."

This consistency turns leads into loyal customers and drives real business growth. So, start today. Get your sales and marketing leaders together, look at your current KPIs, and build a unified strategy to boost your business in 2024 and beyond.

FAQs

What are the KPIs for B2B sales?

B2B sales KPIs fall into four main buckets:

1. Sales activity
2. Leads and pipeline
3. Sales and conversions
4. Customer acquisition and retention

Some key metrics to keep an eye on:

• New leads by source
• Monthly closed deals
• Net profit margin
• Customer retention/attrition rate

These numbers give you a clear picture of how your sales team is performing. Take Cognism, a B2B SaaS company, for example:

"Last year, we more than doubled our revenue from $21.2 million to $44.2 million. Data informs everything we do. Everything is measured and measurable. Sales KPIs provide us with insights which we use to learn from and then improve our performance."

Want to squeeze the most out of your B2B sales KPIs? Here's how:

Get sales and marketing on the same page. A whopping 90% of pros say this teamwork boosts customer experience.

Zero in on quality leads. Work with your marketing team to nail down what makes a lead "high-quality".

Show the money. 39% of marketers struggle to prove ROI. Pick metrics that clearly show the value of your work.

Keep tabs on your sales cycle. As Tenfold puts it, "The total length of the sales cycle has important consequences that ripple throughout the entire organization."

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