Profits: How and Why to Align Marketing with Sales

If marketing isn’t synchronized with sales, a company doesn’t enjoy optimized profits. So why is it so many companies don’t align their marketing with sales?

A 2010 study by Northern Illinois University and consulting firm Miller Heiman reveals some noteworthy data – companies that strategically align marketing with sales are more successful – even during the downturn.

Among 2,000 responding companies surveyed in Asia, Europe and the United States, about 33 percent orchestrate marketing and sales. However, another 33 percent say their two departments are in a “state of neutrality,” and the remaining third do not align the two functions.

In comparing 2oo9 results to 2008, the results are eye-opening for aligned companies:

• 12 percent stronger sales and 5 percent more qualified leads.
• 8 percent higher probability of conversion rates of 40 percent-plus.
• 29 percent conversion rate compared to only 24 percent for “low-aligned sales teams.”
• Aligned firms had a higher probability of success – 19 percent and at least a 5 percent sales increase. They also enjoyed a 3 percent growth in new business. But poorly aligned companies suffered from a .5 percent decrease in new business.
• In retention of customers, aligned firms were 11 percent more likely to enjoy 5 percent or higher success for highly aligned companies.
• In billing, their odds were eight percent higher for an increase and at least 5 percent higher than poorly aligned firms, which experienced a 3.5 percent decrease. Sales for aligned companies dropped 1.2 percent.
• In revenue, aligned firms were 4 percent more likely increase 5 percent. Lowly aligned companies had a 2.9 percent revenue decrease. Highly aligned firms decreased 1.2 percent in revenue.

But it isn’t necessary to examine financials to see missed opportunities.

Here are three examples:

• Many marketing campaigns are perceived as ostentatious. The copy is clever but doesn’t appeal to the five value-buying perceptions that motivate people to buy. (The value perceptions are in this column, The Seven Steps to Higher Sales)
• Marketing collateral boasts of professional salespeople, but salespeople fail to match the message in the marketing. When customers call to buy, the salesperson doesn’t fully understand the product, doesn’t develop a rapport, and is not enthusiastic. The salesperson fails to treat the occasion like it’s an event for the customer. If the customer doesn’t have a change of heart, in the end the salesperson fails to say thank you or to prevent buyer’s remorse.
• Or note the lack of enthusiasm when marketing campaigns are introduced to sales staff – the salespeople appear bored or they’re superficially attentive.

In the three scenarios, profits aren’t optimized. Sometimes, it’s because the wrong people are on the sales staff or the marketing creates images that can’t be met by sales. But, it’s also safe to assume the marketing and salespeople aren’t on the same page. They often don’t speak the same language.

That’s ironic for professionals who are supposed to be good communicators. Instead, there are often turf battles. Marketing people think they’re the only ones who are strategic thinkers. They think salespeople can only see to the end of their noses and are only concerned about their monthly sales quotas. Salespeople feel marketers aren’t carrying their own weight in generating sales leads. And so on.

The solutions:

1. Everyone needs to get on the same page. Starting with the senior executive, there needs to be a commitment for collaboration. The chief marketing officer and sales managers need to meet regularly, especially over lunch. Good things happen when people break bread together. The philosophy must filter down both staffs.
2. The two sides should continually work on talking the same language.
3. They should proactively look for weaknesses and breakdowns in communication.
4. Everything should be tested. There should be an agreement about prospect leads and quality.
5. Establish an ongoing reporting dialogue – input and feedback between marketing and sales.
6. Review and develop metrics for efficient accountability for both functions.

Good luck!

From the Coach’s Corner, for the above reasons by design, this Web site combines marketing and sales into one business-coaching category, Marketing/Sales, where you’ll find dozens of business-coaching columns.