whitepaper: relationship counseling - demandgen...sales and marketing may be using the same terms,...

Improve Sales and Marketing Alignment

RelationshipCounseling

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One of the biggest problems we see at DemandGen when implementing a new marketing process starts with a language barrier. Sales and marketing may be using the same terms, but often, they have very different definitions. These two departments should work in a symbiotic arrangement, where marketing feeds sales. However, there is often tension and plenty of work moving at cross-purposes. Sales and marketing alignment is the first step in seeing substantial returns from marketing automation and an improved sales funnel.

Speaking the Same Language The basic difference of opinion between sales and marketing can often be summed up with a single word: leads. What are leads? To marketing professionals, a lead might be anyone who responds with an information request to a campaign. To a sales professional, a lead is someone qualified to make a purchase who is interested right now. This basic difference of opinion can create tension, which translates into less successful marketing campaigns and less sales.

As an example, consider an annual marketing campaign. Imagine the marketing team has come up with something new that generates a 30-percent increase on the number of responses. Naturally, they start the back patting. Sales, faced with a sudden influx of leads stumbles and fails to close. Why? The answer is fairly simple. Marketing generated 30 percent more responses, but they are not coming from people with purchasing authority. They may be interested, but the sales process is much longer when communication starts at the bottom level. To the sales team, these inquiries cannot be considered leads, only time wasters.

Bridging the gap requires both sides to come together to create a lexicon that both understand. Instead of using the term leads, breaking up querents into definable categories can help. The first Demand Waterfall offers a great starting framework.

• Suspect - An unidentified potential buyer in the total available market for the product or service.

• Inquiry - A raw response or hand-raiser. Relatively little is known about the prospect at this point.

• Marketing Qualified Lead (MQL) - An inquiry that meets minimum fit criteria (qualification and interest) as jointly defined by sales and marketing and is ready for sales engagement.

• Sales Accepted Lead (SAL) - A lead that has been formally accepted by sales, which must work the lead within a given timeframe to determine if a qualified opportunity exists.

• Sales Qualified Lead (SQL) - Sales has confirmed that a viable opportunity exists and has committed it to the pipeline with an estimated dollar value and timeframe to close.

• Customer - An opportunity that has come to fruition.

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Of course, these are just basic guidelines. Different terminology works best for different companies. The important takeaway is to make sure both departments are speaking the same language.

impLementing Lead management SyStemS BaSed on the new Lexicon

Once sales and marketing have agreed on mutual terminology, it is time to start focusing on implementation and process. How to translate these tiers into actual lead management is the challenge. We start off the process with an assessment. Identifying where the system is failing helps to ensure a better, smoother work flow moving forward. A comprehensive plan to nurture leads through from first contact to customer requires a complete understanding of the existing sales funnel and the necessary changes needed to improve the nurturing process.

“When we first met with the Concur marketing team, we discussed their alignment between the sales and marketing teams,” said David Lewis, CEO of DemandGen International. “The conversations focused on gaining an understanding of the quantity and quality of leads, how the systems were set up to enable marketing to pass leads to sales, and what sales was doing with the leads that were being passed to them.”

Once everyone is on the same page and the plan has been conceptualized, it needs to be rolled out, typically along with a lead scoring system developed in partnership with marketing and sales. Lead scoring helps determine where in the process marketing hands off leads to sales, with both parties in agreement that the lead is qualified for direct sales contact.

Scoring uses independent identifies to separate hot leads from those that require more interaction before considering a purchase. The two basic factors are qualification and interest. Qualification scores come from information provided by the leads, like job title and industry. Then interest level is determined by an

Sales Qualified Leads (SQLs)

Marketing Qualified Leads (MQLs)

Sales Accepted Leads (SALs)

Closed/WonBusiness

Automation Qualified Leads (AQLs)

Inquiry

MarketingQualified

Sales Qualified

Converted

Teleprospecting Qualified Leads (TQLs)

Inbound Outbound

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examination of the leads’ digital footprint. Are they spending time visiting the site? Do they download information? What and how many forms have they filled out? Monitoring these activities helps determine their interest score. When both qualification and interest scores are high, the lead is ready for the hand off to the sales team.

By using scores to quickly rate prospects, sales can instantly separate the most qualified leads from the least qualified. This helps them target the most likely sales, ultimately improving their ability to close. Of course, that does not mean less qualified leads should be ignored. This is where the nurturing process comes into play.

Learn to warm up coLd LeadS

Even with the best scoring systems and most efficient funnel, there are times when you see leads go through the process and fail to close. That does not mean they will never close, simply that they are not yet fully matured. Where some systems might toss those leads, an essential part of maximizing revenues comes back to a better alignment between sales and marketing. When a lead cools off, sales should kick it back up the chain to marketing, for more education and development. A good lead that fails to close on time might just need some extra time in the funnel. Recycling these leads allows sales a second chance to close. Of course, implementing these changes may require a fairly substantial shift in corporate culture.

whitepaper: relationship counseling - demandgen...sales and marketing may be using the same terms,...

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