Many businesses struggle with
friction between sales and marketing. Sales team is often complaining that
marketing is not generating quality leads. Marketing team, on the other hand,
criticizes sales for not properly following up with prospects.
Only in few companies you can see marketing and sales well aligned. The difference lies in the strategy of the company; these businesses had a clear go-to-market strategy that translated into well-defined priorities for every employee. They also had a much stronger company culture and terrific morale across the organization.
On paper, aligning sales and marketing should be an easy job. In practice, however, finding a good fit between the two departments is one of the more difficult problems in today's business.
This problem is all the harder in the age of inside sales. With shorter sales cycles and lower price points, there is very little opportunity for sales and marketing to collaborate on specific deals. Throw in the typical strong personalities of sales and marketing leaders, and you have an interesting challenge.
Solving the sales-marketing alignment challenge is critical to your business success. For inside sales to work well with marketing, it is imperative that marketing adopt a few key changes to its principles and processes. Here are 5 ways marketing must change in order to become effective in a high velocity inside sales go-to-market strategy:
1) Marketing must adopt transparent pricing.
Buyers today have access to much more information, and they complete nearly 60% of the sales cycle before even talking to a sale rep. They demand transparent pricing in order to purchase only the products that fit within their budgets and feature requirements.
Besides being more buyer-friendly, transparent pricing offers two tacit benefits to your sales team as well:
· More qualified leads: Transparent pricing helps buyers qualify your solution for their budgets and reach out for your business only if there is a fit. By pre-qualifying buyers this way, you can ensure that only higher quality leads get through to your inside sales team.
· Lower friction, faster deals: At an average of 45 days, inside sales cycles are significantly shorter than field sales. To sustain shorter cycles, you want prospects to make purchase decisions quickly. Transparent pricing ensures that your sales team spends the least amount of time possible on pricing. They can focus on the more valuable task of sharing the benefits of your product or service.
o Key Takeaway:
More options work well with enterprise sales where your goal is to maximize revenue per deal, but in a high velocity inside sales environment, limiting choice yields better results (600% better, according to one study). By directing marketing to adopt transparent pricing, you will ease the buyer's decision-making process, thus aiding your inside sales team.
2) Marketing must have a leads quota.
The performance of a sales team is a function of the total number of leads it receives each month. The higher this number the more it can sell.
Only in few companies you can see marketing and sales well aligned. The difference lies in the strategy of the company; these businesses had a clear go-to-market strategy that translated into well-defined priorities for every employee. They also had a much stronger company culture and terrific morale across the organization.
On paper, aligning sales and marketing should be an easy job. In practice, however, finding a good fit between the two departments is one of the more difficult problems in today's business.
This problem is all the harder in the age of inside sales. With shorter sales cycles and lower price points, there is very little opportunity for sales and marketing to collaborate on specific deals. Throw in the typical strong personalities of sales and marketing leaders, and you have an interesting challenge.
Solving the sales-marketing alignment challenge is critical to your business success. For inside sales to work well with marketing, it is imperative that marketing adopt a few key changes to its principles and processes. Here are 5 ways marketing must change in order to become effective in a high velocity inside sales go-to-market strategy:
1) Marketing must adopt transparent pricing.
Buyers today have access to much more information, and they complete nearly 60% of the sales cycle before even talking to a sale rep. They demand transparent pricing in order to purchase only the products that fit within their budgets and feature requirements.
Besides being more buyer-friendly, transparent pricing offers two tacit benefits to your sales team as well:
· More qualified leads: Transparent pricing helps buyers qualify your solution for their budgets and reach out for your business only if there is a fit. By pre-qualifying buyers this way, you can ensure that only higher quality leads get through to your inside sales team.
· Lower friction, faster deals: At an average of 45 days, inside sales cycles are significantly shorter than field sales. To sustain shorter cycles, you want prospects to make purchase decisions quickly. Transparent pricing ensures that your sales team spends the least amount of time possible on pricing. They can focus on the more valuable task of sharing the benefits of your product or service.
o Key Takeaway:
More options work well with enterprise sales where your goal is to maximize revenue per deal, but in a high velocity inside sales environment, limiting choice yields better results (600% better, according to one study). By directing marketing to adopt transparent pricing, you will ease the buyer's decision-making process, thus aiding your inside sales team.
2) Marketing must have a leads quota.
The performance of a sales team is a function of the total number of leads it receives each month. The higher this number the more it can sell.
This is true for every sales team, but is all
the more pertinent for inside sales. The inside sales cycle is much shorter
than field sales (around 45 days versus 6 to 9 months for field sales), and
inside sales reps are not bound by physical limitations (such as taking
meetings), which enables them to handle much higher lead volumes.
Thus, a high velocity inside sales team needs a rapid and constant influx of qualified leads delivered at a regular rhythm to be successful. If marketing can't send enough leads to sales even for a single month, it will be difficult for the inside sales team to meet its bookings number. This is bad for the bottom line and worse for sales-marketing alignment and morale.
For this idea to be successful, however, sales and marketing must work together to define what makes a qualified lead. In the past, it was common to use BANT (Budget, Authority, Need, and Timeframe) as qualifying criteria, though today more relaxed criteria is used. Once sales and marketing agree on a definition of a qualified lead, marketing can be held responsible for a monthly qualified leads quota.
o Key Takeaway:
Give your marketing team a leads quota with well-defined qualification metrics. This is necessary for the success of your inside sales team.
3) Marketing must run campaigns that are flexible.
Prior to inside sales, it was typical to have long lead-time marketing campaigns and not get the results of their effectiveness until months later. So, marketing heads would draw up year-long marketing plans in November, and then wait until March-April to see whether the initial campaigns worked (or not). You had little access to data, and whatever little data you did get often took months to roll in.
Compare this with marketing campaigns today, and you will see two significant changes:
· Marketing campaigns generate more data: You can launch a brand new marketing campaign, buy some PPC traffic to test your messaging, and get tons of actionable data within hours. If the data passes your benchmarks, you can then go ahead and launch it at scale, passing the leads to your inside sales team.
· Inside sales teams generate results faster: Once the leads start rolling in, a competent inside sales team can close them within days. Thanks to these shorter inside sales cycles, your marketing team can get constant feedback on the campaign's effectiveness.
o Key Takeaway:
Make sure your marketing campaigns are flexible and adapt as per feedback from inside sales. If something doesn't work, marketing should move quickly to change course. If something does work, marketing should increase spending on it.
4) Marketing must be involved in the entire sales process.
It is inevitable that your prospects will raise objections in the course of the sales process. How effectively your reps can answer these questions will be instrumental in determining your win rate.
In most companies the responsibility for addressing objections falls upon sales reps. In my opinion, however, you see a lot more success by offloading this duty to marketing and involving marketing in the entire sales process. This will also save your sales reps' time since a majority of reps spend up to 30 hours a month producing sales material.
o Key Takeaway:
Marketing can no longer just hand over leads to sales. It has to be involved in the entire sales process, producing informational material and helping sales reps address prospects' objections in order to nudge them down the sales process. A professionally produced marketing document will work much better than a quickly drafted email from a sales rep in answering prospects' questions.
5) Marketing compensation must be linked to sales performance.
We've already discussed how marketing has to carry a leads quota. In addition, for true sales-marketing alignment, marketing's variable compensation should be based on the inside sales plan achievement.
There are two very good reasons for this:
· Marketing gets compensated based on its role: Once marketing is involved in the entire sales process and carrying a leads quota, a part of its compensation should be linked to its role in the sales cycle.
· Marketing works better with sales: Sales often feels that marketing gets compensated even when sales does all the heavy lifting (i.e., making the actual sale). By linking marketing compensation to sales achievement, you will ensure that marketing is more involved than ever in helping sales achieve its goal.
o Key Takeaway:
Once marketing is more involved in the sales process, part of its variable compensation should be linked to sales performance (around 25%). This can also help in better sales and marketing alignment.
Conclusion:
For inside sales to be successful, it is imperative that marketing adopt a few fundamental changes. This includes bringing more transparency to pricing, linking marketing compensation to sales performance, and involving marketing in the entire sales process.
Thus, a high velocity inside sales team needs a rapid and constant influx of qualified leads delivered at a regular rhythm to be successful. If marketing can't send enough leads to sales even for a single month, it will be difficult for the inside sales team to meet its bookings number. This is bad for the bottom line and worse for sales-marketing alignment and morale.
For this idea to be successful, however, sales and marketing must work together to define what makes a qualified lead. In the past, it was common to use BANT (Budget, Authority, Need, and Timeframe) as qualifying criteria, though today more relaxed criteria is used. Once sales and marketing agree on a definition of a qualified lead, marketing can be held responsible for a monthly qualified leads quota.
o Key Takeaway:
Give your marketing team a leads quota with well-defined qualification metrics. This is necessary for the success of your inside sales team.
3) Marketing must run campaigns that are flexible.
Prior to inside sales, it was typical to have long lead-time marketing campaigns and not get the results of their effectiveness until months later. So, marketing heads would draw up year-long marketing plans in November, and then wait until March-April to see whether the initial campaigns worked (or not). You had little access to data, and whatever little data you did get often took months to roll in.
Compare this with marketing campaigns today, and you will see two significant changes:
· Marketing campaigns generate more data: You can launch a brand new marketing campaign, buy some PPC traffic to test your messaging, and get tons of actionable data within hours. If the data passes your benchmarks, you can then go ahead and launch it at scale, passing the leads to your inside sales team.
· Inside sales teams generate results faster: Once the leads start rolling in, a competent inside sales team can close them within days. Thanks to these shorter inside sales cycles, your marketing team can get constant feedback on the campaign's effectiveness.
o Key Takeaway:
Make sure your marketing campaigns are flexible and adapt as per feedback from inside sales. If something doesn't work, marketing should move quickly to change course. If something does work, marketing should increase spending on it.
4) Marketing must be involved in the entire sales process.
It is inevitable that your prospects will raise objections in the course of the sales process. How effectively your reps can answer these questions will be instrumental in determining your win rate.
In most companies the responsibility for addressing objections falls upon sales reps. In my opinion, however, you see a lot more success by offloading this duty to marketing and involving marketing in the entire sales process. This will also save your sales reps' time since a majority of reps spend up to 30 hours a month producing sales material.
o Key Takeaway:
Marketing can no longer just hand over leads to sales. It has to be involved in the entire sales process, producing informational material and helping sales reps address prospects' objections in order to nudge them down the sales process. A professionally produced marketing document will work much better than a quickly drafted email from a sales rep in answering prospects' questions.
5) Marketing compensation must be linked to sales performance.
We've already discussed how marketing has to carry a leads quota. In addition, for true sales-marketing alignment, marketing's variable compensation should be based on the inside sales plan achievement.
There are two very good reasons for this:
· Marketing gets compensated based on its role: Once marketing is involved in the entire sales process and carrying a leads quota, a part of its compensation should be linked to its role in the sales cycle.
· Marketing works better with sales: Sales often feels that marketing gets compensated even when sales does all the heavy lifting (i.e., making the actual sale). By linking marketing compensation to sales achievement, you will ensure that marketing is more involved than ever in helping sales achieve its goal.
o Key Takeaway:
Once marketing is more involved in the sales process, part of its variable compensation should be linked to sales performance (around 25%). This can also help in better sales and marketing alignment.
Conclusion:
For inside sales to be successful, it is imperative that marketing adopt a few fundamental changes. This includes bringing more transparency to pricing, linking marketing compensation to sales performance, and involving marketing in the entire sales process.
These changes may be hard,
but they are critical for modern business. They will help you sell more, run
better sales teams, and most importantly, create the all-important
sales-marketing fit necessary for business success.
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