August 15, 2024

Metrics that Matter: Measuring the True Impact of Sales-Marketing Alignment

By:

Ari Cignarale

Co-Founder & CEO

Nomad

The Importance of Shared Metrics: Marketing and sales alignment often falters because the two teams are working toward different objectives. Marketing may be measured on lead volume, while sales is focused on closed deals. This misalignment creates tension, as marketing feels they are delivering qualified leads that sales fails to convert, and sales believes they’re getting unqualified leads.

The key to solving this disconnect is establishing shared metrics that reflect both team contributions toward the ultimate goal: revenue generation.

Key Metrics to Measure Sales-Marketing Alignment

1. MQL to SQL Conversion Rate

This metric shows how well marketing is qualifying leads for sales. A high conversion rate indicates that the leads marketing provides meet sales’ criteria for engagement and readiness.some text

Challenge: Misalignment in lead qualification.

Solution: Regularly revisit the MQL criteria to ensure they match sales’ expectations for qualified leads.

2. Lead Response Time

This tracks how quickly sales follows up on leads after they’re handed off by marketing. The faster the follow-up, the more likely the lead is to convert.some text

Challenge: Sales teams may delay follow-up due to competing priorities.

Solution: Implement SLAs that require sales to contact leads within a specific time frame after handoff, and track adherence.

3. Closed-Won Revenue from Marketing-Sourced Leads

Ultimately, the best measure of alignment is the revenue generated from leads marketing delivers. This metric ensures that both teams are aligned on the ultimate goal—driving revenue growth.some text

Challenge: Difficulty attributing revenue to marketing efforts.

Solution: Use multi-touch attribution models to accurately measure marketing’s impact on sales outcomes.

4. Sales Feedback on Lead Quality

Sales should have an easy way to provide feedback on the quality of the leads they receive. A simple rating system can give marketing the data they need to refine their targeting and lead nurturing efforts.some text

Challenge: Lack of feedback from sales.

Solution: Establish a system where sales can rate lead quality after each follow-up, and use this feedback to continually refine lead generation strategies.

Actionable Steps for Improving Metrics

  • Create a Shared Dashboard: Set up a dashboard that displays real-time metrics for both marketing and sales, such as MQL to SQL conversion rates, lead response times, and closed-won revenue. This transparency ensures both teams are working from the same data set.
  • Hold Regular Metrics Reviews: Establish monthly or quarterly review meetings where marketing and sales can analyze these metrics together. Use this time to discuss what’s working, identify areas for improvement, and adjust strategies accordingly.
  • Tie Compensation to Shared Goals: Consider tying part of each team’s compensation to shared revenue goals. This creates accountability and motivates both marketing and sales to work together toward the same objectives.

Challenges and How to Overcome Them

Metrics Overload

Teams can sometimes track too many metrics, which dilutes focus and makes it difficult to identify what really matters.some text

Solution: Prioritize a few key metrics that directly tie back to revenue and conversion rates. Fewer, more meaningful metrics will provide clearer insights.

Difficulty in Cross-Team Communication

Marketing and sales may struggle to interpret each other’s data, leading to misunderstandings about what’s driving success.

Solution: Implement a shared language around metrics and hold training sessions to ensure both teams understand the importance of each metric.

Ari Cignarale

Co-Founder & CEO

Nomad

Ari started Nomad with the mission to change both consulting and marketing operations. She decided consulting shouldn’t be billed by the hour, and Nomad became the first consulting firm to utilize a monthly subscription model. Ari believes this has created Nomad’s unique culture, and that it will be the future of consulting. Ari focuses on all things growth, and continues to create place for Nomad in the marketing operations departments at all companies, as well as in the consulting world.

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