How to Improve Your Sales & Marketing Alignment

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Marketing complains that sales ignores incoming leads. Sales becomes frustrated with combing through dozens of unqualified leads to find one good one. Does this situation sound familiar to you?

Have your Sales and Marketing departments aligned goals yet?

See the presentation of HubSpot's VP of Marketing and VP of Sales about how to achieve revenue growth and become industry leaders by bringing sales and marketing together for maximum business success.

Published in: Business

How to Improve Your Sales & Marketing Alignment

  1. 1. How to Improve Sales and Marketing Alignment Mike Volpe Mark Roberge VP Marketing @HubSpot VP Sales @HubSpot Twitter: @mvolpe Twitter: @MarkRoberge
  2. 2. Overheard in sales… • All the leads suck. • We don’t get enough leads. • None of the leads close. • Marketing is a waste of money.
  3. 3. Overheard in marketing… • Sales doesn’t follow-up on leads. • Sales isn’t happy unless we just give them POs. • Salespeople are way overpaid. • Sales takes all the credit, but none of the blame.
  4. 4. Sales vs. Marketing?
  5. 5. Who is HubSpot? 180+ Employees in Cambridge, MA (MIT) $33m in VC (3 rounds) SaaS for Marketing at $3K-15K/year
  6. 6. Complicated & Easy & Confusing Integrated
  7. 7. Mike Volpe & Mark Roberge Mike Volpe Mark Roberge VP Marketing VP Sales • Built HubSpot Marketing • Built HubSpot Sales from from 0 to 25,000+ leads 0 sales reps to 50+ sales per month reps • Marketing thought leader • Sales 2.0 strategist • Employee #5 • Employee #6
  8. 8. Growth 3,100 Customers Q1 2007 Q2 2010
  9. 9. Sales and Marketing Alignment 1. Build Communication 2. Establish an SLA 3. Grade and Filter Leads 4. Grow Top of Funnel 5. Nurture Premature Leads 6. Analyze the Closed Loop
  10. 10. Build Communication
  11. 11. “Smarketing” = Sales + Marketing
  12. 12. Smarketing Communication • Meet frequently • Multiple relationships, not VP to VP • Desks mixed in with each other
  13. 13. Smarketing Communication • Input goes both ways • Lots of feedback formats • Agree on terminology • Use data to communicate
  14. 14. Agree on Terminology • What is a lead? • What is a sales qualified lead? • What is an opportunity?
  15. 15. Example Terminology • A Sales Qualified Lead • Accurate contact information • Demonstrated interest in our company • Over $50m in revenue • Company based in North America
  16. 16. Provide More Lead Information Give sales a more complete picture Show the activity on each lead Customize follow-up to activity
  17. 17. Lead Details
  18. 18. Salesforce.com or Other CRM
  19. 19. Social Media on Leads
  20. 20. Establish an SLA
  21. 21. Set an SLA for Sales and Marketing • Agree on terminology and metrics • Sales goals to deliver to Marketing • Marketing goals to deliver to Sales
  22. 22. Great Sales and Marketing SLAs • Specific metric, written down • Quickly and easily measurable • Monitored regularly
  23. 23. Marketing’s Leads SLA • How many leads of a certain quality does a sales rep need to make quota? • How many leads does a sales rep need to be busy 100% of the time?
  24. 24. Sales’s Follow-up SLA • How many call/email attempts should sales make for every lead of a certain quality to not waste leads? • With X leads and Y hours / month, how many follow-up attempts should sales be able to complete per lead?
  25. 25. Example SLA • Marketing will deliver 100 sales qualified leads per sales rep per month. • Sales will make 1 follow-up attempt in 24 hours, with 5 attempts in 14 days.
  26. 26. Measure Progress Daily
  27. 27. Measure Progress Daily
  28. 28. Grade and Filter Leads
  29. 29. Lead Grading Tips • Use data, not intuition • Measure on company aligned metrics
  30. 30. Different Types of Lead Data Demographic Data Behavioral Data • Title • # Pages viewed • $ Revenue • # Forms completed • Location • Time since last visit • # Employees • Blog subscription
  31. 31. Data Drives Lead Grade • How much does each variable impact the probability of the lead purchasing? • > $100m in revenue is 10% close rate • $50m to $100m is 15% close rate • < $50m is 2% close rate
  32. 32. Data Drives Lead Grade (Advanced) • For each lead, what is probability of them buying • Binary outcome = logistic regression • Interaction among variables (nonlinear)
  33. 33. What is the goal for a lead? • Lead becomes opportunity? • Lead closes? • Lead becomes happy customer? • Lead becomes high value customer?
  34. 34. Grow Top of Funnel
  35. 35. More Leads Fixes Everything • If you can grade and filter leads, getting more leads is always better. • More leads to sales for more volume or • Tighten filters to improve quality
  36. 36. Growing <20% is Actually Shrinking • 20%-30% of your leads database expires annually • You need to add new leads faster than that in order to grow
  37. 37. Inbound Marketing Search Engines Blogs Social Media Get Found Convert
  38. 38. What to Publish? • Blog • Podcast • Videos • Photos • Presentations • eBooks • News Releases
  39. 39. Optimize Your Content
  40. 40. Optimize Your Content
  41. 41. Publish Content to Social Media
  42. 42. Attract the RIGHT visitors
  43. 43. Attract the Right Visitors
  44. 44. Blogging Attracts More Visitors Source: Data from over 1,500 small businesses - http://hub.tm/BlogROI
  45. 45. More Leads, Lower Cost Source: survey of hundreds of businesses: HubSpot.com/ROI
  46. 46. Nurture Premature Leads
  47. 47. Lead Nurturing Get leads ready for sales
  48. 48. Segment Leads Database • Send more personalized messages and offers to different groups • Use each segment appropriately • What is your goal for each segment of your list?
  49. 49. Lead Nurturing Goals • You have the contact info, goal is to move toward a sale • Educate – build trust • Close – move closer to a sale
  50. 50. Lead Nurturing > Email • Social media followers • Blog / RSS subscribers • Blog comments • 1-1 interactions online
  51. 51. Lead Alerts
  52. 52. Analyze the Closed Loop
  53. 53. Traditional Marketing Marketing Sales Problems: • Duplicate leads • Limited lead information • No feedback from sales
  54. 54. HubSpot Closed Loop Marketing • de-duplicate leads • import to CRM • lead intelligence Marketing Sales • contact info & status updates • closed loop data to analyze
  55. 55. HubSpot Closed Loop Marketing • Improve Marketing • Increase lead quality • Learn which marketing programs are working and which aren’t • Increase marketing ROI • Improve Sales • Help sales prioritize leads • Help sales make warmer calls • Increase sales close rate • Increase sales ROI
  56. 56. Closed Loop Marketing Measurement Track leads all the way through sales Tie website visitors to closed deals Tie closed deals to lead sources or campaigns
  57. 57. Measure the Lead Funnel
  58. 58. Track Visitors, Leads, Sales Track visitors. Track leads. Track customers.
  59. 59. Measure Campaign Effectiveness
  60. 60. Analyze Each Channel
  61. 61. Analyze Each Channel
  62. 62. Analyze Each Channel
  63. 63. Analyze Each Channel
  64. 64. Analyze Each Channel
  65. 65. Sales and Marketing Alignment 1. Build Communication 2. Establish an SLA 3. Grade and Filter Leads 4. Grow Top of Funnel 5. Nurture Premature Leads 6. Analyze the Closed Loop
  66. 66. Thank You www.HubSpot.com/free-trial Mike Volpe Mark Roberge VP Marketing @HubSpot VP Sales @HubSpot Twitter: @mvolpe Twitter: @MarkRoberge

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