Q1 is in the books. You missed the number. Why?
You saw this coming weeks ago. Your forecast correctly quantified the size of the miss. You were able to prep your CEO so he wouldn’t be surprised. Your presentation to close ratio is good. Turnover isn’t bad. You’ve evaluated your sales organization and feel confident in your strategy. So why did you miss?
Maybe the reason for the miss doesn’t lie within your team. Is your marketing counterpart carrying his weight? How do you know? Download the Marketing Contribution Checklist and receive a simple, straightforward tool. It will help you evaluate marketing’s contribution to the revenue number.
This is a real sticking point for many sales VPs. You’ve risen through the ranks in sales to get to the top job. You understand sales and sales ops intimately. But what about marketing and marketing operations? Demand generation and lead management have been totally reinvented over the past 10 years. If you’re honest with yourself, as sales leader you might not have kept pace. That’s understandable.
But every time you meet with your marketing counterpart, you walk away confused. Maybe he talks about the Marketing Automation tool and its integration with your CRM. Maybe he launches into a soliloquy about conversion rates within campaigns. Or he wants to discuss which “channels” to use to reach your ideal prospects. Even more concerning are fuzzy metrics like “brand awareness” or “social media impressions.” Meanwhile, you sit there, getting more and more annoyed. All you want to know is how he can help you make the number. In English.
This post isn’t about assigning blame. When you make the number, everyone shares in the victory. But if you miss, responsibility falls disproportionally on sales. For this reason, you need to get into marketing’s wheelhouse and see what’s happening. The Marketing Contribution Checklist can help. Here are a few examples of what it contains:
Average Lead Response Time
This is how long it takes your marketing department to respond to an inquiry. An inquiry could be someone calling or form filling on your website. A good response time is 5 minutes. Why does this matter? A five minute response is 4X more likely to result in a qualified lead than a 10 minute response. It’s also a staggering 21 times more likely to convert than a 30 minute response. Does your marketing peer know his department’s average lead response time?
Marketing Contribution to Sales Funnel
This is the percentage of revenue in the sales opportunity funnel from marketing’s leads. Why does this matter? You can’t make the number alone. A good percentage is 25%-30%, depending on how your organization goes to market. Cutting-edge organizations give CMOs a specific revenue goal that ties to their compensation. Is your marketing peer comped or otherwise graded on percentage of revenue from marketing? Does he know what percentage of revenue comes from leads? Do you agree with his calculations?
Ideally, you want to have an outstanding relationship with your marketing counterpart. We’ve written extensively on how to build that relationship. But it won’t surprise you to learn that true collaboration is rare. In our experience, we see many more dysfunctional relationships than we do strong partnerships.
When the relationship isn’t good, it’s usually because the two leaders talk past each other. Sales repeats the old theme – “the leads you send are no good.” Marketing has a standard line also – “your reps don’t follow up on anything!” Break the complaint cycle and start a conversation by using this Marketing Contribution Checklist.