The Cost of Misalignment: Why Sales and Marketing Collaboration Matters
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The Cost of Misalignment: Why Sales and Marketing Collaboration Matters

A harmonious relationship between sales and marketing is crucial for driving growth and customer retention.
Primer team
Updated on
April 20, 2024
Published on
September 4, 2023
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However, achieving this alignment is not an overnight task — it requires strategic planning, implementation of shared tools and metrics, and fostering a culture of collaboration. 

This goes hand in hand with adopting an account-based approach and innovative demand-generation tactics. This continuous effort, when executed properly, can cut through the market noise and position your business as a trusted advisor, ensuring sustainable success in an ever-evolving digital marketplace.

Sales and marketing misalignment costs businesses billions each year in lost revenue and stunted growth. According to recent research, businesses with poor sales and marketing alignment achieve up to 18% lower customer retention rates and 38% lower sales win rates. In today's digital age, the customer journey spans multiple channels and touchpoints, requiring a seamless experience across sales, marketing, and service teams.

Historically, sales and marketing have operated in organizational silos with different leaders, processes, and systems. Marketing focused on broad brand awareness and lead generation, while sales focused on closing deals. But the modern B2B buying process has changed. Buyers now consume most of the journey on their own through online research before engaging with sales.

Given that, investing in demand generation is now a new normal for B2B companies that want to cut through the noise. Here’s a free strategy guide to B2B Demand Generation for you.

This new self-service model requires a coordinated effort across teams to engage potential buyers, nurture leads, and build relationships. However, in many companies, sales and marketing processes remain disconnected, which confuses and frustrates customers. By the time a lead is passed to sales, the customer has often already made a purchase decision or selected a competitor.

A lack of alignment also reduces visibility into the customer journey, making it difficult to determine marketing's impact on revenue or sales' impact on customer retention. This lack of shared data and insights prevents continuous optimization and growth.

An Account-Based Approach: How to Identify and Prioritize High-Value Accounts

To boost B2B demand generation, sales and marketing must align around targeting the accounts that matter most. An account-based marketing and sales development approach focuses efforts on high-value, high-priority accounts rather than casting a wide net.

  1. The first step is analyzing your account data to determine the attributes of your ideal customer profile (ICP) and best-fit accounts. Look at factors like industry, company size, location, and technologies used. See which accounts generate the most revenue and have the highest customer lifetime value. These insights should shape how sales and marketing jointly define your ICP.
  1. With your ICP defined, evaluate your existing accounts against it to identify which should be designated as high-priority target accounts. These are accounts that closely match your ICP and have a high potential for significant, scalable growth. For new account acquisition, research companies that also match your ICP.
  1. Your sales and marketing teams should then align on a shared list of target accounts to focus demand generation efforts. For existing accounts, marketing should double down on cross-selling and upselling to key stakeholders. For new accounts, coordinate targeted advertising, content marketing, and sales outreach to penetrate the account.

An account-based approach allows for personalization at scale. Use marketing automation and AI to tailor content and messaging to individual accounts and key contacts. For example, send account-specific emails highlighting use cases and solutions relevant to their business. 

Source: Sayprimer.com

Demand Generation in the Digital Age: How to Cut Through the Noise

In today's digital world, buyers can access a wealth of information online. This means B2B demand generation strategies need to cut through the noise to engage target accounts. Using online advertising, content marketing, and social selling, sales and marketing teams can work together to boost visibility and drive engagement with the right accounts.

Online advertising, including search, display, and social media ads, allows teams to reach accounts with precision. By using account data and the ideal customer profile, teams can specify the job titles, company names, and other attributes to display ads to the right people. When done well, advertising not only increases traffic but also delivers the most qualified leads. However, to be effective, the messaging and content in the ads must be aligned with content on the website and sales conversations.

Content marketing, including blogs, ebooks, webinars, and videos, gives companies an opportunity to demonstrate expertise and value to potential customers. But content needs to be highly tailored based on audience needs and interests. When sales and marketing teams collaborate, they can identify the most pressing challenges and questions of target accounts to develop relevant content. They can then promote content through digital advertising, email marketing, and social media to the accounts most likely to engage with and benefit from it.

Social selling uses platforms like LinkedIn to build relationships with key accounts. By engaging with prospects and sharing relevant content and insights, marketing and sales teams position themselves as trusted advisors. But social selling requires a coordinated effort. Marketing teams can identify and engage with high-value accounts, while sales teams focus on relationship building. They can work together to craft a consistent brand message and voice. Strong social selling relies on a combination of paid and organic tactics, with budget and resources allocated based on account priorities.

When orchestrated together, these demand generation strategies maximize impact. However, they require tight alignment and collaboration between sales and marketing to achieve results. By sharing account insights, coordinating messaging, and allocating resources based on key accounts, teams can cut through the noise to boost demand and accelerate sales. The key is to continuously optimize based on performance to improve reach, engagement, and conversion of high-value accounts.

Shared Tools and Metrics: How to Improve Collaboration Through Data

To truly align sales and marketing, both teams need to be working from the same data and metrics. Using shared tools like customer relationship management (CRM) platforms, marketing automation systems, and sales engagement platforms provides a single source of truth about accounts, leads, opportunities, and customer interactions.

CRM platforms give both sales and marketing a holistic view of accounts and prospect interactions across the entire customer journey. With visibility into each other's activities, teams can better coordinate targeted outreach and personalize messaging. Marketing can see what content and topics resonate with specific accounts to tailor nurturing campaigns. Sales has insight into marketing campaigns and content performance to prioritize follow-up.

 Also, the most successful collaboration scenario implies that existing contact databases are consistently revised and enriched based on marketing intelligence insights. Read the best practices for Contact Database Enrichment we’ve collected for you.

Marketing automation systems track prospect engagement and behavior across digital channels to determine marketing qualified leads (MQLs) that are ready to transition to sales. 

Here, you can check our practices for B2B lead qualification that are proven and tested.

By sharing MQL definitions and lead scoring criteria with the sales team, marketing can pass high-quality, sales-ready leads. Sales can then efficiently prioritize outreach to MQLs that match their ideal customer profile.

Sales engagement platforms help sales teams automate prospecting and outreach to increase pipeline velocity and win rates. When marketing has visibility into sales cadences, email templates, and call scripts, they can refine demand generation campaigns to match sales messaging. This consistency in voice and story boosts credibility and impact across the entire customer journey.

Beyond tools, shared metrics and key performance indicators (KPIs) align teams around common goals and help evaluate the impact of initiatives. For example, marketing may track lead volume, cost per lead, and lead conversion rates while sales monitor sales qualified leads (SQLs), opportunities, pipeline velocity, and win rates. Reviewing metrics together helps identify gaps and ensure both teams are focused on the highest-impact activities.

With shared data-driven insights, sales and marketing can have constructive discussions about what's working, what's not, and how to improve. Regular meetings to review metrics, share feedback, and brainstorm new experiments will help break down operational silos and build a culture of transparency and collaboration. Over time, this data-driven approach fuels continuous optimization and helps sales and marketing work as a truly integrated team.

A Culture of Alignment: How to Break Down Barriers Between Sales and Marketing

For sales and marketing alignment to truly take hold, companies need to foster a culture that actively supports collaboration. This requires executive buy-in, cross-functional teams, knowledge-sharing initiatives, and joint planning.

Executive leaders must fully endorse the alignment strategy and model the collaborative behaviors they want to see. They must break down departmental silos, set shared goals, and incentivize teams to work together. With leadership championing alignment, middle managers and individual contributors will make it a priority.

Forming cross-functional teams with members from both sales and marketing helps to build understanding and camaraderie. These teams should work together on key initiatives like account planning, content development, and campaign execution. They can also participate in "ride-alongs" where marketing joins sales calls and vice versa. Through these interactions, teams develop an appreciation for each other's roles and challenges.

Knowledge-sharing programs, like lunch and learns, newsletters, and town halls, provide a forum for sales and marketing to educate each other on their strategies, tools, metrics, and more. They can share details on target accounts, discuss the latest campaign results, provide an overview of the sales methodology, and address any misconceptions. These ongoing discussions help to align mindsets and set appropriate expectations.

Finally, sales and marketing leadership must come together regularly to develop joint plans, review performance, make key decisions, and course-correct as needed. They have to agree on target accounts, MQL definitions, handoff processes, and nurturing strategies. They should evaluate how well the teams achieve shared KPIs and make adjustments to optimize performance. Joint planning at both the strategic and tactical levels is key to creating cohesion.

When companies invest in culture and implement these practices, they benefit from significantly improved sales and marketing alignment. Teams develop a shared vision and commitment to delivering an amazing customer experience. Morale and productivity increase as employees feel supported in working collaboratively. 

An Ongoing Process: How to Continuously Optimize Sales and Marketing Alignment

Aligning sales and marketing teams is not a one-and-done initiative. Rather, it requires an ongoing commitment to evaluating and optimizing the collaboration to drive the best results. As customer needs, technologies, and competitors change over time, sales and marketing strategies must evolve to keep up.

Continuous optimization starts with consistently measuring the impact of sales and marketing programs. Look at metrics like revenue growth, win rates, customer retention, and customer satisfaction over time to see what's working and what needs improvement. For areas that need improvement, revisit your ICPs and demand generation campaigns to make adjustments. You may find that you need to expand or shift your target accounts and personas or revamp your content and advertising approaches.

It's also important to regularly revisit your shared tools and ensure they are still meeting the needs of both teams. New tools are constantly emerging, and existing tools frequently update their features. Take time each quarter to evaluate your tech stack and see if any new solutions could help improve data sharing, campaign automation, account engagement, or any other areas of alignment.

Continuous learning and a culture of experimentation also fuel ongoing optimization. Encourage teams to keep developing their knowledge of the customer, industry trends, and best practices. And empower them to test new ideas, even if they fail. Some experiments will lead to innovative new strategies that significantly impact growth.

Executive support plays a key role in continuous improvement as well. Leaders need to frequently check in on the state of sales and marketing alignment and provide guidance and resources to help teams strengthen their collaboration. They must also hold teams accountable for progress by tying alignment objectives and metrics to performance reviews and incentives.

When treated as an ongoing journey rather than a destination, sales and marketing alignment can transform how a business connects with and delivers value to its customers. However it requires vigilance and a commitment to constant evaluation and experimentation to achieve the best, long-term results. With the right mindset and priorities in place, businesses can build a culture where alignment is not just an initiative but rather the way sales and marketing teams operate day in and day out.

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