How Sales & Revenue Marketing Alignment Results in Increased Customer Retention, Higher Win Rates, and Faster Growth.
In today's ever-evolving business environment, achieving seamless cooperation between sales and marketing teams is of utmost importance. Yet, the sad reality is that these two vital teams are commonly disjointed, which leads to a fragmented approach that would hardly serve the business's profitability and growth goals.
The good news is that aligning sales and revenue marketing can deliver impressive results, as evidenced by numerous studies from PWC study, JP Morgan, Interbrand, Forbes and others. A 36% increase in customer retention, 38% higher win rates, 24% faster growth rates, and 27% faster profit growth are some benefits of ensuring the coherence between sales and marketing in a business.
In this blog post, we explore the essence of sales and marketing alignment, its benefits, the risks associated with misalignment, and a practical guide to achieving it.
Sales and revenue marketing alignment is a strategic and collaborative approach that joins sales and marketing teams' goals, perspectives, and procedures. This revenue marketing driving growth profit approach seeks to streamline workflows, avoid duplication, and ensure that the marketing team generates high-quality leads and provides adequate resources and insight to the sales team to convert these leads into customers.
36% increase in customer retention
Numerous studies show that businesses that align their sales and marketing teams experience impressive benefits. For instance, a 36% increase in customer retention is a compelling argument that sales and marketing alignment is vital for the sustenance of a business. This benefit is achieved because aligned teams provide customers with a seamless experience that matches their needs and interests. Additionally, when marketing and sales teams work collaboratively, there are fewer chances of losing customers due to poor or inconsistent communication.
24% faster growth rate
Another significant benefit is a potential 24% faster growth rate. In this context, growth is a metric that measures a business's ability to generate more revenue and scale in the market. When sales and marketing teams are aligned, they work in tandem toward the same objective. Every step, from lead generation to conversion, is well-coordinated, resulting in faster growth in the long run.
38% higher win rates
A third key advantage is 38% higher win rates. This metric typically measures how many deals a business can complete against its competitors. When sales and marketing teams are aligned, they optimize the buyer's journey and align their sales goals with the market's needs. By working closely together, sales and marketing teams create a stronger value proposition that enhances customer acquisition and retention. The result is a higher win rate, a crucial sales and business growth metric.
27% faster profit growth
This metric measures how fast a business can increase its profits. In the context of sales and marketing alignment, companies can experience a faster return on investment (ROI) by coordinating their efforts and making data-driven decisions. When sales and marketing teams are aligned, they use accurate data to eliminate guesswork and optimize their resources towards the same goal, resulting in faster profit growth.
75% of marketing leads never convert to a sale
While the benefits of sales and marketing alignment are numerous, businesses that do not align their sales and marketing teams risk squandering their budgets, losing potential customers, and hindering business growth. For example, 60% of B2B content is not utilized, which clearly indicates that non-aligned teams generate a lot of ineffective content that does not attract or engage their target audience. 75% of marketing leads never convert to a sale because of poor communication between sales and marketing teams, which leads to a waste of time and resources. This misalignment could also explain why so many companies struggle to grow their businesses.
70% of B2B buyers fully define their needs before engaging with sales
It is crucial to understand that 70% of B2B buyers fully define their needs before engaging with sales. This means that businesses that align their sales and marketing teams to provide customer-centric information will likely win the trust of potential customers and enhance their chances of winning deals. This aligns with the 92% of buyers who start with an information search, and 53% of them find that going online and researching is superior to interacting with a salesperson, indicating that businesses should focus more on delivering valuable and relevant information to their prospects before they consider a purchase.
A strong brand can increase profit by 25%
Moreover, 75% of buyers depend on social networks to learn about choosing the right vendor. Therefore, companies must ensure a robust online presence and reputation, which 70% of buyers cite when selecting a firm. A strong brand can increase profit by 25%. Specifically, a robust brand strengthens customer loyalty by 80%, and businesses with a strong brand can grow their market share 3x faster. These impressive statistics show that investing in a strong brand is crucial for achieving long-term customer loyalty, growth, and profitability.
Remember
sales and revenue marketing alignment is crucial for businesses that want to grow, scale, and enhance customer loyalty.
The benefits of sales and marketing alignment, including a 36% increase in customer retention, 38% higher win rates, 24% faster growth rates, and 27% faster profit growth, are compelling arguments that alignment is integral to business success.
Conversely, misalignment wastes resources, ineffective communication, loss of potential customers, and hampered growth.
Therefore, businesses must strive to ensure that their sales and marketing teams align their goals, perspectives, and procedures while focusing on content that meets customer needs and strong branding to enhance customer loyalty.
Revenue marketing driving growth profit
By doing the above, companies can rest assured that they are maximizing their sales and marketing efforts and achieving their desired results.
Note: All numbers provided are sourced from independent research studies: Aberdeen Research study, Jim Stengel study, Sirius Decisions research study, PWC study, JP Morgan and Interbrand, Forbes
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