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AnalyticsSales Performance Management

Which performance metrics help align marketing and sales departments?

By December 14, 2017June 11th, 2024No Comments

While a company may have superior marketing and sales teams that help propel growth within the organization, these important segments of the business may not see eye to eye all of the time. When a company finds that when these two clash over the best way to present its products or services to customers, this could result in fewer sales and create tension between teams. As firms aim to increase cooperation between sales and marketing, they should consider the key performance metrics that could allow them to improve both at the same time:

Here are metrics to align marketing and sales:

Track the number of visits
To ensure their brand message connects with their ideal audience, companies often monitor conversion rates to see how many leads have converted into customers, according to Marketing Land. However, there is more to the conversion rate than just how often people visit a site. Marketing employees need to find out whether their techniques are working to bring in customers and interest them so they learn more about the company and what it offers. Then, salespeople will have to come in and answer any questions and interact with these leads before closing the deal and converting them into customers. Companies could see how effective their sales and marketing teams are in doing their job by comparing visits to conversion rate.

Account for value of transaction
In addition to counting the number of leads or visits to their business, companies should also make sure that they are receiving the cash flow they need to keep their business thriving. According to Forbes, firms could look into the average transaction value whenever a customer buys a product or service. Using sales effectiveness metrics, companies could measure this key performance indicator and determine how much money is coming in with each sale. Accounting for the average value of transactions could give insight into whether their sales and marketing efforts are translating into revenue for the company or whether they need to try a different strategy.

Whether analyzing these or other metrics, companies should consider the future of their sales and marketing and how sales analytics or other solutions could help them meet their goals. Firms could install sales performance software to better record and evaluate all of their data points to create the best strategy for them.

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Ballast Point Ventures

Ballast Point Ventures is a later-stage venture capital fund established to provide expansion capital for rapidly growing, privately owned companies in diverse industries, with a particular emphasis on companies located in Florida, the Southeast, and Texas. The BPV partners have more than 70 years of combined experience investing in and building high-growth companies in a number of industries, including healthcare, business services, communications, technology, financial services, and consumer goods. BPV has $200 million under management and seeks to make equity investments ranging from $3 million to $10 million.

Harbert Management Corporation

Harbert Management Corporation seeks to generate superior returns for their investors by identifying and investing in the most promising early growth stage companies in the Southeastern U.S. HMC seeks to capitalize on what it believes are compelling regional dynamics, such as a strong and fast-growing economy, significant research and development activities, and an established entrepreneurial community. The HMC team combines substantial investment, advisory, and operating experience with capital and networking contacts to support great entrepreneurial teams in successfully executing their growth plans. With offices in Birmingham, Alabama; Richmond, Virginia; and Gainesville, Florida, it’s well positioned to partner with entrepreneurs throughout the Southeast.

KBH Ventures

KBH Ventures was an early investor in Iconixx Software. KBH's investment philosophy plays a significant role in the firm's successful track record. KBH believes in running businesses to be cashflow positive and profitable every month. Startups and companies in a startup mode, such as one that has been purchased in distress, are expected to generate revenue within the first six months and reach profitability within the first 12 to 18 months. KBH also only invests in or acquires companies that are in the startup phase or have less than $20 million in revenues. KBH targets technology companies that offer business-to-business services.

S3 Ventures

S3 Ventures is an early expansion and growth stage venture firm with $200 million under management. It’s focused on information technology solutions that solve large business problems. S3 also invests in medical devices that improve the human condition. S3 invests in category-defining opportunities. It partners with the team and help focus methodically on what it takes to build a successful company. S3 today helps talented entrepreneurs take their technology and market knowledge and form valuable businesses in a repeatable fashion. Investment sizes start at several million or more for Series A, B, and C financing.