Vendarketing: what it is and main benefits of aligning Marketing and Sales
Understand why Vendarketing (Sales + Marketing) can help your company increase revenue and grow your customer base!
Marketing and sales. Cast the first stone who is from this area and has never had or witnessed friction between them.
This is because, in many companies, the gap between marketing and sales is huge. The deliverables of one and the other are not always clear and each works in their own department, without any kind of connection, partnership or the slightest notion of how the work of these two departments are interdependent.
The obvious problem with this is that all information is lost, and the bottom line of the company ends up being harmed. Without good marketing positioning, the company cannot reach and attract markets outside its current influence, whereas without good sales positioning, the chances of closing (or retaining) a customer are considerably reduced.
That’s why the partnership between marketing and sales can be one of the main results and growth levers for organizations.
The dissemination of information and influence on consumer behavior
Before the popularization of the internet and the arrival of Google, the buying and selling process was quite different.
When someone needed a product or saw an advertisement that interested him, he would go to a store to find out more about it. So, if you wanted to buy a refrigerator, the seller was the one who should say the features of each model, the difference and benefits of technologies, prices, etc.
The marketing function was limited to disclosure and it was up to the seller to present and explain the product or service to the customer, after all, the consumer did not have many sources to seek information.
With the advancement of the internet, not only information was diluted, but also the process of comparing companies and products became easier. Today the customer can have as much or more knowledge than the seller.
As a result, the purchase process begins long before contacting the seller or making the purchase decision
In this context, the marketing team must assume a much larger and more strategic, results-oriented responsibility. It is necessary not only to attract this potential customer but also to accompany them throughout their purchase journey, being related and collecting as much information as possible to provide to the sales team. This intelligence will give sellers ammunition to make a qualified sale.
In this same scenario, the sales team, which is now no longer the only holder of the information, also takes on a different role. The challenge is another. Sellers must be more skilled and have a high-quality approach or there will be no room for conversation. The focus here is not just on selling, but on adding value to the customer to sell in a qualified way. Therefore, the intelligence generated by marketing will make all the difference in the approach.
If you followed the reasoning, you may have already realized how much these areas and the company as a whole can gain qualitatively from mutual alignment and cooperation. It is this partnership that will bring efficiency to the entire sales process. But we still have to consider the quantitative issue. If marketing develops an efficient attraction, conversion and relationship strategy, it creates a predictable and scalable machine that provides the raw material for sales to generate revenue.
Therefore, Vendarketing, an adaptation in Portuguese for SMarketing , is a methodology that aims precisely to create a bridge between these departments and make them work in full cooperation, with the same goals in mind: revenue increase and growth of the sales base. customers.
The Benefits of Sales
Goals aligned and walking together
If the company wants to grow 20% in a year and for that, it needs to close 30 sales a month, marketing must also think, from the sales funnel, how much effort it needs to deliver business opportunities to the commercial area.
Both marketing and sales must respond to goals that speak to each other, generating predictability of growth for the organization. This is how it happens in businesses that have aligned departments and cooperate with each other.
The benefits of this approach are clear. According to a study by the Aberdeen Group, organizations with aligned sales and marketing teams achieve 20% annual revenue growth while non-strategy companies have experienced 4% revenue declines per year.
Greater possibility to measure the impact of marketing actions on sales
When the two teams connect, it’s easier to analyze the conversion rates of the entire sales funnel and understand where the gaps and the biggest opportunities lie. Furthermore, through the intelligence generated by marketing on top of Leads, it is possible to analyze which are the best channels for acquisition and the best profiles for approaching sales.
If marketing focuses your efforts on a particular campaign, you can understand exactly how it impacted sales numbers. Having marketing automation software such as RD Station Marketing connected to a CRM such as RD Station CRM makes this process even easier.
Thus, it is possible to measure the entire strategy and understand what impacts the marketing team generates on sales. The sales team wins in numbers and quality and marketing prove its value as a growth driver.
By measuring the impact of actions, the company is also able to see more clearly what the return on investment (ROI) is for each of them.
If a certain campaign on Facebook cost R$ 800.00 and brought only one customer, the company can understand if this value was above or below the expected within the CAC (customer acquisition cost). If the result was not satisfactory, it is possible to think about optimizations to improve that campaign.
Implications of misalignment between Marketing and Sales
A big problem with the misalignment of areas is the wasted sales opportunities (which you have already paid to attract) due to a lack of sales empowerment or process alignment. At this point, you must ask yourself:
- How fast am I delivering leads in the sales pipeline?
- What information is delivered with the Lead to facilitate the sales pitch?
- What is the approach process? How many tries will the seller make before dismissing an opportunity delivered by marketing?
These and other considerations regarding the delivery of business opportunities will directly impact the sales ability to extract the maximum result from the marketing input.
In the second point, we have a question of pure relationship. Because they share a great responsibility, marketing and sales find it very difficult to have a constructive relationship, since the mistakes of one reflect on the other’s results .
The questions here are simple: when there is a discussion between teams, is decision making based on quantitative metrics and feedback or on guesswork and authority?
Here Blue World City is talking about something more indirect, but probably even more important. An Inbound operation is an iterative process. Not measuring decision-making will make it impossible for you to avoid your mistakes and repeat your successes.
I could go on and on here about the almost infinite number of specific points that can be negatively impacted by this context, but that is certainly not our goal here. So, understood how much we’re losing, let’s move on to how to start winning!
Selling with SLA
The first point is the way in which decision-making takes place, as this is the “source of all evil”. We need to transform the relationship between teams into a learning machine and not a friction machine.
For that, we’ll bring a somewhat more data-driven view to the relationship. The idea is to break the cycle shown in the previous figure and transform it into a decision-making process, in which the numbers are the ones who decide most of the time.
The beginning of the story is very similar in both cases, with marketing selecting what it believes to be the best Leads and sales processing them. The big difference here is that both teams will have to have metrics for this!
With metrics and common sense in hand, our third step in the cycle completely changes the picture. Now, instead of going to the accusations, the team representatives get together with numbers in hand, to understand where the best performance levers in the funnel are.
This discussion will generate several lessons learned and some hypotheses. It is also up to the discussion to see what should be implemented without further delay to start generating results right now and what needs to be confirmed through experiments.
In the next exercise, our changes will generate even more data, which will be used for a new round of discussion and experimentation. As I mentioned at the beginning of the text, optimizing an Inbound Marketing funnel is an iterative process, in which, at each cycle, we generate learnings that will be used to optimize delivery and increase ROI (return on investment).
A collateral gain (and very relevant) of this way of working in marketing and sales is the reduction of friction. Now, no one will feel harmed by a decision, since all of them were duly substantiated. This, when properly disclosed, goes a long way towards removing the crutches of analysts and salespeople!
To deal with our other macro problem (wasting opportunities), our best weapon is a good process. That’s because the analyst or salesperson can’t manipulate their deliveries to look better toward the goal, but they almost always do if given the chance.
It is natural that delivering sales opportunities as quickly as possible, with the best information and proportional to the efficiency of each salesperson, is interesting, but this is all part of the operation’s learning curve.
A good way to ensure that everyone follows what was designed by the company is through the Service Level Agreement (also called SLA or Service Level Agreement ). Here you will make public the rights and duties of all participants in the process, as well as how to ensure that the process is being followed.
Ensuring that you have an intelligent process, that it is followed to the letter (without biasing the metrics) and that it provides solid learning, alignment becomes the natural path, as does the evolution of funnel efficiency and revenue growth.
Actions for marketing and sales to become true partners
Understanding the duties and difficulties of each area
Here there must be primarily a change of mind. Teams have to recognize that they need each other for the company to achieve the best results. Marketing must assume the position of the generator of business opportunities and closing sales of these opportunities.
With this in mind, a clear definition is needed: which personas the company works with, the purchasing journeys, the channels that work best, which are the sales stages, etc. It is important that both teams understand how and why processes within each area take place. If each department knows what its partner does and how it works, empathy and rapprochement are easier.
Same goals in mind
For the interaction between the areas of marketing and sales to really work it is also necessary that the two have the same objective in mind: generate revenue. Any and all actions that evade this final objective must be put to the test to reflect if it is really worth it.
What marketing must do to generate revenue for the company in the short, medium and long term? And sales, how do you contribute to the earnings being even greater? Focusing on this makes it easier to rethink secular goals, efforts and posture to achieve the best possible results.
Constant feedback meetings to adjust the machine
The market is dynamic and, for this reason, the work of both departments must also be. If sales notice that a particular Lead profile that previously had high close rates now doesn’t buy as easily anymore, they should let marketing know. Likewise, if the percentage of prospects with high Lead Scoring passed to sales don’t close, it’s up to marketing to charge sales for why.
It is with the circular feedbacks that the greatest lessons will come for the teams, who will be able to look at the analyzes with inputs from the other team and adjust the machine from then on. The meetings will also serve to encourage communication and collaboration between teams. Therefore, it is essential that the areas frequently hold these meetings to discuss qualitatively what has worked or not and the possible reasons for this.
The question of alignment is especially relevant when we talk about marketing and sales, as this passage is very important in obtaining revenue. However, the way of thinking about the alignment between teams co-responsible for a given delivery is very similar.
Realize that the more the marketing and sales teams are aligned, the less opening there will be for errors and later complaints about the delivery of one and the other. On the contrary, each team will understand not only its role but will have a systemic view of the entire sales process. The complicity increases because they both know the impact their deliveries have on the company.
Businesses that adopt the Vendarketing concept and actions can only gain in productivity, predictability, sustainability and scale. Furthermore, teams that are more connected and involved tend to be more motivated. If you want to know more about how to make the connection between teams, access the material below, which has an eBook and a template. Just fill in the details to access!
Understand why Vendarketing (Sales + Marketing) can help your company increase revenue and grow your customer base! Marketing and sales. Cast the first stone who is from this area and has never had or witnessed friction between them. This is because, in many companies, the gap between marketing and sales is huge. The deliverables of one and the other are…