According to HubSpot, 95% of salespeople say they receive low-quality leads from marketing. This disconnect hinders company growth and creates a frustrating work environment for both teams. So, how can we bridge this gap and foster a more collaborative, productive relationship between sales and marketing?

The power of Service Level Agreements (SLAs)

One solution that can partially solve the problem of alignment between sales and marketing is the implementation of Service Level Agreements (SLAs). An SLA is a formal document that outlines rules for negotiations between sales and marketing. This ensures both teams are on the same page and working towards common goals. By establishing clear expectations and responsibilities, SLAs can streamline processes, improve communication, and ultimately drive better results.

Key components of an effective SLA

To create an SLA that truly makes a difference, it's essential to include the following elements:

1. Definitions: Marketing and sales should have a shared understanding of what constitutes a Marketing Qualified Lead (MQL) and a Sales Qualified Lead (SQL). This ensures both teams target the right prospects and reduces confusion down the line.

2. Hand-off process: The SLA should clearly outline which leads, when, and how they are passed from marketing to sales. This helps maintain a smooth, efficient workflow and prevents leads from slipping through the cracks.

3. Responsibilities: The document should specify what information marketing should provide and how quickly the sales team should process that information. This accountability helps keep both teams on track and ensures no one drops the ball.

4. Feedback loop: The SLA should establish a system for sales reps to provide feedback to the marketing team, including when, in what form, and how frequently this should occur. Continuous communication helps marketers refine their strategies and deliver high-quality leads.

5. Goals: The agreement should outline common goals for sales and marketing, ensuring both teams work towards the same objectives and measuring success by the same metrics.

6. Continual improvement: The SLA should include a procedure or process for sales and marketing to review and refine the document regularly. This allows adaptation to changing market conditions and ongoing partnership optimization.

The importance of formalizing sales and marketing relationships

While many B2B companies, especially those with smaller teams, may not yet use SLAs, the need for formalized relationships between sales and marketing becomes increasingly critical as a company scales. As the number of leads generated monthly grows, streamlining processes and establishing clear expectations becomes essential for maintaining efficiency and preventing misalignment.

The problem of poor alignment between marketing and sales is a real and significant hindrance to company growth. A study by the Aberdeen Group found that companies with strong sales and marketing alignment achieve a 20% annual growth rate. In contrast, those with poor alignment see a 4% decline in revenue. By implementing an SLA, you can bridge the gap between your sales and marketing teams, setting the stage for accelerated growth and success.

Putting it into practice

Ready to bridge the gap between your sales and marketing teams? Here are some actionable steps to implement an effective SLA:

1. Schedule a meeting with key stakeholders from sales and marketing. Discuss the need for an SLA and the potential benefits it could bring to your organization.

2. Collaborate on the document, ensuring both teams input on the definitions, processes, sales goals, and metrics outlined in the agreement.

3. Communicate the SLA to all sales and marketing teams, ensuring everyone understands their roles and responsibilities.

4. Regularly review and refine the SLA based on feedback from both teams and changes in your market or business.

Empowering your sales and marketing alignment

Implementing an SLA is a significant step towards aligning your sales and marketing teams, but it's just the beginning. To truly maximize the impact of your alignment efforts, you need to track the right KPI with the right sales performance management tool. This will support your teams' collaboration and success. That's where Forecastio comes in.

Our platform provides real-time insights into your sales pipeline, enabling your sales and marketing teams to work together seamlessly. Forecastio lets you:

• Monitor conversion rates to understand lead quality, ensuring marketing delivers the right prospects to sales

• Track key performance metrics and goals, keeping both teams accountable and on target

• Identify bottlenecks and opportunities for improvement, allowing for continuous optimization of your sales and marketing processes

• Forecast revenue with greater accuracy, enabling better decision-making and resource allocation

Empower your sales teams with the tools they need to succeed.

Book a demo with Forecastio today and see how our platform can help you take your alignment efforts to the next level.