Blog Post

Improve How Marketing And Sales Perform With A Marketing-And-Sales SLA

  • By Mark Baker
  • 14 Dec, 2015

A recent Corporate Executive Board study revealed that 87 percent of the terms that sales and marketing departments use to describe each other are negative. In a perfect world, the two departments would function in tandem to achieve the goals of winning and retaining loyal customers.

In the real world, however, the two departments are often fraught with internal processes that fail to link up with the other department and miscommunication—all of which result in less-than-optimal performances from both sides.

What’s the solution? A marketing-and-sales service-level agreement (SLA). Having an SLA in place will improve both marketing and sales processes by facilitating cooperation between these frequently disparate departments.

HOW SLAS WORK

As with every venture that involves more than one person, the goal of acquiring and retaining customers relies on the cooperation of all principal players. If you have attended even a single management meeting, it is likely that you have heard someone say, "Everyone should be on the same page.”

That saying may be cliché, but it’s actually true: every business will work more efficiently when all departments know what the others are doing and how each is contributing to the bigger picture. A marketing-and-sales SLA helps to ensure that this happens.

Simply put, a marketing-and-sales SLA is a formal agreement between the two departments that clearly defines the expectations of each department regarding the performance of the other. An SLA ensures that both marketing and sales are working for a common goal, with each department held accountable for its own results.

WHAT SHOULD BE INCLUDED IN AN SLA?

The general goals of an SLA are to:

  • Set the right expectations for everyone involved
  • Formalize marketing and sales processes
  • Allocate activities between the departments to streamline processes
While each SLA is unique to the company creating it, there are some points that are common to most marketing-and-sales SLAs:

A clear definition of terms.

A major point of contention between the marketing and sales departments often centers around the definition of what constitutes a qualified lead. While each department may believe that the definition is self-evident, this is not always the case. A well-designed SLA will define exactly what a qualified lead is.

An understanding of when leads will be turned over from marketing to sales.

Once the definition of a qualified lead is determined, the SLA must address the number of leads required and at which point those leads should be turned over to the sales department for follow-up. This decreases the likelihood that the sales staff will be given leads that are not yet qualified to purchase, which would otherwise be a waste of the sales team’s time and effort. This also ensures that the marketing team retains leads as needed, releasing them to sales at the optimal time for conversion.

An understanding of how leads will be distributed to sales.

A comprehensive SLA will lay out how leads will be distributed to the sales staff. Ironing out this detail largely eliminates the problem of losing leads through poor communication. It is in this "hands-off" period that many companies fail to optimize their marketing and sales efforts. Streamlining this part of the process ensures that leads are handled appropriately at this delicate stage.

The expected process for sales follow-up and disposition.

For an SLA to be effective, it is essential that a lead's progress through the sales funnel be measured and nurtured at every point. Clearly defining expectations for the sales department regarding lead nurturing and conversion is a best practice for SLA composition. A robust CRM solution will greatly improve performance and help to ensure that your sales department works within the defined parameters of the SLA.

A set of metrics to measure compliance by both parties.

If an SLA is to work, it must be given teeth. In other words, the SLA should contain a well-established way of measuring the performance of both marketing and sales. It is only through analysis of the results that the effectiveness of your SLA can be truly illustrated.

THE POWER OF "THE SAME PAGE"

A well-designed SLA bridges the gap between marketing and sales. There are many benefits of having a working process between the two departments, but the results you’ll notice first are:

  • Enhanced credibility with potential leads.
  • Fewer lead losses.
  • More productive time and efforts from marketing and sales.
  • Respect and cooperation between both departments.
  • Increased productivity and profitability for your whole enterprise.

It is clear that the time you spend hammering out a marketing-and-sales SLA is time well spent. But because your strategies must change as your company continues to grow and your customer base evolves, it is essential to revisit your SLA from time to time to tweak the performance expectations of both departments.

Mark Baker

Mark Baker is a natural artist. Since starting his first business hand painting graphics onto vehicles in high school, Mark gained experience in the entertainment, sports, and retail industries before founding this company in 1993. Honest and pragmatic, Mark knows that anything can be accomplished with a great communication plan and creative thinking. 

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