In today’s highly competitive landscape, marketing and sales alignment is a key revenue growth driver. It only works with agreed-upon metrics and measurement.
That’s that view of Grant Johnson, and he should know. Grant is a six-time CMO responsible for generating over $20 billion in pipeline, and has been a CMO mentor and coach to 20 marketing leaders
He is also the creator of Marketing Performance Index (MPI), a simple but robust tool for aligning revenue growth strategies across go-to-market (GTM) teams.
Grant thinks about unifying marketing to sales measurement in the following four steps:
1) One Team: Transitioning from MQLs vs. SQLs to Unified Metrics
Traditional GTM frameworks have often relegated marketing and sales to distinct silos, each fixated on individual goals and metrics.
However, in our fast-evolving business climate, metrics need to recognize marketing’s pivotal role in sales success. The era of isolated Marketing Qualified Leads (MQLs) and Sales Qualified Leads (SQLs) is over. Today, pipeline attribution is key, says Grant, “this means that marketing and sales collaborate and act as a cohesive unit, sharing the triumphs and challenges alike.”
Pipeline attribution fosters a culture of shared responsibility. It compels both teams to consistently evaluate past actions, pinpoint successes, and strategize for improvement. This collaborative approach not only enhances teamwork but also eradicates blame-shifting, aligning both functions towards common objectives.
2) Alignment: The Waterfall Model and Data-Driven Objectives
Creating genuine alignment necessitates a structured approach, beginning with a waterfall model. Grant says to look at “one to two years of performance data on pipeline and conversion rates to build a ‘waterfall model’ that connects the number of leads to the number of opportunities to the number of closed deals needed to achieve revenue targets.”
A waterfall model is key to actionable goals across marketing and sales. Each team is assigned specific, measurable metrics, ensuring their contributions are transparent and results-oriented. That waterfall model is likely to vary by segment — the model for enterprise clients might not translate to SMBs or mid-market buyers.
As a company “ventures into new verticals, agility is imperative to create a waterfall model.” Employing agile sprints tailored to the distinct needs of each market segment will keep marketing and sales teams responsive and effective.
3) Intent: Identifying and Nurturing High-Quality Leads
In our rapidly evolving marketplace, timely response to in-market buyers should be a key focus of efforts to convert leads to sales conversations. Selecting the right Ideal Customer Profiles (ICPs) with active input from the sales team ensures effective targeting, but top teams get a step further to focus on measuring engagement that suggests purchasing readiness.
The key is looking at the depth and frequency of engagement and content consumption. Higher quality leads are those that have bursts of engagement activity with multiple individuals in a target ICP engaging with content, events, or webpages. The ultimate intent comes from a commitment to demos, trials, or interactive workshops, but tracking bursts of distributed activity are proxy intent measures that can suggest which buyers are tracking toward these goals.
4) Cadence: A Forward-Looking Strategy to Win Together
Once aligned around a shared idea of pipeline attribution and intent measurement, marketing and sales teams then need to find the right rhythm of learning and iterating together. “A quarterly business review (QBR) focuses too heavily on past performance,” says Grant, leading teams to scramble rather than brainstorm and strategize.
Instead, he advocates for a proactive approach through weekly or bi-weekly meetings with a four-part structure — Wins, Challenges, A/B or Outcomes Tests, as well as Plans and Looking Forward. This regular rhythm encourages continuous improvement, ensuring that both teams remain aligned and prepared for what lies ahead.
In summary, aligning marketing and sales is more than a buzzword; it is the cornerstone of scalable success. By leveraging aligned metrics, focusing on shared pipeline attribution, and nurturing shared responsibility through ongoing, agile collaboration, a company can harmonize these teams and lay a strong foundation for growth. The path forward is unmistakable: one team, one goal, and a shared vision for success.