SLAs That Work: Bridging the Gap Between Marketing and Sales
Service Level Agreements (SLAs) are often touted as the magic bullet for aligning marketing and sales teams. However, the reality is that many SLAs fail to achieve their intended purpose. In this blog post, we'll explore why SLAs often fall short and, more importantly, how to craft SLAs that genuinely work, fostering collaboration and ensuring that each team understands and supports the other's objectives. We'll also delve into practical strategies for implementing and managing SLAs, drawing insights from industry experts and real-world scenarios. This discussion closely aligns with the topics covered in our recent podcast episode, 3. Marina Devalia stages an intervention to get marketing and sales to work together!, where we had the pleasure of speaking with Marina Devalia from Playbook Lab. Marina shared her expertise on staging an "intervention" to get marketing and sales teams aligned, and we'll be expanding on those concepts here.
Introduction: The Marketing and Sales Alignment Challenge
The age-old struggle between marketing and sales is a tale as old as time, or at least as old as the modern business landscape. Marketing generates leads, and sales closes deals. Simple, right? Not quite. Often, marketing feels that sales isn't following up on the leads they painstakingly generate, while sales argues that the leads are low-quality and a waste of their time. This disconnect can lead to frustration, wasted resources, and, ultimately, lost revenue. This misalignment stems from differing priorities, metrics, and a lack of clear communication. Marketing is often focused on brand awareness, lead generation volume, and cost per lead, while sales is laser-focused on conversion rates, deal size, and closing velocity. These competing priorities can create friction and prevent the teams from working together effectively towards a common goal.
What is a Service Level Agreement (SLA)?
At its core, a Service Level Agreement (SLA) is a documented agreement between two teams, outlining the expected level of service one team will provide to the other. In the context of marketing and sales, an SLA typically defines the quantity and quality of leads that marketing will deliver to sales, as well as the actions sales will take upon receiving those leads. The SLA specifies measurable metrics and targets, ensuring both teams are held accountable for their respective contributions to the overall sales pipeline. For example, the SLA might stipulate that marketing will deliver a certain number of Marketing Qualified Leads (MQLs) per month, meeting specific criteria such as industry, company size, or engagement level. In return, sales agrees to contact each MQL within a defined timeframe and provide feedback to marketing on the quality of the leads. This mutual understanding and commitment are crucial for bridging the gap between marketing and sales.
Why SLAs Often Fail to Bridge the Gap
While SLAs hold immense promise, they often fail to deliver on their potential. One common reason is that SLAs are often created in a vacuum, without sufficient input from both marketing and sales teams. If one team feels that the SLA is being imposed upon them, they are less likely to buy into it and more likely to resist its implementation. Another reason for failure is that SLAs are often too ambitious or unrealistic. Setting targets that are unattainable can lead to frustration and discouragement, causing both teams to lose faith in the process. Additionally, a lack of ongoing monitoring and adjustment can render an SLA ineffective. The business environment is constantly evolving, and SLAs need to be regularly reviewed and updated to reflect changing market conditions, customer needs, and internal priorities. Finally, without clear consequences for failing to meet the SLA targets, there is little incentive for either team to take the agreement seriously.
Key Steps to Crafting Effective SLAs
Crafting effective SLAs requires a collaborative and data-driven approach. Here are some key steps to follow:
- Involve Both Teams: The process of creating an SLA should be a joint effort between marketing and sales. Hold workshops and meetings to gather input from both teams, ensuring that everyone feels heard and that their concerns are addressed.
- Define Clear Metrics: Identify the key metrics that will be used to measure the success of the SLA. These metrics should be specific, measurable, achievable, relevant, and time-bound (SMART). Examples include the number of MQLs generated per month, the conversion rate of MQLs to Sales Qualified Leads (SQLs), and the average deal size of leads sourced from marketing.
- Set Realistic Targets: Base your targets on historical data and industry benchmarks. Avoid setting overly ambitious targets that are unlikely to be achieved. It's better to start with modest targets and gradually increase them as the teams gain experience and confidence.
- Document the Agreement: Clearly document the terms of the SLA in a written agreement. This agreement should outline the responsibilities of each team, the metrics being tracked, the targets to be achieved, and the consequences for failing to meet those targets.
- Establish a Review Process: Schedule regular reviews of the SLA to assess its effectiveness and make adjustments as needed. These reviews should involve representatives from both marketing and sales and should be based on data and feedback from both teams.
The Importance of Starting Small and Showing Achievable Results
When implementing SLAs, it's crucial to start small and focus on achieving quick wins. Trying to overhaul the entire marketing and sales process at once can be overwhelming and lead to resistance. Instead, identify a specific area where alignment is particularly challenging and focus on creating an SLA for that area. For example, you might start with an SLA focused on generating and converting leads from a specific industry or product line. By demonstrating early success, you can build momentum and gain buy-in from both teams. As the teams become more comfortable with the SLA process, you can gradually expand the scope of the agreement to cover other areas of the business. This iterative approach is more likely to lead to long-term success than a "big bang" implementation.
Fostering Regular, Consistent, and Transparent Communication
Communication is the cornerstone of any successful SLA. Marketing and sales teams need to communicate regularly and transparently to ensure that everyone is on the same page. This communication should include regular meetings to discuss the performance of the SLA, share feedback, and address any challenges that arise. It's also important to establish clear communication channels for day-to-day interactions. This could include using a shared CRM system, a dedicated Slack channel, or regular email updates. The key is to create a culture of open communication where both teams feel comfortable sharing their thoughts and concerns.
Tailoring SLAs for Different Scenarios: Greenfield vs. Existing Accounts
SLAs should be tailored to the specific scenarios they are intended to address. One important distinction to consider is whether the SLA is focused on generating leads for greenfield accounts (new customers) or expanding relationships with existing accounts. Greenfield accounts often require a different marketing approach than existing accounts. For example, marketing might need to focus on building brand awareness and generating initial interest for greenfield accounts, while for existing accounts, the focus might be on cross-selling and upselling. Similarly, the sales process for greenfield accounts is often longer and more complex than for existing accounts. Therefore, the SLA should reflect these differences. For example, the SLA for greenfield accounts might include metrics related to lead quality and initial engagement, while the SLA for existing accounts might focus on metrics related to deal size and customer lifetime value.
Staging an 'Intervention' for Marketing and Sales Alignment
As Marina Devalia discussed in our podcast episode, sometimes a more direct approach is needed to address the underlying issues that are preventing marketing and sales from aligning. This may involve staging an "intervention" where both teams come together to openly discuss their challenges, frustrations, and expectations. The goal of the intervention is to create a safe space for honest communication and to identify the root causes of the misalignment. A facilitator can be helpful in guiding the conversation and ensuring that everyone has an opportunity to be heard. The intervention should result in a clear action plan with specific steps that both teams will take to improve their collaboration. This action plan can then be incorporated into the SLA.
Marina Devalia's Insights from Playbook Lab
Marina Devalia, founder of Playbook Lab, brings a wealth of experience in marketing and sales alignment. Her insights, as shared in our podcast, highlight the importance of a structured approach to fostering collaboration. Marina emphasizes the need to define clear roles and responsibilities, establish common goals, and create a culture of accountability. She also stresses the importance of using data to track progress and identify areas for improvement. Marina's approach to "staging an intervention" provides a practical framework for addressing the underlying issues that are preventing marketing and sales from working together effectively. By creating a safe space for open communication and developing a clear action plan, teams can overcome their differences and achieve a higher level of alignment.
How to Set Expectations and Manage Internal Stakeholders
Effective SLAs require careful expectation setting and stakeholder management. It's crucial to communicate the purpose of the SLA to all stakeholders, including senior management, and to explain how it will benefit the organization as a whole. It's also important to manage expectations by being transparent about the challenges involved in implementing the SLA and the potential timeline for achieving results. Regular communication with stakeholders is essential to keep them informed of progress and to address any concerns that may arise. It's also important to be prepared to adapt the SLA as needed based on stakeholder feedback and changing business conditions. By proactively managing expectations and keeping stakeholders informed, you can build support for the SLA and increase its chances of success.
Key Takeaways Recap
To summarize, here are the key takeaways for crafting effective SLAs that bridge the gap between marketing and sales:
- Involve both marketing and sales teams in the SLA creation process.
- Define clear, measurable, and realistic metrics.
- Start small and focus on achieving quick wins.
- Foster regular, consistent, and transparent communication.
- Tailor SLAs to different scenarios, such as greenfield vs. existing accounts.
- Consider staging an "intervention" to address underlying issues.
- Set expectations and manage internal stakeholders effectively.
Conclusion: SLAs as a Tool for Collaboration and Growth
SLAs are not just about setting targets and tracking metrics; they are about fostering collaboration and driving growth. When implemented effectively, SLAs can help marketing and sales teams work together more effectively towards a common goal. This improved collaboration can lead to increased lead generation, higher conversion rates, larger deal sizes, and ultimately, greater revenue. SLAs can also help to improve communication and transparency between marketing and sales, leading to a more positive and productive working environment. By embracing SLAs as a tool for collaboration and growth, organizations can unlock the full potential of their marketing and sales teams. We hope this blog post has provided you with valuable insights and practical strategies for crafting SLAs that work. Be sure to check out our related podcast episode, 3. Marina Devalia stages an intervention to get marketing and sales to work together!, for even more in-depth discussion on this topic. There you will learn about Marina's approach to setting expectations for marketing and sales, and managing internal stakeholders to drive better outcomes for both groups.
