A Service Level Agreement or SLA between Marketing and Sales is a critical element in aligning the two organizations for optimal results.
What is an SLA?
An SLA is a Performance Contract between business units and/or a support unit.
Measures for the SLA should be built directly from your strategy, i.e., Balanced Scorecard or BSC.
All parties can then understand the strategic context of their performance objectives
Support Units can be rewarded for strategy contribution
An SLA between marketing and sales is an agreement that defines the:
Using just 2 inputs, the Shared Revenue Goal and your Average Order Value, the system will calculate both the number of leads that marketing must supply to sales and the number of Marketing Qualified Leads that Sales will commit to work every week.
Shared Revenue Goal: This is the target revenue the company hopes to achieve during the year. It is called shared because it is 'agreed to' between marketing and sales.
Average Deal Size: This is simply the average value of all your deals. Larger Average Deal Sizes will typically result in fewer leads being required, whereas smaller deal sizes will require a much higher number of website visits and leads.
Prospects/Visitors: This is the number of website visitors you will need to attract.
Leads: This is how many of the website visitors will need to convert on your website by completing a form in exchange for some piece of valuable information.
MQLs (Marketing Qualified Leads): MQL is a classification of a lead by marketing, based on certain characteristics of the lead, such as Industry/Job Role/Demographic Information and other behavioral or observable characteristics. Our calculator uses the MQL to SQL conversion rate to determine how MQLs must be passed to Sales as SQL qualified leads. It also takes into consideration the value of a lead at each stage of the funnel.
SQLs (Sales Qualified Leads): An SQL is a lead that Sales believes deserves further follow-up by sales as they fit the criteria they have established that indicates a high probability of sales success.
Opportunities: Each SQL may have one or more Opportunities. Opportunities are what Sales believes can be sold into the account.
SQL to Customer Conversion Rate: Our lead conversion rate calculator, working as a close rate calculator, now tells you how many customers will need to be produced.
Customer: This is someone who has bought a product or service from your company. Identifying a customer can be surprisingly difficult, whether in the consumer (B2C) or business (B2B) space.