Businesses often struggle to create a cohesive atmosphere and deliver seamless customer experiences across marketing, sales and product teams. To measure the effectiveness of alignment and bridge the gap between the departments, key performance indicators (KPIs) should be in place. This article looks at five vital metrics to use: conversion rate (CR) across the funnel, new revenue, customer acquisition cost (CAC), customer lifetime value (LTV), and monthly recurring revenue (MRR) and annual recurring revenue (ARR).
Calculating conversion rate (CR) across the funnel can provide insight into the effectiveness of marketing efforts, the sales process and product offerings. New revenue tracking is essential for evaluating the success of customer base expansion, while customer acquisition cost (CAC) allows teams to measure the ROI of customer acquisition strategies. Customer lifetime value (LTV) provides an indication of the long-term value that customers bring to the organisation, and monthly recurring revenue (MRR) and annual recurring revenue (ARR) enable revenue forecasting and resource allocation.
It is important to have at least one mutual KPI for different departments between each stage of the sales funnel, and for these KPIs to not be mutually exclusive. To ensure a successful alignment, teams should strive to optimise their expenses, review and change their approach if necessary, and make revenue generation a company-wide effort.
Originally reported by Martech: https://martech.org/kpis-that-connect-5-metrics-for-marketing-sales-and-product-alignment/
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