Why Sales and Marketing Don’t Get Along

March 24, 2011

Talk to marketing mangers and sales managers about their biggest complaint and you will likely hear “They don’t follow up on leads!” from the marketing guy and “Their leads suck!” from the sales guy. No news there. But why is that this fight on lead quality continues?

According to a recent chart published by MarketingSherpa (below), 80% of marketers don’t spend time qualifying leads before sending them to sales.

B2B Lead Qualification Requirements

What information is required before leads are passed to sales?

It is interesting that back in 2009, MarketingSherpa had published a chart showing the key challenges marketers faced and “generating high quality leads” was the top one. Sales keeps insisting on receiving better leads, marketing knows that is an issue, but still they are not delivering. In their “CMO Perspectives on B2B Marketing Automation” this challenge for high quality leads is shown as having increased from 69% in 2009 to 76% in 2010.

A Gartner Group presentation on allocation of Marketing Budgets for 2011 showed that the top three marketing priorites for this year are:

  • Acquire new customers
  • Improve customer retention
  • Support sales including lead generation programs

If the budget is there, then maybe more companies will be able to finally put some technology in place to help with lead quality, more specifically marketing automation with the goal of improving lead quality. Because the solution to the disconnect facing marketing and sales today is to fix the “lead problem”, once leads are better qualified the two organizations can be friends again.

 


How Everybody Wins with HubSpot’s Funding

March 10, 2011

As everyone in the marketing industry surely knows by now, HubSpot raised $32 million in additional funding. This means that is time to update my previous charts on marketing automation funding (see below) and the funding timeline, because HubSpot just surpassed Marketo as the highest funded marketing software vendor to date. (Note: yes, I wouldn’t necessarily say HubSpot is a ‘marketing automation’ vendor per se, but they are moving towards that end).

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With the new round of financing, HubSpot now leads the pack in terms of VC funding and takes the total amount raised to date by key marketing players to over $220 million.

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Updated above is the timeline of funding for the key players in the marketing automation space (you may argue HubSpot is not a marketing automation vendor, this is subject for another post).

Everyone Wins

But it also means something else. The money flowing to companies like HubSpot is impressive, and the results of the investment will not only benefit them but also the whole marketing automation and marketing software industry in general. Is almost like a virtuous cycle, where money goes to marketing software vendors, who use it to build better products and educate the market, which then learns about the benefits of such solutions, purchase those solutions, and publicize it themselves and pay those vendors for services.

Industry Impact

Should established marketing automation players be worried about HubSpot’s sudden infusion of capital? After all, now that they have the deep pockets to invest in improving their product, maybe their solution will start looking more like what marketing automation vendors have been selling for some time now. For Eloqua, at least, they say there’s no need to worry since HubSpot is serving a very different market.

Market Segmentation

And here is worth pausing for a moment. We sometimes tend to bundle all of the vendors into one big basket, because a search for marketing software solutions will show more results than you would care to browse and the sales literature of most of them will make you think they all do very similar things. Nothing could be further from the truth, since after taking a few of those solutions out for a spin you will discover there’s much difference under the hood… but that is a topic for another post, since it can take some time to untangle the value propositions and real benefit all the marketing software vendors make.

So HubSpot’s recent capital infusion should be treated as good news by all marketing vendors. It does seem the whole industry is due for a shake-down but until then, the awareness and market education will benefit everyone.


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