Key Performance Indicators (KPIs) abound in every department within an organisation, but could they actually be killing your sales performance? When marketing, sales, and Revenue Operations (RevOps) are not united under a shared north star KPI, these well-intentioned metrics can inadvertently undermine overall sales performance.

But how does this misalignment happen and how can you reclaim your sales KPI crown to drive better business outcomes across departments? Let’s discuss:

The KPI Disconnect

In today’s complex business environment, each department will typically focus on the metrics that reflect their specific roles. For example:

• Marketing: Looks at the efficiency of inbound leads, campaign reach and engagement metrics
• RevOps: Concentrates on optimising processes, systems integration, and ensuring operational efficiency
• Sales: Focuses on closing deals, meeting quotas and revenue targets

While each of these KPIs are integral, they often create silos where each department focuses on ticking its own boxes without considering the broader impact on sales performance. Marketing might celebrate high lead generation numbers, and RevOps may optimise processes for efficiency, but if sales are not converting leads into revenue, the business suffers.

The Pitfalls of Siloed KPIs

1. Lack of Harmony: Different KPIs can create tension and misalignment. Marketing may drive a high volume of lead, but if these are not high-quality or sales-ready, the sales team will struggle to convert them, leading to frustration and inefficiency.
2. Stagnation: Being focused on efficiency, the RevOps team may resist creative and disruptive strategies that could significantly boost sales. Without a revenue-focused KPI, there’s little incentive to take risks that whilst initially disruptive to established processes could ultimately lead to greater revenue.
3. Misguided Success Metrics: When each department marks their own scorecard, it can create a false sense of success. Sales teams might struggle to achieve their targets despite marketing and RevOps hitting their goals. This disjointed success can misguide strategic decisions, hindering overall business performance.

Moving Towards Unified KPIs

To reclaim the KPI crown and ensure every department is contributing effectively to sales performance, we recommend the following:

1. Establish a North Star KPI: Align all departments around a single, revenue-focused KPI. This could be overall revenue growth, customer acquisition cost relative to lifetime value, or another metric that encapsulates the business’s financial health.
2. Foster Cross-Departmental Collaboration: Encourage regular communication and collaboration between marketing, sales, and RevOps. Joint planning sessions and shared goals can help break down silos, ensuring that everyone is working towards the same objectives.
3. Educate on Metrics: Take the time to ensure that everyone understands not only their own KPIs but also how they interrelate and impact the overall business. Sales teams should be aware of marketing’s lead generation efforts, and RevOps should understand how their processes affect sales efficiency.
4. Incentivise Unified Goals: Structure incentives and rewards around the north star KPI. When bonuses, promotions and recognition are tied to unified goals, team are much more likely to work together towards shared success.

By uniting all of your teams under a common revenue-focused KPI, you’ll ensure that everyone’s efforts are harmonised towards driving business growth. If you’re ready to reclaim your KPI crown, we’re here to help.

Air Marketing: experts in sales and marketing

At Air Marketing, we understand the importance of a unified approach to KPIs. We work with businesses to align their marketing, sales, and RevOps efforts, driving cohesive strategies that lead to sustained revenue growth. Get in touch today to discover how we can help you achieve the sales performance your business deserves!