The friction between sales and marketing teams is so common it has a name: "the great divide." Sales complains that marketing generates low-quality leads. Marketing complains that sales doesn't follow up properly. Both teams blame each other for not hitting pipeline targets. This misalignment wastes millions in revenue and increases team turnover.
The solution is "Smarketing"—a collaborative approach where sales and marketing work as a unified revenue function. This requires alignment on definitions, processes, goals, and measurements.
Understanding the Root Cause
Sales and marketing misalignment typically stems from:
- Different success metrics: Marketing measures leads generated; sales measures revenue closed. Without connecting the two, they optimize for different things.
- Lack of feedback loops: Marketing doesn't know which leads actually convert. Sales doesn't understand which campaigns drive qualified leads.
- Process gaps: Unclear definition of a qualified lead (MQL). Inconsistent handoff between teams. No SLA on follow-up timing.
- Communication breakdown: Marketing and sales teams rarely meet. Decisions are made without input from both sides.
Step 1: Align on Lead Definitions
This is the foundation of smarketing. Both teams must agree on what constitutes each stage:
Marketing Qualified Lead (MQL): A lead that shows enough engagement with your marketing to warrant sales outreach. Usually based on:
- Demographic fit (company size, industry, role)
- Engagement signals (content downloads, email opens, website visits)
- Explicit interest (form submissions, demo requests)
Sales Qualified Lead (SQL): A lead that meets MQL criteria AND has been validated by sales as a genuine opportunity. Usually based on:
- Budget availability
- Timeline/urgency
- Decision authority
- Fit with your solution
Opportunity: An SQL that has entered active sales process with a specific deal value and timeline.
Document these definitions in writing. Make them specific enough that someone outside your company would understand them. Review and update quarterly as your business evolves.
Step 2: Establish Service Level Agreements (SLAs)
SLAs formalize the commitment both teams make to each other. Example SLAs:
Marketing SLA:
- Generate 100 MQLs per month
- MQLs will be passed to sales within 24 hours of qualification
- At least 40% of MQLs will come from "high-intent" sources (demo requests, direct sales inquiry)
- MQL to SQL conversion rate target: 25%
Sales SLA:
- Follow up on MQLs within 1 hour of receipt (for high-intent leads) or within 24 hours (for lower-intent leads)
- Qualify or disqualify leads within 5 days
- Provide feedback on lead quality within 10 days (converted to SQL, disqualified and reason why)
- Minimum 50% of MQLs will be contacted in the first week
Joint SLA:
- MQL → SQL conversion rate will be at least 25%
- If conversion rates drop below 20%, teams will jointly investigate and adjust targeting or qualification criteria
SLAs should be ambitious but achievable. Review them quarterly and adjust based on performance data.
Step 3: Create Unified Reporting and KPIs
Traditional marketing and sales KPIs conflict. Create a unified dashboard showing:
- Marketing metrics: MQLs generated, MQL sources, MQL quality indicators, cost per MQL
- Sales metrics: MQLs contacted, SQLs created, SQL-to-Opportunity conversion, pipeline value
- Shared metrics: MQL-to-SQL conversion rate, Sales cycle length by source, Cost per Customer by channel, CAC and CLV
- Revenue impact: Pipeline influenced by marketing, Revenue influenced by marketing, Marketing contribution to quota attainment
This unified view creates shared accountability. Both teams see how their work contributes to revenue. When MQL-to-SQL conversion drops, it forces a conversation: Is it marketing's targeting? Sales' follow-up? Lead quality expectations?
Step 4: Implement Feedback Loops
Sales sees outcome data that marketing doesn't. Create formal processes for this feedback:
Weekly Sync (30 minutes):
- MQL volume and quality from last week
- Conversion rates by source
- Disqualified lead reasons
- Any immediate issues or wins to share
Monthly Deep Dive (1 hour):
- Analyze MQL sources that convert best
- Discuss customer persona fit
- Review messaging and positioning
- Plan next month's tactics based on current performance
Quarterly Business Review (2 hours):
- Assess progress toward pipeline and revenue targets
- Adjust lead definitions or SLAs if needed
- Identify emerging opportunities or threats
- Plan next quarter's initiatives
Make sales people feel heard. When sales provides feedback about lead quality, marketing needs to respond with either tactical changes or explanation of why targeting is correct. This reciprocal respect builds trust.
Step 5: Build Lead Quality Scoring Together
Lead scoring determines which leads are qualified. This should be a joint decision:
Demographic scoring: Based on company size, industry, location—data marketing and sales agree matters for buying decision. Examples:
- Company size 10-500 people: +30 points
- Company size 501-2000 people: +20 points
- Technology industry: +25 points
- Financial services industry: +10 points
Behavioral scoring: Based on engagement signals that predict buying interest. Examples:
- Downloaded pricing page: +15 points
- Downloaded case study: +10 points
- Attended webinar: +20 points
- Visited pricing page more than 3 times: +15 points
- Opened email 5+ times: +5 points
MQL threshold might be set at 50 points. Leads above 50 points are automatically passed to sales; those 30-50 get nurtured further.
Review and refine lead scoring monthly. When sales reports that a high-scoring lead didn't convert, investigate why. Adjust your model based on real-world outcomes.
Step 6: Establish Shared Goals and Incentives
This is critical. If marketing is paid on MQL volume and sales is paid on closed deals, they'll conflict. Instead:
- Make a portion of marketing bonuses tied to SQLs generated (not just MQLs)
- Make a portion of sales bonuses tied to MQL-to-SQL conversion efficiency (not just volume closed)
- Create joint goals around pipeline influenced and revenue closed
When compensation is aligned, conflicts resolve quickly.
Step 7: Create Continuous Communication Structures
Smarketing only works with constant communication. Structure includes:
- Slack/Teams channel: Daily updates on MQL volume, quality issues, wins
- Weekly meeting: Quick sync on metrics and immediate issues
- Monthly campaign debrief: What worked? What didn't? Why?
- Quarterly strategy session: Adjust targets, tactics, and messaging based on market conditions
- Annual planning: Set shared revenue targets and plan joint initiatives
The meeting structure isn't sacred—what matters is consistent communication and shared problem-solving.
Common Smarketing Pitfalls
Poor lead quality from marketing: Sales stops following up on MQLs because too many are unqualified. Solution: Jointly audit disqualified leads. Adjust lead definitions or targeting to improve quality.
Sales not following up on MQLs: Sales is busy with existing pipeline and ignores new leads. Solution: Establish SLA and track compliance. Make follow-up part of daily workflow and leadership checkpoints.
No feedback mechanism: Marketing sends leads to sales and never hears what happens. Solution: Establish weekly feedback call. Create CRM fields for lead status and feedback.
Finger-pointing: When pipeline target is missed, teams blame each other instead of problem-solving together. Solution: Focus on data, not opinions. Use metrics to diagnose issues.
Measuring Smarketing Success
- Marketing pipeline influence % (how much of sales pipeline comes from marketing?)
- MQL-to-SQL conversion rate trending up (currently 20%, target 25%+)
- Sales follow-up time on MQLs (currently 48 hours, target 24 hours)
- Lead quality feedback loop (% of leads that get feedback within 10 days)
- Joint goal attainment (% of pipeline and revenue targets hit)
Final Thoughts
Smarketing transforms the relationship between marketing and sales from competitive to collaborative. It requires shared definitions, aligned incentives, and constant communication. The result is faster growth, higher close rates, lower CAC, and happier teams. When marketing and sales work as one revenue function, pipeline grows faster than either team could achieve alone.