ROI: Marketing meets Sales
Carlton Hoyt
There is often a disconnect in communication and reporting among the marketing and sales / business development teams in life science companies that makes the calculation of ROI less relevant, or just flat out less correct, than it should be. Each team or division generally focuses largely on what they can control and what their end-goals are. Usually for life sciences marketing teams the metric of choice is leads, and for sales teams the metrics of choice are sales and conversion rate. Considered separately, these metrics do not form a holistic approach that considers the interests of the company.
Primarily at odds when marketing and sales metrics are considered and reported separately is lead quality. As most marketers and practically all salespeople know, poorly designed or poorly targeted marketing communications can often generate large amounts of poor-quality leads. The large volume of leads will look good for marketing, but ultimately will be bad for sales, as few of the leads will convert. Because of this, an overarching reporting structure that considers both leads and sales should be implemented which tracks lead capture and development over the complete cycle. With such an overarching reporting structure, a better understanding of ROI can be gained.
Simply reporting a more holistic measure of ROI is not sufficient, however, as ultimately companies are not interested in reports, but in revenues. Certainly there are many problems that can be identified and subsequently fixed through improved reporting, however there need to be methods of direct contact, information flow, and feedback between marketing and sales teams.
Some products may not require sales teams, and for these products marketing will directly lead to sales without the intermediate step of lead generation. While in these situations it is easy for ROI to be measured, for many products and virtually all services it is not so simple. In these situations marketing and sales must collaborate, and data from one function must be related to data from the other. Only with more holistic approaches can a meaningful measure of ROI be grasped and meaningful strategies developed to increase it.