Having a growth mindset, creating strategies, and following them are great challenges for companies - both traditional and startups.
For this reason, it is important to analyze how many performance indicators the company uses. Which ones make sense for the company's ultimate goal? Do the areas work for a common purpose?
These were some points commented on in the episode “Marketing, Sales and Product: the meeting of disciplines in the growth mindset”, of PloomesCast, podcast of the startup Ploomes. The podcast had the special participation of Marcel Jientara, CEO of Alana AI.
The episode was presented by Octávio Garbi, Head of Sales at Ploomes, who works with cloud software focused on sales, such as CRM Online with proposal generation and management of commercial teams.
The partnership between Ploomes and Alana AI emerged to bring more knowledge and instigate the analysis of the traditional sales model, versus a model of union between related areas in technology companies and startups.
Check out how the chat went.
Integration between Marketing and Sales
The first question was about how to create a healthy growth area that contributes to the company's effective growth. Octávio asked about the integration between marketing and sales, how to create a common growth mindset, and what is the main point of attention.
For Marcel, marketing teams have been increasingly responsible for sales with the commercial team. For him, especially in fully digital business models, such as in the Saas (Software as a Service) market, there is no room for separation between the sales and marketing areas.
He sees as the main challenge consolidating common KPIs for the sales and marketing areas. Although marketing is maintained as the brand guardian, efforts must be directed towards sales.
At Alana AI, for example, the common KPI for marketing and sales is TCV (Total Contract Value). It is a metric for the entire Growth squad, transformed into OKRs (Objectives and Key Results) to generate qualitative and quantitative balance in the company's results.
How to deal with sub metrics?
Octávio, from Ploomes, also asked about the use of sub metrics and the importance of looking at the number of leads and conversion rates, for example.
Marcel pointed out that his view is different in this regard, because, for him, it is more important to seek the final result of TCV than to worry too much about sub metrics that do not directly impact common KPI.
In his view, in a situation in which there are a certain number of opportunities to be closed, the teams should dedicate themselves to achieving the effective closing of new business with customers, instead of focusing energies only on bringing a high volume of leads - who will not always be qualified.
"I believe that these metrics as leads are super important during a learning phase, but they don't really point to a tactical decision," added Marcel. In his opinion, sub metrics are excellent for generating analyzes, but not for everyday life, as they can give a false impression of success.
However, both Marcel and Octavio stressed that this look at metrics should vary according to the strategic objectives of each startup and company, of course.
How to calculate the total value of a contract (TCV)
For the calculation to be realistic, it must be done based on the exact value of the signed contract and, if canceled, the calculation must consider only the effective duration of the contract.
In other words, the effort to close and maintain a contract involves both Marketing and Sales, as well as the Product team, which at Alana AI is also responsible, in part, for customer service.
According to Marcel, this unique TCV avoids the segregation of areas and is necessary to “simplify the sales, marketing and product operation around common KPIs”.
What matters is the result as a whole and not the individual results of each team.
Product Participation in Growth
Marcel says that thinking about a digital product is thinking about the complete customer experience. He points out 7 pillars for Customer Experience to be of quality:
- Customer Success Management (CSM)
At Alana AI, the Product team is also responsible for CSM, that is, it is an essential part of Growth. Jientara also mentioned the points he considers essential in the construction of a product: network effect, scalability, branding, and proprietary technology.
People and KPI management
In the model where TCV is a key success factor for Growth teams, it is important to be clear about strategy and execution.
As a team, in a strategic view, there is only one KPI for everyone, but for execution, it is important to use traditional metrics and have standards to ensure the monitoring of individual performances.
On the other hand, it is necessary to analyze the situation as a whole. Imagine that the marketing team did not reach a KPI for the quarter, for example, but it may have helped the sales team achieve the main goal of TCV, participating in conversion initiatives. Taking this case as an example, it is necessary to analyze all metrics within a larger context.
Are you interested in knowing even more about how to bring Marketing, Sales, and Product together in a single growth mindset? Listen to the Ploomecast episode in full.
About Alana artificial intelligence
Alana is a proprietary artificial intelligence company focused on Customer Experience. She is a co-worker, able to automate communication with customers from end to end, and posing as a human. She is a SaaS, native, works in Portuguese, and has a free trial for companies to see in practice how she works.
Also listen to the Inside Alana Podcast, dedicated to the universe of artificial intelligence, and stay on top of market trends.