Editor’s note: John Blessing is the chief sales officer at Chief Outsiders.
While the U.S. economy has dodged multiple economic recessions in the last few months, many businesses now feel that American consumers are becoming more careful and selective about how they spend their money. Moreover, a look at the current inflation numbers, OPEC’s announced production cuts, the continuing war in Europe and a potential banking crisis leaves little doubt that a recession will not be kept at bay.
CEOs are responding to recession fears by asking their CMOs to double down on demand generation. According to Chief Outsiders, CMOs are (or should be) well-equipped to lead their teams in this effort, but they will be significantly hindered when marketing and sales teams do not work in tandem. The alignment between both groups is also essential in “peacetime,” of course, but the need is even more urgent in an economic downturn.
In a recession, both consumers and businesses find themselves strapped for cash. Companies need to present their value proposition in a way that makes their customers not focus on the price but on the value of the goods and services sold. Since businesses are also short on cash, their marketing effort has to be undertaken in the most economically efficient way possible. Those marketing tactics that delivered a so-so return on investment in the past are abandoned, and whatever has proven to work well receives additional funding.
The renewed focus on efficiency can only bear fruit when marketing and sales are well aligned. When both teams talk to one another, the marketing team will tell sales what it will cost to generate leads. Then based on the revenue that the company is pursuing, the average lifetime value of a transaction and based on the knowledge that the sales team has of what the conversion rates through the funnel look like, the sales team will be able to tell the marketing tea...