Ever since I watched Pepsi, Where’s My Jet on Netflix, I have been OBSESSED.
I don’t particularly like Pepsi (or really any soda — but I am a true Southerner, so Coke over Pepsi), but I must admit that it’s a fascinating company. The impact of the cola wars with Coca-Cola really mirrors so much of what lawyers deal with daily, and I find myself using these companies in analogies often.
A Trip Back to the 1980s
For the purpose of this newsletter, let’s get in our DeLorean and go 88 mph back to the 1980s.
Back then, PepsiCo was losing the cola war to Coca-Cola. According to the Pepsi challenge, they had a great product, but their sales were struggling.
Much of this was due to sales and marketing departments not being aligned. The sales team focused on short-term profits, while marketing focused on long-term brand building. As a result, PepsiCo was winning the challenge but losing the war.
A Smart Move by PepsiCo
Pepsi brought in a new CEO, Roger Enrico, who understood the importance of aligning sales and marketing. He launched the marketing campaign The Choice of a New Generation, targeting the youth market. The sales team then focused on executing the campaign and building relationships with customers.
The results were impressive: PepsiCo’s sales increased by 25% in the first year, and they regained market share from Coca-Cola.
Lessons for Law Firm Owners
Sales vs. Marketing
Are you confused about the difference? You’re not alone. They are not the same thing.
- Marketing: Creates awareness and interest in your law firm’s services. It builds your reputation and generates leads. Think Don Draper from Mad Men.
- Sales: Turns leads into paying clients. It’s about building relationships, understanding client needs, and closing deals. Think Jerry Maguire’s “SHOW ME THE MONEY!”
Marketing should bring in the right clients for sales to convert. Sales should share clients’ real concerns with marketing so the firm can target the right audience.
Why Alignment Matters
Some stats:
- Companies with strong alignment between sales and marketing achieve 20% annual revenue growth (HubSpot)
- Businesses with strong marketing and sales alignment see a 32% increase in year-over-year revenue growth (Forrester)
- 79% of marketing leads never convert into sales (InsideSales.com)
Poor marketing or poor sales execution can sink a business.
What Can You Do About It?
- Combine departments — not ideal, but can solve short-term issues
- Track the right data — know which leads convert and where the bottleneck is:
- Consistent close rates but not enough opportunities = marketing problem
- Low close rates with enough leads = sales problem
- Inconsistent close rates based on who does consult = sales problem
- Low percentage of qualified leads = marketing problem
- Set a better vision — clarify mission, strategic plan, and client messaging
- Provide better training — empower your team with technology, SOPs, and guidance
- Change the people in the seats — if alignment and training fail, consider team adjustments
- Reach out for help — to me or anyone you trust to guide you
Next week, we’ll cover what you can do today (or next week) to save the most time going forward.