One of the biggest challenges you’ll face as a sales leader is getting different departments on the same page, not just working together as one towards a common goal, but doing so in the best way possible to grow revenue.
The task can be daunting at times for any number of reasons; departments have their own goals, and those goals can tend to be the priority as opposed to the overall priorities of the business – like a star player who chooses to pad their stats to get their bonus rather than help the team win.
Insert Revenue Operations (RevOps) to the rescue.
But what is RevOps really?
And how can you take it from being just another buzzword to becoming an integral part of your company’s success?
Despite the recent rise in the popularity of RevOps, most business leaders still don’t have the answers to these questions.
That is why I created this guide – so that you can be armed with the knowledge you need to take actionable steps to get your RevOps engine running full speed, and watch your revenue grow rather than get left in the dust.
In this article, you’ll learn:
- What is RevOps?
- What is the difference between RevOps and sales ops?
- Why is RevOps important?
- Why is RevOps on the rise?
- What does a RevOps Team look like?
- What are the main benefits of RevOps?
- What are the key metrics for RevOps?
- What does success look like with RevOps?
- How can I get RevOps implemented?
What is RevOps?
RevOps is the combination of the entire revenue team – sales, marketing, finance, and customer success – working together to efficiently and effectively drive revenue growth.
The goal of Revenue Operations is to establish and maintain alignment between these departments so that they are each working towards the same objectives in the most efficient and effective way possible.
This means that Revenue Operations focuses on more than just top-line revenue growth – it also takes into account things like customer churn, lifetime value, customer acquisition costs, and other key metrics that impact a company’s bottom line.
In other words, Revenue Operations is all about driving sustainable revenue growth in a way that is consistent across the organization.
What is the difference between RevOps and sales operations?
The biggest difference between Revenue Operations and sales operations is that Revenue Operations is a much broader term that encompasses the entire revenue team (sales, marketing, finance, and customer success) while sales operations is primarily focused on just the sales team.
Revenue Operations is also a relatively new concept, while sales operations has been around for quite some time.
That being said, there is a lot of overlap between the two terms, and in many cases, they are used interchangeably.
Why is RevOps important?
There are a few reasons why Revenue Operations is becoming more and more important for businesses:
1) The modern buyer has changed: In today’s world, buyers are more informed than ever before. They have access to a wealth of information at their fingertips and can easily find reviews and testimonials from other customers before they even contact a company.
Because of this, the traditional sales process is no longer effective. Revenue Operations takes a more holistic approach in that takes into account the entire customer journey, from awareness all the way through to advocacy.
2) The competitive landscape has changed: Businesses are no longer competing just on product or price – they’re also competing on customer experience.
To win in this environment, companies need to be able to deliver a seamless, personalized experience at every touchpoint. Revenue Operations is designed to help companies do just that by aligning sales, marketing, and customer success so that they are all working together towards the same goal.
3) The role of technology has changed: With the rise of automation and artificial intelligence, technology is playing an increasingly important role in the Revenue Operations space.
Tools like HubSpot and Marketo are helping companies automate repetitive tasks so that they can focus on more strategic initiatives, while platforms like Salesforce are giving businesses a 360-degree view of their customers.
4.) Above all else, RevOps keeps the different components of the revenue team working seamlessly together, preventing the friction and tension between departments that can otherwise occur and stifle momentum.
Why is RevOps on the rise?
Businesses are starting to understand that in order to achieve their growth goals, they need to take a holistic and integrated approach to their Revenue Operations.
The modern buyer is more empowered than ever before, and subscription-based models have increased in popularity, increasing the need for attention to post-sales with it.
This means in order to be successful, Revenue Operations teams need to have a deep understanding of the entire revenue funnel and how each stage impacts the others. They also need to be experts in data analysis and use data-driven insights to inform decisions.
What does a RevOps Team look like?
There are many different Revenue Operations roles and each one plays a critical part in helping businesses reach their growth goals. The most common Revenue Operations functions are:
- Chief Revenue Officer
- Product Operations
- Sales Operations
- Digital/Ecommerce Operations
- Partner Operations
- Quoting & Entitlements
- Order Management & Fulfillment
- Provisioning
- Billing
- Compensation Design & Strategy
- Compensation Operations
- Strategy & Process Enablement
- SOX Compliance Process Design
Revenue Operations is a relatively new field and it is still evolving. As businesses continue to see the value in having a Revenue Operations team, we can expect to see more roles being created.
What are the main benefits of RevOps?
The benefits of Revenue Operations are many, but some of the most notable include:
– Increased revenue: by taking a more holistic and integrated approach to revenue generation, businesses can see a significant increase in their top-line growth.
– Improved efficiency: Revenue Operations teams are experts in process optimization and they use data-driven insights to inform decision-making. This helps businesses to run more efficiently and avoid costly mistakes.
– Better alignment: Revenue Operations helps to align sales, marketing, and customer success so that they are all working together towards the same goal. This improved alignment leads to better communication and collaboration, which ultimately results in a better experience for the customer.
– Enhanced customer experience: Revenue Operations is all about delivering a seamless, personalized customer experience at every touchpoint. By aligning sales, marketing, and customer success, Revenue Operations teams can help businesses to deliver a better overall experience to their customers.
– Increased agility: Revenue Operations teams are able to use data-driven insights to make decisions quickly and efficiently. This allows businesses to be more agile and respond quickly to changes in the market.
What are the key metrics for RevOps?
There are many different metrics that Revenue Operations teams use to measure success, but some of the most common include:
- Revenue Growth
- Forecast Accuracy
- Sales Pipeline Velocity
- Marketing ROI
- Customer Lifetime Value
- Net Promoter Score
- Customer Acquisition Cost
- Sales Cycle Time
- Annual Recurring Revenue
- Total Contract Value
- Churn Rate
- Renewal Rate
- Average Revenue per User
- Days Sales Outstanding
- Revenue Backlog
What does success look like with RevOps?
Success with Revenue Operations looks different for every business, but there are some commonalities.
You’ll know that you’re running a solid RevOps engine if:
You have departmental congruency: If all the separate departments that make up the revenue engine are working from a single point of truth, have clear goals that are aligned and use the same metrics, have clear visibility across the board, and work together seamlessly towards the same purpose – you are in a solid place as a business.
You have effective automation: If the data needed to accomplish the above is easily accessible and is automated such that it does not require excessive manual work to access – you have a critical piece covered.
You have clear and accurate insights that lead to action: If the data is also clear to understand and (perhaps most importantly) accurate so that you can take actionable insights to improve the business and drive more revenue – then your engine is humming!
How can I get RevOps Implemented?
There is no one-size-fits-all answer to this question, as the implementation of Revenue Operations will vary depending on the specific needs of your business. However, there are some common steps that businesses can take to get started with Revenue Operations:
1. Define your goals: Revenue Operations teams use data-driven insights to inform decision-making and help businesses achieve their goals. Before you can start implementing Revenue Operations, you need to define what success looks like for your business.
2. Align sales and marketing: Revenue Operations teams work closely with both sales and marketing to ensure that they are aligned with business goals. This alignment is essential for driving growth and improving the customer experience.
3. Use data to drive decision-making: Revenue Operations teams use data to inform their decision-making. This data-driven approach allows businesses to be more agile and respond quickly to changes in the market.
4. Implement change management processes: Revenue Operations teams use change management processes to ensure that all changes are made smoothly and efficiently. This helps to avoid disruptions and ensure that business goals are met.
5. Continuously measure success: Revenue Operations teams use key metrics to measure success and drive growth. By continuously tracking these metrics, businesses can identify areas of improvement and make adjustments as needed.
