Did you know 86% of executives told Forrester Consulting that revenue operations is important to meet their goals, but just 41% really understood what it is?
Revenue Operations changes the way companies are looking at their revenue generation process forever. It looks at customer experience, rather than looking at individual departments like marketing, sales and customer success.
In this article, we explain what exactly Revenue Operations is, it’s purpose, and most importantly, how you can implement it in your organization.
So what is Revenue Operations?
In simple words, Revenue Operations was introduced to maximize the revenue generated in an organization. It’s a method that calls for the unification of revenue-generating departments like marketing, sales, and customer success operations.
The three departments work together to optimize the customer journey, rather than having their own responsibilities mapped out. The major role of Revenue Operations is to bring transparency across the departments, improve efficiency, drive revenue predictability, and increase revenue growth.
Why is there a need for RevOps?
Did you know organizations lose more than $1 trillion dollars a year due to a lack of coordination between sales and marketing teams? Organizations have moved to adapt Revenue Operations, as the old approach of siloed teams isn't working anymore.
Before Revenue Operations was introduced, teams focused on the agendas of their own department head. They looked at team KPIs, rather than looking at the overall business goals and prioritizing work that would improve the customer experience and impact revenue.
With RevOps, the traditional approach of separate sales and marketing teams is replaced by a more unified approach along the entire customer experience pipeline.
Alignment of departments in organizations results in a 32% year-over-year increase in revenue growth, in comparison to a 7% decrease in less aligned organizations.
The google trend below gives us insight on the increased interest in revenue operations over the past 5 years.
Source: Google Trends
Benefits of RevOps
A high-performance Revenue Operations team can help increase revenue and run the organization smoothly. RevOps keeps all the teams connected as you grow your revenue. In the past, organizations added different channels in the sales process in order to optimize it.
With the addition of new channels, organizations increase their revenue but in turn, it creates a pitfall across the business. As your business channels multiply, so does the disconnected revenue process.
RevOps helps sales teams to realize what is going on in different stages of the sales process, which will help them to quickly fix problems when they arise.
According to Boston Consulting Group, Revenue Operations helps in accelerating the business growth, including a 10% to 20% increase in sales productivity. RevOps improves measurements, tracking, and forecasting. It aligns all the metrics and KPIs. It unifies all the key processes in management with a tightly aligned tech stack.
Responsibilities of Revenue Operation
RevOps teams have the following four pillars of responsibilities:
It is very difficult to keep track of what the others are doing in an organization. Teams in the same organization often feel there is no communication between them and are lost in the process.
RevOps teams align all the process gaps by taking into consideration every tiny detail to optimize and grow. Operation management teams should work to align all the departments with the business needs.
The responsibility of this RevOps team is to enable all the areas of the organization to run smoothly. They spearhead projects and change management, creating a process that encourages collaboration between sales, marketing, and customer success.
Each enablement effort has a compounding effect on your business, so you can see all the teams operating more effectively and efficiently throughout your organization.
RevOps team helps measure and analyze your resources and gives you confidence in the decision you are making. Finding problems across the sales funnels and coming up with solutions is the main responsibility of RevOps.
It is the responsibility of the tools team to align the sales, marketing, and customer success teams technologically. In addition to this, they should also have knowledge about CRM processes and business processes.
What is the difference between RevOps and Sales Ops?
Sales Operations focuses on increasing the efficiency and productivity of the sales processes to grow revenue. The focus is to improve the sales process. Whereas RevOps is responsible for operations across all the revenue-generating departments.
RevOps does everything that is included in Sales Ops, but also consists of marketing, customer success, and keeps them all aligned.
Sales Ops aims at sales reps to focus more on selling more to get better results. They handle a range of technical and strategic responsibilities such as lead management, sales technology, process optimization, etc.
RevOps focuses on the unification of all the revenue-generating departments to optimize the customer journey and increase revenue.
In simple words, Sales Ops is a siloed system whereas RevOps brings inclusiveness to the system.
How do you know if you need RevOps?
If you aren’t sure if your business needs RevOps or not, consider these point:
If you have too many tools
Having too many tools can create obstacles in the process. Rev Ops solves this problem by consolidating all the tools under the same umbrella.
This helps the business to function smoothly and increase revenue.
If your goal is to drive transparency and accountability at scale
Less transparency/visibility between the different departments causes a communication gap between the departments.
This interrupts the sales process, which affects the seamless work of the organization. RevOps aligns all the departments so that they work towards the same success metrics.
If key business metrics don’t match up
All the departments work towards achieving their own departmental goals, working in their own budget and resources. This results in siloed, disconnected, and miscommunicated data and activities which often do not match up.
RevOps teams use a single method of measuring and analyses to reduce the friction between the teams and make a joint decision.
If revenue targets across sales, marketing, and customer success aren’t aligned
If the revenue targets are not aligned across all your teams, each team will be meeting its own set of targets. The marketing department might be hitting one set of goals, but if the sales team is not hitting the required targets, this disconnect between the teams won’t mean achieving goals in the big picture.
RevOps helps to align the revenue targets to overcome these miscommunications.
RevOps: Where do you start?
Evaluate your customer journey and find the gap between the departments. Audit all of your content and align it with the requirements of the customer lifecycle. This will help you create a systematic flow to plan the next steps.
Audit the technology that has been used in each department to make sure every single moment of the buyer’s journey is tagged and tracked.
Define and align:
Creating a RevOps strategy to help you assist with the initial shift towards the Rev ops approach. Evaluate your current pipeline to ensure you have a full in-depth view of your revenue pipeline and the health of the business.
Discover tech that is not being optimized, offer solutions and consider consolidating options.
Build a go-to-market method for effective customer acquisition and client satisfaction. Build a collaborative workflow that helps prospects move through the pipeline and ensures the data is accurate.
Build a dashboard that shows the current pipeline and bottleneck to keep you updated with your process.
Activate and Optimize:
Arrange regular RevOps meetings with the department heads to stay coordinated and aligned on all areas. Create and follow a 1-year plan to see to it that RevOps is adopted and optimized.
A long term plan will help you to reflect revenue growth and organizational changes.
Revenue Operation Software
Revenue Operating Software can help you align your sales, marketing, and customer success operations for better centralization and lead generation.
Our blog on the benefits of revenue operations software will explain what exactly RevOps software is and how to find the one that best fits your needs.