The growing business complexity requires various departments involved in generating revenue to operate as fluid networks, sharing data and collaborating on common goals. However, departments in an organization have historically remained siloed. Increasingly, previously siloed departments, processes, and tech stacks are coming together to drive revenue through a function known as revenue operations or RevOps.
RevOps optimizes revenue generation, unlocks new levels of growth, and makes revenue more predictable. Companies that deploy RevOps increase revenue nearly three times faster than those that don’t. Public companies with RevOps also have a 71% higher stock performance.
II. Understanding Revenue Operations (RevOps)
Revenue operations is the strategic alignment of marketing, sales, finance, and customer success to optimize processes that contribute to the company’s bottom line. It uses automation to eliminate unnecessary steps and reduce the time and effort needed to complete tasks across the revenue lifecycle.
A. Definition and Key Objectives of RevOps
RevOps is a framework or operating model for maximizing a company’s revenue potential by aligning sales, marketing, finance, and customer success teams into a unified revenue-generating engine. It uses automation to achieve the visibility required to identify revenue opportunities, plug revenue leakage, and generate insights that lead to more growth.
RevOps is planned around certain key objectives:
- Improve revenue forecasting
- Remove operational inefficiencies
- Reduce customer acquisition cost
- Combat churn and boost customer retention
- Improve customer satisfaction
B. Why RevOps is Essential for Revenue Optimization
Often, sales teams have their own customer data and sales targets while marketing teams have their own marketing campaigns and performance metrics. The former report to the sales manager, while the latter report to the marketing manager. All of this makes coordinating between the teams challenging and time-consuming.
RevOps unifies teams working on the common goal of revenue generation, increasing visibility, coordination, and transparency. It eliminates unnecessary effort, improves resource management, and elevates the customer experience. Companies are steadily adopting RevOps, with Gartner predicting that 75% of the highest-growth companies in the world will deploy RevOps models by 2025.
III. Preparing for RevOps Implementation
A. Assessing Current Revenue Processes and Pain Points
The goal of RevOps is to streamline processes. To implement the function, start with an audit of your current sales processes. Analyze the pain points in your current processes, technologies, or strategy. Understand what’s working and what isn’t in your value-driving processes.
B. Aligning Stakeholders and Gaining Buy-in
A nuts-and-bolts revenue operations strategy is essential to gaining buy-in. At this point, you’ve identified process pain points. You can start putting your RevOps strategy together, determining certain aspects early on, such as the timeline for implementing the function and ensuring you have a solid grasp of the customer journey. Upon gaining buy-in, create a revenue operations team and operational rules of engagement that define clear roles and responsibilities for all parties.
C. Establishing Clear Goals and Key Performance Indicators (KPIs)
Develop a RevOps strategy aligned with your company vision and the customer experience you want to create. Plan your process optimization and revenue analytics around these guiding principles. Focus on results-driven KPIs such as customer retention, customer churn, customer acquisition cost, pipeline velocity, and account relationship score, among other revenue operations metrics.
IV. Creating a RevOps Strategy
A. Defining Revenue Goals and Key Metrics
The key goals of RevOps is to optimize pricing for better conversions, plug revenue leakage, and identify new revenue opportunities. Establish concrete revenue goals for your company and associated key metrics that help quantify results from your growth strategy. They can include monthly recurring revenue (MRR), annual recurring revenue (ARR), customer lifetime value, sales cycle length, and velocity.
B. Mapping Customer Journey and Touchpoints
Apply your understanding of the entire customer journey by creating a detailed customer journey map showing all the touchpoints at which potential customers interact with your business. This is an all-important exercise to understand and shape your customer’s experience.
C. Identifying Process Gaps and Areas for Improvement
Identify trends that indicate inefficiencies and bottlenecks in your processes and quantify their impact on your revenue. Based on this analysis, prioritize areas for improvement.
V. Implementing RevOps Technology Stack
A. Evaluating and Selecting the Right Tools and Systems
Technology drives the actions needed to plug process gaps and align all teams in pursuit of the same revenue goal. An ideal RevOps tech stack will consist of tools that automate workflows and allow you to monitor top-line data that can be integrated with your existing systems. They include a customer relationship management (CRM) platform, revenue intelligence software, and project management tools. They unify and streamline your go-to-market strategy, scale your RevOps strategy, and improve overall business operations.
B. Integrating CRM, Marketing Automation, and Sales Enablement Platforms
To create a single source of truth and enable informed decisions, your RevOps tools and existing systems must integrate seamlessly. It will lead to better leads and opportunities, allow end-to-end management of GTM initiatives, and provide marketing, finance, sales, and customer success the data they need to implement their campaigns and strategies.
VI. Aligning Sales, Marketing, and Customer Success
RevOps optimizes and scales processes like lead scoring, nurturing, and deal management by connecting systems and creating approval workflows. It sharpens alignment between teams and boosts cross-functional collaboration to create a better understanding of the customer and the revenue life cycle.
The RevOps team should focus on the singular goal of sustained revenue growth. As the SaaS world is replete with metrics, it’s important to clarify the key metrics to measure to determine the impact of your RevOps. This way, the RevOps team will be on the same page about their performance. Also, map out clear incentives to rally everyone around the shared goal.
RevOps brings sales, customer success, marketing, and finance around a single revenue process. Identifying areas of improvement, mapping the customer journey, and investing in the right tools and systems are essentials in creating the RevOps function. Automating workflows for increased efficiency and achieving strategic alignment around goals, processes, and incentives can plug revenue leaks, unlock revenue opportunities, and create a foundation for sustained revenue growth.
- Determine goals from RevOps
- Identify process pain points
- Create SLAs between teams specifying how they should assist one another with the goals
- Implement RevOps tools based on their capabilities, ability for seamless integration, and scalability
- Determine metrics and incentives to measure RevOps impact and reward teams justly