A-Z Guide to Getting Started With Revenue Operations (RevOps)
Last update: 2 November 2021 at 09:35 am
As digital user experience evolves, the need for different departments to share information has grown; revenue operations (RevOps) is the best strategy to bring them together and more accurately measure the return on investment (ROI).
The RevOps team can act as the central hub for user information for your company, with a focus on user bookings, acquisition, recurring revenue, customer churn, satisfaction, and other user-centric metrics.
With the help of IT, it enables revenue operations with tools such as analytics and AI to discover opportunities and trends driving revenue streams.
Let us show you just how to get started with this way of working and learn about the benefits it can bring to your business.
What is RevOps and How To Get Started?
Revenue operations is the master integration of sales, marketing, and service departments to give a better end-to-end view to administration and management while leaving the day-to-day processes within the departments.
The entire approach of revenue ops is designed to break down the silos between departments.
Revenue operations focus on revenue growth, which can include sales operations. But it also ties in other customer-facing departments, like service and marketing.
They facilitate collaboration between departments that have a direct effect on the business’ revenue and the company at large.
There are two ways revenue operations can be put into place. The correct way largely depends on the size of your business model and venture.
- Distribute the capabilities throughout the team – In this case, revenue operations are set out with one person doing multiple roles.
For instance, a sales operator would also be responsible for enablement and insights. As you scale, responsibilities become a dedicated role that can be brought under the revenue operations umbrella.
2. Specialized roles – the second approach includes hiring a leader who can bring the operational roles together and consolidate reporting relationships.
This approach is best if you have more than 100 employees because it is likely that you will already have siloed operations in your business.
Do You Need Revenue Operations?
If you are not sure whether or not your company is ready for revenue operations, here are two ways you can try to determine so.
If your goal is to drive accountability and transparency at scale – We continue to see a serious shift in the way companies think about their revenue process.
The need for accountability, transparency, and predictability from the boardroom to the front line is higher than ever before.
It can only be possible when everyone on the revenue team is aligned and working towards the same success metrics. That requires the ability to operationalize at scale.
If revenue targets across sales, marketing, and customer success are not lining up, it means that you and your team are not on the same page.
If key business metrics are not similar – Sales, marketing, and customer success will focus on meeting departmental goals, with their own resources and budget, their own technology stack. RevOps teams use a single source of truth to analyze and measure the entire funnel, reduce friction between go-to-market teams and make decisions to achieve their joint goals.
If you are still unsure whether you need revenue operations in your company, you can always seek help from innovation consulting agencies in Australia or in your country for advice.
Why RevOps is Vital for Your Business to Succeed
The need for revenue operation comes from the fact that in many B2B organizations, sales, marketing, and customer success are more aligned than ever.
Three teams work together to optimize the user journey, rather than having their own delineated area of responsibility. They also may use the same software and business data, so why keep them separate?
The way B2B companies initiate revenue has changed. There is more focus than ever on collaboration between marketing, sales, and customer success. Having one function running the operations for all revenue-generating teams makes sense.
After all, it means communications will get a lot easier, the implementation of new tools will be simple, and outcomes will be better. It is no surprise that publicly traded companies with a revenue operations function saw better performance than companies that do not.
Importance Of Revenue Operations For Customer Success
The introduction of the RevOps team and strategy is relatively new but is directly tied to a changing landscape of how organizations market, serve and sell their customers.
Customers now expect a positive and better online experience. They also expect companies to know about previous inquiries and interactions without having to repeat details throughout multiple interactions.
Thus marketing, connecting sales and marketing teams through revenue operations is a method to meet those customer expectations.
With customer information coming from touchpoints than ever before, RevOps teams or administrators make that information and data collection easy and transparent, using both organizational strategy and technology.
Revenue operations tie directly to an organization’s data, which is growing in importance.
The main goal of revenue ops is to connect data from sales, marketing, and service departments to provide a better 360-degree customer view before, during, and after the sales.
Benefits Of Revenue Operations
Besides driving better revenue growth for the company, the addition of a revenue operations team or rev strategy has other benefits:
- Creates Focus – By bringing sales, marketing and service together, organizations can focus goals across the departments and get each group on the same page with the same endpoint in mind, such as closing deals, generating leads, and expanding existing accounts.
- Alignment – Bringing user-facing departments together ensures every campaign and user initiative has a measurable outcome on the sales funnel from the start of the campaign to post-sale service needs.
- Simplification – By establishing a RevOps approach, organizations can remove roadblocks and silos within departments, increasing the company’s efficiency and creating a better user experience.
Four Roles Fulfilled By RevOps
Here are the four primary roles RevOps takes care of at the center of a company.
This team works on managing resources to ensure every result aligns with the needs of the business. The roles and responsibilities of this team are:
- Roles – Marketing operations, sales operations, and project management.
- Responsibilities – Cross-functional collaboration, business process innovation, sales planning and compensation, project and change management.
This enablement team brings enablement practices to marketing and user success. Each enablement effort has compounding effects on your business, so you will rapidly start to see reps operating more effectively throughout your venture.
- Roles – Learning management, sales enablement, and performance management.
- Responsibilities – Coaching, onboarding, continuous training, and professional development.
This team uses the gathered data to assure you of the decision you are making.
- Roles – Data scientist, business analyst, and database developer.
- Responsibilities – Data access, strategic insights, operational insights, data quality, and management.
This technological tools team is responsible for all the technology sales, marketing and customer success use. In addition to technical capabilities, this team should have a deep understanding of CRM and business processes.
- Roles – System administrator and Software developer.
- Responsibilities – Integration, system administration and evaluation, procurement, and vision of the tech stack.
Revenue Operations vs Sales Operations
The primary difference between revenue operations and sales operations is that while RevOps is responsible for operations across all revenue-generating terms, sales operations support the B2B sales process.
Revenue operations will do everything that sales operations do. But they also aim to create user success and systems, while keeping all these teams aligned: reducing friction for the sales team so they can spend more time selling.
Revenue operations is all about making the revenue-generating side of the business more efficient.
Summing Up: RevOps Is A Multi Business
A high-performance revenue operations team helps every revenue-generating area of the organization run more effortlessly and smoothly.
Marketing Ops: Marketing teams tend to work with more data and more tech than other revenue-generating departments. The main focus for RevOps in B2B marketing is to streamline the marketing tech stack, entrust marketers to access more data from the other teams. It leads to improved productivity and better decision-making.
Sales: A RevOps team will know what is going on at all the stages of the sales funnel. It means that if something goes wrong, they have the skills and knowledge to quickly fix it all, which enables salespeople to spend more time doing what they can do the best, which is to engage with prospects and bring in new business.
Customer Success: When earlier siloed departments are aligned and work together, they are more attentive to their customers’ needs. Users notice better standards of service and communication. It makes life much effortless for customer success teams, who will notice the difference in their renewal rates and upselling.
Thus, we can agree that RevOps is, indeed, a necessary approach to organizational structure. It ultimately translates to organizational success.