Published on Tuesday, March 29, 2022
What is Revenue Operations (RevOps)?
Revenue operations, also known as RevOps, align sales, finance, and customer success teams to make decisions that enhance the business and drive revenue potential. The goal of RevOps is to leverage customer data to locate new revenue opportunities, eliminate revenue leakage, and boost overall conversion rates. The process facilitates the customer lifecycle from lead to close.
A revenue operations team is the summation of several company departments, from sales and finance to customer success, to strengthen visibility across the entire revenue team. Increased visibility allows a RevOps team to make better business decisions that not only escalate individual department performance but also improve efficiency across the revenue process.
A RevOps team is only as strong as the revenue operations team structure — meaning the right people must be in the right places. If you’re looking to learn more about what revenue operations are or how to plan your revenue operations team structure, you’ve come to the right place. Keep reading to learn the crucial roles and responsibilities of a RevOps team.
Why is RevOps on the Rise?
The need for revenue operations teams has exploded in recent years. The sudden demand for RevOps teams is the result of a strong shift in how organizations navigate their revenue process. However, this comes in part with significant changes in how customers purchase goods and services. Rather than wait on the old-school salesperson method, more consumers are now conducting their own research to make large purchases, no sales team necessary.
This dramatic change in how consumers purchase goods and services has brought increased value like never before to company departments such as marketing and customer success. Previously, these departments were siloed from sales and finance operations, which created a serious gap in data that could impact various stages of the revenue cycle process and general business growth.
RevOps was created in response to a need for enhanced company-wide transparency. By incorporating a solid RevOps team, led by a revenue operations manager, companies can remove cross-department disconnects that cause revenue data inaccuracies and inefficiencies. To reap the benefits of RevOps in your business, you must create your own revenue operations team.
How to Create a Successful Revenue Operations Team Structure
When deciphering the best revenue operations team structure for you, it’s important to consider the specifics of your company. Depending on the current structure of your organization, revenue operations will incorporate any department or role that impacts the current revenue lifecycle. Therefore, your RevOps team might look different than that of a larger organization or a different industry.
There’s no specific revenue operations team structure you must follow, so long as each department in your current customer lifecycle is included. To ensure your RevOps team includes key players in your revenue-generating process, consider these three steps.
1: Establish the Needs of Your Company
The structure of a revenue operations team boils down to the specific needs of your company. Begin by conducting a customer journey audit to understand the strongest areas of disconnect across all departments. Understanding who reports to who and how each department shares crucial data for revenue purposes helps identify where key players in your RevOps team will need to be placed.
Identifying the company-wide areas that contribute to gaps in the revenue process helps make the best judgment as to who (and how many) professionals you’ll need to construct a strong revenue operations team. Bear in mind, the size of a company may only allow so many employee additions, so structuring a RevOps team may involve incorporating existing employees.
2: Research What a Typical RevOps Team Structure Looks Like
As mentioned, there is no specific structure a RevOps team must follow — only guidelines based on your business size and industry. With the size of your company as a basis, your revenue operations team structure may be as simple as designating a RevOps leader to each department that communicates with one another during the customer lifecycle to ensure data accuracy.
Another method that can be used to create an ad hoc RevOps team is the use of a committee structure. Rather than hire all new staff or shift existing roles, a company can choose to select someone from each department — whether it’s a lead marketing manager or customer success leader — to report daily to a revenue operations manager to ensure complete visibility.
However, if a company is looking to significantly scale its operations, there may come a time when a distinct RevOps team will need to be constructed and operate as their own entity. Such a team would operate side-by-side to conduct revenue operations and maintain interdepartmental communication to collect crucial revenue data.
As a starting point, a basic revenue operations team structure looks like this:
- Sales Operations: Oversee various functions including sales forecasting, sales process management, and opportunity management at the start of the customer lifecycle.
- Finance Operations: Maintain multiple financial functions of a RevOps team, like financial analysis and budget analysis, while sales are in the pipeline.
- Implementation: Manage a variety of external roles, such as order management, new customer onboarding, and customer success, as well as internal professional development.
- Revenue Reporting and Analysis: Monitor the state of sales as they move through the customer lifecycle via business analysis, data science, or database development.
Remember, your revenue operations team structure can shift as your company continues to expand. Likewise, when structuring your RevOps team, there may be a bit of trial and error as you learn what organization works best for your operation.
3: Invest in the Right RevOps Tools
Even with the best revenue operations team structure, the level of productivity and efficiency a team can provide is only as strong as the tools they’re given. With RevOps, cross-department visibility is a crucial component towards maintaining highly accurate and valuable revenue processes that ultimately rely on a robust tool stack.
revVana, the Revenue Operations Platform for Salesforce, can provide your RevOps team with automated cross-department visibility with ease. Rather than manual entry, automation allows your team to collect all necessary data to locate new revenue opportunities, eliminate revenue leakage, and conduct accurate pipeline and revenue forecasting on one platform.revVana’s revenue realization capabilities further help RevOps teams identify revenue gaps and even provide exact visibility on where such gaps are occurring by sales region, customer, and product. Arm your RevOps team with the tools they need to succeed. For more details on how revVana can take your RevOps team to the next level, contact us today.