Published on Friday, September 1, 2023
In recent years, the methods used to search for desired products have changed significantly. The shift is largely a result of e-commerce, which makes more product information available to consumers at just a click of a button. How can your online company compete in this fully digitized world? Investing in revenue operations may be the answer.
What is RevOps?
RevOps is a B2B and B2C strategy that aligns siloed revenue teams and unifies goals in marketing, sales, customer success, support, and finance. It creates a singular framework for data sharing, enabling departments to better understand each other’s operations and work processes.
For instance, a customer service team with complete client purchasing history and satisfaction data can inform the sales department for improved future sales opportunities. With a good RevOps team structure in place, the sales team has the ability to relay that information to marketing for promotional efforts.
RevOps aims to eliminate disjointed business goals and miscommunication caused by siloed departments. Effective communication is crucial for driving company success. Investing in a robust CRM platform ensures teams have the necessary data for their next sale.
What is Sales Ops? Revenue Operations vs. Sales Operations
Main article: Revenue Operations vs. Sales Operations: Key Differences
Sales operations and revenue operations differ. You could define sales operations as concentrating on streamlining the sales process and providing resources for sales teams, including strategy, territory planning, software management, and commission determination. RevOps, on the other hand, focuses on revenue growth by integrating sales, marketing, customer service, and finance departments to create consistent goals, covering the entire customer journey and every part of the sales funnel.
Sales operations are about finding ways to sell products better and faster, while also improving how well the business can manage its funds when selling items. Revenue operations are focused on three separate goals:
- Pricing items for better conversion and margin rates.
- Reducing revenue leakage to ensure the group keeps more of what it earns.
- Using customer data to find appealing revenue opportunities.
All parties will interact together to create a suitable approach to operational activities. Everyone can manage the data they gather well and create a more thorough and effective approach to content.
How to Make RevOps a Reality at Your Company
RevOps helps all of your teams work more efficiently and effectively, which in turn grows company revenues. Four things need to happen for a company to realize this goal:
- You must establish unified targets that are aimed at fostering growth so you can increase your company’s revenue.
- You must prioritize the accessibility of company data so that anyone in any relevant department can access customer data at just a click of a button.
- You must align all of the processes with what you are trying to achieve.
- You must analyze company data across all departments to make informed decisions that are based on a holistic overview of company performance.
These points are all key parts of a RevOps methodology. By investing in RevOps, you can completely transform the way that your company works.
How Revenue Operations Can Benefit Your Business
There are four main ways that RevOps benefits a business.
RevOps Aligns Your Team’s Revenue Goals and Efforts
Because of disjointed sales and marketing alignment, it can be difficult to create a shared vision and identify revenue-driving divisions. This, in turn, can potentially cost the company. RevOps aims to improve communication, reduce siloed departments, and properly align teams regardless of location, ensuring everyone is on the same page.
RevOps Increases Your Organization’s Operational Efficiency
RevOps supercharges operational efficiency across your entire organization. It empowers sales teams to sell and fuels marketing teams to craft campaigns with precision. If forecasting challenges hamper sales, entrusting analytical and operational responsibilities to a revenue operations company, such as revVana, can liberate departments to excel in their respective siloes, thus optimizing their contributions to the business.
RevOps Improves Accuracy In Forecasting
A single framework coupled with shared data increases the company’s accuracy in forecasting revenue. No longer will finance and executive teams make decisions that only benefit one department. The single truth of the RevOps framework allows them to make decisions for the entire organization. There are numerous benefits to investing in revenue operations. Not only can it help you to increase your revenue with time, but it can also help to boost work satisfaction within your team.
RevOps Cuts Costs And Eliminates Confusion
Companies typically use numerous digital tools, often overwhelming teams. RevOps simplifies this by consolidating efforts, helping identify the most needed tools across departments. This holistic approach saves costs, reduces tool count, and minimizes employee confusion about tool usage.
How You Can Use Technology to Help With Revenue Operations
Siloed departments in companies can lead to miscommunication and blame regarding revenue objectives. RevOps teams counteract this tendency by employing technologies that promote unified data and processes.
The first technology they can turn to is revenue forecasting software like revVana, which has CRM integration, sales bookings management, automation tools, and multi-scenario planning. A single dashboard with a collection of tools makes it easier for unified data sharing.
The second is through phone service integration, which enables sales reps to record customer interactions, while managers monitor alignment with revenue targets. Conversational Intelligence tools transcribe conversations, accessible via a unified platform. A Sales Engagement platform centralizes sales communication, helping analyze successful strategies. Marketing automation and intelligence tools guide sales focus on products or services, while marketing teams gain insights from the sales engagement platform.
Related article: How to Build a Revenue Operations Software Stack for a B2B Business
Key Metrics for RevOps
The RevOps process will cover many critical metrics. Here’s a look at what metrics appear in the RevOps process:
- Annual recurring revenue – The ARR measures the revenue that comes in every year through a recurring transaction or contract.
- Revenue growth – You can measure how well your business brings in revenue and dictate if the growth is suitable.
- Cost of customer acquisition – The cost involves how much you spend on getting a new customer. Advertising expenses, promotional projects, and other things used to lure in new clients will go into this charge.
- Revenue yield – The revenue yield measures what you get out of your sales work. The yield is the total income you get from one place. It can come from one customer or a grouping of customers who support one product or service.
- Churn rate – The churn rate measures how many customers will no longer do business with you after a certain time. The rate measures how much money you could lose from customers no longer adding to your bottom line.
- Renewal rate – There may be more customers renewing their services with you than you expect. This rate can help you measure what is happening in this situation.
- Revenue backlog – Your business could have contracted revenue it has yet to collect. The revenue backlog measures what you need to collect and helps you identify if you’re bringing in enough money for whatever interests you the most.
- Forecast accuracy – The accuracy measure covers how well you’re able to predict sales. The measure works for short- and long-term sales alike. It helps you analyze how well your business manages its sales and if it is bringing in enough money.
Explore How Revenue Operations Can Work for You
Embrace the transformative power of Revenue Operations (RevOps) – a game-changer for your business. As a dynamic strategy, RevOps aligns key processes, enhancing management and driving revenue growth. Though a relatively new field, there’s no universal formula. Success hinges on uniting revenue generators, demanding their buy-in and collaboration. While navigating its complexities can be a challenge, the rewards are substantial. RevOps emerges as a strategic investment for businesses determined to amplify their revenue and foster growth.
Want to create a RevOps strategy for your company? Get started today by checking out our guide: