Table of Contents[Hide][Show]
If your company offers software as a service, you may find it difficult to properly put the needs of your customers first at each and every point of contact.
As your consumer goes from team to team, there may be areas of friction and even communication failures if your marketing, sales, product, and customer support teams are operating in silos.
The interaction between various departments in your company is complicated due to the nature of SaaS businesses, whose buyer’s journey includes renewals, upsells, and cross-sells.
Customers may become disgruntled, and you run the danger of losing market share to your rivals if your team is unable to discover a solution to streamline the cross-functional customer experience.
SaaS companies must now, more than ever, seamlessly integrate each customer’s continuing buying experience. In order to deliver the unified, end-to-end buying experience that consumers need, teams need to get out of their silos and use revenue operations (RevOps).
In this article, we’ll take a detailed look at RevOps, including its value, foundational elements, advantages, and other factors.
What is Revenue Operation (RevOps)?
Revenue operations (also known as RevOps) is a corporate function that tries to optimize the revenue potential of the company. RevOps examines all aspects of a company’s/business’ revenue cycles and sales operations and discovers methods to optimize their workflows or processes to generate more efficient sales or greater overall returns.
RevOps often aid in the unification and alignment of sales, marketing, customer success, and internal systems. But when we talk about integrating RevOps into your organization, we’re not just talking about bringing in a new management team to oversee three or four divisions.
Instead, truly successful RevOps integration requires rethinking how you structure your whole organization.
In brief, a RevOps team guarantees that the duty for generating sales development extends beyond your salesforce and becomes the shared obligation of all team members, client-facing and not.
Importance of Revenue Operation
Revenue operations as a phrase and approach are relatively new, yet it is intimately related to a changing environment of how firms promote, sell, and support their consumers.
Customers nowadays anticipate a great internet experience. They also want organizations to remember earlier contacts and queries without having to repeat facts over and over.
Connecting sales, marketing, and service teams via revenue operations is one way to achieve those client expectations. With more touchpoints for consumer information than ever before, revenue operations teams or administrators are entrusted with making data and information collecting simple and transparent – utilizing both technology and organizational design.
Revenue operations are inextricably linked to an organization’s data, which is becoming increasingly important. Revenue operations’ major purpose is to combine data from sales, marketing, and service departments in order to deliver a better 360-degree customer perspective before, during, and after the transaction.
3 Pillars of RevOps
Process, Platform, and People make up the three cornerstones of RevOps.
Each pillar serves as a basic construction component on which the following pillar is constructed. Focus, clarity, and responsibility can only be attained throughout your business if each pillar has been correctly established.
In order to foster a culture of cooperation, you must ensure that the appropriate procedures are in place. To promote responsibility and trust inside your business, RevOps activates standardized processes.
You will start to see additional benefits, including faster sales cycles, increased retention, and a larger volume of upsells, as your teams collaborate to turn prospects into adoring fans.
Success in every scenario depends on having reliable information. You must integrate and coordinate your organization’s technologies in order to tell a complete and accurate account of your revenue funnel.
Individuals are able to understand how they both, directly and indirectly, affect the pipeline by offering a single source of truth.
People who coordinate and manage your platforms and processes make up the third and last pillar. RevOps will either assign the duties of RevOps to your existing team members or form a dedicated RevOps team depending on the size of your firm.
Benefits of RevOps
Standardized tech stacks
A tech stack is a collection of many programs and platforms that can automate your work. With RevOps, diverse teams can work together under one roof while using the same tech stack.
The teams’ tech stacks are more fluid, allowing the sales team to know how a client was marketed to and the success team to know what products were sold to consumers. Everyone’s synchronous tech stacks can make reference to many platforms.
Clearly stated client expectations
A company’s many departments frequently don’t interact well with one another. When sales representatives reach out to clients, they may say something contradicting.
With RevOps, this is not the case. Communication is constant, and everyone is in agreement. Customers have clear expectations when RevOps are implemented successfully. This leads me to my next point.
Customers are pleased when expectations are explicit. They are more aware of a customer’s wants when many departments are collaborating well. Customers will surely be pleased as a result since they will believe that the entire organization is aware of their demands.
Strong indicators of customer outcomes include satisfied consumers. Customer outcomes are the victories that your clients experience as a result of your product’s positive effects on their businesses and subsequent generation of income.
Increased Client Loyalty
Revenue operations involve more than simply earning sales; it also involves maintaining the clients you’ve fought so hard to get. As much as it is a sales-based business, RevOps is a retention-based one.
Customer success team employees are very familiar with the clients since they are involved in every step of the process. Customers will be more likely to stick with your goods as a result of this increased rapport and trust.
Greater sales and profit
Revenue operations make the sales funnel run like a well-oiled machine, increasing conversion rates. Sales operations are a segmented process, which we shall explore in more detail later.
Sales representatives are only one component of RevOps, not the entire system. When anything goes wrong, it’s simpler to pinpoint the problem’s root cause and implement swift solutions.
Customers like it when things go well and feel comfortable giving the business their money, which eventually boosts sales and income.
You can forecast growth and revenue much more easily than in the past with a data-driven, flexible machine. Through reliable measurement, novel tactics, and/or consistent, precise measurement, RevOps produces predictable development.
Additionally, because RevOps is a more synchronous process, teams are better equipped to adapt to market shifts, which leads to predictable growth even in unforeseen circumstances.
RevOps Vs SalesOps
SalesOps gives selling a system. It alludes to the group, function, tasks, and procedures that assist a sales team. Members of SalesOps are responsible for a variety of tactical and strategic tasks, including lead management, process optimization, pay and incentive schemes, territory architecture and alignment, and sales technology, among others.
SalesOps allows sales representatives to concentrate more on closing deals, which improves performance. As you can see, because SalesOps is solely concerned with the sales process and customer conversion, it is a segregated process when compared to RevOps.
RevOps, on the other hand, is more inclusive because it includes members from sales, customer success, and marketing. Because they lack a clear understanding of how diverse systems interact, siloed operations can cause minor difficulties to spiral out of hand.
When diverse operations collaborate, they have a greater understanding of why a problem arose and how to remedy it. It’s worth noting that RevOps is purposefully segregated from the teams it serves, and RevOps teams report to an organization’s top leadership.
A RevOps marketer, for example, would not report to the company’s CMO; instead, they would report to the CRO or whatever other RevOps employees report to.
How to implement RevOps?
Implementing RevOps at your firm, like any great endeavor, isn’t as straightforward as snapping your fingers. To guarantee a solid foundation moving ahead, you should adopt a deliberate approach to employing RevOps.
While the process may differ significantly based on your organization’s size, industry, and goals, there are several fundamental stages that every firm should take as they embark on their RevOps journey:
You’ll need to discover any weak points and places of separation between your organization’s departments right away. Begin by asking some of the following essential questions about your income journey:
- Is our customer-facing material reflective of each stage of the purchasing journey?
- Are our sales, customer success, and marketing teams on the same page in terms of message, strategy, technology utilization, procedures, and goals?
Next, assess your analytics and revenue stream to ensure you have total visibility into the health of your organization. Positions and hierarchies should be restructured as needed to better suit the RevOps strategy (e.g. everyone in operations, tools, and analyst roles falls underneath a single leader).
Then, ensure that the tools your revenue-generating teams are using are effective. If not, you may need to do some study in order to invest in and supply the necessary technology and processes for a more successful and efficient operation.
Members of your RevOps team can begin operating as a cohesive one once they are supported by the appropriate tools and practices.
Follow-up and optimization
Putting together a RevOps team is not a one-and-done operation, but rather a process that should be enhanced on a regular basis.
Schedule regular meetings to determine what’s working, what isn’t, and where you can enhance strategy, procedures, technology usage, and more. Then, based on your findings, take steps to improve your RevOps team and maximize their worth.
If your company objective is to identify and improve your shortcomings, or if you want to change your current business plan in order to boost revenue, the RevOps model can help.
Revenue Operations can assist you in locating problems and solutions in your firm that you were unaware of. It will also strengthen your company’s present capabilities, allowing you to achieve even greater success.
RevOps can assist automate chores while keeping concentrating on personalization, which is perfect if managing your business is becoming more complex and/or your present procedures do not appear to be up to pace.