RevOps: What Role Does It Play in Company Growth
RevOps: What Role Does It Play in Company Growth
Acronym for Revenue Operations, RevOps is an automated business process that aligns a company's sales, marketing, and customer priorities with promoting revenue and growth.
The secret to a company's revenue generation success is in revenue optimization. RevOps alignment of a business's sales, marketing, and customer success operations should span across its entire customer lifecycle.
Ready to review your operational alignment? Set up some time to chat here! Because it aims to drive growth through operational efficiency, customer-facing departments must prioritize inter-departmental efficiencies while measuring key metrics such as:
- Annual Recurring Revenue (ARR) projected over a year to determine how much revenue a company can expect from a product or service.
- Sales Lifecycle Time, which is how long it takes for a company to close a deal, divided by the total closed deals.
- Win Rate measures the percentage of quantified deals sales and marketing teams won.
- Customer Lifetime Value gives a more accurate prediction of the dollar amount (total profit) a customer is expected to bring to a company.
- Customer Churn Rate gives the percentage of customers a company has lost over a given period.
Even though drivers of revenue operations vary by a company's objectives, these metrics can help businesses measure their revenue operations success. RevOps, in this case, aims to close operational gaps through improved efficiency and unifying teams through shared goals for a more cohesive business.
Core Benefits of RevOps Teams to Companies
When implemented correctly, a RevOps business process has numerous benefits, including the following:
- Removing potential roadblocks between departments to streamline operations.
- Improving core business functions to minimize overhead costs that take away from a business's capital.
- Helping sales and marketing teams work toward a unified objective of boosting profitability and sustained business growth.
- Access to project management tools and ongoing training to create collaborative inter-departmental RevOps team members who make smart decisions with better adaptation to market changes.
- Consistent high win rates and fast sales cycles lead to near-predictable business growth thanks to a data-driven decision-making approach and better customer service.
To start seeing the fruits of your labor, you must get your RevOps strategic operations up and running. Here's how to integrate the framework to foster alignment among your teams and throughout the customer journey.
Tips for Success With RevOps: How to Implement RevOps into Company Operations
A 2021 HubSpot blog states that companies implementing RevOps have reported over 15% increases in sales productivity and profitability. Teams with an aligned sales and marketing strategy experience a 19% growth speed, over 70% stock performance improvement, and a 100-200% upturn in their overall digital marketing ROI.
When your marketing, sales, and customer success departments act as separate entities, it leads to siloed processes. Such processes create clear resistance points throughout the sales conversion funnel. While it's a relatively new operational concept, RevOps is arguably among the most powerful ways to boost revenue through your business. Here's how you can implement RevOps in your company:
- Conduct an overarching audit for each department to gain objective insights into your business's performance.
- After an in-depth audit, use collated data to prepare a plan of action so that teams know what to do more effectively to improve company profits.
- You may need to restructure forward-facing teams, outlining the various roles within the RevOps team to successfully onboard your revenue operations strategy.
- Once you have a flexible timeline to hit your milestones, schedule regular meetings with teams to ensure everyone understands what needs to be done to achieve new revenue and profit goals.
- Create a comprehensive customer roadmap detailing everything from possible roadblocks clients may encounter at different sales touchpoints to setting up periodic audits and inspections.
- Design a consolidated action plan for troubleshooting product positioning and distribution logistics so that important steps to revenue growth are accountable.
- Enable efficient team collaboration for a continuous feedback loop that ensures teams enhance their processes.
- Help revenue-facing teams that rely on the seamless sharing of high-quality data by establishing information transparency and centralized analytics.
- Identify and invest in your company's RevOps automation software needs to help automate processes and enhance productivity and team collaboration.
- Leverage continuous monitoring to identify structural flaws, misaligned priorities, data glitches, etc.
Driving conversions is not just the sales team's obligation. Instead, RevOps touches departments connected to the revenue-generating ecosystem to create an overlap where teams perform in sync. Onboarding revenue operations early on could give you an edge over your competitors.
RevOps Success Cases
These two companies are among many that have experienced success through adopting revenue operations and intelligence (RO&I) systems.
- Roast Inc.
This is an all-in-one platform within the restaurant niche run by Ross Nibur, who believes Design Thinking is a critical part of excelling as lead generations manager. As one of the top 10 Sales Development Leaders worldwide, Ross Nibur accounts his success to well-designed business procedures. This involves resolving bad business processes to capture lost revenue, outfitting teams with the right tools, and integrating technology into your core business functions. Doing so effectively sets up your employees for success, to ensure they perform their jobs efficiently.
- Go Nimbly
As a firm that helps companies increase their client's customer revenue by eliminating operational silos, Go Nimbly excels in two ways;
- Creating personalized experiences for customers: to deliver a truly personalized customer experience, companies must understand their customer's buyer journey and their role in improving it.
- Building brands through experiences: in this case, successful companies are leveraging technology to build personalized and immersive customer journeys across every channel, consequently building stronger relationships with them.
More B2B companies today are slowly adopting the RevOps revenue operational model and expect a 75% use increase by 2025, says Gartner Inc. If you want to generate more revenue and stay competitive, it's time to prioritize Revenue Operations. With the answers we've provided to the question; "how can RevOps help my company grow," are you ready to get started? Connect with us now.