In the last few years, Revenue Operations (RevOps) has become one of the most talked-about topics in the B2B space, in this post we will look at what is revenue operations and why it is such a growing trend.
There was an 80% increase in companies implementing RevOps between 2018 and 2019 and over 35% of businesses either already have a RevOps team or are in the process of building one.
In the last 18 months, RevOps job titles on LinkedIn have increased by 300%, and it is little wonder, when businesses that have adopted RevOps are outperforming those that haven’t, closing 38% more deals and posting 208% more marketing revenue, according to HubSpot reports.
So, what is Revenue Operations?
RevOps is the strategic integration of your sales, marketing and service departments into a ‘revenue team’, aligning all teams around revenue goals.
This team works end-to-end across the customer lifecycle, driving efficiency, customer experience and keeping all teams accountable to revenue.
While the day-to-day processes remain within the constituent departments, allowing them to do what they do best, the teams are part of an integrated, well-oiled powerhouse growth machine.
Think of all the people, processes and platforms needed to run your business and achieve results efficiently. All those elements, particularly your go-to-market teams, must align and work towards the same goal - revenue generation.
Traditionally in the B2B space, marketing, sales and customer success have been siloed, each with their own operating functions and set of goals and priorities. The challenge with this way of working is each division is separated. The different goals and priorities make coordination and alignment much harder to implement - this is where Revenue Operations comes in.
RevOps brings all your teams together, creating greater transparency around driving revenue across marketing, sales, up-sells and renewals.
This allows you to focus on:
● Your people - aligning your teams around a single view of your business with shared revenue targets.
● Your data - Connecting business and activity data your go-to-market teams and tech stacks.
● Your processes - increasing operational efficiency, removing roadblocks between departments and streamlining what you do across your business to provide a seamless customer experience.
Benefits of Revenue Operations
The key benefits for companies that align their revenue-generating teams include:
● Higher profitability
● Faster revenue growth
● Increases in digital marketing ROI
● Increases in lead acceptance
● Increase in sales productivity
● Increase in internal customer satisfaction
● Reduction in go-to-market expenses
In a recent Forrester report they identify 7 elements to align your revenue engine as, vision, goals, planning, processes, infrastructure, data and measurement.
Revenue Operations also builds alignment with other stakeholders, such as Finance, Product, and the Executive team. Its holistic approach breaks down silos between teams, as the digital customer experience continues to evolve and the need for your go-to-market teams to share information has grown.
Revenue Operations bring them all together and more precisely measure the ROI of those departments. Revenue Operations acts as a central hub for customer information for the business. With its focus on customer acquisition, bookings, recurring revenue, customer churn and satisfaction, and other customer-centric metrics as it uses tools such as analytics and AI to identify trends and opportunities driving revenue streams.
Growing businesses, especially in the SaaS industry, lose 20-30% of their revenue to operational inefficiencies.
Companies that align their revenue operations grow 12-15 times faster than their peers and are 34% more profitable.
Why is Revenue Operations so important now?
Cross-functional alignment has been a long time coming, but the COVID pandemic has accelerated this need. More distributed teams and a wider spread customer base means there has never been a better time to make revenue a process. RevOps also responds to rapid and significant shifts in the ways customers buy. Customer journeys are becoming increasingly complex. With more options, channels and touchpoints, it’s harder than ever for businesses to remain agile.
Customers now expect a positive and seamless buying experience from the first touch to the final sale, implementation and contract renewal. They expect you to understand them and their needs and to know about previous interactions and inquiries, without having to repeat details throughout multiple interactions.
Aligning and building coordination and data sharing across sales, marketing and service teams through RevOps is how you meet those customer expectations.
Lack of alignment across these go-to-market teams is one of the biggest factors impacting growth and business outcome.
Everyone agrees that revenue is the most important activity within any business. Yet, currently, most companies within the B2B space have disconnected and inefficient revenue processes.
Revenue Operations allows you to streamline and optimise the revenue process for improved efficiency and growth, resulting in fully aligned teams, insightful data and enhanced business agility. And, as the unknown continues, there’s never been a better time to make this change to your business.
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