Introduction to RevOps
1. What is Revenue Operations?
Revenue Operations is the function in your organization that aligns revenue generators (Marketing, Sales, Success, and Finance) across the revenue cycle, in order to plug inefficiencies existing between them and thereby maximize revenue.
2. Why do you need RevOps in your organization?
When revenue drivers are siloed with their tools, processes, and goals, there exists a misalignment that causes leaks in your revenue cycle. A SiriusDecisions study concluded that companies that aligned their revenue-generating functions had a 19% faster revenue growth and 15% higher profits. RevOps is the unification of Marketing, Sales, Success and Finance so that they work on the same page.
3. Is RevOps the same as SalesOps?
No, SalesOps focuses only on the sales function of the organization by refining processes and reducing friction in the sales cycle. Whereas, RevOps is a more holistic end-to-end approach which is implemented to manage operations across Marketing, Sales, Success, and Finance to increase and retain your revenue.
4. What should the RevOps function in your organization consist of?
There are four building blocks of RevOps
People: The RevOps team is the center of all revenue-driving processes. They channelize requests from different teams and prioritize them, reduce friction in onboarding new processes, looking at KPIs that matter and making the right decisions.
Tools: As you scale you need to migrate data, unplug and plug existing tools and processes, etc. Henceforth you need a solid infrastructure that lets you handle these requirements as and when they arise without being a cog in your process.
Processes: Processes are required to reduce friction and eliminate practices that hinder revenue growth amongst and between your revenue teams, so that it doesn't impact your revenue cycle.
Analytics: End-to-end visibility across data is required to function without chasm and uncertainty. Complete visibility of your revenue metrics is required to supercharge your growth.
5. What role does finance play in Revenue Operations?
Finance plays a pivotal role from an annual operations angle and focuses on controlling your costing, expansion, payback period and growth of your recurring revenue. In SaaS, the lines where sales ends and finance begins are blurry. Most of the metrics like LTV: CAC and OTE (On-target Earnings) coincide between these functions. Therefore, alignment across these teams is important to meet your revenue guidelines.
6. When is the right time to build a RevOps team inside your organization?
Ideally, there is no right time to build a RevOps function. If you face similar problems like the ones listed here, you should start thinking RevOps
Your goals aren't aligned between your revenue-generating teams and your numbers start falling through the cracks.
Your predicted revenue target and your actual revenue earned aren't synchronous with each other during every quarter.
Disconnected flow of information between teams, which leads to wrong messaging, execution delays across functions.
Learn more about the key contributors to an anti-fragile RevOps team
7. What are the benefits of implementing RevOps?
By incorporating a RevOps function in your organization, you get
Entire funnel accountability and clarity
Data-driven collaboration and decision making between your revenue-generating teams.
Predictable business growth.
Higher rates of won deals and faster sales cycle.
8. How does RevOps enable customer experience?
Your revenue cycle merges with your prospects' journey at different stages. In subscription businesses, happy customers have a longer LTV. More specifically, happy customers are 74% more likely to stay for one more year. The only way to achieve sustainable revenue growth is by aligning all your revenue-driving functions to deliver a stellar customer experience so that every revenue opportunity can be ready to be cashed.
Here's a detailed account of how customer experience is just another side to RevOps