RevOps, or Revenue Operations, is an end-to-end process for businesses for driving revenue predictably across, marketing, sales, and renewal, using execution rigor and transparency. The role of revenue operations is to distribute visibility across your whole sales team, specifically, alignment. This distribution will improve your efficiency across the entire revenue operations, help you attain insights to drive increased revenue growth, and improve your predictability on driving revenue.
Revenue Operations Benefits and Creating Value for Your Team
Revenue Operations adds predictable business growth and improved collaboration for your company as well as allows your business to outperform those that do not align with these go-to-market functions.
It has proven to accelerate the growth of B2B tech companies who have leaned on revenue operations by increasing their annual recurring revenue significantly. Some of the benefits they are experiencing include 10 to 20 percent increases in profit margin. Studies have also indicated when there is a tighter alignment between go-to-market teams the results include:
- A to 15 to 20 percent increase in the internal customer journey
- A 100 to 200 percent increase in the digital marketing ROI
- A 30 percent decrease in GTM expenses
- A 10 percent increase in lead acceptance
In addition to these results, public companies with revenue operations have seen more than 70 percent higher stock performances.
The Key Metrics for RevOps
The main goal for Revenue Operations is to make your revenue-generating predictable, which means net dollar retention for post-sales, closed deals for sales, and pipeline growth for marketing. A sample of the key metrics for which revenue operations are accountable for include:
- Rate of wins
- Customer acquisition costs
- Recurring revenue on an annual basis
- Upsells and renewals
- Churn of customers
- The lifetime value of customers
- Forecast accuracy
- Pipeline velocity
- Sales cycle time
Before you can begin to garner these kinds of metrics, you must ensure the data integrity and process workflows of your CRM, whether it’s Salesforce or HubSpot.
How to Know if Your Company Needs Revenue Operations
The best-in-class companies already have Revenue Operations in place and are experiencing the benefits of this new way to revenue. If your company is unsure whether or not it’s ready for this type of alignment, there are some ways you can decide:
- Do you have a goal to drive accountability and transparency at scale?
There is a profound shift in how companies think about revenue-generating. The need for accountability, transparency, and predictability from the front line to the board room is greater than ever before. As companies begin to align their whole go-to-market motion so there is repeatable motion and rapid growth, they realize everyone on the revenue team has to be aligned and working for the same success metrics. In order to achieve this success, it is necessary to have the ability to operationalize at scale.
- What happens when your functional teams and revenue targets are not aligned?
If your company’s go-to-market teams are not aligned, it will feel as though you are on the same page, but likely speaking different languages. Sales and marketing misalignment is all too prevalent, and businesses with split sales and marketing teams that operate independently are at a disadvantage. Both your marketing and sales staff share the same objective of generating revenue and profits, therefore it is critical to keep them in sync. Sales and marketing alignment may be the most significant opportunity for increasing company performance today. When marketing and sales teams unite around a single revenue cycle, they dramatically improve marketing return on investment (ROI), sales productivity, and, most importantly, top-line growth.
Silos between sales and marketing departments are a constant problem in every industry. The major problem with misaligned sales and marketing teams is the inefficiency that develops as a result of this, leading to operational processes that have no clear aim. If both teams were in sync, efficient flows would be driving more insights that impact the bottom line, creating a greater sense of truth.
RevOps is Here
RevOps represents the cadence, communication, and data for the people in the room who are making decisions all towards a common goal. When you put these elements into all nooks and crannies of your business, everyone can work together towards making your business a success.
Where to Learn More About RevOps
Delegate is here to help revenue operations leaders and teams get the consistent data needed to run their daily operations – and more importantly revenue engine. We will show you data-driven insights that will accelerate your revenue growth and make your business succeed.
Through our tech stack management, we can show you how an optimized go-to-market system can help you focus on your strategy, and achieve optimal results – faster.
About The Author: Patrick Hudgins
Patrick is the co-founder and CEO of Delegate.
More posts by Patrick Hudgins