What is Revenue Operations (RevOps) and Does Your Company Need it?

What is Revenue Operations (RevOps) and Does Your Company Need it?

Long gone are the days of the separate tech stack and systems for each revenue-driving teams—from spreadsheets and CRM to market automation. They not only created discord among different company divisions but also led to time and resources being wasted to get the teams to come together on one decision. The solution to this? Revenue Operations. Revenue operations is a term that gained popularity in 2019, and to this day, it’s a fast-trending term that, unfortunately, many people still don’t und

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Mateo Bilbao

scalestack

What is Revenue Operations (RevOps) and Does Your Company Need it?

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Sales & Marketing head at Scalestack

Long gone are the days of the separate tech stack and systems for each revenue-driving teams—from spreadsheets and CRM to market automation. They not only created discord among different company divisions but also led to time and resources being wasted to get the teams to come together on one decision. The solution to this? Revenue Operations.

Revenue operations is a term that gained popularity in 2019, and to this day, it’s a fast-trending term that, unfortunately, many people still don’t understand. We’ve all seen the need for revenue operations in SaaS companies and B2B businesses, as well as the rising demand for revenue operation positions like Chief Revenue Officers (CROs) on LinkedIn, but What exactly is revenue operations?

What is Revenue Operations?

Revenue Operations (RevOps) is the automated, end-to-end business process that aligns customer success, sales, and marketing organizations for business efficiency, drives revenue predictability, and boosts revenue growth.

In simpler terms, each section of a business has its operations team—sales have sales operations that report to the head of sales, marketing has marketing operations that report to the head of marketing, and then you have the project management team.

Each division knows its responsibility and, on an individual level, performs well. The problem with this is that this isn’t how a business runs.

The operations management team has different agendas, priorities, and goals. Since each team is siloed, coordination becomes a problem. At the end of the day, the company's goal is customer satisfaction and revenue growth, which cannot be achieved if all the teams are not aligned around one goal.

This is where RevOps comes in. Revenue operations are responsible for bringing together sales, marketing, and customer success in a holistic manner, ensuring all teams are accountable for revenue. This approach is the key to ending the silos between different departments and making certain that they all are on the same track.

This is a centralized operation that is responsible for the following business units:

What are the Responsibilities of RevOps Team?

The RevOps team is responsible for the data, systems, and processes that their clients require every day.

It may seem that most of what RevOps function is system administration, integration, and performance management, but it is much more than that. There is also sales planning, documentation, training, data management, and evaluation.

In many ways RevOps is the train track of any business, ensuring that the train functions smoothly and always reaches its destination on time.

The four areas where revenue operations is responsible are:

Why is there a Rise in Revenue Operations?

In the last few years, there has been a rise in the way companies are evaluating their revenue process. Customers are demanding more transparency and accountability, which cannot be achieved if there isn’t internal support for the client-facing teams.

With the rise in technology and online information, customers prefer to do their research before even talking to a customer representative. This along with the need to improve post-sales services has pushed companies to take drastic steps to ensure all the revenue-driving teams are thoroughly aligned throughout the sales funnel.

According to the 2021 Forrester Study, companies that have revenue operation solutions in place are much better off than companies that don’t; 41% of companies reported major quantifiable revenue benefits, while 69% saw a boost in overall benefits.

Many B2B companies that integrated revenue operation strategies into their business model experienced a 10%-20% increase in sales growth, according to the Boston Consulting group. Along with this, their research also yielded the following results:

How do You Know if You Need RevOps?

The future of revenue growth is revenue operations, and all smart B2B businesses are making changes to their infrastructure to accommodate these changes all the while reaping the benefits of an efficient system to revenue. However, if you’re still not convinced why you need it, perhaps these reasons will convince you.

You want to align the revenue targets across sales, marketing, and customer success

When your revenue-generating teams aren’t aligned, it may seem like they’re working well together, but in reality, they’re not. Your marketing team may be meeting their goals like organizing a PR event or leading a successful marketing campaign, if your sales team isn’t meeting its revenue targets, then the efforts of the marketing team are all in vain.

The number one reason why a B2B—or any business—needs a revenue operations function is so there is no disconnection between the teams. Disconnection leads to one or more teams fulfilling their goals but the other teams not being able to use the results from those goals to achieve organization goals, which puts the complete revenue organization at stake.

You want to drive transparency and accountability at scale

If there is no transparency or accountability throughout the organization—from the boardroom to the frontline—then predicting stable revenue and increasing visibility would be at risk. The only way to achieve this is if everyone on the revenue team is aligned towards the same set of goals and success metrics, which would require operationalization to scale.

You want the key business metrics to match up

The job of sales, marketing, and customer success teams is to meet their department goals through their technology stack and using their own resources and budget. Since this differs across all three departments, there is a high chance of inaccurate results, disconnected data, and discord between the teams.

The revenue operations teams work to eliminate the disconnections in data by measuring and analyzing the sales funnel, reducing friction between the teams, and ensuring all the teams are in sync to successfully achieve organizational goals.

All in all, in the current market, without active revenue operations teams, B2B businesses can achieve limited success. To achieve consistent revenue growth and synergy between all market teams, you need RevOps.