October 5, 2021

What is RevOps (and why it is must be in your Sales Process)?

RevOps is the latest trend in the Sales Process industry, where it has been used to make sales more efficient and effective. RevOps is a process that helps facilitate the relationship between an agent and a customer, and focuses on creating buyer-centricity in all areas of the selling process. RevOps also seeks to improve interactions between agents and customers, helping build rapport and strengthening relationships.

Large corporations' revenues continue to rise, but their growth rates are declining. Professionals in revenue operations are those in charge of the end-to-end administration of new business, fulfillment, marketing, and customer service are vital to the success of go-to-market strategies. The tasks that must be completed along the road to purchase are sometimes referred to as revenue operations. Lead nurturing, lead routing, demand development, billing operations, and contract or incentive management for current clients are all examples of these tasks. In some areas, revenue operations professionals are referred to as RevenueOps specialists.

What Are Revenue Operations?

Revenues at large companies keep on rising, but revenue growth rates are slowing. Revenue operations professionals—the people responsible for the end-to-end management of new business, fulfillment, marketing, and customer support—are critical to successfully executing go-to-market (GTM) plans. Revenue operations also refer to the activities that must be executed along the path to purchase. These activities include lead nurturing, lead routing, demand creation, billing processes, and administration of contracts or incentives for existing customers. Revenue operations professionals are known as RevenueOps specialists in some geographies. 

Large organizations have always had revenue operations departments. But what is driving this increasing need for Revenue Ops specialists today? A combination of factors is fueling the demand for Revenue Ops specialists.

One factor is that revenue growth rates are slowing, and the pace of change in digital customer acquisition spending seems to be accelerating. Revenue operations professionals manage multiple processes and many different technology solutions, so it is becoming harder for product managers and finance executives to keep track of their progress or how much they are spending on marketing efforts. RevenueOps bridge this gap between product teams and finance teams, helping them define business cases and forecast return on investment (ROI). 

RevenueOps helps companies achieve the right balance between the speed at which new opportunities should be pursued vs. profitability by providing a clear picture of what makes sense from a financial point of view.

In addition, RevenueOps responsibilities have been growing as playbooks developed by RevenueOps teams are used to drive marketing spend across the company. RevenueOps professionals also help companies solve problems that occur when an organization grows quickly, leading to disorganized growth strategies. Such professionals work with finance and planning executives to determine which KPIs matter most. Talent is key for RevenueOps teams, who must understand the breadth of technology solutions in their area of responsibility.

What Is Causing the Rise of Revenue Operations?

The demand for Revenue Ops specialists is growing rapidly due to several factors, including;

  • "Revenue Growth Slowing Down": Companies are increasing spending on digital marketing efforts, but revenue growth rates are slowing down.
  • "Disconnected Customer Acquisition Playbooks": The playbooks for managing customer acquisition activities have become very disconnected. RevenueOps is starting to join together the various marketing and sales playbooks into one Revenue Ops playbook.
  • "Marketing Spend Increasing": Revenue growth at large companies has been fueled by an increase in marketing spend, which Revenue Ops professionals can help control.

Role of Revenue Operations in GTM strategy
Today, revenue growth is increasing as a result of market consolidation within businesses such as retail, IT services/consulting, and consumer products. There's also increased spending on digital marketing efforts with a greater focus on bundling different channels around customer acquisition campaigns—for example, mobile and social media advertising.

Businesses must think more strategically about how they will reach their key prospects and existing customers: How do we improve our conversion rates across the board? How do we improve our ability to close new business through lead generation, nurturing, and follow-up processes? RevenueOps professionals help answer these questions.

The Benefits of Revenue Operations 

Revenue Ops helps companies achieve the right balance between the speed at which new opportunities should be pursued vs. profitability by providing a clear picture of what makes sense from a financial point of view. Their playbooks provide a framework that ensures Revenue Operations professionals are involved in strategic initiatives from day one. This role helps them becomes an integral part of go-to-market teams RevenueOps departments integrate best practices from around the business

What Are the Key Metrics for Revenue Operations? 

The key metrics used to measure Revenue Ops include; 

  • Track Net New Opportunities/MQLs Closed Per Month. The number of qualified leads/opportunities submitted, divided by how many were closed per month. 
  • It can also be represented as "Number of MQLs/Opportunities in the Revenue Ops Playbook" divided by "Number of MQLs/Opportunities Closed This Month." 
  • Track Revenue Per Customer: Revenue generated per customer. Divide total revenue by the number of customers who were active during the period. 

Revenue Operations professionals must be involved right from Revenue Strategy to Revenue Planning, Revenue Analysis, and Revenue Forecasting 

How Do You Know If You Need Revenue Operations?   

As organizations grow, Revenue Ops knowledge becomes critical to the continued success of go-to-market teams. It can help drive revenue growth by synthesizing customer behavior data, incorporating new technologies, and analyzing cross-functional best practices. RevenueOps professionals are integral members of Revenue Strategy, Revenue Planning Revenue Analysis Revenue Forecasting  Revenue Ops playbooks develop the RevenueOps team, which creates standard best practices for these professionals to help increase revenue through improving funnel performance.

In Conclusion  

Revenue Operations is becoming table stakes for go-to-market teams. RevenueOps playbooks identify this field as an integral part of Revenue Strategy, Planning, Analysis, and Revenue Forecasting Businesses. This also makes sure these professionals are involved in strategic initiatives from day one.

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Written by

Harsh Gupta

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