Revenue operations definition
Revenue operations is defined as a department or framework within a business that centralizes the operations and data of all the revenue-generating efforts. That means marketing, sales operations, customer success, and product developers work together to share information and make growing the company’s revenue a shared commitment.
A report by Forrester found that 72% of B2B firms find it moderately to extremely challenging managing multiple CRMs across geographic locations or departments with different technology. In fact, the report establishes the greatest challenge organizations face in meeting their marketing and sales objectives is managing data and sharing insights that drive actions across silos.
The shift toward revenue operations reflects a response to this challenge. According to a LeanData report, companies with revenue operations functions increased from 20% in 2018 to 31% in 2019. The number of adopters in the process of deploying revenue operations also grew: In 2018, 15% of companies were building their revenue operations function, compared to 27% in 2019. Revenue operations is becoming more common, and that means the window to gain benefits as an early adopter is quickly closing.
Let’s define this new approach to business structure and discuss how organizations can make the most of the opportunity.
Revenue operations meaning
Revenue operations enables collaboration between every department whose operations impact revenue — which means all those departments need to start sharing data. With equal access to all the available information, sales, marketing, and customer success can each make more informed and aligned decisions. Forrester found that only 43% of teams leveraged shared data across activities and technologies. When all these functions are aligned under the revenue operations umbrella and have access to the same data, customers are more likely to receive the consistent, personalized experiences they expect.
Revenue operations doesn’t just mean more efficient management of the existing revenue pipeline; it also leads to increased opportunity to grow revenue through collaboration and real-time action. This potential is maximized when technology solutions are implemented to help sales teams and other revenue impactors make the most of shared information. For instance, Collective[i]’s Intelligent WriteBackTM feature automates CRM capture, pulling data from sources across departments. The neural network assesses email correspondence, internal and customer-facing chats, and other unstructured data to make updates to the CRM. This eliminates the need for manual logging and can trigger decisions in other departments before the information becomes outdated and less useful.
Revenue operations vs business operations
The difference between revenue operations and business operations is a matter of both scope and focus. Business operations encompasses all the back-office functions of a business, including human resources, finance, IT, and production. Revenue operations comprises the outward-facing departments that actively grow the company through brand awareness, sales, and customer retention.
Revenue operations and business operations must support each other for a business to scale and thrive. Part of the revenue operations strategy to eliminate silos should include plans to build trust and collaboration between revenue operations and business operations. As a one-stop source for digital transformation in revenue operations, Collective[i] offers Virtual DealRoomsTM: Each digital room is a shared space for revenue operations and business operations to communicate about the details relevant to each current or potential customer. All the communication is centralized for the current and future benefit of the account and the business, so if marketing has a question about a current product feature or sales needs a response from legal, they can bring those questions to one space.
Outside its transformative potential to break down information silos within an organization, Collective[i] also accelerates the growth of revenue by unifying your historical data and our network of third-party data sources. Explore Collective[i] today to see all the potential this platform contains for your team.Explore Collective[i]