Revenue operations platform
A revenue operations platform is an integral component of an organization’s revenue operations framework. Understanding how revenue is generated and managed is key to unlocking a company’s success. RevOps platforms provide real-time data and insights, inform decision makers, and empower sellers to be top performers.
Today, sales teams are no longer the only revenue-generating department within a company. Instead, revenue is influenced by several departments and processes within a company, including marketing and customer success. So, to be truly in control of predictable revenue generation, every department and process that impacts it needs to be aligned.
That’s how revenue operations software can make a difference — by supporting even small and informal RevOps teams or individuals in managing revenue operations. Let’s dig into why a revenue operations platform is essential to a RevOps team and the overall success of the company.
What is revenue operations?
Revenue operations is the business process of maximizing revenue potential. RevOps oversees all of the departments and factors that influence revenue, including sales, marketing, customer success, and more. The goal of RevOps is to break down barriers between revenue-generating departments in an effort to promote alignment and collaboration across an entire company.
For example, in a siloed company, a VP of marketing might focus almost exclusively on marketing campaigns. Conversely, using an optimized RevOps approach, that VP would take a broader perspective, accounting for how marketing can work with other teams to capture the interest of target prospective customers.
his broader perspective requires broader channels of communication. One of the main issues with siloed departments is the poor communication between them. To optimize revenue operations, communication needs to be easy and efficient. Collective[i]’s Virtual DealRoomsTM is a communication tool that provides a digital space where marketing can support the sales journey and sales can talk to multiple stakeholders in each deal. This streamlined communication throughout the whole organization also leads to an overall improvement in company culture. To get the best results, it’s important to have the best RevOps platform.
What is a revenue operations platform?
A revenue operations platform is technology used to improve collaboration and remove obstacles to the buyer journey in order to optimize revenue generation.
When data is siloed with specific departments, it’s impossible for a company to get a complete picture of the revenue pipeline. A RevOps platform provides a company with a single source of truth that houses all of the pertinent data.
The best RevOps platforms combine RevOps tools and RevOps tech stacks to create data that is accessible, shareable, and usable. They also provide data analytics that drive insights to make data actionable. Every department can use the revenue operations platform to access the data and insights to make better decisions.
In particular, RevOps tools such as Collective[i]’s Intelligent InsightsTM empower companies to make the biggest impact in their revenue operations. Intelligent InsightsTManalyzes the actions of top sellers and uses those insights to provide all sellers with automated to-do lists of the best next actions to take to make sales.
How is RevOps measured?
RevOps platforms can help measure the success of revenue operations by analyzing a few key metrics. These revenue operations metrics include:
Win rate: How many potential sales are converted into customers. Every time a company closes a deal, the result of that interaction is included in the win rate.
Sales cycle time: The amount of time it takes from first connecting with a potential customer to securing the sale
Customer acquisition cost (CAC): The total cost of acquiring a new customer. CAC can include marketing costs, employee compensation, equipment, and more.
Pipeline velocity: How quickly leads move through each step of the revenue generation process
Customer lifetime value (CLV): The expected revenue generation from a given customer over the entirety of their relationship with a company. CLV and CAC are good metrics for quickly understanding the net value a customer brings to the table.
Annual recurring value: Recurring revenue sourced from subscriptions or contracts every year
Renewals or upsells: Sources of revenue that come from current customers either renewing their contracts or purchasing products, services, or packages in addition to their current agreements.
Forecasting sales: Predicting expected revenue. Revenue from existing contracts is more predictable than revenue expected to come from acquiring a new customer.
Customer churn: The percentage of customers lost over any given period of time, whether seasonal, cyclical, or related to some other pattern
Enhance RevOps with the right tools
To best optimize revenue generation and implement best practices for revenue operations, it’s imperative to have the best RevOps platform. The right platform provides real-time, actionable insights, informs decision-making, and let’s every seller act like a top performer. With the best RevOps platform, any company can unlock its full potential. Check out Collective[i]’s tools to optimize RevOps.Explore Collective[i]