What is revenue operations
The need for transparency, accountability, and predictability is prominent from the boardroom to the front line of any business. Every successful team needs a goal-oriented leader to steer the way toward helping the business drive revenue. Without leadership, there is disorganization, a lack of direction, and little chance to achieve the desired outcome.
Influential leaders can unite otherwise separate groups so they can combine resources and work together. In business, this can be done with a revenue operations (RevOps) approach. The core component of RevOps is unification and strategy. Implementing a revenue operations strategy can be the turning point at which businesses align their streams of revenue and collectively make the most of their assets to reach predictable revenue goals.
There is no doubt that the shift toward RevOps has already begun in the business industry. According to Forrester, there was a 90% growth in the number of individuals identifying themselves as directors of revenue operations on LinkedIn over a six-month period in 2019. Since businesses clearly understand the value of RevOps, let’s review the revenue operations meaning, how it is different from other forms of operation, and its role and benefits.
What is revenue operations?
RevOps is the end-to-end business process of driving predictable revenue across marketing, sales, renewals, and expansion.
RevOps is on the rise: 58% of B2B organizations have a dedicated RevOps group in place or are building one. Of these organizations, 30% see measurable improvements with their go-to-market efficacy from RevOps.
Organizations create RevOps functions that coordinate internal teams to drive revenue growth and supercharge their revenue engine. Alignment with teams facilitates collaboration across the board. By sharing relevant data and defined metrics, marketing, sales, and customer-success professionals can ensure that everyone is on track to efficiently achieve the same business objectives.
What is the role of revenue operations?
The role of RevOps is to deliver cross-team transparency and alignment that improves efficiency across the revenue process, drives revenue predictability, and achieves revenue growth.
According to a 2019 survey by SiriusDecisions, now owned by Forrester, public companies with RevOps had a 71% higher stock performance than those without it.
Top B2B tech companies that leaned on RevOps to accelerate their growth also experienced significant benefits, including 10% to 20% increases in sales productivity, according to Boston Consulting Group. Its research also showed that tighter alignment between go-to-market teams resulted in:
- 100% to 200% increases in digital marketing ROI
- 10% increases in lead acceptance
- 15% to 20% increases in internal customer satisfaction
- 30% reductions in go-to-market expenses
Is revenue operations the same as sales operations?
The major difference between sales operations (Sales Ops) and RevOps is the scope; Sales Ops strictly oversees the sales process, while RevOps is responsible for the operations across all revenue-generating departments.
What these two processes do is very similar. RevOps does everything Sales Ops does, which is to make sure sales teams can do their job efficiently and effectively so they can generate greater revenue for the business. However, RevOps does this for marketing and customer-success systems too, and it keeps all these departments aligned and focused on the same goals.
The benefits of RevOps
The shift to RevOps is partially due to the way buyers purchase products. Today buyers are conducting their own research before completing a purchase. In fact, 59.5% of B2B buyers research at least two to three B2B sites prior to completing any purchase. Plus, subscription-based business models have grown in popularity in recent years: According to IDC, the subscription business model is forecast to represent 83% of total software revenue by 2025. This means teams responsible for driving revenue — sales, marketing, customer success, and account management — must be aligned throughout the entire funnel to make sure customers are happy with the service and will continue to subscribe.
Historically, alignment has proved elusive and challenging. But that’s all changing. The rise in artificial intelligence (AI) drives insights across all funnels while breaking down silos. Teams across all departments can benefit from data-driven collaboration, full-funnel accountability, predictable business growth, and faster sales cycles.
Revenue operations ensures a company’s data, communications, decision makers, and team players all in sync toward a common goal. To have the most forward-thinking approach to RevOps, a business needs innovative tools.
Enhance RevOps with Collective[i]
Collective[i]’s end-to-end software can transform revenue operations by giving revenue-generating teams total visibility into their business, driving process rigor, spotting risks and opportunities in the pipeline, increasing forecast accuracy, and driving overall efficiency.
Our Predictive PipelinesTM provide a high-level view of the sales pipeline, which RevOps can use to provide critical information to the teams that need it the most. This transparency promotes better collaboration among sales, marketing, and customer success to improve outcomes.
Collective[i]’s products use a neural network to create a one-stop solution for everything from cleaning up CRM data to creating AI-enabled daily forecasts and increasing collaboration. In Virtual DealRoomsTM, teams can communicate more effectively about buyers and deals.
With the right tools, RevOps can be so much more than simple alignment. It enables everyone who impacts revenue to work together with trust and accountability toward a single unified goal. Discover how to revolutionize your RevOps. Get started with Collective[i] and experience the modernization of sales.Explore Collective[i]