What is RevOps?
Revenue operations (RevOps) is a fairly new business practice that has created exciting results for companies over the past few years. A study by Forrester found that 59% of companies using revenue operations solutions are seeing improved win rates, and 53% report increased net-dollar retention.
This trend leads to some questions about what RevOps is and why this function is needed. Let’s dive in and examine RevOps.
What is the RevOps definition?
Revenue operations departments focus on maximizing and driving revenue. RevOps takes a high-level approach by overseeing and optimizing revenue-generating departments (sales, marketing, and customer success) to make sure they are aligned and working together. RevOps breaks down silos and helps to create accountability across the business.
Breaking down data silos is an important function for RevOps. Gartner predicts that through 2023, organizations that can instill digital trust and promote data sharing internally will be able to participate in 50% more ecosystems, expanding revenue-generation opportunities.
Data isn’t the only silo that must be broken down, however. A survey by Deloitte found that only 9% of respondents believed their company has a very effective structure for sharing and collaboration. RevOps helps eliminate communication silos by facilitating interaction through aligned tools and processes across the revenue-generating departments.
The need for revenue operations is clear: A high-level approach focused on driving revenue will bring together previously disparate departments. Having RevOps unify and streamline departments’ processes, eliminate silos, and make sure departments are on the same page and that they have what they need to drive revenue will pay off not just in dollars but also in improved communication and company culture.
What is the purpose of revenue operations?
The main reason to deploy RevOps strategies is to drive revenue. RevOps oversight of the entire revenue or sales pipeline helps identify issues and optimize processes and procedures to increase revenue.
However, another way to think of RevOps is as a tricycle. The three wheels are process, platform, and people. To drive revenue, business operations must be refined and improved; a unified technology stack needs to be adopted across all the departments; and there must be buy-in from the people involved as well as education for them on how to use the new processes and platform.
If one of these wheels is missing or not working correctly, RevOps can’t successfully drive results. All departments have to work together and move in the same direction toward a common goal: revenue growth.
What does RevOps do?
A RevOps framework should include:
Insights and analytics
One of the main responsibilities of RevOps is to look at metrics for the revenue-generating departments to understand how they function and why. Once a clear picture has emerged, RevOps is able to use that data to find pain points where workflows aren’t functioning as well as they should be. Examining data in this way may uncover opportunities for cross-departmental collaboration.
RevOps should help put into practice an enablement mindset — creating a culture of removing barriers and empowering revenue-generating teams. Enablement practices that simplify communication and align goals between these departments will help them perform and drive revenue. RevOps can implement these practices by creating shared objectives and KPIs, focusing on customer insights and data, providing clear processes and procedures, and even simply making a schedule of regular meetings between departments.
Enablement tools connect revenue-facing teams and give them the big picture of the start-to-finish customer journey. For example, C[i] RecommendsTM helps sales professionals identify and prioritize the highest-value activities each day that have an outsized impact on outcomes.
To implement clear processes and procedures, RevOps analyzes and revamps those that already exist. There may be opportunities to eradicate unnecessary duplication or reduce manual data entry by switching to an automated process. Intelligent WriteBackTM makes this easy by automatically cleaning up CRM data and keeping it up to date to create a single source of truth. It’s important to periodically review why and how workflows function to make sure that they are optimized for the best result.
A survey by resource management firm Planview found that the average team member uses 4.5 different tools to manage projects and — to make matters worse — 33% stated that no one uses the same tools. Teams are literally not on the same page. RevOps can alleviate this pain point by aligning the technology stack across departments, getting rid of unnecessary apps or putting in place an end-to-end digital solution such as Collective[i]. Virtual DealRoomsTM , for example, provides one digital space where teams can collaborate, eliminating the need for a multitude of disjointed collaboration apps.
Learning and development
RevOps shakes things up internally and helps revenue-generating teams become more effective. Education and information is a vital part of this process, and RevOps must be able to solicit buy-in from all parties. Teaching employees how to use new software tools and promoting a collaborative company culture all falls under the role of RevOps.
RevOps requires the best data if it is to have a complete picture of the revenue pipeline and optimize the pipeline effectively. Collective[i] provides clean and usable data with Intelligent WritebackTMthat may lead to productivity gains of 15% to 20% (depending on the level of rigor it replaces). RevOps can leverage data, communities, and connections with Collective[i]’s end-to-end digital platform.
Contact us today to get started with a RevOps tool that will help improve outcomes, including revenue growth.Explore Collective[i]