Revenue operations responsibilities

What is the solution to misalignment between revenue-generating teams? One answer is revenue operations (RevOps). Let’s examine this practice and take a look at the responsibilities of RevOps, the function of RevOps in an organization, and what tools RevOps teams need to achieve their goals.

Read more below.

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Revenue operations responsibilities

The Harvard Business Review found that misalignment between sales and marketing professionals may cause companies to miss their business goals. These revenue-generating teams often set their strategies and goals separately and therefore have conflicting priorities: For example, a lack of alignment around product pricing and sales-force compensation strategies pushes sellers to focus on their sales quotas rather than overall company profit.

What is the solution to misalignment between revenue-generating teams? One answer is revenue operations (RevOps). Let’s examine this practice and take a look at the responsibilities of RevOps, the function of RevOps in an organization, and what tools RevOps teams need to achieve their goals.

What does RevOps do?

The revenue operations meaning may refer to a RevOps process or to a dedicated team of people performing RevOps functions that is committed to taking a high-level view of the revenue pipeline across all the revenue-generating departments: sales operations, marketing operations, and customer success operations and systems. This bird’s-eye view helps align these departments and break down communication obstacles and data silos across the teams.

What is the role of revenue operations?

The role of RevOps is primarily to achieve revenue growth. This is accomplished by a variety of tactics, including improving efficiency across the revenue process, creating visibility among all revenue-generating departments, and driving revenue predictability. A solid RevOps framework also focuses on the software, systems, processes, and data for the revenue-generating departments.

There are three main components of the RevOps role:

  • Alignment - RevOps enables alignment between sales, marketing, and customer success. LSA Global conducted organizational alignment research and found that highly aligned companies grow revenue 58% faster than their unaligned peers and are 72% more profitable. Aligned companies also significantly outperformed their unaligned peers in retaining and satisfying customers, effectively leading, and engaging employees.
  • Focus - Since RevOps assumes responsibility for operational and technical overhead, departments can focus on their goals and drive revenue more effectively.
  • Simplification - If each department has its own internal tools and siloed data, interteam communication becomes complex. RevOps simplifies a company’s technology stack by providing tech tools that work for all departments and provide them all the same access to data and insights.

What are revenue operations responsibilities?

To achieve its main responsibility of driving revenue growth, RevOps homes in on the following six responsibilities during its day-to-day tasks:

Strategy and goal setting

Creating an overall revenue strategy and setting goals for revenue growth is an important function of RevOps. Coordinating revenue objectives across sales, marketing, and customer success and systems is important to keep these teams clear and focused on the right goals.

Process analysis

IDC market research found that 75.9% of respondents experienced serious business risk and/or compliance issues as a direct result of ineffective document processes. These failures had severe consequences for respondents:

  • 36.2% failed to meet compliance requirements
  • 30.2% lost key employees
  • 24.9% lost major customers
  • 24.8% had a major IT breach
  • 20.4% were pulled into a major audit
  • 19.1% suffered a major PR crisis

By managing and tracking the end-to-end revenue processes and reviewing and updating document processes associated with revenue activities, RevOps mitigates this risk with all revenue departments.

Workflow optimization

RevOps is also responsible for identifying manual and automated processes that need to be created (or eliminated) to secure an interconnected revenue process across all departments. It may also find tools that automate previously manual processes to save time. Collective[i]’s Intelligent ForecastTM, for example, automates sales forecasting and gives daily updates so that sellers can react quickly to changes.

An essential part of workflow optimization is soliciting buy-in from the internal stakeholders and educating employees on how to properly use the new and revised processes.

Data analysis

RevOps metrics are a vitally important piece of the revenue operations puzzle. Without a clear, data-driven picture, RevOps teams can’t do their job. It’s important for RevOps to be able to access and view revenue operations metrics such as:

Win rate - This metric covers the percentage of sales opportunities that are converted into customers. Examining the average win rate, the actions of top performers on the sales team, seasonal trends, and other variables helps ReVops to identify areas of opportunity.

Sales cycle time - RevOps looks at the amount of time needed to take a prospect from the first contact to the deal close so it can determine what variables are affecting the process and why prospects drop out.

Customer acquisition costs (CAC) - Examining the total cost of capturing a new customer can help ReVops identify where costs can be reduced or spending reallocated to attract customers quicker.

Pipeline velocity - The speed of customers moving through the revenue pipeline may give RevOps clues as to what factors enable or prohibit a customer’s journey through the process.

Customer lifetime value (CLV) - RevOps should study the amount of revenue expected from a customer over the entire length of the relationship to understand how valuable different customer segments are to the overall revenue growth.

Annual recurring revenue (ARR) - The total yearly revenue that comes from subscriptions or contracts helps RevOps assess customer success departments and understand the revenue-generating activities from their teams.

Renewals/upsells - The percentage of revenue made from customers committing to a new contract or subscription or from selling new products to current customers is another customer success metric.

Sales forecasts - By reviewing expected revenue, RevOps gains a high-level understanding of the sales process and is better able to align all the departments to the same goals.

Tools such as C[i] RecommendsTM provide the data and metrics for studying buyer activity across every sales touchpoint to better understand how each buyer interacts with the customer journey. All of this information is transformed into actionable insights, forecasts, and opportunity odds for sellers. Using Collective[i], RevOps can receive a daily to-do list of next and best actions, based on artificial intelligence (AI) and deep learning conclusions of deep buyer signals gathered from internal and external data sources.

Revenue pipeline overview

The most important task for RevOps is to oversee the revenue pipeline. Monitoring and measuring the revenue life cycle across the revenue-generating departments gives a clear picture of the revenue pipeline and helps identify silos.

Technology review and implementation

The number of technology tools for collaboration and communication continues to proliferate, and departments often find themselves with an astounding number of apps. One study found that the average small business uses 102 apps, mid-market businesses use an average of 137 apps, and enterprises use, on average, 288 SaaS apps.

With so many paid apps, the fees can add up quickly, and employees can easily become overwhelmed or frustrated with apps that don’t work well. In fact, nearly half of employers in a supervisory role (46%) say they feel overwhelmed by technology at work, while 61% say they spend more time getting technology to work than they’d like.

Another part of the technology problem is that only 50% of staff and 64% of managers are satisfied with the resources they have at their disposal to learn how to use new technology. Companies may purchase SaaS as a quick fix, but if employees don’t receive the proper training for it, the SaaS may not function well and instead create new frustrations.

RevOps can solve this problem by simplifying the tech stack, eliminating unnecessary apps, finding SaaS solutions that cover the functions needed, and training employees to use the technology.

Collective[i] is a SaaS solution that uses a cutting-edge neural network and deep learning in combination with a network of data to become a one-stop solution for everything from AI-enabled daily forecasts to sales pipeline insights and a streamlined communication tool.

Is revenue operations the same as sales operations?

When first comparing revenue operations vs sales operations, many people think they seem similar. The main difference between RevOps and sales ops is the scope. While sales ops is concerned with driving revenue, it focuses only on the sales department’s contribution. If we look at the RevOps definition, it is clear that RevOps functions are broader — they account for organization-wide revenue growth rather than just that of a single department.

What is the difference between revenue operations vs business operations?

Revenue operations is focused on driving revenue, while business operations is focused on maintaining and growing the company. Both teams support revenue generation, but they do so in different ways. RevOps works directly with revenue-generating departments to drive revenue growth, and business operations supports these teams by providing functions like HR and legal.

Who does revenue operations report to?

Because revenue operations oversees the revenue pipeline, nailing down the hierarchy and reporting structure is important. To fully unlock the potential of revenue growth and break down silos effectively, ReVops should not be subordinate to the revenue-generating departments that it collaborates with. For example, if RevOps were to report to the head of sales, it would just become another arm of sales operations.

On the other hand, making sales, marketing, and customer success and systems subordinate to RevOps may lead to power struggles or bad faith between departments. RevOps is most effective when these department heads are on the same level in the organizational chart: That facilitates a collaborative process with constructive conflict.

A strong RevOps leader will have a different mindset than the head of sales, marketing, or customer success because the focus of the role is broader and more concerned with the big picture.

Why is revenue operations SaaS important?

By using a revenue operations SaaS such as Collective[i], companies eliminate superfluous apps and align sales, marketing, and customer success. Collective[i] also gives sellers the tools they need to close deals and collaborate with other departments.

One tool that Neil Miklusak, VP of enterprise sales at Totango, finds helpful is the collaboration tool Virtual DealRoomsTM. “With Collective[i] Virtual DealRoomsTM, I am empowered to know the true state of all of my team’s deals at any given moment,” says Miklusak. “I don’t have to rely on my AEs for updates or manual logging, allowing my team to spend more time actively selling and allowing me to work on strategy to support my organization’s goals.”

Virtual DealRoomsTM eliminates the impossible task of managing endless communication channels and tools and creates a place to bring together different departments. Collective[i] goes beyond just one tool, however. This is an end-to-end SaaS solution for revenue management that empowers RevOps to streamline the revenue processes.

Revenue operations practices are increasingly being adopted by businesses worldwide. Gartner found that by 2025, 75% of the highest-growth companies in the world will deploy a RevOps model.

Collective[i]’s Predictive PipelinesTM gives companies a high-level view of the revenue pipeline and provides crucial insights to all teams who are dedicated to driving revenue. The Predictive PipelinesTM analyses are augmented by sophisticated AI recommendations for coaching opportunities to help businesses improve outcomes for their sellers.

Revenue operations has the capability to bring your business into the future of sales — especially when paired with intelligent tools such as Collective[i]. It’s time to discard business as usual and get started with Collective[i] to modernize with revenue operations.

Work together, win together

Request an invitation to join IntelligenceTM, the world’s first global network of sales professionals.

On no, we ran into an issue submitting this form. Please ensure each field was filled out correctly and resubmit.

If this problem persists, please reach out to us and we will be more than happy to follow-up from there.

We’ll be in touch soon

In the meantime, explore Collective[i] and find answers to frequently asked questions.