What is Revenue Operations and Why Is It Important?
Revenue Operations (RevOps) is a multifaceted approach that encompasses strategies, decisions, and plans aimed at maximizing a company's revenue potential. It revolves around aligning sales, marketing, and customer success teams to work collaboratively towards achieving the company's revenue goals. RevOps involves an in-depth examination of the tasks performed by these three divisions, with the goal of enhancing productivity and efficiency. The underlying principle is that improved collaboration and alignment lead to revenue predictability.
The Importance of a RevOps Team
Why is having a RevOps team important?
There are numerous advantages to having a well-structured RevOps team:
- Cost Optimization: RevOps helps in cutting costs and increasing profits by optimizing the use of resources among different teams and eliminating redundant tasks.
- Data-Driven Decision-Making: RevOps teams prioritize analytics, ensuring that all decisions are accurate and data-based.
- Accelerated Growth: A strong RevOps structure facilitates faster growth, with companies growing 19% faster than those without a RevOps team.
- Enhanced Customer Satisfaction: Companies with a RevOps team have seen a remarkable 15-20% increase in customer satisfaction.
How is Revenue Operations Structured?
Structuring a revenue operations team requires a solid grasp of RevOps, including revenue-related strategies, needs, and your existing organizational structure, particularly within your marketing, sales, and customer success departments.
The RevOps Org Chart
The size of your company plays a pivotal role in defining the structure of your RevOps team. For smaller businesses, it may make sense to distribute RevOps-related functions to existing operations managers. In contrast, larger companies might designate a dedicated individual or department exclusively for revenue operations. The key is to structure your RevOps team in a manner that best facilitates the implementation of your Revenue Operations strategy.
Key Roles and Functions in a RevOps Team
The following are critical roles and functions that contribute to structuring a robust RevOps team:
- RevOps Lead: The RevOps leader acts as the primary point of contact for various departments and teams within your company. RevOps leads are subject matter experts in your technology stack and ensure that the work of different teams aligns with company goals. They also serve as all-rounders, providing functions such as delivering analytics to executive teams.
- Project Management: RevOps teams often collaborate with other teams across the company in addition to their core functions. To ensure productivity, it's crucial to designate a specific team member (or the RevOps team leader) to filter and prioritize ad hoc requests.
- Analytics Team: Performance metrics are essential for keeping your RevOps team and the entire company on the right track. Delegating data visualization and performance metrics to a dedicated team streamlines the process of generating insights.
- Platform Team: Delegating day-to-day software ownership to other team members, particularly for high-maintenance apps or those with high volumes of external requests, allows your revenue operations leaders to focus on strategic matters.
When structuring your RevOps team, it's essential to consider functions and roles based on the four areas of revenue operations:
- Operations Management: This team ensures that the outcomes of all revenue-related and customer-facing operations align with your business's needs. They work at both micro and macro levels, collaborating with distributed roles like marketing and sales operations that may become more specialized over time
- Enablement Team: The sales enablement team's focus is on equipping your marketing and customer service processes with the practices, content, information, and tools needed to sell more efficiently and at a higher velocity.
- Insights Team: This team, which can overlap with the analytics team, optimizes sales, marketing, customer success, and other relevant data to make data-driven decisions.
- Tools Team: Your tools team manages the technology used by your marketing, sales, and customer success departments. Their responsibilities encompass tech stack evaluation, procurement, software integration, and systems administration.
Scaling your RevOps structure as your business grows, specializing roles, and introducing new functions ensures that all aspects of your operations work seamlessly to facilitate the implementation of your Revenue Operations strategy.
RevOps as a business partner
As we mentioned, RevOps really act like project managers, syncing tools and insights across teams. Particularly, RevOps will work closely with each team involved into the revenue funnel:
Marketing focuses on data, insights, and optimizing leads workflow efficiency. This includes reviewing campaigns and leads magnets for efficient lead capture, processing, and follow-up. Ideally a marketing operations partner in revops will run campaigns and measure performance through the marketing technology stack. Common marketing operations processes in RevOps include lead lifecycle management, advertising and promotion, and marketing metrics and analytics.
Sales operations are responsible for building a process that enhances conversions, shortens sales cycles, and increases win rates. They manage sales deals processing, payments, sales data, enablement, and strategic budgets and territory planning using the sales technology stack. Sales operations processes within RevOps include new customer handoff, forecasting, and deal desk.
If you are unsure about the Sales Ops role, check out our article about the difference between RevOps and Sales Ops
Customer success operations focuses on customer retention or upsells. In RevOps, this team will be responsible for tracking users' NPS, data management, onboarding processes, customers requests and strategic initiatives. They drive strategy initiatives around the customer experience, including process implementation, data analytic systems, and renewal forecasts. Processes and metrics in customer success operations include building repeatable processes, establishing performance metrics for these processes, and monitoring performance metrics across areas like product, customer experience, customer feedback, and revenue.
The Four Pillars of Revenue Operations
To build a robust revenue operations team, focus on these four fundamental pillars:
Strategy: Define clear revenue objectives and create a strategic roadmap to achieve them. Ensure that your revenue operations align with your business goals.
People: Attract and retain top talent in sales, marketing, and customer success. Invest in training and development to keep your team sharp and motivated.
Processes: Streamline and optimize your revenue processes. Remove bottlenecks and ensure that each step in the customer journey is efficient.
- Technology: Implement the right technology stack to support your team's efforts. Consider data integration solutions like Dokin to automate data reporting and streamline operations.
In a world made of economic and political uncertainties, structuring a revenue operations team the right way is not just an option; it's a necessity. A well-organized team, supported by the right tools, can significantly impact company revenue growth.
Of course, this guide doesn’t want to be a one-size fits all and the actual success of your RevOps team will depend on factors like company industry, size and company culture. However by following the steps outlined you may have a good chance at striking the right balanced structure for your RevOps team.