Growing revenue has always been a company’s top priority because gaining profit is the key to basic financial survival.
Some companies use financing to sustain themselves financially. Still, it is just a liability, not an asset, because no business can survive for a significant amount of time without profit.
Your business will likely succeed with sufficient financial resources to sustain and run a firm. So it should be no surprise that companies are trying to implement revenue operations.
Determining and focusing on profitability at the beginning of a start-up is essential. However, if revenue growth is the firm’s only priority, the consequences can be damaging over time.
Therefore, corporate leaders and the marketing team should have a data-driven decision that grows the business while keeping sales and finances connected.
But what exactly do we mean about revenue operations? How will it contribute to the overall success of an organization?
This article will discuss the basics of revenue operations and its fundamental contributions to sales and marketing.
What is revenue operations?
Revenue operations is often known as RevOps. It refers to the strategic integration of sales, marketing, and service divisions to give the management a clearer perspective of the entire process.
RevOps utilizes automation to assist teams in making decisions that benefit the organization’s growth. It keeps these three shared goals flowing to different departments:
- Better conversion and margin
- Reduce revenue leakage
- Identify new revenue streams
Revenue operations (RevOps) link sales, marketing, and procedures throughout the customer lifecycle to promote growth and analyze those departments’ return on investment (ROI).
Through this alignment, an organization can optimize a customer experience, which drives more sales and a better experience for prospects and consumers.
Moreover, the revenue operations team can provide expertise in the systems they use, the product they offer, and the audience they are talking to. This is to maximize conversions across each stage of prospecting.
How does revenue operations work?
Revenue operations start with setting a clear business goal and aligning plans across all business functions to support that objective.
Revenue operations work in sales by designing processes and systems that focus on the customer lifecycle rather than individual transactions.
In marketing, revenue operations develop tailored campaigns and programs to generate qualified leads that sales can close.
Two approaches to RevOps
There are two approaches to revenue operations, but it largely depends on the size of the company and its business model.
Distributed capabilities
Revenue operations begin with a single individual doing numerous jobs. Sales Operations would also be responsible for implementation and insights, for instance.
As your organization grows, these tasks will evolve into specific jobs that may incorporate within the RevOps maturity model.
Specialized roles
The second strategy for revenue operations entails the selection of a leader capable of unifying corporate operational functions and consolidating reporting linkages.
However, an organization needs at least 100 employees to make this approach more compelling.
Five benefits of revenue operations
Here are a few benefits of the revenue operations you can expect when you utilize this holistic approach.
1. Business growth
Predicting business growth is critical, allowing you to invest confidently in new markets and business strategies.
By bringing together sales, marketing, and service, organizations can focus on goals across the departments. They can get each group on the same page with the same objective, such as generating leads and closing deals.
2. Revenue growth
Implementing revenue operations in an organization will allow each department to create more revenue, resulting in financial gains without increasing resources.
And when the sales department is struggling with forecasting next month’s sales, RevOps help by giving the analytical and operational duties to those that excel in growing revenue.
3. Adaptability to market changes
Significant changes are happening as the business grows. Even if it is just a new product launch, an organization needs to support its team throughout the transition.
Revenue operations provide training and project management, making internal and external transitions seamless.
Hubspot offers free courses for RevOps to give solid foundations of learning and knowledge as a firm begins utilizing its approaches.
4. Competitive intelligence
Customer information comes from many touchpoints. Revenue operations teams use artificial intelligence to automate the data collection process and use it as a competitive advantage.
5. Speeds up the sales process
Forrester’s study showed that when RevOps is executed well, organizations grow revenue nearly three times faster than those that don’t.
By shifting focus to a broader revenue operations strategy, companies can ensure that their teams remain aligned on goals, have a clear data flow, and speed up the sales process.
How do you know if you need revenue operations?
The need for transparency, accountability, and corporate success is more significant than ever as companies seek to align their functionalities with their objectives.
However, if you seem to be on the same page but speaking different languages, you will not achieve your organizational goals and desired results.
Alternatively, the entire revenue organization is at risk if marketing delivers what they consider to be quality leads according to plan, but sales do not increase. This is how disconnection seems.
Proper alignment of all business processes with the whole team is the key to increasing revenue and success in the competitive market.
If your organization experienced misalignment, as mentioned above, that’s when you need to consider revenue operations.
