The world is changing, and business operations are changing with it. Whereas once upon a time marketing could function separately from sales, that time has passed. Industries of the future need a more holistic approach.
Today, as much as 70 percent of the buyer journey happens before the customer ever comes into contact with someone from Sales. Each prospect is handed off from marketing to sales and ultimately customer success. At each phase of the journey, the relevant department contributes its own insights and tools but there is still a disconnect. These divisions operate separately so goals are often misaligned, if not competing, between agencies. Efforts are duplicated while each department pursues its own goals too.
This legacy model is a waste, and largely ineffective. Isn’t it time your business evolved to reflect business in the current reality?
What is RevOps?
RevOps is short for a new department called Revenue Operations.
Revenue Operations (RevOps) has emerged as a way to align sales, marketing, and customer success to drive full accountability across the entire customer journey. It’s a union of three functions that was unheard of until technology became capable of harnessing actionable insights across diverse systems. In fact, not only has sales, marketing, and customer success historically been siloed; they’ve often resisted the idea of playing nicely together.
This new department of RevOps, creates an agreement as to which metrics matter most and introduces a new layer of credibility or trust. After all, when different departments have separate goals, they may not always believe that they are acting in each other’s best interests.
Take SaaS companies for example. The average firm in that industry employs 32 different tools within their sales and marketing stacks alone. Customer satisfaction pulls from a completely separate palette – and that’s a problem. Many of these tools do the same things but in a different way or featuring a slightly different format. Employees in the same company, on the same product line, end up repeating work unbeknownst to each other.
The tools themselves are also linked together via specific integrations and they tend to break. Which department is in charge of those repairs? No one owns the stack, just specific functions within those operations. Add to that a barrage of self-service tools and customer data is peppered across different devices and systems, often leading to errors updating information such as differing formats. It is ineffective and unnecessary.
Key Benefits of RevOps
Revenue Operations resolves all that and brings the entire team together under the same goals. It is a powerful solution that has several important benefits.
First, Revenue Operations helps to align everyone. Marketing, sales, and customer success are usually held so separately – but that is a mistake. When you start using a RevOps strategy, you get the chance to bring together each of those departments under one banner. This change unifies your metrics, so it is easier to track performance in a meaningful way. Aligning everyone also makes it easier to assign ownership over tech and tasks as well as manage change throughout the organization.
RevOps also creates focus. Under legacy systems, internal and external stakeholders need to be managed with regard to the individual roles they play. The problem is that each of these functions requires a different focus – and it’s not always the same aim. Every role has its own goals and they often are quite separately, if not contradict entirely.
Revenue Operations changes that by bringing everyone together under the same performance metrics and, thusly, the same focus. This narrowing of goals isn’t just more attainable. It is easier to track and monitor progress.
Finally, RevOps simplifies everything. By combining everyone on to a single team, decision-making, change management, and agile operations are much easier because there are fewer hoops through which to jump.
Many legacy operations carry the same basic organizational structure they have had for decades. As technology necessitated new functions, additional roles were tacked on the org chart. This might have made sense at the time, but it carried the consequence of allowing leadership roles to grow too broad and ultimately become ineffective by being unnecessarily complex. Revenue Operations removes that risk entirely.
Getting Started with RevOps
There are two basic ways to get started with RevOps. The first is to distribute capabilities. For instance, you may have the same ten people designing your marketing strategy and planning sales initiatives. However, this is usually a better fit for smaller organizations that have fewer than 100 employees. As you grow your operations, you will need to consolidate roles to create more distinct or specialized roles. This leads to the second way to get started with Revenue operations – consolidation. For example, you may have one person who examines and interprets web traffic while another person runs AB testing on all marketing ventures. The right choice depends on the current size of your organization and the business model you prefer.
Adding RevOps to your company operations creates a ripple effect that improves everything about your organization. Many businesses find that revenue increases after they create a Revenue Operations department because sales capacity grows while ramp time takes a steep reduction. In turn, growth becomes more predictable. It is easier to spot which revenue sources may be at risk as well as which characteristics in your salespeople are most effective. You might also find it easier to adapt to market changes and spot opportunities for vertical integration.
Can RevOps Survive Without AI?
If you haven’t noticed, the fastest growing jobs on LinkedIn all include the word “Revenue”: Director of Revenue Operations, VP Revenue Operations, Chief Revenue Officer (CRO). It’s clear that revenue has become a hot title. In fact, according to SiriusDecisions, there has been an 81% increase in title changes on Linkedin between 10/18 to 2/19, making “Revenue Operations the fastest growing profession out there.”
Why the sudden focus on revenue?
Revenue Is Not New
Before we address this emerging trend, we should take a look at the pain points that caused the need for this new organizational function. If your first reaction is to say that companies are simply developing roles and functions to focus on growth and revenue initiatives, you wouldn’t be wrong. But, you wouldn’t be right either. Has there ever been a for-profit company that didn’t have a focus on growth and revenue?
The Dutch East India Company officially became the world’s first publicly traded company back in 1602. Stocks and bonds were issued to investors and each investor was entitled to a fixed percentage of East India Company’s profits. Do you think those investors weren’t looking for the company to grow profits and revenue?
So, where did this new trend that focuses on “revenue” come from?
Big Data Is Becoming Too Big to Handle
Over the past several years, two things have been increasing at an unprecedented rate in contrast to the stability of the need to increase revenue – data and advanced analytics.
The volume of available business data is growing exponentially, with more added every day from billions of organizational activities on phones, emails, video conferencing, and communications services. While machine learning (ML) and artificial intelligence (AI) have increased the velocity and volume of data captured and created, these new technological advancements have also created a need for organizations to turn data into value.
The Rise of RevOps
The first stage of developing this new organizational value has been to consolidate where this data lives and reorient the existing business model to capitalize on the opportunities generated from advanced analytics.
Organizations are moving from hoarding data and functions in departments like sales, marketing and customer success to sharing it all under one roof, now named “Revenue Operations.” This pooling of data and functions has generated an industry consortia leading to organizational comprehensiveness, as well as a cohesive customer journey and therefore has created higher overall value.
These insights help to explain the sudden growth in ‘revenue’ job titles like RevOps and CRO we referenced above.
Can RevOps Survive Without AI?
But don’t let the change of a few job titles lead you to believe you’re going to increase revenue.
There are two things that are required to make the RevOps and CRO role successful:
- Your organization needs to capture all of your business activity data.
- You need technology in order to transform that data into actionable revenue intelligence.
Without an AI-powered Revenue Intelligence System automatically capturing all contact and customer activity data, dynamically updating the CRM, and providing your RevOps team with actionable intelligence, you’ll simply have mismanaged sales, marketing, and customer success teams.
People.ai Gives You the Revenue Intelligence You Need
As we have seen, without AI to cull, sync, and make sense of cross-functional, multi-system data, RevOps has little chance of achieving its goals.
People.ai is the only Revenue Intelligence System that automates the capture of ALL contact and customer activity data, dynamically updates the CRM, and provides actionable intelligence across your management tools.
People.ai allows RevOps to realize the full selling capacity of their customer-facing teams.
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