Revenue Operations can maximize the revenue potential of a company through smart processes and technology. Learn all about RevOps, how to create a RevOps strategy, and the pros and cons of implementing this strategy for your business.
The role of RevOps in the company’s progress has grown significantly over the years.
Companies that have invested in RevOps have grown in revenue three times faster than companies that did not.
Moreover, 21% of companies witnessed an increase in productivity across their GTM (go-to-market) teams after deploying a RevOps function.
So what’s RevOps exactly, but more importantly what’s a RevOps strategy?
In this article, I’ll cover how to create a RevOps strategy for your business along with its pros and cons.
Let’s dive in!
What is a RevOps Strategy
A revenue operations strategy helps a company optimize its internal operations and the customer experience to improve client acquisition and retention rates – driving higher revenue and ROI.
With greater revenue generation, a company can explore more avenues of growth.
But what’s RevOps?
RevOps is a business function that drives revenue maximization through the alignment of sales, marketing, and customer service teams across all platforms and processes of an organization.
Learn more about RevOps here.
A RevOps strategy focuses on the following aspects:
- People: The employees in your sales, customer service, and marketing teams should work together to drive revenue and identify inconsistencies in the organization.
- Processes: The strategy also needs to ensure a unified brand voice and message, consistent sales tactics, and optimized customer experience touchpoints throughout the entire life cycle of a prospective buyer and customer.
- Platforms: The entire RevOps team should work on one platform and software system to collate and analyze customer data. This way, you can eliminate information silos from the organization.
All this can be done by creating a RevOps strategy tailored to the needs of your organization.
So, how do you build a successful RevOps strategy?
You need to integrate the functions of the GTM team so that the administration has an end-to-end view of the revenue flow in the company.
The goal is to break down silos between departments and use centralized data and processes to get meaningful revenue insights. These insights, in turn, help improve customer experience and eliminate low-performing areas in the revenue chain.
By removing inefficiencies in your company, you can ensure that each revenue-generating department is working at an optimal level and pursuing common objectives.
How to Create a RevOps Strategy
Here’s how you can draft your RevOps strategy in three simple steps:
1. Get an accurate view of data across your organization
To build strategies based on customer insights, you should first get an accurate view of your organization’s entire data. Ensure that your CRM captures accurate contact and activity information through AI-powered tools and analytics.
You can organize data into two different categories:
- Capturing activity and contacts: This includes gathering data from emails and calendars. Your RevOps platform should update the CRM with regular activity reports to identify opportunities. This will help you gather insights into the sales process, execute multichannel communication with prospects, and boost engagement and acceleration.
- Conversation intelligence: Conversation intelligence tools collect data from your customer conversations by recording, transcribing, and analyzing calls. They generate insights from this data, which can be used to prescribe recommendations, perform sentiment analysis, and generate opportunity health scores.
Your entire GTM team should have access to this data in order to create consistent standards throughout the sales cycle, namely its three stages:
- Awareness: During the awareness stage, the RevOps strategy should target creating a good first impression through the right deals and offerings. This is where you need to create a solid brand message which will lead the prospective customer to the next stage.
- Consideration: The consideration stage includes pricing, onboarding, product relevance, and company standards. In this stage, the customer views your details and determines whether they want to proceed with the transaction. Here, your GTM team needs resources and data to understand the customer’s needs and carry out guided conversations.
- Decision: The last stage, the decision, is crucial for the company as it can lead to a conversion or loss of opportunity. The job of RevOps is to supply all the information by this stage so that the customer makes a positive decision.
You can track some metrics to help make sense of the organization's data like customer churn, revenue per employee, account relationship score, etc.
These measurements can tell you where your revenue strategy needs improvement. After you get a view of all data to be analyzed, you can move on to making the workflow optimized and high-performance.
2. Automate workflows across your tech stack
Data unification is the first step toward optimizing workflows across your organization.
By employing advanced RevOps functions, you can run workflows with predictive features. This helps employees figure out which actions to take regarding their accounts.
Your RevOps tools should be aligned with the goals of your business. With the right tools, you’ll be able to automate your workflow across your tech stack in a way that is low-code and purpose-built.
Some technical aspects of your RevOps system can be:
- Data lake and warehouse: Data lakes and warehouses store and manage large data volumes. You can run analytics and process the data in an organized manner.
- Revenue data management: Several tools are available in the market that enables data integration, validation, hygiene, and enhancement.
- Low-code workflow orchestration: You don’t have to learn coding to create and maintain a tech stack for your GTM team. iPaaS (integration platform as a service) providers help you manage workflows across multiple applications and data sources without in-depth coding knowledge.
- Lead management: You can manage aspects like account matching and routing through RevOps platforms. This helps automate routing tasks and lead assignments to save time and resources.
3. Centralize analytics for all revenue-generating departments
Arguably, the most important task of RevOps is to centralize all revenue operation tasks within the organization. And a unified analytics system can help you to gauge how the business is performing and which revenue channels need optimization.
The benefit?
A single view helps determine the financial health of the business and take informed decisions on its growth and expansion.
You can do this by centralizing all data, workflows, and technology:
- Pipeline and forecast management: Integrate all the data to identify patterns and make decisions based on them.
- Analytics: Your analytics platform must gather insights from all customer-facing teams that generate revenue. This data should be easily accessible to sales and marketing teams to create campaigns, sales cycles, cross-sell and upsell opportunities, and so on.
By covering the above aspects, you can create a RevOps strategy that can maximize the revenue potential of the business.
What are the Pros and Cons of the RevOps Strategy?
According to Boston Consulting Group, RevOps can lead to a 100 to 200% increase in your digital marketing ROI.
However, before you implement a RevOps strategy in your organization, you should be familiar with the pros and cons.
A. Pros of a RevOps Strategy
The direct advantage of having a RevOps strategy is an increase in revenue generation.
There are a few other pros that you may note:
- You can create stronger and more transparent campaigns when the entire GTM team works as a single revenue unit.
- Create better customer experience by aligning marketing, sales, and CX teams through a consistent brand voice.
- Coordinate customer-facing strategies based on the changing needs of your target audience.
- RevOps systems offer you insights into crucial metrics and data sets from a single source of truth. This helps in ensuring higher accountability within the team.
- It boosts team efficiency through a mix of automation, reduced waste, and a more streamlined workflow.
- You can predict future business trends by tracking customers’ journeys and adjusting your sales life cycle accordingly.
- A revenue strategy helps you achieve goals and build up revenue faster.
B. Cons of a RevOps Strategy
These cons are more related to how you adapt the RevOps strategy in your company, as opposed to being disadvantages of the strategy itself.
Here’s a quick look:
- Teams often underestimate the level of alignment required in the GTM team, which means information silos are not removed completely.
- The RevOps strategy may falter in efficiency if you do not have an objective-driven approach and dive headfirst into adopting new methods and technologies without considering their implications on the existing workflow.
- Often, employees fail to get on board with new RevOps tools and techniques, which can be a huge roadblock to productivity.
- Not setting clear parameters for success is another factor that may affect your RevOps success.
Wrapping Up
A RevOps strategy can revolutionize the revenue model of your organization by bringing relevant teams together, removing inefficiencies, and maximizing your revenue generation capability.
This can be done with the help of advanced technology that optimizes your revenue pipeline without disrupting your internal business processes.
Go through the pros and cons of the RevOps strategy mentioned above to make the most out of it!
