If you work in B2B, SaaS, or startups, we can almost guarantee you’ve heard the term “Revenue Operations” or “RevOps” with fervent frequency over recent years.
Revenue Operations has become an essential position in many businesses, helping to ensure that your marketing and sales teams are on track and that you’re on a clear path toward revenue growth.
If you’re wondering exactly what RevOps is, why it matters, or how to get started, keep reading! We’ll discuss all this and more.
Revenue Operations, also known as “RevOps, is the practice of integrating and aligning sales, marketing, and customer success teams with the goal of increasing revenue growth.
RevOps seeks to accelerate revenue (and ideally business growth) with sales enablement strategies, increased collaboration efforts, and an enhanced customer experience. It’s a multi-faceted approach that involves looking at each department’s efforts, getting everyone on the same page and working towards common goals, and ensuring that the teams have what they need to be successful.
RevOps matters for businesses because revenue growth matters for businesses, simple as that.
A study from the Boston Consulting Group found that companies investing in RevOps see around 10-20% increases in sales productivity. Another study from Forrester found that companies with RevOps teams grew revenue 3x faster than those without RevOps workers.
Even if you’re hiring a new team member (or potentially team members) and adding some new tools to an already-straining budget, the data is clear that the right investments can pay off big time with significant growths in revenue and profit.
In many cases, this comes down to the fact that you’ve got a single team that is responsible for looking at three crucial departments— marketing, sales, and customer success— and getting everyone aligned for a common goal.
Without RevOps, you run the risk of departments thinking they’re working towards the same goals but ending up in their own silos.
For example:
While it seems like common sense would allow everyone to figure this out eventually, it doesn’t always happen that way. It can take a long time to come to these realizations, and in some cases, there’s debate and internal power struggles if you don’t have a single person in charge who is prioritizing a single end goal.
That’s why you need RevOps.
Dedicated revenue operations efforts offer the following benefits:
A RevOps professional is typically going to be working above sales, marketing, and customer success leaders, so it’s important to understand the different roles they play.
Sales operations typically focus on the following:
Marketing operations (MarOps) supports the marketing team, and is responsible for prioritizing:
These two operations are typically led by sales or marketing directors, or others in high-level positions. They’re focused on what their team is doing and how it impacts the business.
RevOps, on the other hand, is comprehensive and considers sales, marketing, and customer success. They’re typically responsible for:
Revenue Operations is a data-focused job role, meaning that they’re going to be closely watching metrics that impact multiple teams.
These are the RevOps metrics that are typically closely tracked:
Having the right tools in your tech stack can make this part of the job easy.
Baremetrics, for example, offers subscription analytics created specifically for startups and SaaS companies in mind. Access over 26 mission-critical subscription-focused metrics, along with forecasting, trial, and revenue recovery insights to improve every part of the customer experience (and your revenue).
If you’re wondering whether or not RevOps implementation can have challenges, the answer, unfortunately, is yes. While the end result is worth it, these are some common challenges to watch for:
Ready to add a revenue operations specialist to your team (or at least revenue operations efforts)? These five steps will help you get started.
When hiring a RevOps team member, you really want to choose the right candidate. Past experience in RevOps is great, but someone with experience in both high-level sales and marketing positions can be a great fit with the right qualities.
Make sure you look for specific skills and traits like the following:
Every RevOps team needs great data, and that means choosing strong tools.
These are the tools that should be in every RevOps tech stack:
When assembling your tech stack, write down a list of what features you need, and what specific information and functionality you’re looking for.
Sometimes, for example, CRMs may have pipeline management or marketing analytics features at a higher-priced plan. And tools like Baremetrics focus on subscription analytics, but they also have audience insights, forecasting features, and more.
Some tools can wear multiple hats, so you can use your budget wisely if you manage your tech stack strategically.
Once you’ve got the right tools and the right people, it’s time to get department heads on board. Have meetings with sales, marketing, and customer success teams to talk about new processes, proposed goals, and potential pain points.
Make sure you listen to concerns that team leads have— they’ll have a ton of insight into the processes they’re using and potential obstacles that might need to be overcome during the transition process. They’re also likely to have great ideas about facilitating collaboration or how certain processes can be improved.
Once you’ve got a solid understanding of how the teams are operating and where you’re at currently with revenue performance, it’s time to start making goals.
Maybe you want marketing to attract more of a certain type of leads, for example, and for sales to do a better job upselling specific features that customers end up wanting during onboarding, and then for customer success to improve their training on those features during onboarding.
Create specific, measurable goals and a time frame in which you plan to complete them. Examples may include:
Once you have your goals, look at your existing processes in sales, marketing, and customer success teams. Then you can look at what changes should be made to help reach those goals.
For example:
RevOps is a powerful role, and it can make a huge impact on businesses and their revenue. If you want to scale aggressively and maximize your profit, investing in RevOps is something you should look at.
One thing to keep in mind, though, is that since RevOps is data-driven, it’s only ever going to be as effective as the data that they’re using. Because of this, it’s imperative to choose analytics tools that are accurate and reliable.
Baremetrics, for example, is unlike many of our competitors. When calculating MRR and ARR, we look exclusively at active customers whose accounts are in good standing— not those with paused or delinquent subscriptions. This gives you an accurate understanding of the actual revenue coming your way.
Choose your tools carefully, and make sure you’re reading plenty of customer reviews online.
Ready to start investing in Revenue Operations? Great analytics is the first step. Get started with Baremetrics with a free 14-day trial.