September 28, 2022, Comment off
How to Set up Your Revenue Operations
The wholesale business model has transformed and amplified with the changing B2B buying behavior. The commercial model has changed so much that the traditional methods for managing processes, technologies, etc., that support revenue growth deem inadequate. It is, therefore, crucial to understand how to win, keep, and grow customers. Thus, revenue operations come into the picture.
What is Revenue Operations?
Across sales, marketing, and customer support, RevOps is an end-to-end business process that generates predictable revenue. It is an alliance between all the mentioned teams with a single goal: creating a unified revenue process.
- Integrates multiple teams and strategies
- Unifies data, goals, and processes
- Bring together the key RevOps metrics
- Encourages end-to-end accountability and visibility
- Drives an exponential increase in revenue
What drives the revenue operations structure
RevOps are about empowering revenue teams to build better relationships with the customers. Ensure that you follow the following three aspects:
1. People: Ensure that your teams align through a common view with shared revenue targets.
2. Data: Connect the data across organizational silos and technology stacks.
3. Processes: Increase operational rigor through integrated processes.
Revenue operations and GTM strategy
A go-to-market plan is a specific action plan that defines how a product is launched in the market. It includes:
- Marketing plan
- Business strategy
- Pricing and distribution strategy
How revenue operations affect the GTM strategy for B2B businesses
RevOps require a lot of effort, but it also empowers B2B businesses to perform better. Let’s find out how:
1. Increase in revenue
Implementing a Revenue Operations structure enables better resource management that improves efficiency and boosts revenue.
2. Predictable growth
With the data team on your side, revenue operations empower you to make accurate growth measurements for your enterprise. It also makes you confident to explore new markets, make further investments, expand, etc.
3. Makes your brand more agile
It’s no secret that you will need to adapt to growing trends now and then. From re-organizing your departments to exploring new ventures, revenue operations will help you become more agile.
Three steps to create a revenue operations structure
The revenue operations structure for your organization will depend on its size and needs. Here are the three steps to create a coherent revenue operations structure.
Step 1: Get a complete view of data across your organization
For B2B organizations, revenue operations is a numbers game. Ensure you have accurate contact, activity data, and other key revenue operations metrics at your fingertips.
What are the key revenue operations metrics?
Sales Cycle Time: The time from the first customer contact through the end of the deal.
Sales Pipeline Velocity: The speed with which leads move through every revenue pipeline stage.
Close-won Rate: The number of opportunities that got converted into customers.
Cost of Customer Acquisition: The total cost of closing the deal with a new lead.
Annual Recurring Revenue: The revenue coming from subscriptions, contracts, etc.
Customer Lifetime Value: The revenue coming from a customer throughout their journey.
Customer Churn: Number of customers you lose in a specific time.
Step 2: Automate workflows across your tech stack
Now you have a complete picture of your data. The next step would be to streamline and unite the data. You can automate your processes to trigger workflows and drive the next course of action. Make sure that your tech stack has the following features:
- Data warehouse capabilities
- Low code or no code for ease-of-use
- Lead-to-account matching feature
- Lead routing features
- Revenue data management
Step 3: Centralized Analytics
Your revenue operations will be effective if you have a single view of all the information. Make sure your systems combine analytics platforms with forecast management and sales pipelines. You may effortlessly handle daily chores and identify numerous data patterns while producing more revenue with the aid of a consolidated perspective.
The rise of RevOps platforms
Revenue operations platforms focus on aligning all customer-facing teams through sharing KPIs and data. RevOps platform helps an efficient revenue operations alignment while breaking down the silos and allowing teams to collaborate harmoniously. The key functions of a RevOps platform include:
- Forecasting sales
- Revenue intelligence
- Strong integration with CRM
- Sales engagement
- Automated data capture
Today, many successful organizations use a common view of the business to unify and optimize their processes that power the revenue engine and create a seamless B2B customer journey. With the right amount of revenue operations skills, data, communication, and decision-making, you can take your business toward a common goal together.