By Sandy Moore
A solid RevOps strategy is increasingly becoming the key component to a company's overall success. You may ask, what exactly is revenue operations (RevOps)? HubSpot defines it as “the mindset, practice, and manifestation of unifying your internal operations. With this new approach, your business runs friction-free, and so does your customer experience.” Here at SmartBug Media®, we look at RevOps as the process and implementation of the Intelligent Inbound® methodology.
Let’s start with examining the role of RevOps within an organization. The RevOps role is to understand the company’s business model and grow it effectively and efficiently. Staying consistent with how your company defines a RevOps strategy is just as important as the final execution. Keep in mind that the power of consistency holds you accountable, allows for measurement, maintains your message, establishes relationships, and keeps you relevant.
Here are seven (of possibly many) reasons why you should maintain consistency among your RevOps strategy’s key metrics to gain long-term success.
1. Cross-Department Alignment
The ultimate goal of a RevOps strategy is to maximize revenue for the organization by aligning the key departments responsible for interacting with customers. Typically, this involves the sales, marketing, and customer service teams. One way to establish alignment is by sharing the same internal definitions for key metrics across departments. This can help with overall reporting across the organization and help develop shared goals while breaking down silos. The more consistent the alignment is among the departments, the greater the chance of achieving the shared revenue goals. At the end of the day, “Successful revenue operations will align sales, marketing, and customer success by making sure data and context is flowing through the organization.”
2. Increased Customer Satisfaction
Customer satisfaction helps drive additional revenue through upsells and referral business. Happy customers are more likely to spend more money with your organization through increased spending and repeat services. Plus, they are more likely to refer new customers to your business. Maintaining consistent and effective customer support services drives customer retention and can lead to this type of customer growth. In addition, the effort and expense to acquire a new customer are much higher than retaining an existing customer. Therefore, focusing on customer satisfaction and staying consistent with your efforts will lead to long-term success for the organization.
3. More Investment Opportunities
At some point, many businesses face the need for funding or may get acquired. Throughout this process, the business is being evaluated for how “healthy” it is by reviewing the company’s financial statements. A well-executed RevOps strategy can help contribute to the company’s healthy bottom line. If you don't have consistent KPI analysis and a full understanding of your revenue stream, it will be more difficult to prove your company’s value for investment opportunities.
4. Well-Developed Hiring and Staffing Plan
By staying consistent with your RevOps strategy, you can better determine your staffing and hiring plan. You’ll be able to forecast revenue growth based on goals and align it with your recruitment plan. For example, if you know you’ll need to sell 25 percent more for the year, you may decide to increase your sales staff by 25 percent to help achieve this goal. You’ll also want to consider how new leads will be sent to the sales team by increasing your marketing efforts and perhaps increasing your marketing team. Once you reach the goal of selling an additional 25 percent, you’ll then determine who will support your customers and hire staff accordingly.
5. Streamlined Processes and Technology
Part of the RevOps strategy is to determine which processes and technologies are working best for your business. Consider auditing your existing technology to look for ways to automate processes and reduce redundancies. You may even ask yourself, “What tech advancements do we need to incorporate to help achieve our revenue goals?” Find ways to streamline technology across customer-facing departments and regularly evaluate how the technology is being used within the organization.
6. Achievable Goal Setting
Most companies set revenue goals for the year with quarterly and monthly benchmarks to achieve those goals. The RevOps role takes this to the next level by identifying opportunities to upsell or cross-sell to existing customers across departments within the organization. This is different from the sales team’s role of prospecting and closing new customers. The combination of activities from the sales, marketing, and customer teams work in conjunction with one another to grow revenue. Therefore the SalesOps, MarketingOps, and CustomerOps teams are subsets of the RevOps team. By keeping these teams consistent with goal setting and analyzing the same KPIs at various benchmarks, the organization will have a greater chance of achieving sustainable and long-term growth.
7. Better Reporting and KPIs
Consistency with analyzing the same data will lead to better reporting for the entire organization. The executive team needs to see a clear purchasing funnel and determine one single source of truth. By streamlining the data, your reporting should stay more consistent and share the same metrics and KPIs most important to the organization. Plan to report on the same KPIs during the same time periods for comparable data. By staying consistent with reporting, you’ll have less manual manipulation of the data and lower the risk of errors within the reports.
Finally, increasing revenue growth is a combination of great customer service in coordination with well-established processes within the organization. As your company grows, it’s important to maintain consistency among your customer-facing departments to ensure client satisfaction and retention. By doing so, you’ll likely achieve greater success and reach revenue goals.
Interested in learning more about developing a RevOps strategy? Check out the Where RevOps & Inbound Collide in 2021 report to gain insights on how to implement a RevOps strategy alongside your current inbound strategy.