What is Revenue Operations (RevOps)? And why do you need it for your sales?

The concept Revenue Operations or RevOps (Revenue Operations in Spanish) is present in more and more business sectors. One of the reasons is that Companies that have developed this strategy have managed to grow three times faster than those who have not done so. Do you want to know what this method is about that integrates sales, marketing and customer service into a single strategy? Here we tell you everything.

What is Revenue Operations (RevOps)?

He Revenue Operations method consists in integrate marketing, customer service and sales actions into the same strategy with the objective that the three teams are aligned and improve both the productivity and growth of the company.

According to the traditional method, each of the three teams carries out its work independently, reporting its actions to the rest, something that, by the way, a large number of companies continue to do today. The problem with this system is that the actions of each team are isolated and do not connect, so each team ends up having different objectives, incentives and priorities. In short, there is a risk of reaching a state of constant lack of coordination. In addition, this isolation also increases the chances of unexpected problems arising (results of poor communication), which require investing a large amount of time to fix.

With the RevOps model all these inconveniences would disappear.

Do you need the RevOps model?

Despite the great benefits of the RevOps model (which we will talk about in the next point), not all companies need to implement it in their dynamics. From our point of view, we believe that a business should start as long as it is experiencing one or more of the following situations or problems:

  • Accelerated growth of the team.

  • Income stagnation for quite some time now.

  • inefficient administration of the data.

  • Change of a sales strategy product-based to a product-based growth strategy.

Benefits of RevOps

  • Transparency: Companies work through a centralized data system that they use as a single source of information.

  • Cost reduction: Processes become more efficient, better resource allocation can be made, and the future can be forecast more accurately. All of this, at the same time, causes both the error rate and the dismissal rate to be reduced.

  • Team commitment: All members of the company know what the business objectives are, which means that their level of motivation can be high while they work.

  • Collaboration between professionals: More collaborative work increases the company’s possibilities for innovation and, therefore, the emergence of new opportunities.

  • Growth predictability: The organization can know much more clearly and accurately what the growth forecasts are and know if objectives are being met.

  • Customer satisfaction: With the Revenue Operations method, teams can improve each part of the customer journey and, therefore, increase customer satisfaction, loyalty, and increase retention levels.

How is Revops implemented?

1. Set your goals and objectives

First it is important clearly understand why you need to implement the revenue operations method in your company and what you want to achieve with it. You may find that your marketing, sales, and customer service teams are disconnected, causing, for example, customer information to not be updated in real time.

2. Select the necessary tools

Once you solve the two previous questions, it is time to select the tools that Revenue Operations has to act. Below we explain what the key tools of this strategy are and what they consist of.

3. Create an appropriate structure

There is no single structure to carry out a RevOps strategy, as factors such as the size of the company, the type of product or service being marketed and whether there is a complex or simple sales process must be taken into account. However, there are some elements that all successful teams in Revenue Operations strategies share:

  • Constant comunication and effective between different teams.

  • Well-defined processes and objectives both for the sales team, as well as for the marketing and customer service team.

  • Constant search for improvement of the processes through the experimentation with new ideas.

  • Access to information for all teams with the aim of making decisions based on data.

Key metrics for RevOps

It is essential that in your Revenue Operations implementation plan you include the analysis of the following metrics to know if it is bearing fruit:

  • Annual Recurring Revenue: is the annual revenue generated by a recurring contract or transaction.

  • Revenue growth: is the amount of money your company earns in a given time compared to that same period of time in the past. In short, it analyzes sustainable growth.

  • Income retention: It measures how many customers a company maintains at the end of a given period of time, taking into account new customers and those lost.

  • Customer acquisition costs: the total expense invested in acquiring a new customer, including advertising expenses, salaries, promotions, etc.

  • Revenue Performance: the amount of money generated from sales efforts.

  • Dropout rate: measures the percentage of customers who will no longer continue using your services after a certain period of time.

  • Renewal rate: the percentage of clients who renew their stay with your company after the contract they have with you comes to an end.

  • Income accumulation: total amount of income in a given period of time.

  • Forecast Accuracy: degree of success of the sales team’s predictions about short- and long-term sales.

RevOps Tools

The following tools will allow you to share KPIs and data so that sales, marketing and customer service teams stay aligned.

  • Clari: is a platform that centralizes the value of all income and prevents leaks from occurring. In addition, it also accumulates data from all levels of the organization so that as a company you can make strategic decisions.

  • Revenue.io – Help your team achieve faster growth. It is equipped with functions such as performance information, sales forecasts, conversion notifications, among others.

  • Gong: Help your business with powerful data and powerful forecasts about your organization.

  • Hubspot: allows you to integrate many platforms and applications to make it easier for you to use them in your strategy.

RevOps Applied Success Story (Powered by Technology)

Agicap is a French company that has designed a platform to help CEOs and CFOs manage and predict cash flow.

Initially, they used excel and Zoho’s CRM, but these tools prevented them from being efficient and organized. They needed to have a complete view of what their customer’s buying journey was, align marketing and sales efforts, and a platform that allowed them to scale so they didn’t have to change it every so often.

By implementing the Revenue Operations strategy, they achieved their objectives, as well as multiplying their Monthly Recurrent Revenue by 8 in one year and their monthly potential clients qualified by the marketing team by two in one year.