Revenue operations (RevOps), new to the sales environment, is a cross-business function that’s getting results. But what is it? And more importantly, what does it mean for sales?
WHAT IS REVENUE OPERATIONS?
In most business structures, each business unit has its own operations team serving and reporting within the function they sit.
For example, Sales Operations owns CRM and other sales systems and reports to the sales director.
The fallout from this structure is that each business function is siloed – because the operations team has priorities and goals set within the business unit. For example, the priorities and goals for marketing operations is set by the CMO and the priorities and goals for sales operations are set by the head of sales – meaning, in many cases, the business unit priorities and goals don’t align.
Unfortunately, things become challenging when operations teams aren’t aligned and don’t prioritise communication with other business units. Siloed teams often spend more time fixing problems due to poor communication than they do building a strong operational infrastructure to support client-facing teams.
So RevOps was created to solve this silo problem.
HOW DOES REVOPS WORK?
RevOps is a centralised function consolidating operations teams across all revenue-generating business units. These include:
Customer Experience (CX) Operations
RevOps streamlines processes, communications, metrics, and technology across these teams – offering a holistic view of data highlighting trends over time and areas for improvement.
The function delivers cost savings and efficiency across a business through systems implementation and co-ordination, data centralisation, process design and administration.
RevOps becomes the single source of truth through sales, marketing and customer experience, this unity assists in identifying the best places to deploy resources.
The big win here is that, through centralisation, teams are sharing tools and data sources which they hadn’t previously.
WHAT IS DRIVING THE GROWTH OF REVOPS?
Companies are starting to embrace RevOps because the old approach of siloed operations teams isn’t working anymore. There are two trends that are quickly making the old style of separate sales, marketing, and CX operations obsolete:
The sales and marketing funnels are changing
Teams share tools and data sources like never before
The traditional sales and marketing funnel – which included clean handoffs between marketing, sales, and customer success – has been replaced by a “revenue funnel” where all client-facing teams have embraced account-based marketing strategies and have responsibilities throughout the funnel.
The growth in the sales, marketing, and CX tools market is a direct response to this new paradigm. Companies are using more tools than ever before and many of these tools are cross-functional.
Now that teams share multiple tools and sources of prospect data, implementing and maintaining those systems and associated processes requires careful co-ordination. When one team owns a system used by many teams, problems can happen.
WHAT DOES REVOPS MEAN FOR SALES?
Essentially, RevOps creates a strong, centralised operations function, meaning sales can focus on sales, secure in the knowledge that they’re receiving better data and insights, have better business cohesion, they’re not working in siloes and they’re supported by great technology.
RevOps creates cohesion between marketing, sales, and CX operations – all working towards the same priorities and goals. This centralised business unit means there’ll be less need to spend time fixing unexpected issues, creating more time to work on sales advancement projects.
Overall, RevOps helps create competitive advantage, cost savings and efficiency across a business. This critical function breaks down siloes, enhances communication and shared knowledge, and ensures teams are working towards shared goals and priorities.