What is Revenue Operations (RevOps)?
Revenue Operations (RevOps) is a total alliance between a company’s sales, marketing, and customer success teams with the goal of creating a single unified revenue process. This process fully integrates the marketing funnel, sales process, and customer retention strategy to unify data, goals, and processes to achieve end-to-end accountability, visibility, and drive an exponential increase in revenue.
Revenue Operations Facilitates Alignment
Revenue operations is more than just about driving revenue. It aligns the people, processes, and data necessary to optimize company performance. The days of sales, marketing, and customer success teams working within their own silos. Walls must be broke for teams to be successful in the future.
RevOps for People
RevOps brings together each individual team, and focuses them around common goals that drive success for the overall organization. Rather than marketing, sales, and CS working independently, they now focus together on a core set of metrics that directly drive revenue.
RevOps for Processes
Rather than marketing having its own process that results in leads being passed to sales, sales having its own process that results in customers being turned over to CS, and CS having its own process for retention and upsells, revenue operations integrates each separate process into a single unified revenue cycle. The result is a cohesive buying experience and end-to-end visibility and accountability loop, where each component informs and drives the other.
That loop provides the fundamental element of a successful revenue operation strategy: data. Rather than each team holding its own data, data is now shared between all groups. This allows the actions of one team to inform the other. This creates a massive improvement in how each team is informed and allows them to make better decisions to successfully meet their goals.
Rather than each group having their own individual goals, revenue operations unites them around a singular set of goals that are not only directly related to each business unit, but tied to the overall success of the company.
Revenue Operations Metrics to Monitor
Since your teams will all be aligned on common goals that drive real revenue, it’s important to monitor metrics that indicate the performance of your new and improved sales process.
Conversion Rate – How many of your leads turn into opportunities. This indicates the quality of the leads that marketing is generating.
Sales cycle length – How long it takes to close a deal. The faster the better. This means your reps are delivering your value more concisely, marketing is finding the best leads, and that your sales process is efficient.
Win Rate – number of opportunities created, vs deals won. Obviously, the higher the number the better. If your win rates dip, something is broken within your sales team.
CAC/LTV – The cost of acquisition vs the total lifetime value of a customer. This not only shows if you are targeting the right leads but if your sales process is wasteful and expensive.
Churn – How many customers leave your product or service after they purchase. This would indicate that either you are not targeting and signing the right customers, or if your customer success teams have trouble retaining customers.
Upsells – How many customers either upgrade their service or purchase more seats.