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30 October 2023 10 min read


WHAT IS REVENUE OPERATIONS (REVOPS)?

Revenue operations

REBECCA STEWART

Read More

 1. Defining revenue operations
 2. What is the need for revenue operations?
 3. 4 pillars of revenue operations
    1. Operations
    2. Enablement
    3. Insights
    4. Tools
 4. Benefits of revenue operations
    1. Predictable business growth
    2. Management of resources
    3. Increased transparency
    4. Better customer experience
 5. RevOps team structure
    1. Roles and responsibilities of the RevOps team
    2. Who does revenue operations report to?
    3. Where does RevOps sit in the org structure?
 6. Revenue operations vs sales operations
 7. Final thoughts

Revenue operations (RevOps) is a strategic business function that aims to boost
an organization's revenue growth, by aligning cross-functional teams and
optimizing processes. The key aspects of RevOps include operations, enablement,
insights, and tools.

> “Revenue operations is the amalgamation of marketing, sales, finance, and
> revenue, into a symbiotic vision for the company”

> - Jordan Shaheen, Director of Revenue Operations at Candid

Intrigued? Want to learn more?

This article provides a deep dive into all things revenue operations and
highlights the benefits of implementing revenue operations in your business
model!

We’ll take a look at:

 * Defining revenue operations
 * The need for RevOps
 * Four pillars of RevOps
 * Benefits of RevOps
 * Revenue operations team structure
 * RevOps vs sales ops


DEFINING REVENUE OPERATIONS

Revenue operations aims to align sales, marketing, and customer success teams
into one centralized unit, focusing on cohesive goals that allow companies to
become revenue-growing powerhouses.

By breaking down individual arms of a business, RevOps opens communication and
allows increased access to targets, data, and technology, enabling teams to
perform collaboratively and work towards shared goals.

The ultimate goal of a RevOps team is to drive revenue growth across all
revenue-generating functions of the business.

> “RevOps looks at the total picture, not just from a strategy and KPI
> perspective, but also from the traditional people, process, technology, and
> data perspective. And this really helps us to ensure that everyone stays
> aligned…”

> - Rosalyn Santa Elena, Vice President, Global Revenue Operations at Neo4j. 



The Power of Embedding RevOps as a Strategic Function | ROA
In this article, three senior RevOps leaders share their insights into building
a revenue operations function within your business.
Revenue Operations AllianceOscar Armas-Luy





WHAT IS THE NEED FOR REVENUE OPERATIONS?

Historically, businesses have run their operations through a funnel, structuring
teams as independent arms that solely focus on their specific goals. From lead
generation to the sales funnel, to becoming a customer.

This method of business operations has proved successful. However, as markets
become increasingly saturated, and competition within industries rises, it has
never been more critical for companies to drive toward customer retention and
revenue growth as a team.

Different departments within a company can often get absorbed in their own
short-term goals, making coordination challenging. Though departments attempt to
work toward a common goal, they can unknowingly slow progress by moving in
different directions.

--------------------------------------------------------------------------------



--------------------------------------------------------------------------------

To compensate, revenue operations steps in to promote a unified, long-term
approach to revenue generation across sales, marketing, and customer success
functions.

However, the need for RevOps is more than its benefit to the internal business.
According to Salesforce, 76% of customers expect consistency when interacting
with varying departments of the company; however, 54% of customers feel that
when communicating between different departments, it often feels like they’re
interacting with entirely separate companies.

Ultimately, this leads to poor customer retention and can hamper the overall
company image. Therefore, it’s no wonder that Gartner predicts that by 2025, 75%
of the highest-growth companies in the world will deploy a RevOps model.


4 PILLARS OF REVENUE OPERATIONS

Still not sure what RevOps involves? Don’t panic - there are four things you
need to know about revenue operations: operations, enablement, insights, and
tools.

Let’s talk about each of them.


OPERATIONS

Operations is the name of the game. RevOps teams look to standardize processes
across sales, marketing, and customer success teams to help align those teams
and increase efficiency across the revenue function.


ENABLEMENT

The second element of RevOps, enablement, is all about helping teams to succeed
by providing the right resources and training opportunities.

This includes maintaining rich databases of information to assist each revenue
team with their roles and creating L&D programs and incentives to promote
continuous learning.

RevOps teams may even work with sales enablement to plan sales team training and
enable sales reps to close deals more efficiently.

Check out this podcast episode with Christian Palmer, Global Revenue Enablement
Manager at Riskified, discussing the importance of RevOps and enablement
functions working together to train and empower sales teams. 👇






INSIGHTS

Speaking of databases, revenue operations teams help to provide a data-driven
approach to strategy and revenue growth through insights.

This data can be utilized across departments to understand lead generation,
customer churn, and much more. Plus, these insights into your revenue function
allow for more informed decision-making.

The ultimate guide to revenue operations metrics and KPIs | ROA
From ARR to customer churn, conversion rate to ROI, this is your ultimate guide
to RevOps metrics and KPIs. Learn more.
Revenue Operations AllianceRebecca Stewart





TOOLS

Finally, RevOps manages tech stacks and tools to ensure they all play nicely
together. Organizations can have 10+ tools in their arsenal, and that can get
messy quick.

It’s the revenue operations function that irons out inefficiencies and ensures a
single source of truth for revenue data. RevOps teams can also implement
automation tools into their workflow to further increase efficiency.

The benefits of incorporating ChatGPT in your RevOps stack
How can artificial intelligence such as ChatGPT aid you as a RevOps
professional? From data analysis to lead generation, ChatGPT might be the next
thing to add to your tech stack.
Revenue Operations AllianceHannah Pegram





BENEFITS OF REVENUE OPERATIONS

We’ve learned what it is, but what are some of the benefits of implementing
RevOps?


PREDICTABLE BUSINESS GROWTH

Without RevOps, we can’t monitor the customer lifecycle as closely as we can
post-alignment. When departments share data, tools, tech, and open
communication, businesses can focus on targeting each stage of the customer
journey with a unified approach.

By using reliable data taken across departments, you can identify the pitfalls
and strengths of your business. Using this data makes it much easier to make
changes, achieve your business goals, and grow revenue.

The RevOps Difference Report concluded that 88% of companies with aligned teams
met or exceeded their revenue goals, and 16% far exceeded these goals.


MANAGEMENT OF RESOURCES

When departments work as independent puzzle pieces, opportunities to cut down on
business expenditures go unnoticed. It's costly to have each department use the
same tools, all on different accounts. When multiple departments are using
different tools to do the same thing, it gets expensive and hard to keep track
of.

After RevOps is implemented, departments begin sharing tools and tech -
streamlining the purchase, implementation, and management of different tech and
its usage and cutting costs throughout the business.

5 steps for effective RevOps process improvement | ROA
The RevOps process is super complex, this article reveals the 5 steps for
successful process improvement in your org.
Revenue Operations AllianceKarli Brophy





INCREASED TRANSPARENCY

Nobody enjoys a lousy working environment - friction between departments is
draining for management and the workers within teams. Aligning your teams by
implementing open communication, visibility, shared tools, and tech allows
departments to better appreciate what each other does.

The Pedowitz Group found that 34% of aligned teams stated that the most
significant benefit to alignment was the improvement of employee experience.

Alignment = greater accountability + improved company culture


BETTER CUSTOMER EXPERIENCE

Alignment equals a better understanding of what customers like and don't. All
departments communicate with the customer in the same way, creating a more
accurate strategy for communication.

Customers don't enjoy mixed messages, so when your company aligns, you’re more
cohesive.

What does this mean for your business?

 * Accurate marketing messaging that your customers will actually interact with.
 * Cohesive brand messages across departments.
 * No more mixed messages - a more unified voice across departments.
 * Happier, better-understood customers who enjoy interaction with you.
 * Strategy based on data, meaning less revenue wasted with unsuccessful
   marketing, sales, or CX campaigns.




REVOPS TEAM STRUCTURE


ROLES AND RESPONSIBILITIES OF THE REVOPS TEAM

According to Doyle Slayton, VP of Sales and Growth at Worca, the five key roles
and responsibilities of a RevOps team are:

 * Building alliances
 * Streamlining processes
 * Data governance
 * Performance analytics
 * Aligned tech stack

You can read more about these five competencies here:

5 key steps to RevOps success
Doyle Slayton, Senior Director, Sales & Revenue Operations at Jenzabar tells you
the 5 key steps to RevOps success.
Revenue Operations AllianceDoyle Slayton





WHO DOES REVENUE OPERATIONS REPORT TO?

Typically the Head of Revenue Operations or VP RevOps reports to the Chief
Revenue Officer (CRO), who works cross-functionally with sales, marketing,
customer success, and RevOps to optimize revenue growth.

But what if your organization doesn’t have a CRO? In that case, RevOps may
report to VP Sales or CMO, however, this isn’t ideal as reporting within sales
or marketing can lead to bias within the RevOps team.

Ideally, if your company doesn’t have a CRO yet your revenue operations team
should report directly to the CEO. This allows RevOps to stay impartial to other
departments’ problems, making them easier to prioritize and solve.


WHERE DOES REVOPS SIT IN THE ORG STRUCTURE?

As previously mentioned, RevOps should sit separately from sales, marketing, and
customer success, as a unique function that collaborates with each of the
revenue-generating functions.

Here is an example of how this looks compared to a more traditional, siloed
approach:



By allowing RevOps to sit alone, your team can benefit from an external
perspective when optimizing processes and managing change. This also allows
revenue operations professionals to focus on their own long-term targets instead
of being pulled into short-term revenue-boosting activities.

That’s not to say there isn’t a time and place for those short-term pushes -
it’s just that RevOps strategies to streamline workflows, manage data hygiene,
and implement automation tools focus more on the long-term impact on revenue
streams.


REVENUE OPERATIONS VS SALES OPERATIONS

While RevOps and sales ops may sound nearly identical, there are some key
differences between the two ops functions. Here is a summary:

 * Department served: Sales ops only work with the sales team, while RevOps
   works with sales, marketing, and customer success teams.
 * Impact on customers: Sales ops can increase the relationship between your
   sales reps and your customers during the sales cycle. However, revenue
   operations focus on improving CX over the entire customer journey.
 * Approach to revenue streams: Sales ops only focus on closing deals, not
   generating new leads, while RevOps works with existing revenue streams and
   also helps teams to find new ones.
 * Defining success: Sales ops tends to focus on sales-oriented metrics such as
   close rate. Whereas RevOps tends to focus more on revenue growth, tracking
   metrics like revenue retention.

Sales ops and RevOps also use different metrics to measure success - we
summarized this in this table. 👇



Here's some bonus insights from revenue operations expert Leore Spira, Director
of Revenue Operations at Blink Ops, on how RevOps differentiates from sales
operations.

> “I think revenue operations leaders become experts and see the full picture
> from the macro-level, instead of the micro because sales operations are just
> one step in the process, one milestone.

> “Sales is now just one piece of the puzzle, and revenue operations is the full
> puzzle.”

💡
Learn more about the differences between these two operations functions in this
article.




FINAL THOUGHTS

With some of the biggest and best companies in the world adopting RevOps, it is
no wonder it has taken the operations world by storm.

Hopefully, this article has firmed up your understanding of this emerging
function.

Want a place to discuss all things revenue operations? Get all your questions
answered by RevOps experts. Share, collaborate, and network - Join our community
today! 👇


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Written by:

REBECCA STEWART

Junior Copywriter at Revenue Operations Alliance.

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