revops

RevOps Explained In A Nutshell

RevOps – short for Revenue Operations – is a framework that aims to maximize the revenue potential of an organization. RevOps seeks to align these departments by giving them access to the same data and tools. With shared information, each then understands their role in the sales funnel and can work collaboratively to increase revenue.

Understanding RevOps

In many organizations with traditional siloed structures, there is often disagreement between marketing, sales, and customer service departments. 

Indeed, Forbes defines RevOps as the “end-to-end process of driving revenue, from the moment a prospect considers a purchase (marketing) to when you close the deal (sales) to their renewal and upsell (CS). There result of this orchestration is faster growth and more profit.”

The three pillars of RevOps

RevOps is based on three pillars, with each providing a foundation that the next pillar is built on.

The three pillars are:

  1. Process – RevOps processes are those that encourage collaboration and trust throughout an organization. Ultimately, these processes need to convert prospects and make the consumer experience as seamless and enriching as possible.
  2. Platform – technology must be connected and aligned with the revenue pipeline to ensure accurate information. With a single source of truth, teams can easily determine whether their actions directly or indirectly impact company objectives.
  3. People – or those responsible for managing processes and platforms. 

Identifying and then managing responsibilities within RevOps

Businesses should consider these tips to encourage and facilitate alignment under a RevOps framework:

  • Agreement on metrics. Each department must use and understand a particular set of core metrics that define a customer journey.
  • Trust and credibility. While certain metrics lend credibility to the process, each department must trust that the data will help the business make sound decisions.
  • Tech stack ownership. RevOps aligns technology infrastructure so that each department has the same set of tools. 
  • Change management. Alignment means that more people will be impacted by a single decision. Innovative and aligned decision making is based on relevant experience in change management.

Using the abovementioned best practices, each department should be organized according to the following areas of responsibility:

  1. Insights team – supporting data-driven decision making gleaned from customer insights.
  2. Enablement team – who work on removing friction between the sales, customer service, and marketing departments. This enables them to spend more time meeting customer needs.
  3. Tools team – responsible for the training and administration of tools and technology.
  4. Operations management team – with a core focus on maintaining effective collaboration between departments.

Advantages of RevOps for businesses

Here are some of the primary advantages of implementing RevOps in a business:

  • Increases efficiency through alignment. Studies have shown that businesses can generate 38% more revenue in 27% less time by ensuring that every initiative has a direct and measurable impact on the end-to-end process.
  • Encourages focus. Sales, marketing, and customer service teams work toward meeting high-impact goals and KPIs with a customer-centric focus.
  • Expansion through simplification. The RevOps process allows teams to quickly identify and then remedy obstacles in the customer lifecycle. This simple, predictable, and scalable process gives decision-makers the confidence to invest in high-growth actions. As a result, the company drives more revenue and hires more staff.

Key takeaways

  • RevOps is a collaborative, customer-centric approach to maximizing the revenue potential of a business.
  • RevOps advocates the alignment of the sales, marketing, and customer service departments. Alignment is achieved through streamlining access to data and technology. Decision making based on change management principles is also effective.
  • RevOps allows businesses to generate more revenue and spend less time doing it. The framework also encourages a customer-centric approach to problem-solving that is simple, predictable, and profitable.

Connected Business Concepts & Frameworks

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Ad Ops – also known as Digital Ad Operations – refers to systems and processes that support digital advertisements’ delivery and management. The concept describes any process that helps a marketing team manage, run, or optimize ad campaigns, making them an integrating part of the business operations.
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DevOps refers to a series of practices performed to perform automated software development processes. It is a conjugation of the term “development” and “operations” to emphasize how functions integrate across IT teams. DevOps strategies promote seamless building, testing, and deployment of products. It aims to bridge a gap between development and operations teams to streamline the development altogether.
devsecops
DevSecOps is a set of disciplines combining development, security, and operations. It is a philosophy that helps software development businesses deliver innovative products quickly without sacrificing security. This allows potential security issues to be identified during the development process – and not after the product has been released in line with the emergence of continuous software development practices.

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