The RevOps Revolution: Why it Matters for Today’s Businesses
RevOps: A revolution in business operations. Learn why it’s indispensable for today’s companies aiming for success.
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The RevOps Revolution: Why It Matters for Today's businesses
In the dynamic landscape of today’s business world, new strategies and models continuously emerge, aiming to drive growth and streamline operations. Among these, Revenue Operations, or RevOps, stands out as a game-changer, weaving together previously siloed functions to ensure a unified approach to business growth.
A 2019 study by Sirius Decisions indicates that businesses implementing coordinated Revenue Operations are more likely to thrive in the next half-decade. The Study revealed a correlation between companies adopting the RevOps model and enhanced revenue growth. Specifically, S&P 500 companies following this approach experienced a 19.5% boost in revenue, in contrast to a 7.3% increase for those not adopting the model. The study concluded that businesses with a synchronized revenue approach grow at a 19% faster rate and boast 15% greater profitability.
In this blog, we’ll delve into the significance of Revenue Operations and why it has gained such traction in modern businesses?
What led to the inception of RevOps?
RevOps, or Revenue Operations, emerged as a strategic initiative for businesses to transition from merely aspiring for revenue to methodically driving it throughout the organization. In the past, corporate departments operated in isolated bubbles, each with its distinct goals, disconnected customer touchpoints, and independent data analyses. This meant there was often a lack of coordination, with potential revenue opportunities slipping through the cracks.
Several pivotal factors contributed to the ascent of Revenue Operations:
- The increasing significance of Marketing Technology in the corporate world.
- The necessity for a cohesive operational approach across Marketing, Sales, and Customer Success functions.
- A growing demand for an integrated and large-scale personalized customer journey.
These factors highlighted pressing issues such as fragmented customer interactions, operational lapses, and an unclear view of revenue-related challenges and prospects within businesses.
Why is Revenue Operations important in Modern Business?
To understand the importance of RevOps, it’s crucial to first recognize the traditional organizational structure present in many companies, where teams function in isolation, particularly sales, marketing, and customer success.
As businesses grow, they typically segment personnel to handle specific aspects of the go-to-market process, leading to separate departments like sales, marketing and customer success. This segregation often optimizes productivity by allocating specialized tasks to individual teams. However, with the advent of the digital age, companies need to engage across numerous platforms— from websites to other online channels to channel partners— leading to a surge in available omni-channel buyer data spurring organizations to use advanced analytics and automation to further their competitive goals.
Today’s marketing role extends across the customer journey, from the first engagement to retention, while sales teams should engage prospects early using techniques like social selling. Meanwhile, customer success should be integrated with sales and marketing to understand new customer profiles and their pathways to conversion.
Embracing the RevOps Cultural Shift
For the RevOps model to thrive, it’s essential for all involved departments to embrace a trifecta of shared values: data unification, integrated workflows, and an unwavering alignment on the north star metric of revenue.
While many companies face challenges stemming from differing data sets across teams, the solution isn’t just about technology. While it is crucial to overcome data siloes and ensure cross-functional visibility, it is also important to think beyond the tech stack that bring this data together, RevOps is a framework that facilitates seamless information flow within the organization and for it to be effective, leaders must also ensure the consistency of data and reporting throughout all departments.
Initiating the RevOps journey demands leaders to be well-versed in their organization’s existing work dynamics and how current structures and cultures might impede information flow. The habitual practice of working in isolation, for instance, calls for more than just technological solutions; it demands a significant shift in organizational culture.
Interestingly, many companies recognize this cultural transition’s importance. Gartner’s research indicates that over half of CSOs are either contemplating or already adopting the RevOps approach. Additionally, more than a third of tech CEOs from sub-$250 million revenue companies acknowledge a disconnect between sales and marketing regarding growth strategies.
While the challenge of departmental silos isn’t unique, companies that successfully transcend these barriers, fostering cross-departmental collaboration, stand to benefit most from RevOps. Such alignment has proven to spur up to faster revenue growth, showcasing the immense potential of this approach.
Bringing together multiple functions under the RevOps umbrella also necessitates some changes from a metrics and KPIs perspective. Traditionally siloed functions are all measured and incentivized on different metrics. For example, marketing may be measured on how many MQLs they create, sales may be indirectly directed towards focusing on new business sales and customer success may be tasked to ensure quick resolution of support tickets. A key element of revenue operations is aligning the entire organization under the same goals with revenue as the single north star metric for everyone.
Biglittle Champions Comprehensive RevOps Analytics
While many tools out there are specifically crafted for sales or marketing teams, biglittle.ai stands out as a product inherently rooted in the RevOps ecosystem. Our platform has been meticulously built to seamlessly integrate with and enhance all revenue-influencing procedures, spanning marketing, SDR, sales, customer success, product PLG, and finance.
Get in touch with us today!