RevOps is a hot topic. With an “81% increase in RevOps titles on LinkedIn” alone, RevOps is not just a buzzword but something companies are actively investing in and will continue to grow. But where organizationally does it fit? Is it just an extension of sales ops or marketing ops? Can those organizations morph into this role? This blog will explore what RevOps is, why companies should care, and explore whether the true definition of RevOps can be implemented successful.
What the heck is "Revenue Operations"? Is it a real thing, an emerging concept, a passing buzzword, or what?
First things first… what actually is RevOps or Revenue Operations? RevOps is a core business strategy to take information from various disparate business silos to normalize, analyze, rationalize and activate the data for the benefit of the larger business – it’s the essence of true data-driven decision making. This ability creates a new norm centered on the journey of the customer, from initial product evaluation all the way through needs analysis and ROI. This focus on the customer or client and elimination of siloes aligns the Sales, Marketing and Customer Success teams to drive growth and accountability across the revenue engines.
Is there an unspoken "oil and water" relationship between marketing, sales and IT? Can the idea of RevOps break down the walls?
As all CROs know, we have different priorities, goals and ultimately measure the team's success differently than a CMO or Director of IT. However, the most successful organizations and teams sync marketing, sales and IT teams. McKinsey reports that "marketing effectiveness will increase 15-25% by unifying strategy, governance or systems to create cohesion, reuse assets or measurement." In other words, marketers need to stop thinking in a linear fashion (ie. marketing first, then comes sales, followed by customer success). RevOps preaches the same idea; to align your core Revenue Engine teams goals and make them work together. When these three teams that have different goals work together, share data and know what the others want to achieve they will be more successful. There is no need for Sales and Marketing at war or Sales and IT to not share data. Aligning teams together will combine data from different systems and teams and allow a complete view of each customer or prospect that each team will be able to access in order to create a better experience for the customer and maximize LTV. We all buy into the tenet that better customer experience will draw in more customers and cause current customers to spend more, increasing the organization's revenue.
If you buy into the "RevOps" concept, does it require new technology? Or does it eliminate the need for certain technologies?
Revenue ops requires coordinating activities across many departments that use many systems into a complete view of each customer and to make that view available to every system that needs access. It’s the glue that is often missing, the single source of truth – and always updated. This is exactly what Customer Data Platforms offer. CDPs are a critical foundational technology for any Revenue Operations strategy. With a CDP serving to connect the different departments by centering them around the customer, it’s possible to bring all these views into alignment to achieve greater agility, efficiency, and consistency. That is what enables B2B companies to become more profitable and accelerate growth. RevOps teams can limp along without new technology but in the end you will be more successful, and able to see the payoff with RevOps faster if you embrace new technology.
Who should lead the "RevOps" strategy? Sales, Marketing or …?
Ideally if you are implementing a RevOps strategy, your Marketing, Sales and Customer Success teams are all on board. RevOps is designed to help align each individual organization to maximize efficiency and success. Many organizations are now putting CROs in place to provide structure. Generally the CRO’s purpose is to align and optimize the entire customer experience with the aim of increasing revenue. CROs care about common goals and metrics, often connected to KPIs and dollars coming in across the departments managed. RevOps supports these goals and can help a CRO achieve this, so it makes sense that CROs should be pushing to implement RevOps.
RevOps is not a passing buzzword, it’s the future and a worthwhile investment. What’s been your RevOps experience?
If you want to learn more about Revenue Operations in depth and how a CDP can help you implement a RevOps strategy take a look at Zylotech’s whitepaper “This is the age of revenue operations”
Pat O'Brien is the Chief Revenue Officer, and winner of the “Most Likely to Survive a Zombie Apocalypse” at the Zylotech Summer Superlatives...mostly because he has a 4WD Jeep. When Pat's not working with the Sales and Marketing teams you can find him walking Concord's historic Battle Road Trail or taking his therapy dog Harrison to local retirement communities. If you are interested in learning more about Sales and RevOps check out more Zylotech Blogs here.