👉 Let’s explore the definition of RevOps and uncover some benefits of implementing RevOps into your business.
Revenue Operations (RevOps) is the new hot topic when it comes to all things business operations. But what does it mean, and why is everyone talking about it? This article aims to give you the quickest run down on all things RevOps and highlight the benefits of implementing Revenue Operations in your business!
We’ll take a look at:
- Defining revenue operations
- Why organizations need revenue operations
- The main benefits of revenue operations
Defining revenue operations
There are so many definitions out there - so let’s keep it short and sweet:
Revenue Operations aims to align sales, marketing, and customer-centric 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.
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.
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 towards customer retention and revenue growth as a team.
Different departments within a company can often get absorbed in their own goals, making coordination challenging. Though departments attempt to work towards a common goal, they can unknowingly slow progress by moving in different directions.
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 are 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.
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.
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.
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.
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