How companies have approached revenue has changed over the years, and Revenue Operations have distinctively changed these approaches. Revenue Operations, or RevOps for short, is a business function meant to maximize an organization’s revenue potential. This happens because RevOps drives full-funnel accountability throughout Marketing, Sales, and Services across an organization’s process, platform, and people. When done properly, RevOps helps a business rewrite its internal operations, improve client acquisition, empower client delight, and establish a company culture that focuses on driving revenue.
With Revenue Operations, revenue is no longer the byproduct of a service or product—it’s the result of the Marketing, Sales, and Services departments acting as a cohesive team to increase and drive revenue as one. This growth team’s goal is to continuously improve and drive the revenue of a business however they can.
Revenue Operations is the solution to simply hoping for revenue to generate from a product or service. Organizations used to work in siloed departments disconnected from customers, handling disjointed analytics. The heads of departments didn’t know what the others did and did not have, leaving money in a state of question. The rise of Revenue Operations addressed three primary needs:
- Marketing technology becoming more important in the business industry.
- Unified and more efficient management across Marketing, Sales, and Services.
- More connectivity and personalization in the customer experience.
To address these core needs, Revenue Operations was founded around three pillars: Process, Platform, and People. Each of these is needed for RevOps to be successful and assist a business to achieve focus, clarity, and accountability.
The first pillar, Process, ensure that the right processes are in place to help create a collaborative culture within the business. RevOps activates uniform processes to achieve accountability and trust within an organization. As teams start to work together, additional benefits such as shorter sales cycles will soon be seen.
The second pillar, Platform, seeks out accurate information since that is the key to success in any situation. Organizations must connect and align technology to provide a clear and accurate story around their revenue pipelines. This will help people determine how they can impact the pipeline, both directly and indirectly.
The final pillar, People, makes the organization’s leadership responsible for bringing together and managing processes and platforms. Depending on the size of the organization, RevOps will either create a specific team or distribute responsibilities for the process among existing team members.