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How RevOps' Internal Alignment Augments Revenue Engines

Date IconAug 11th, 20204 minutes

Eric Izazaga

Marketing Coordinator

How RevOps' Internal Alignment Augments Revenue Engines - Blog Post

Revenue roles are increasing in the world of work. Director of Revenue Operations, Revenue Analyst, Chief Revenue Officer, and so on are among the fastest-growing job titles on LinkedIn at 59,000+ jobs and counting.

This increase in revenue positions is spearheaded by a new way to revenue known as RevOps. The emergence of RevOps is no surprise to people.

Building a revenue team to concentrate on the revenue engine has become a necessity, explaining why this framework has become growingly popular.

The Goal of Revenue Operations

The primary goal is to build an alignment strategy that drives revenue. Challenging? Yes. Achievable? Of course.

RevOps is a go-to marketing structure for aligning sales, marketing, and customer successes into a high-performing revenue engine for B2B companies.

This is done by merging sales ops, marketing ops, and success ops into one strategic team focused on maximizing revenue and growth across the entire revenue chain.

Revenue becomes more predictable and business growth is accelerated when team alignment breaks the barriers between siloed departments.

Before getting the revenue engine started, organizations must unify the processes generating their company’s top line of success. 

3 Primary Focuses of Revenue Operations

Alignment is achieved by introducing the ultimate goal to everyone involved with the revenue engine. According to Clari, focusing on the following factors will unify a company's top line of success:

1. People

Management expert Ken Blanchard stated that teams fail roughly 60 percent of the time. Chemistry in work environments is just as important as chemistry on the football field.

RevOps is meant to create a stream of chemistry and ensure it is maintained throughout a company’s revenue operations. Aligning teams around one single business view ensures that every person has the same goal in mind.

Every person involved in the top line must understand the business view and all revenue targets that the company aims to meet when operations commence. 

2. Data

Businesses tend to fall into the habit of storing data in different places within their tech stack. This may include storing data in a CRM, an automation tool, spreadsheets, or even ignoring the data storing process.

It doesn’t have to be that way with Revenue Operations in charge. Connecting business and activity data is important, eliminating the time-wasting habit of unorganized data.

RevOps is an ultimate solution to disconnected data that makes up a tech stack, resolving problematic issues such as siloed team structures, time-wasting when comparing data, and what Clari calls, a lone wolf mentality. 

3. Processes

Having documented, ingrained processes that every team can follow is important in RevOps. Processes ensure and increase operational efficiency throughout a company.

This doesn’t mean that teams must throw out the window every process that is implemented thus far. Having processes that increase operational efficiency means processes that each aligned team can follow to ensure that people are on the same page.

Clari mentions a few examples of processes they refer to as integrated cadences that include sales 1:1s, quarterly business reviews (QBRs), and forecast calls.

Processes will ensure internal operations stay consistent while aligning with the main business view of a company. 

Revenue Operation metrics you should be measuring

As I mentioned above, the primary goal of RevOps is to drive revenue. How do you drive and increase revenue?

Teams close more deals, marketing drives pipeline growth, and fewer customers are lost while more customer successes are achieved and reported.

On another note, there are a handful of key metrics that are responsible for the successful performance of Revenue Operations. Below are a few examples of key metrics Clari recognizes are vital components that drive revenue: 

1. Sales Cycle Time

The sales cycle time is important for any company closing deals measuring the amount of time from the first touchpoint with a prospect to closing the deal.

A sales cycle time is important because it introduces predictability into an organization’s sales forecasting and the process of estimating future sales.

Companies make informed, comfortable business decisions while predicting both short-term and long-term performance. The sales cycle time of a company is a KPI that works with tracking their sales pipeline and revenue growth—the shorter the sales cycle time, the more revenue a company is generating.

2. Win Rates

Another key metric accountable for Revenue Operations is win rates. Win rates tell a company the number of opportunities that they won—it is important to note that it is those opportunities that make it to the proposal stage.

This is a commonly used success metric for sales teams, measuring the efficiency of sales teams, and a crucial insight into a company’s sales process.

It is important to Revenue Operations because teams measure their performance through benchmarking, forecasting, and their pipeline, allowing them to identify weak links and turn around underperforming processes. 

3. Customer Lifetime Value

Customer lifetime value (CLV) is a metric that measures customer success in RevOps. CLV is a way to measure how valuable a customer is to a company across the whole relationship.

Qualtrics found that it costs less to keep existing customers than it costs to find and acquire new customers. Increasing the value of a company’s current customers is a way to drive growth and more revenue in the long run.

As previously mentioned, customer success is a crucial component in RevOps that must also play a key part in generating revenue.

This includes understanding the customer experience of a company’s audience as well as measuring every ounce of feedback at every possible touchpoint. When a company understands its key drivers of CLV, then it can adjust or continue its processes to align with the RevOps framework.

Sales cycle time, win rates, and CLV are only a few of the bunch of metrics that Revenue Operations is accountable for. Stay tuned for a future blog post where we will analyze more metrics aligned with the RevOps framework. 

Revenue Operations Augments the Bottomline

Organizations that align their go-to-market functions outperform those that refuse to align their functions.

Clari reports that public companies with RevOps saw 71 percent higher stock performance compared to their competitors who have yet to adopt the RevOps framework. SiriusDecisions found that on average aligned companies see a growth rate of 19 percent and a 15 percent increase of more profits.

While RevOps organizations are enjoying their growth, Chief Revenue Officer positions are also increasing in many B2B companies. This is due to the alignment being an enormous step forward to siloed departments that simply don’t perform when they act from an individualistic point of view.

CROs are at the helm of these operations driving alignment not only promotes better collaboration and predictable business growth but it keeps every team honed in on their objective to drive revenue growth.

As our team continues to dive into the topic of Revenue Operations, be sure to subscribe to the Webstacks Blog.

We want to ensure our readers are well equipped with the latest tips, tricks, and strategies that not only promote success but promote growth moving forward.


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