Revenue operations, also known as RevOps, is the practice of overseeing and optimizing an organization’s core sales processes. This includes managing and coordinating all activities related to the sales team, as well as integrating sales efforts with marketing and business operations. By taking a holistic approach to managing sales processes, companies can improve efficiency, increase revenue, and drive growth.
Effective revenue operations involves implementing strategies and technologies that streamline and automate sales processes, as well as provide real-time insights and data-driven decision making. This allows organizations to optimize their sales efforts, identify opportunities for growth, and quickly respond to market changes.
In addition to improving sales performance, revenue operations can also enhance collaboration and communication within an organization. By bringing together various functional areas and providing a clear framework for sales activities, RevOps can help teams work together more effectively and achieve their goals.
Overall, revenue operations is a crucial component of any successful sales organization. By implementing effective RevOps strategies and technologies, companies can improve their sales processes, increase revenue, and drive growth. The following are common elements of revenue operations.
Development of a strategy to achieve revenue targets in an environment of competition and constraints.
Sales planning is the process of implementing sales strategy.
The administration and improvement of sales processes such as quote-to-cash.
Sales processes are completely tied to systems and applications such as CRM and sales force automation. As such, it is common for revenue operations to administer systems from a business perspective and to sponsor projects to improve sales technology.
Training for sales, marketing and operations employees in areas such as sales processes and technology.
In many cases, revenue operations is involved in product development. Sales is often viewed as a key stakeholder in product development efforts as they can evaluate if a product is likely to sell.
Go-to-market is the process of launching and selling a new or improved product or service.
Setting targets for sales teams and sales representatives.
Developing, communicating and administering sales incentive plans.
The development of sales campaigns. This may involve coordination with marketing teams and operations. For example, a sales campaign may have promotional support and require increased production or stock levels.
Forecasting sales volumes and revenue.
Measures & Metrics
Measuring sales using techniques such as management accounting and sales metrics. For example, measuring customer lifetime value and churn rate to evaluate efforts to improve customer satisfaction.
Communicating appropriate sales metrics on a regular interval to executive management, sales teams and other stakeholders such as business units.
Revenue operations works to align the goals, strategy, systems, processes, measurements, actions, projects and communications of the sales team with marketing, business units, business operations and executive management.
Sales & Operations Planning
Sales and operations planning is the process of aligning sales with production. For example, an internet company that forecasts sales of 20,000 internet connections next month that works with network operations to plan to install these services in a timely manner.
The generation, scoring and assignment of sales leads.
The development of proposals that meet customer needs and have an attractive revenue structure.
Managing the process of engaging customers, discovering their needs, developing proposals, pitching deals, negotiating and closing.
Managing the end-to-end sales pipeline from lead generation to close.
Ensuring that sales people enter their contacts in your sales systems so that the firm retains this information when the sales person leaves.
Structuring deals and setting prices. For example, an approvals process for high revenue low margin deals.
Post sales is the process of delivering your obligations to the customer after closing. Sales is often heavily involved in areas such as order fulfillment and customer service in order to reduce churn and to identify new opportunities for upselling and cross-selling.
The process of delivering the order to the customer.
The process of developing and sustaining relationships with customers. For example, salespeople may remain the primary contact for customers after the order has been delivered to build out the relationship.