The Importance of Having a Strong, Capable, and Efficient Revenue Operation
Everyone has the same big goal: Generate More Revenue. The question is how to do it. And of course, there is no easy answer because the solution varies from one business to the next. Still, there are best practices that can be followed to ensure optimal results – and it begins with Revenue Operations (or RevOps).
What is RevOps?
RevOps is the process of creating cohesive workflows from one department to the next, especially as it relates to revenue. Professionals in RevOps look at a brand’s entire journey from product development to production, pricing, and sales to better coordinate a customer journey and streamline revenue operations. Several primary departments influence RevOps. An example would be...
- First, production is involved to share insight on the cost of production and product features.
- Marketing then sheds light on the best messages and tactics to sell the products.
- Sales gives hands-on insights into “closing the deal” to get cash in hand.
- Customer service brings a different lens to the conversation by recognizing trends in satisfaction and pain points.
- And finally, finance handles the billing system to ensure collections are accounted for, and revenue covers expenses.
When these departments work in silos, information gaps can make it hard for profit margins to go up.
The Benefits of a Business Partner
The above is just one example of why working with a business partner like Balanced Company is beneficial. We will help you coordinate the efforts among these departments to streamline the revenue process, create modern revenue models that meet the unique needs of your business, and center it all around the target audience. Because ultimately, you’ll have the most success if you keep your customers’ needs and preferences at the forefront of all your business decisions.
Why was RevOps Created
It all began with a determination to help sales and finance collaborate better. Both of these departments are direct touchpoints for cash flow, so the whole revenue cycle improves when these departments successfully coordinate efforts. Sales can close deals quicker and still follow compliance requirements from finance. Finance can complete billing and validate transactions quicker. Even better, automation can make these tasks more efficient for everyone. And when technology is involved in the process, shared data can even help sales close more deals with the clients that are most likely to make a purchase and pay the bill on time. So, it’s a win-win for everyone.
Of course, these two departments alone cannot be solely responsible for faster growth and more profit. Ultimate success means all primary departments work together to shape a better customer experience. And all departments support revenue generation efforts. RevOps coordinates this collaboration and empowers company leaders to make more informed financial decisions while discovering cost efficiencies, such as automation opportunities.
What Problems Does RevOps Solve?
Beyond building better internal coordination, RevOps creates efficiencies that free up your employees’ time and increases your profit margins. How? Automation.
Automation can improve up to 90% of your order-to-cash process.
Example Automation Opportunities
- Implement self-serving customer solutions
- Convert qualified leads
- Generate quotes
- Sign and return quotes
- Auto-generate contracts and invoices
- Auto-bill
- Send order updates and customer satisfaction surveys
When you free up staff time from these day-to-day tasks, you allow them to focus on revenue-generating activities, like predicting revenue, planning cross-sales, and managing upsales.
Is your data a mess? Does your process feel broken? Is your team not working well together? You guessed it, we can fix that!
How to Measure RevOps Solutions
Profit margin always has and always will be the most critical measurement. Of course, revenue can’t be the only way you measure the success of RevOps in your business. Several data points can help you understand and optimize your efforts over time.
Example Metrics Monitored by RevOps
- Cost Per Acquisition: Identify how much it costs to acquire new customers
- Annual Recurring Revenue: Recognize guaranteed revenue streams per contract agreements
- Renewal Rate: Specify how many customers are expected to renew
- Average Revenue Per User: Quantify how much each active customer is worth
- Revenue Backlog: Acknowledge how much revenue has not been collected for contracts or sales
- Churn Rate: Know how many customers stop doing business with you
By analyzing these metrics over time, you will continue to make more informed decisions and see a positive impact on your bottom line.
Are you ready to streamline?
Our process improvements can help your revenues skyrocket.
The 3 Pillars of RevOps
Since RevOps is about process improvement, wouldn’t it make sense that its formation is grounded in a proven process? Of course! Three pillars make up the RevOps process; each is vital to forming a solid foundation for your business.
If you want your departments to collaborate, you must create processes that foster interdepartmental synergy. Make it easy for departments to work together and then hold team members accountable for doing so. Over time, employee morale, company culture, and trust will all grow – along with your bottom line.
Now, put a software solution in place to connect all data points. When all departments can see a pipeline of data, the narrative around what that data means is more complete. So, each person sees their personal impact and role in the company’s overall success.
The only way to keep your processes and platform working smoothly is to put the right people in place to oversee the coordination. This is where you elevate current department members to RevOps team members. Each RevOps employee will have an acute understanding of the department where they originated. They’ll retain this understanding while recognizing the cohesion required of all departments. Through this big-picture lens, RevOps can help maintain and optimize all employees’ involvement in the process and platform.
Ready to Collaborate on your RevOps?
Let us put the three pillars to work for you and build a RevOps solution to help your business thrive. Contact us today to get started on a plan that can help your internal departments coordinate more efficiently. Our process improvements can help your revenues skyrocket.