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What is RevOps?
RevOps, short for Revenue Operations, is the alignment of marketing, sales, customer service, customer success, among other teams, to create a holistic view of the entire lead and customer lifecycle to directly and positively impact revenue generation. If that was a mouthful, try this: companies that invest in RevOps almost unequivocally increase in productivity and make more money, faster than they could otherwise. A recent study showed that companies that invested in RevOps grew by almost 3x as much as companies that did not. The fact that Director of Revenue Operations, VP of Revenue Operations, and Chief Revenue Officer are among the fastest-growing job titles on LinkedIn today is further evidence that companies are becoming increasingly interested in utilizing RevOps to accelerate their growth.
RevOps ties the entire customer experience together, from the moment a prospect first interacts with your marketing, to when they make a purchase decision, to when they experience your product/service and customer support, and finally to when they choose to renew, upgrade or in some other way, further their engagement with your company. RevOps optimizes each of these critical steps in the customer journey to give you the best chance to generate leads, close deals, improve renewal rates and increase Customer Lifetime Value (CLV).
What problems does RevOps solve?
RevOps can be summed into three main priorities:
- Reduce wasted time and resources across your revenue-generating teams
- Eliminate unnecessary revenue leakage and lost pipeline
- Identify and claim new revenue opportunities
Here are a few real-world examples of problems that RevOps solves:
Only 7% of companies call new inbound leads within 5 minutes, with many companies taking as long as 5 whole days to follow-up (that is, if they ever get around to it). Companies that follow-up with new leads within 5 minutes are 21x more likely to turn a lead into an opportunity vs those that follow up after an hour. Lead Routing can be optimized through RevOps to give your inbound sales team the best chance at closing new deals that come through the door.
79% of marketing leads never convert into sales, either due to lack of qualification or mismanaged lead routing processes. Aligning marketing and sales under a RevOps strategy will help you generate more qualified leads and get them routed to your sales team faster, improving your close rate.
Rep’s spend 64% of their time, on average, on non revenue-generating activities, leaving only 35% for functions related to selling. RevOps teams can automate non revenue-generating tasks such as logs, data entry, alerts, lead assignment and more to save your sales team precious time that could be spent making the company money.
Each of these stats represent real problems that organizations face that cost them revenue, and companies looking to scale cannot afford to leave this kind of money on the table. RevOps has changed the game by providing a strategy to organize revenue objectives, optimize revenue-generating processes and to maximize revenue growth.
Why is RevOps taking off now?
Historically, company departments have been siloed from each other, each working in their dark corner of the office without coming together under the common goal of generating value for the customer and revenue for the company. However, modern sales data strongly suggests that the alignment of sales, marketing and customer success teams increases revenue opportunities and significantly improves organizational growth rate. RevOps is at the forefront of this new strategy to bring teams together for the sole purpose of making companies more money.
New software and automation is also helping companies scale faster than ever, but the reality is that by introducing new tech without proper integration and ongoing management, you are leaving yourself open to a number of logistical issues that can impact your pipeline. Basically, with how complicated the modern tech stack has become, any company that utilizes technology to assist with sales and marketing (so…. Everybody, right?) is in need of a RevOps strategy.
How to get started
You can start today by looking for gaps in your processes where you may be losing revenue. Certainly, a professional consultancy may have great advice and insight into this, but you can find common sources of revenue leakage online. Additionally, our team would be happy to assist you by offering you a no-cost, no-pressure evaluation for how your company can start working on your RevOps strategy today.