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Business Process as a Service (BPaaS)
In the 21st century, the conventional models of managing people, processes, assets, and technologies to drive revenue are no longer sufficient. Modern, technology-enabled systems that adapt to changing business models and customer buying behaviours need advanced revenue operations (RevOps).
RevOps tightly align sales and marketing teams wherein revenue does not happen by chance but is predictable. According to a management consulting firm, B2B companies investing in RevOps experience a 10-20% increase in sales productivity, a 100-200% increase in digital marketing ROI, and a 30% reduction in GTM expenses.
This article explains the concept of revenue operations, its benefits, and ways to optimise business with RevOps.
What is revenue operations?
RevOps aligns sales, marketing, and customer success processes across the buyer lifecycle to bring operational efficiency. It drives growth by breaking down silos and keeping all the teams accountable for the revenue. To align the three departments, RevOps does the following –
- Agreement on metrics.
- Clear ownership of the technology stack.
- Credibility and trust between the teams.
- Effective change management
Through RevOps, a business can optimise its sales and marketing funnel and collect high-quality leads to drive revenue growth.
When do you need revenue operations?
When your business starts showing the following symptoms, you need to consider RevOps –
- Technology silos with too many tools – RevOps consolidates the acquisition, implementation, and management of technology platforms under a single management team. This helps your business manage training better while saving costs.
- Broken processes – Businesses must regularly update processes to keep up with a fast-paced environment. RevOps does this by helping all teams collaborate and create new training material.
- Low visibility across processes – RevOps looks across business processes, increasing visibility and decision-making capability.
Benefits of revenue operations
From predicting the revenue to re-aligning the technology stacks, RevOps has compounding benefits on every process within a business –
Higher revenue
RevOps technology allows each sales representative to generate more revenue, which directly impacts the bottom line without increasing the number of resources. During transitions, such as introducing and launching new products, RevOps provides communications, training, and project management support to reduce the risk of losing deals.
According to a survey, companies with advanced RevOps see a 10% revenue growth over five years.
Better customer experience
Create a unified team that focuses on customer journeys by delivering a seamless and consistent experience across all touchpoints. This significantly increases customer satisfaction and loyalty.
Better data insights
RevOps can collect and analyse sales data by unifying scattered systems and making their data consistent. This allows your sales and marketing teams to gain insights into customer behaviour and identify areas for improvement.
Consistent tech stacks
A tech stack consists of different technologies and tools to automate your business. RevOps removes the need to use different tools and allows the team to use the same tech stack. For example, by using the same tech stack, the sales team knows how the marketing team acquired a lead, and the customer success team knows what the sales team sold. Thus, everyone knows the journey of the customer. Sales, marketing, and customer success teams communicate a consistent message, thus setting the right expectations.
Predictable growth
Every leader wants to predict business growth to confidently invest in new markets and strategies and quickly know if the investments are working. RevOps brings accurate and consistent measurements to help you predict revenue growth.
Optimise the business with revenue operations
Once you decide to undergo RevOps transformation, you need to align all parties to make the transition smooth. Here are the ways to do so –
Know where to start
You must investigate the revenue operations metrics and ask the right questions. The SaaS world is full of metrics, which can make it hard to know where to start. Some of the right questions to ask are –
- How often are your customers upgrading or downgrading the service?
- How long are the customers staying with a given service?
Map clear incentives
Rather than pinning marketing, sales, and customer success teams, align incentives so that they work for each other. For example, the marketing team brings high-quality leads to the sales team that convert potential customers. The customer success team must retain them. Each team must have clear incentive mapping.
Finalise a tech stack
Your marketing, sales, and customer success teams will rely on the same tech stack. You may need to let go of some tools that the teams no longer need and bring in other tools that work for everyone onboard.
Get the CRO onboard
The CRO must agree to and lead the RevOps transformation based on the three points above. He/she must oversee the process, coordinate with the supplier, and ensure that everyone is working towards a common goal.
How can Infosys BPM help?
A global technology firm processing over 2.6 million transactions and over 0.75 million queries had limited performance due to legacy tools and platforms, which reduced the effectiveness of sales by 40%.
Read how Infosys BPM’s BPaaS services helped a tech giant save $26 million through revenue operations strategy.
