With significant scale comes great complexity. This is where Revenue Operations or RevOps comes into play. Its main goal is to eliminate this problem as your company scales by bringing people, processes, and systems together throughout the whole revenue cycle.
Here are just a few reasons why you need to implement RevOps to create an effective GTM strategy for your company:
1. Revenue Operations helps in tool management
When your company starts to scale, you’ll be using many tools for business operations, and to minimise extra costs, RevOps aids in the acquisition, application, and maintenance of these tools under one team.
According to a McKinsey report, 31% of companies have at least one function that has been automated. The current demand for effective management of all teams to enhance revenue is urgently needed as organisations rapidly move towards automation for productivity.
However, another problem is that it can be challenging to decide which tools to include in your Revenue Operations technology stack due to the sheer number of software and applications available for customer-facing and revenue-related operations.
Research reveals that scoping a project will be inefficient when a company only uses 60% of a tool in the technology stack that they invested in.
That’s why it’s essential to focus on integrating the tools that your RevOps team may utilise and optimising them to execute the best GTM plan so that they can successfully carry out their tasks.
Listed are some considerations that you need to build your RevOps tech stack:
- Current and future-fit
- Adaptive and flexible
- Accessible and easy to use
- Well-designed and functional
With these considerations, you’ll have a solid basis to choose the right technology for your tech stack for your RevOps team to perform effectively.
A revenue operations team’s tech stack determines how successful it is. Having the correct tools will improve the efficiency of the overall procedure. Troops recommended the following applications to optimise your revenue, which you may want to consider as well:
These just scrape the surface with over 45 different sales tool categories and thousands of tools now available; RevOps have their work cut out to build an effective technology stack that achieves the expected ROI.
All the technology utilised across your marketing, sales, and customer success teams must be selected and implemented by RevOps. Revenue Operations is also responsible for assessing the value these tools can provide to the company.
Having effective tool management can help develop a successful GTM plan that can be utilised to increase the company’s revenue.
You may also find How to thrive with a clear GTM strategy helpful in guiding you to create the best GTM strategy for your company.
2. RevOps guarantees that all teams are involved
One of the major problems today within an organisation is that different departments do not interact well and are not always on the same page. The sales team may say one thing, while the marketers may say something entirely different to the customer.
Due to different tech stacks and platforms, there will be significant data gaps between sales, marketing, and customer success teams. And as an organisation expands, GTM teams grow and evolve, which leads to work complexity and silos.
The solution for this, however, is RevOps.
RevOps guarantees the coordination of each team’s strategy and goals to generate predictable revenue. All the teams are aligned by revenue operations, creating a cohesive and complete customer experience.
When you set goals for your GTM strategy, your RevOps team may assist you in organising the strategy holistically by making regular tweaks and updates to ensure the best outcomes.
Here are some of the advantages of RevOps in terms of aligning your GTM teams:
- Complete visibility across departments
- The funnel is transformed into a flywheel
- The onboarding of new hires is more smooth
- Enhanced work consistency
- Increased cross-selling and upselling opportunities
These are just some benefits of RevOps to your organisation, and there’s still a lot more. Before introducing your new product to the market, make sure you have Revenue Operations in place to elevate the process and ensure a successful GTM strategy.
If you want to know more about what you can gain from RevOps, you can read: Top 3 reasons why you need Revenue Operations .
3. RevOps provides better clarity on the ROI
Today, almost everything is based on data.
You’ll fail when you don’t know what’s working and what isn’t. When teams work in silos, it’s difficult to tell if campaigns or activities generate a good return on investment or ROI.
Companies are increasingly concentrating on revenue growth forecasts because these forecasts are crucial in devising a revenue-generating strategy that is both efficient and effective.
RevOps delivers precise indicators that may be used to forecast your revenue trend. It’s there to assist your company in gaining a better understanding of the ROI by looking at each activity holistically from a business standpoint.
The good thing about RevOps is that it can measure, analyse, and understand all KPIs for your company’s GTM strategy, leading to many revenue and sales benefits.
According to Boston Consulting Group, top B2B tech businesses who used revenue operations to drive their growth saw considerable benefits, including 10% to 20% increases in sales productivity.
With RevOps, every team is used to its best capacity, as they all keep your customer engaged throughout their journey, which drives predictable revenue. This will further influence your decision-making in creating an effective GTM strategy.
Here are just some revenue operations KPIs and indicators that can help you to provide better clarity on the ROI:
- Customer churn rate
- Annual Recurring Revenue
- Sales Cycle Time
- Forecast accuracy
- Cost of Customer Acquisition
- Renewals and upsells
- Customer lifetime value
Some tools listed above, such as Clari, Looker, and Troops, can help you in data forecasting, and there are many other revenue intelligence platforms to help drive forecasting and leverage AI for greater accuracy.
However, first, you should begin by analysing the current status of your GTM strategy and the operations that support it to evaluate where RevOps might positively impact these indicators. This will help you come up with a successful GTM strategy.
Ready to adopt RevOps in your GTM strategy?
Every business is unique but investing in Revenue Operations now can help you grow and scale faster with an effective GTM strategy, alleviating growing pains and freeing up funds to invest elsewhere.
But how about taking your business to another level? Well, I can help you with that.
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