An organization that’s not looking for ways to get ahead is already falling behind. Maturing tech has given rise to a new approach to getting ahead that you might (or might not) know as Revenue Operations (RevOps). It’s critical to making every part of a business work together better, so successful growth depends on it. But being a newly-emerging field, RevOps is still in the process of being defined.
We at ClearPivot define revenue operations as "building the company systems and processes that manage the customer journey, from marketing to sales to customer success." But what does that mean specifically, and what are the "boots-on-ground" implications of this high-level definition?
We’ve gathered insights and definitions from top RevOps experts to help you understand these questions and more. Here’s what they had to say about what it is and why it matters.
What is RevOps?
We kick things off with Brandon Dith-Berry from our podcast. He's the head of revenue operations for a company called Zeni. We were lucky enough to get him to join our podcast where he gave this distilled definition of RevOps (and you can hear the whole version in our podcast episode with him).
Brandon Dith-Berry:
“I feel the best definition for revenue operations is we're the team that acts as the connective tissue, the integrative team between all other teams, to bring efficiency to the organization as a whole. And part of what happens when you bring that efficiency is you start to get those gross margins actually become much higher, because you're creating that operational efficiency to help everybody do their jobs faster."
So that's one portion of it. But then the other side of it is we are the team that brings insights to the executive teams, and then all the other leaders at the organization. So we collate all the data across multiple different teams, and we're able to then derive insight from all of that data analysis. And we're a combination really between operations, data ops, and then also simply just being a team that aligns all the other teams, and can be a liaison really between the go-to-market teams, and then whatever other teams you have in your organization.”
"I like how my CEO Swapnil says it. Every time we talk, he always says, "RevOps is the backbone of our organization." And I love it when he says it, because number one, it shows me that he trusts us to have a big impact to the overall operations, and just the company at large, but also he knows that we're playing that critical role that keeps the company running like a well-oiled machine.”
His breakdown is awesome at showing how RevOps aligns various departments and makes sure operations run smoothly across the board.
Perspectives from the Slack Community
We were also lucky enough to be part of a Slack discussion where various industry professionals shared their unique takes on RevOps. Let's see what some of them had to say:
Jeremy Steinbring:
"RevOps is a philosophy, the idea that Marketing, Sales, Customer Success, and Product should work together to increase operational efficiency and drive revenue growth."
Jeremy emphasizes RevOps as a belief system focused on synergy and efficiency across key business functions. He elaborates further when asked about the choice of words:
Jeff Ignacio adds another layer by describing RevOps through its core functions:
Jeff Ignacio:
"The practice of bringing go-to-market strategy and execution to life through the four pillars of Process, Enablement, Advisory, and Systems. GTM strategy and execution are PEAS in a pod."
"Rule of 40 is growth + profit margin. We affect growth via any number of ways: ICP, channel optimization, segmentation, territories, enablement, pricing, packaging, forecasting, org design. All of those also affect profit margin. 40% of revenue for public companies is sales and marketing spend. Sales is typically 3:1 against marketing and 80% of sales expense is typically headcount. Optimizing all of this is where RevOps plays a huge role."
Alex Cosmas:
Alex Cosmas offers a more investigative perspective:
"I always think of the RevOps team as the assumption police. We bring clarity by challenging assumptions about processes, data, and metrics."
Alex’s analogy of the "assumption police" explains the role that RevOps plays in validating and optimizing organizational assumptions and processes.Why is it so important? It ensures that decisions are based on accurate and reliable data, rather than just assumptions.
Why RevOps Matters
The Slack discussion also delved into the value proposition of RevOps. Hassan Irshad provided a comprehensive view:
Hassan Irshad:
"RevOps is a strategic approach that aligns Sales, Marketing, Customer Success, and Partnerships functions to enhance revenue generation, streamline processes, and drive overall growth supporting the GTM strategy."
What better way to describe strategic alignment and growth-driven nature of RevOps? Natalie Furness emphasized the broader alignment across business functions:
Natalie Furness:
"Revenue Operations is the business function dedicated to aligning people, processes, and data systems across go-to-market teams to maximize revenue generation while minimizing costs effectively."
Natalie’s definition stresses the importance of comprehensive alignment beyond just sales, marketing, and customer success, incorporating finance, product, and legal operations as well.
Doug McLean:
"Aligning People, Processes, and Platforms to deliver scalable & measurable results across the organization. The ART of Getting stuff Done!"
The Role of RevOps
To understand the real impact of RevOps, let's look at specific areas where it improves business operations and drives growth.
1. Operational Efficiency
Accurate, shared data and better team efficiency is at the heart of revenue operations. By removing process bottlenecks and enabling unified data across teams, RevOps helps organizations achieve higher efficiency. This means eliminating redundancies, automating routine tasks, and fostering continuous improvement.
For instance, Brandon Dith-Berry points out that RevOps creates operational efficiency, helping everyone do their jobs faster and leading to higher gross margins. This efficiency results in faster execution of tasks and reduced costs, allowing the company to focus more on bigger initiatives rather than getting bogged down in day-to-day challenges.
2. Data-Driven Decision Making
RevOps teams collate and dissect data from multiple sources, finding insights that lead to better decisions. This approach helps in identifying growth opportunities, reducing risks, and improving performance across your organization.
Jeff Ignacio does a great job of explaining the importance of leveraging data for making informed decisions. By affecting metrics like the Rule of 40 (growth + profit margin), RevOps can influence key aspects of business performance, such as ICP (Ideal Customer Profile), channel optimization, segmentation, territories, enablement, pricing, packaging, forecasting, and org design. These pieces of information are crucial for maintaining a competitive edge in the market.
3. Enhanced Collaboration
RevOps builds a collaborative environment where different departments work across shared datasets and systems towards common goals. This alignment enables teamwork and shared objectives. By acting as the “connective tissue” between various teams, RevOps ensures that everyone is on the same page and working towards the same objectives.
Jeremy Steinbring describes RevOps as a philosophy where Marketing, Sales, Customer Success, and Product work together to increase operational efficiency and drive revenue growth. This collaborative approach not only enhances internal communication but also leads to better outcomes for the business.
4. Customer Experience
By aligning customer-facing teams, RevOps ensures a consistent and reliable customer experience. This kind of cohesion enhances customer satisfaction and retention, driving revenue growth. A well-orchestrated RevOps function can track customer interactions across different touchpoints, ensuring that the customer journey is smooth and enjoyable.
For example, Hassan Irshad mentions that RevOps is a strategic approach that aligns Sales, Marketing, Customer Success, and Partnerships functions to enhance revenue generation and streamline processes. This alignment ensures that all customer interactions are coherent and contribute positively to the overall customer experience.
5. Revenue Growth
The primary objective of revenue operations is to drive revenue growth. By improving processes, enhancing collaboration, and bringing better visibility into clean data, RevOps helps organizations achieve their revenue targets more effectively. This involves not only improving the efficiency of existing operations but also identifying new revenue opportunities and strategies.
Natalie Furness emphasizes that RevOps is dedicated to aligning people, processes, and data systems across go-to-market teams to maximize revenue generation while minimizing costs. This comprehensive approach ensures that all efforts are geared towards achieving the highest possible revenue with the most efficient use of resources.
All these voices make it clear that RevOps serves as both a strategic and operational backbone within organizations. It makes sure that all customer-facing teams are aligned, efficient, and working towards common revenue goals. The diverse perspectives from our community highlight that while definitions may vary, the core principles of efficiency, alignment, and data-driven decision-making remain constant.
RevOps is not just a function, but a transformative approach that can significantly impact an organization’s performance. By integrating processes, aligning teams, and providing actionable insights, RevOps helps businesses achieve their growth and efficiency goals.
Conclusion
Anyone looking to improve their business needs to know how RevOps brings together an organization to improve efficiency and growth. Whether you view it as a philosophy, a methodology, or a strategic approach, the fundamental principles of RevOps remain the same: alignment, efficiency, and data-driven decision-making.
As more organizations adopt RevOps, the role of this function will continue to evolve and expand. By staying informed and adapting to new developments in the field, businesses can harness the full potential of RevOps to achieve their revenue and growth objectives.
