In the grand scheme of tech industry lingo, Revenue Operations (RevOps) is a relatively new term that refers to the strategic planning and integration of a company’s go-to-market functions. While it may not have come up yet in your team’s discussions, this method has become an increasingly important area of focus, with many companies looking to streamline their revenue-oriented operations through better organizational alignment based on strategy, process, workflow, data, analysis, and technology.
The objective
RevOps aims to bring together teams from sales, marketing, customer success, and finance to align processes and technologies in support of revenue generation and growth. Integrating these functions can help eliminate silos and streamline the flow of information and data, improving decision-making and enabling teams to work more efficiently toward the same profitability objectives.
Nearly half (48%) of companies now have a RevOps function, up 15% from last year, with an additional 11% planning to adopt it next year. (1) Gartner also predicts that 75% of the highest-growth companies will deploy a RevOps model by 2025. (2)
The process
RevOps is a distinct area of focus from FinOps (Financial Operations) and related areas of focus in business operations.
FinOps focuses on optimizing a company’s financial performance by improving processes, reducing costs, and increasing operational efficiency. It comprises a set of best practices and techniques aimed at ensuring that a company’s financial operations are optimized to deliver maximum value.
RevOps, on the other hand, focuses on optimizing a company’s revenue creation. It is a cross-functional approach that combines various teams and processes, such as sales, marketing, customer success, and finance. RevOps seeks to improve the customer experience, increase customer lifetime value, and ultimately drive growth and profitability for the organization.
Many companies are investing in RevOps and forming dedicated RevOps teams. The most common period in which a company starts a RevOps function is between $5M – $20M ARR (Annual Recurring Revenue), with the second most common being between $20M – $50M ARR. (3)
The outcome
Organizations that adopt a revenue operations program can find numerous benefits, including:
Increased efficiency and productivity: By aligning sales, marketing, and customer success teams under one revenue operations program, you can streamline processes, eliminate silos, and reduce inefficiencies, resulting in improved productivity.
Better data insights and decision-making: RevOps programs consolidate data from different teams, providing you with a unified view of the customer journey so you can make data-driven decisions and optimize your revenue strategy based on real-world insights.
Improved customer experience: By aligning sales, marketing, and customer success teams, you can provide a consistent customer experience across all touchpoints, leading to increased customer satisfaction and loyalty.
Enhanced alignment between teams: RevOps breaks down functional silos and brings different groups together under one unified program, promoting better collaboration and communication, which boosts confidence, instills trust, and reduces friction between teams.
Increased revenue growth and profitability: By optimizing processes, aligning teams, and making data-driven decisions, organizations can improve their revenue growth and achieve better business outcomes.
The opportunity for a significant impact on business outcomes can be huge, with successful RevOps programs having a positive effect on: (4)
– sales and marketing alignment (21%)
– revenue productivity (21%)
– revenue growth (13%)
With deep roots in platform engineering, our team at Taos has direct experience in developing strategies and implementing comprehensive programs for RevOps and FinOps, helping organizations like yours to bridge the gap between sales, marketing, customer success, and finance while improving the effectiveness of your financial operations to help boost profitability on top of revenue growth. A RevOps program with Taos will help you optimize your processes, reach your desired business outcomes, and drive success in a rapidly changing business environment.
Learn more about Taos Platform Engineering Services.
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Citation:
1. Revenue.io, 2022 Customer Acquisition and RevOps Team Benchmarks, January 2022
2-4. Regalix, The Definitive Guide to RevOps: An Operating Framework for Growth, December 2022