RevOps is purpose-built for the singular purpose to assist companies to embace and deploy a metrics informed, data-driven orientation to greater revenue performance.
RevOps enables SaaS and Subscription based business to exponentially increase customer acquisition, customer expansion, and customer retention efficacy. This is accomplished through better alignment of marketing, sales and customer success processes by embracing shared Key Performance Indicators (KPI's), measured not only against internal performance metrics but evaluated against like peer cohort based KPI benchmarks.
Most companies highlight their “data driven” orientation by having every department individually track, measure and report against functional KPI’s, often in isolation to the company wide performance metrics that really matter to investors and other key stakeholders. Think about situations such as marketing reports that show a dramatic increase in leads, but qualified pipeline and close rates were not increasing with similar velocity, or new customer acquisition sales is growing at or above plan, but total ARR is not meeting plan due to higher churn rates. The result is not only lack of overall company performance and reduced enterprise value, but often generates cross-functional friction and a decreased focus on those priorities and metrics that really matter – top line Revenue growth, bottom line Net Income and increased enterprise value.
What do many CEO’s and CFO’s do when revenue performance is not meeting plan? Often, the first step is hiring another new sales or marketing or customer success leader. Many others start with asking each department’s leader for more reports to analyze current state process challenges, then each function begins refining and enhancing their individual departmental processes. Reflect back when the new VP that was just hired quickly identifies a “process” issue and quickly you see a new sales process in sales or different demand generation programs in marketing or enhanced Quarterly Customer Business Reviews in customer success be heralded as the solution. In fact, when the new VP, the other executives climb on board and agree that the “other departments” formal leadership and associated processes were indeed the issue…and then 2-4 quarters later either the fundamental revenue challenge is not fixed, and/or other dependencies that are typically cross functional in nature are identified as the new issue(s).
These departmental process refinements or in some cases, totally new process design and deployments in partnership with external consultants, often in concert with technology investments in tools such as CRM, Sales Engagement, Marketing Automation, Sales Enablement are justified with a Return on Investment (ROI) analysis that is far too often never revisited after the fact. Moreover, many of these investments in marketing, sales and customer success software, are dependent upon cross functional processes and measurements that are not aligned, let alone tightly integrated with common agreed upon goals, measurements and feedback loops across departments who share in the ultimate goals of increased performance from all three key revenue sources including customer acquisition, customer expansion and customer retention. Lastly, far too often companies only take an internal view on the KPI’s that they believe are critical success factors and measure their progress only against historical and internally generated data, which is often of low quality, low reliability and often questioned or even discounted by the functions that did not generate or instrument the metrics capture and presentation.
RevOps starts with providing industry benchmarked Key Performance Indicators (KPI’s) that highlights key revenue performance variables aross the revenue centric processes of Customer Acquisition, Customer Expansion and Customer Retention. This allows a company to measure their performance metrics against the most common, industry standard KPI’s, not on a function by function basis, but across departments in context of the holistic horizontal processes most critical to accelerating revenue growth.
Companies for the first-time gain access to Industry Benchmarked Key Performance Indicators, filtered by the key variables that impact industry benchmark metrics applicability to the specific attributes of their own business reality. Variables such as company size, distribution model, ACV, growth rates, even department or process specific buying groups can now be included or excluded to ensure a more relevant, applicable comparison of your own internal KPI’s to externally benchmarked industry Key Revenue Performance Indicators.
RevOps will also, on a case by case basis, provide customer specific assessments and recommendations on those Key Performance Indicators that represent the largest opportunity for improvement as measured against the most relevant industry benchmarks across the revenue generation lifecycle to customer acquisition, expansion and retention. In addition, RevOps can also provide recommendations for KPI instrumentation across the Revenue Operations processes, organizations and tech stack that enables an end to end view and reporting for CEO’s and CFO’s across the disparate functional silo’s often present within the Sales, Marketing and Customer Success functions.
RevOps enables CEO’s and CFO’s, to understand how their revenue generation performance measures up to industry peers, by providing Key Performance Indicators that highlight the unique value of their enterprise versus industry benchmarks for investors, executive teams and employees. In addition, senior leaders across all revenue generating functions can share a common set of aligned, measurable goals that not only materially increase revenue performance, but can also provide empirical evidence to highlight the performance impact of any new or enhanced process, investment in organizational competencies via training and/or new technology investment across the customer lifecycle.