Skip to content

What Is Revenue Operations (RevOps)?

Running a successful business is like a team game. Imagine the departments are your team players. They need to be united under one strategy to score.

Revenue Operations (RevOps) does that for revenue-generating teams inside your company: sales operations, marketing operations, customer success operations, and systems.

RevOps is a function that is gaining traction across the industry because it takes responsibility for centralizing previously separate departments to increase their money-making capabilities.

This guide explains:

  • Revenue Operations meaning and importance in business
  • How it's different from sales ops
  • How to build revenue ops teams
  • Key metrics and tools to ensure its success
New call-to-action

What is revenue operations? 

Revenue Operations (RevOps) is a function in B2B organizations that aims to maximize their revenue potential by streamlining and aligning sales, marketing, and post-sales in both the front and back-end. In all the revenue-generating teams inside a company, RevOps is responsible for:

  • Software
  • Systems
  • Processes
  • Data

Why do businesses need revenue ops?

The way B2B companies generate revenue has changed. There is more focus than ever on collaboration between marketing, sales, and customer success. 

The need for revenue ops comes from the fact that in many B2B organizations the three teams work together to optimize the customer journey, rather than having their own delineated areas of responsibility.

They also use the same business data and software, so why keep them separate?

For most B2B/SaaS firms, the revenue generation workflow looks like this:

Sales depends on marketing to generate the right leads at the right time. The sales team is concerned with building long-term relationships with a high lifetime value, which impacts the customer success team.

With this alignment comes the sharing of tools and even people, like SDRs in the sales department, who bridge the gap between marketing and sales at the top of the funnel. 

Revenue ops job is to facilitate communication between all revenue-generating teams, implement new tools, and improve reaching sales goals. It’s no surprise that publicly traded companies with a RevOps function saw a 71% better stock performance than companies that do not.

What do revenue operations do?

Get all the essential information on what RevOps is in one detailed infographic - click 👇 to download!

Revenue-ops-crash-course

 

What’s the difference between revenue ops vs sales ops?

The primary difference between revenue ops and sales ops is that while sales operations support the B2B sales process, revenue operations are responsible for operations across all revenue-generating teams.

Rev ops will do everything that sales ops does, but they will do it for marketing, customer success, and systems, too, while keeping all these teams aligned.

If sales operations is about reducing friction for the sales team so they can spend more time selling, RevOps is about making the entire revenue-generating side of the business more effective at what they do.

What benefits do revenue operations managers deliver to a business?

A well-run, high-performance RevOps team helps every revenue-generating area of the organization to ensure sustainable growth.

Sales

A revenue operations manager will know what is going on at all stages of the sales funnel. It means that if anything goes wrong, they have the knowledge and skills to fix it quickly. As a result, salespeople can spend more time doing what they do best – engaging with prospects and closing new business.

Marketing

Marketing teams tend to work with more tech and more data than other revenue-generating departments. The primary focus for RevOps manager in B2B marketing is to streamline the marketing tech stack, empowering marketers to access more data from the other teams (and vice versa).

This leads to better decision-making, improved productivity, and business growth.

Customer success

When previously siloed departments are aligned and working together, they are more attentive to their customers' needs. Customers notice better standards of communication and service. This makes life much easier for customer success teams, who will notice the difference in their upselling and renewal rates.

What is the revenue operations team structure?

The size and structure of your revenue operations team will depend on the size and needs of your business. However, companies that are making a success use the following revenue operations org chart:

There’s a Director of Revenue Operations, reporting to the CRO.

Reporting to the Director of RevOps, there will be a manager for each area of operations:

  • Sales Operations Manager - overseeing ops for the sales team.
  • Marketing Operations Manager - overseeing ops for the marketing team.
  • Customer Success Operations Manager - overseeing ops for the CS team.
  • Systems Operations Manager - overseeing data and technology implementation.

Under these managers, there may be analysts for each area. Their role is to identify and solve issues relating to business performance. To do so, they must review and analyze vast amounts of data, in collaboration with their respective departments.

What are top revenue operations skills?

To be a hit in the world of revenue operations, you need a wide range of skills:

  • Strategic thinking - the ability to formulate plans and proposals based on delivering the company’s goals.
  • A head for figures - in RevOps, everything is based on data and metrics.
  • Problem-solving - a key part of the job is to diagnose and remove obstacles that stop your teams from generating revenue.
  • Communication - the ability to persuade internal stakeholders that your strategies will make a material difference to their long-term success.
  • Technically-minded - you’ll be dealing with complex software and systems; some RevOps roles include coding as a core responsibility.
  • Teamwork and collaboration - RevOps cannot be a silo; it demands close association with internal departments. The best RevOps teams work alongside managers and employees to implement changes.
  • Customer-focused - even if you don’t talk to customers, you must always have the customer’s needs in your mind. After all, without paying customers, there is no revenue!

What is the revenue operations job description?

In general, a RevOps team's responsibilities focus on delivering the following tasks:

  • Operations management - assessing company policies and business processes, with a view to updating procedures and improving performance.
  • Enablement - removing obstacles that stop sales, marketing and customer success teams from interacting with customers and generating revenue.
  • Insights and analytics - producing short and long-term reports drawn from a wide range of data sources, with a view to enhancing workflows and cross-departmental engagement.
  • Tech implementation - procuring, implementing and maintaining the software across all revenue-generating departments.
  • Learning and development - providing continuous training to employees in how to use new systems or follow new processes.
  • Compliance and regulation - ensuring that every new workflow or system meets company, national and international standards and legislation.

What are the key revenue operations metrics?

Revenue operations is a numbers game. Here are some of the metrics you need to know in a revenue operations analyst job:

  • Sales cycle time - the time it takes from the first touch with a prospect to closing the deal.
  • Pipeline velocity - the speed that leads move through each stage of your revenue pipeline.
  • Win rate - the proportion of sales opportunities that are converted into customers.
  • Customer acquisition cost (CAC) - the total cost of winning a new customer (this metric can include lead gen costs, salaries, equipment and more).
  • Annual recurring revenue (ARR) - the revenue coming into your business from subscriptions or contracts, calculated over the course of a year.
  • Customer lifetime value (CLV) - the amount of revenue you can expect from a customer during the entirety of your relationship with them.
  • Upsells and renewals - the amount of revenue you make from selling new products to existing customers, or getting them to commit to a new contract or subscription.
  • Customer churn - the proportion of customers you lose across a specific time period.
  • Forecast accuracy - a calculation of how predictable your revenue is, usually expressed as a percentage.

What are the essential revenue operations tools?

The number one tool in RevOps is your company's CRM. You need to make sure that your CRM provides all the capabilities you need to make your revenue operations strategy a success, including:

  • Contact and activity tracking - so you know where each prospect and customer is in their buyer's journey.
  • Revenue forecasting - the ability to harness current and historical data to estimate what will happen in the future.
  • Revenue analytics - gathering information by observing workflows, then reporting on their strengths and weaknesses.
  • AI-powered analytics and insights - using AI tools to manage and manipulate large datasets.
  • Individual account dashboards - every lead and customer must have their own section within your CRM, with full visibility for all revenue-generating departments.
  • Data aggregation from third-parties - your CRM can transfer data from other sales platforms, ensuring your reps can have all the essential information they need at their fingertips.
  • Integration with third parties - RevOps best practice is to link your CRM to your marketing automation and sales enablement platforms.

Build your revenue ops strategy with Cognism

Looking for a reliable and globally compliant data source? Is your existing database in need of a serious refresh? You’ve come to the right place!

With Cognism, you can enrich every lead in your CRM, calculate TAM in just a few clicks and arm your sales team with the most up-to-date account info.

Click 👇 to take a tour of our solution.

New call-to-action