Breaking Down the 26%: How RevOps Increases Your Revenue


There are many reasons to believe in the power of Revenue Operations. Not the least of which is its ability to maximize your company’s revenue by breaking down the internal silos that create leaks in your customer experience. 

The number we have always assigned to that revenue impact is 26%. It’s a calculated average we determined by poring over data and revenue reports, as well as the results we’ve seen with our customers—SaaS and PaaS companies whose teams we have worked with to build strategic operational roadmaps and execute on them using the Revenue Operations framework. 
 
Let’s dive a little bit further into that 26% and where it comes from. 
 

Revenue Protection and Generation 

Because Revenue Operations’ core purpose is to align the company around the customer, it protects existing revenue while also actively generating more by increasing the trust your customers put in your company, therefore increasing their LTV. Additionally, properly-managed data will provide earlier insights into opportunities for both up-sell and churn prevention
 
Outside of RevOps, a lot of energy is spent maintaining the status quo. The mentality is often that if your company is making money, why rock the boat? 
 
Answer: Traditional siloed ops teams will impact revenue by about 10%. While that’s not bad, why spend time supporting existing processes when you could be innovating and improving upon them? With RevOps, process improvements are tied directly to your business’ specific inflection point, which increases revenue generation. 
 

Tool Optimization

For those responsible for managing tech stacks, the sheer number of available tools makes effective integration and enablement a herculean task. One of the four primary skills of RevOps is to optimize your company’s tech stack specifically for your business’ current needs, which will result in less time spent implementing ultimately unnecessary tech solutions and more time doing the work that impacts your revenue. 
 
With everything functional and well-automated, your reps will be able to handle more opportunities and will receive the most valuable leads. This type of momentum leads to overall revenue gain.  
 

Enablement 

While tech and process optimization are crucial to a company’s success, neither means much without the right enablement. Investing the time and resources necessary to enable your team to both communicate through use of a shared language, and effectively use the tools that support your business will have a substantial impact on the rate at which you’re able to drive revenue. 
 
Revenue Operations puts a strong focus on this type of training in order to close skill gaps that may be causing internal bottlenecks. RevOps is strongest when your team is made up of generalists, who are comfortable doing work that may not necessarily fall under the umbrella of their specific role. 
 

Increased Productivity 

A common question is, “How can it possibly make that much of a difference in output?” 
 
Silos within an organization create a “not my job” mentality, which means things take longer to get done because everyone is too focused on their specific job function. By eliminating those silos, you are essentially creating a team of generalists who share a common language and can collaborate much more effectively. 
 
Additionally, when you have one core Ops team supporting the entire function, you can get more work done without increasing headcount. Thanks to a strategic roadmap, which is one of the first steps in implementing RevOps, there will also be much less re-work. 
 

Metrics That Matter 

With RevOps, each item on your company’s roadmap is measured against four key revenue metrics: Value, Volume, Velocity, and Conversion (3VC). With everyone operationally aligned around these KPIs, your team will get more of the work that matters done, often substantially faster than things get done under a legacy operations model. This is because your operations teams are unified and structured to view your business holistically, which allows them to tackle the most impactful work first. 
 
Value:  An example of a valued objective might be to increase the lifetime spend of a customer because your business needs to reach an increased revenue goal.
 
Velocity: An example of a velocity objective might be to decrease time between sales stages, leading to revenue hitting your books sooner. 
 
Volume: An example of a volume objective might be to decrease the amount of duplicate contacts in a CRM database so that your marketing is more impactful. 
 
Conversion: An example of a conversion objective might be to increase the conversion rate of customers who engage with your content. 

No Previous Articles

Next Article
Go Nimbly is Expanding: Find Out Why & Meet Our Chicago Team
Go Nimbly is Expanding: Find Out Why & Meet Our Chicago Team