Above All, SaaS: Why It's A Perfect Match for RevOps


You are a SaaS company in the year 2019. There are certain unique traits you possess that make revenue operations a no-brainer when it comes time to transform your operations and make some serious Revenue Impact.

Here, we’ll talk about what makes SaaS companies particularly special in the world of revenue operations, mistakes to avoid, and the priorities and metrics that will make your company successful. 

The truth is, if you’re succeeding in SaaS,  you’re rarely the same company for longer than any 12 month span. After all, when a company doubles in size, it effectively becomes a new company, with fresh problems and ever-changing processes and technology. This can make it easy to drift off track, and a dedicated RevOps team is really the best (and often only) way to make sure your operational roadmap is leading your company where it needs to go. A RevOps team is able to do this by keeping a strategic eye on what’s coming next, and by tying operational projects to your company’s individual milestones.    
 
SaaS companies are high-growth by nature, and departmental silos are the mortal enemy of that growth. One of the biggest mistakes we see companies make is to focus too much, too quickly, on role specialization within GTM operations teams. This creates a “not-my-job” mentality, where everyone is singularly focused on the specific function of their role, instead of striving to become generalists who can bridge the disconnect between teams in pursuit of revenue impact. 
 
Another thing to avoid? Ratcheting up headcount as a way to try to reach revenue goals. We have seen SaaS companies bulking up their sales and marketing teams instead of really investing in operations, and this is a mistake.
 
To put it in perspective, siloed ops teams working within a legacy model will impact revenue by about 10%. This means that at a million dollar SaaS company, about $100K will be protected--the key word being 'protect'. The majority of siloed ops teams are focused on KPIs related to maintaining the status quo; that is, they're spending more time supporting existing technologies and processes than innovating them.
 
Comparatively, a revenue operations team should be both protecting and creating revenue, and will increase it by about 26%. This means that at the same million dollar SaaS company, a revenue operations team would be creating/protecting $260K. They are able to do this by not only supporting existing processes and technologies, but by also using a holistic approach to innovating across GTM teams, driven by their North Star: Revenue Impact.  
 
When determining the priorities of a revenue operations team, company leadership should keep their eye on one prize in particular: transformative initiatives that will help close costly gaps in the customer experience. Some good examples of this are ABM; tracking customer satisfaction; a revenue-focused data warehouse; .ai tools that address your complete funnel; and conversational marketing. 
 
Another thing companies should always keep an eye on is churn. Of course, this is a metric that is important for any company, not just unique to SaaS. However, for a subscription-based business, retaining (and expanding) accounts requires incredible alignment across your GTM teams. As it happens, successful SaaS companies likely already know how to work product feedback into their products in order to improve churn rates. However, the revenue teams at these companies are often not quick or disciplined enough to do so. They're likely to blame the product, when the real issues are deficient personas, bad sales habits, or a lack of any true customer success program.
 
This is where revenue operations comes in--making it possible for businesses to achieve goals they may already know how to accomplish, but that they lack the operational strategy to properly execute. 
 
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SaaS Gets Smarter: From Legacy Ops to RevOps
SaaS Gets Smarter: From Legacy Ops to RevOps

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For the Love of SaaS: An Intro to Revenue Operations
For the Love of SaaS: An Intro to Revenue Operations