Did you know that the SaaS industry could surpass over half a trillion dollars annually by 2023?
But are you maximizing that potential or could you be missing the boat when it comes to your annual revenue?
Is your company maximizing its revenue potential?
If you haven't considered the impact of this question then you might be missing out on important opportunities.
To fix this you need to focus your efforts on revenue operations.
Don't worry if you don't know what that is because you're in the right place.
Keep reading to learn everything you need to know about what RevOps is and how you can use it to maximize your company's revenue year over year.
What Is Revenue Operations?
Revenue Operations brings into alignment and supports the various departments that contribute to your revenue throughout the customer journey.
From discovering your company on social media or through the search engines through purchasing and customer service long after the sale is made.
Your revenue operations encompass several different aspects of your business.
If you only ask one question regarding which department brings in the most operating revenue, then sales will rise to the top every time.
However, you don't want to look solely at who brings in revenue.
But rather look at which departments contribute to your revenue regardless of how indirectly that may be.
The role of the RevOps manager is to break down the silos between these various departments.
And then unify the customer experience throughout the buying journey.
Advances in technology have allowed businesses to use uniform databases and CRMs so that everyone can see what has happened for every customer in your customer list.
Too many times when customers call with a question they hear answers similar to "our department doesn't handle that" or "I will have to transfer you."
This creates a negative experience for your customer and doesn't help to improve your customer lifetime value.
Instead, when marketing, sales, production, and customer service are streamlined and uniform your customers will hear statements such as "I can see that you already received our customer brochure and are interested in our X product line.
I can send you some samples this afternoon."
This will give your prospects and customers a better experience and it will, in turn, contribute to increasing your revenue.
How to Implement RevOps
Understanding RevOps and implementing it can be very different things. To successfully implement revenue operations you must build a foundation based on these four aspects of your business:
- Technology stack
When you focus on this foundation you'll build a revenue operations department that can help you find the weaknesses in your customer journey. This will allow you to focus where you'll see the highest ROI and improve revenue across your company.
First, start with people, who in your organization contribute to bringing in revenue for your company. This can be directly in the form of your sales department. It can also include indirectly such as your customer service or shipping departments.
The shipping department personnel might not feel like they bring in money for your company. However, if they don't act quickly and ensure timely delivery of your product you will have dissatisfied customers who won't order again or tell their friends to purchase from you. And this will affect your bottom line, so everyone must realize how they contribute to your revenue.
Second, your RevOps department must continually analyze each process that is part of your revenue cycle.
From your marketing department to sales and customer service everyone must scrutinize each process to ensure that it maximizes efficiency and productivity.
The fastest way to increase your net operating income is to evaluate your processes.
How can you streamline so you can increase revenue without increasing costs?
This is where your revenue team should focus.
The best way to do this is to follow the data which is our third pillar in building our RevOps foundation.
Without tracking the data your RevOps manager can't make the crucial decisions and upgrades necessary to improve revenue and grow your business.
Lastly, as you track the data and analyze each process take a look at your current tech stack.
Where can you upgrade to ensure that your entire team sees all the information they need to give your customers a seamless experience throughout every touchpoint with your company?
4. Technology Stack
Technology has changed the way everyone does business these days. Unfortunately, too many businesses are using a hodge-podge mish-mash of software programs cobbled together over time. Can you streamline each department and improve efficiency by choosing one central database from which each department will work?
This last pillar is key to taking your company to the next level and improving revenue across all streams.
What Metrics to Track
As you can see there are several different departments that your revenue team must work with to grow your company.
And they must start with this solid foundation in order to increase revenue without also increasing your capacity.
To do this effectively you must know which metrics to track throughout the process.
First, you must know where you currently stand. How many customers do you currently have and what is their overall average customer lifetime value?
Finally, what is your annual revenue for your business?
Once you know that basic information you'll want to dive deeper.
What are the various sources of your revenue?
What products or services bring in the most revenue?
The reason that having a revenue operations manager oversee this aspect of your business is that each department might have a pigeon-holed view of how they affect the overall revenue for the company.
However, as you look at the birds-eye view you can see what avenues bring in the most leads and prospects.
Moreover, you can also see which marketing efforts bring in the leads with the highest conversion rates and highest CLTV.
These data points are vital to know which marketing efforts should receive more attention going forward.
Measure Your Success With RevOps
Focusing your efforts on improving revenue operations for your business will allow you to grow to the next level.
You don't have to increase capacity or add more product lines to your business.
By focusing on your people, streamlining your processes, and following the data you can scale your efforts year over year.
Here at Revcarto, we've been helping businesses do just that. And we can help you too.
To learn more about how we help our clients find the right solutions to boost sales and face their biggest challenges, click here to learn more about us and see if we would be a good fit to help you grow your business too.