Software companies that demonstrate sustained, profitable growth are more valuable. An integrated approach to Revenue Operations is key to this.
What is Revenue Operations?
Aligning any activity that drives revenue for the company. This includes both business processes and tools. This alignment will enable your team, and provide you with the metrics and insights to drive your business forward.
Revenue Operations is best done when fostering collaboration across the company, providing a seamless customer journey and maximizes revenue potential at every touchpoint.
A major challenge now for tech companies is how to weather a potential economic slowdown by trimming costs, increasing efficiency, and growing revenues. At the same time, many are likely looking for ways to remain innovative and build a strong competitive position for the future. ”
-Deloitte’s 2023 Technology Industry Outlook
Why is RevOps important to B2B Software companies?
First, customer acquisition costs are extremely high. Its important to get the most out of your sales and marketing investments. Second, customers aren’t as sticky as they used to be. With low switch costs, maximizing lifetime revenue is critical. To do that, you need to take care of your customers and show value early. Third, B2B SaaS companies are valued on multiples of ARR. So the higher the ARR the better. But on top of that, in today’s world, you also need to show profitability and growth.
Good Revenue Operations will ensure you achieve this result, as well as impress your future investors.
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What are some examples of improved business processes?
We count about 100 revenue related processes across all the departments in a typical B2B Software company. Not all of them have the same impact. Here are a few examples of processes that are improved with Good Revenue Operations.
- Aligning sales and marketing investment with highest performing sources
- Identifying marketing’s highly engaged accounts ready for seller’s outreach
- Driving sales execution consistently
- Giving sellers the tools to generate accurate proposals & orders quickly
- Providing new customers with a consistent onboarding experience
- Generating software and service invoices
- Capturing customer gross profit based on invoiced revenue and costs.
- Processing renewal invoices accurately & on-time
- Creating customer success playbooks based on segmentation
What are the important key metrics to track?
Each department will have their own metrics that should be accessible daily. These metrics should not require data export, data manipulation, and should be updated automatically. Here are a few examples.
- Funnel Growth by Segment and by Source
- Sales Velocity (Funnel Size x Win Rate x Deal Size / Avg Sales Duration)
- Sales Efficiency (Sales Bookings / Sales & Marketing Costs)
- ARR Run Rate & Growth Rate
- Customer Lifetime Value & Gross Profit
- Net Retention & Gross Retention
Five things you need to get right
RevOps technology stack is aligned to customer journey
You have Revenue Operations tools today, they just may not be integrated, or aligned with automatic handoffs. These are the typical tools in your RevOps arsenal.
These tools should talk to each other, and work with other productivity tools you are using today. In the Microsoft world, these include things like Outlook, Teams, OneNote, SharePoint, Word, Excel, and Power BI.
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Drive your business forward with Better RevOps
If you are interested in learning how TekStack can work with you to drive more profitable operations, book a consult. We provide a no obligation assessment which will identify key areas where your business can improve its operations.