RevOps is a powerful way to drive more revenue through your business, but as a relatively new operational concept, there are a few potential RevOps challenges you need to keep in mind:
RevOps – The Definition
“What is RevOps?” is a common question among businesses seeking to streamline their operations for enhanced revenue generation. Before delving into the core challenges, it’s essential to grasp the concept of RevOps.
RevOps, short for Revenue Operations, is a strategic approach that aligns sales, marketing, and customer success departments to maximize revenue growth and improve customer experiences throughout the buyer’s journey.
Unlike traditional siloed structures, RevOps fosters cross-functional collaboration, data sharing, and process optimization across the revenue-generating functions of a company.
By breaking down departmental barriers and centralizing revenue-related activities, RevOps aims to drive efficiency, scalability, and ultimately, revenue growth.
However, implementing and maintaining a successful RevOps strategy comes with its own set of challenges. Let’s explore seven common challenges that organizations encounter on their RevOps journey.
| Challenge | Description |
|---|---|
| Lack of buy-in from business leaders | Pinpoint on what grounds stakeholders object. Does the board object on financial, operational, or cultural grounds? Do stakeholders feel threatened by change? Only with a clear objection can you structure a data-driven, logical response. |
| Lack of alignment on the customer journey | Before implementing a RevOps program, take time to ensure basic customer journey improvements can even be made. |
| Lack of internal expertise or ownership | A sure-fire path to failure is no one person has the skills or time required to scope, implement, and monitor the project. As soon as you know it can be done, start to map who exactly is going to drive the idea on a macro and micro level. |
| Lack of budget | Funding is hard to come by in any business. So before you ask, ensure you’ve built a strong, data-driven business case for RevOps. |
| Too much technology | Most businesses use more tech than they need. A robust tech audit will give you a clear idea of the technical landscape so you can avoid any tech-based logistical nightmares. |
| Lack of process/resources | Have you got the internal resources required to restructure? As with any project, ensure you have the right pieces on the board before making a move. |
| Papering over the cracks | If you start a RevOps function without fixing any of the above points, you’re going to run into problems later down the line. Fix it early and fix it once if you’re serious about RevOps success. |
RevOps Best Practices
RevOps best practices involve aligning sales, marketing, and customer success departments to maximize revenue growth and enhance customer experiences. Key practices include:
- Cross-Functional Collaboration: Foster collaboration and communication between departments to streamline processes and improve coordination.
- Data Integration: Centralized customer data from various sources to gain a comprehensive understanding of customer interactions and behaviors.
- Unified Metrics: Establish unified key performance indicators (KPIs) to measure revenue performance across departments and ensure alignment with overall business objectives.
- Technology Stack Optimization: Invest in integrated tools and platforms that support automation, data analysis, and customer engagement to enhance efficiency and effectiveness.
- Continuous Improvement: Regularly assess and refine RevOps processes based on performance data and feedback to drive ongoing optimization and innovation.
- Customer-Centric Approach: Prioritize customer needs and experiences throughout the entire revenue lifecycle to build long-term relationships and maximize lifetime value.
- Executive Support: Secure buy-in and support from company leadership to drive organizational alignment and commitment to RevOps initiatives.
RevOps FAQs
1. What does a RevOps team look like and how does it scale with company size? What skills are needed? And how do you get started building a RevOps team?
A: Different teams are going to need different resources. Start with a leader; get someone who has experience in this area. Be brave, as no one has all the answers as to what they’re hoping to achieve with RevOps. RevOps is not an admin function, but strategic.
2. Is the VP of RevOps the same as a CRO?
A: No, CRO should instead be working alongside the VP of Revenue Operations. People in RevOps don’t need to be good at running a sales process themselves. CRO needs to understand the commercial side and drive the business forward. RevOps needs to understand data, processes, and technology that will support GTM teams.
3. What size of company do you expect to have a separate RevOps team?
A: For smaller companies, establishing an internal RevOps committee formed by leaders within different departments can facilitate alignment and decision-making around overall company goals.
Medium to large-sized organizations with more resources may consider building a dedicated RevOps team to oversee business insights, tools, processes, and training. Initially, medium-sized businesses may hire for specific team roles (Sales Operations, Marketing Operations, etc.) while ensuring alignment with the internal RevOps committee to prevent silos.
Larger organizations or those with complex needs may hire a Revenue Operations leader or executive to foster alignment, drive strategic conversations, and champion RevOps initiatives across the business. This alignment requires internal restructuring to consolidate staff, processes, and knowledge under one operational umbrella aligned with company goals.
Integrating RevOps solutions and implementing lifecycle stages for RevOps, including strategy, automation, and implementation, can further enhance organizational effectiveness and revenue generation.
4. Most GTM teams have siloed tech stacks. How do you best manage the transition given the level of disruption when it comes to ripping and replacing tech?
A: It doesn’t have to be a rip and replace situation. Start by having one function responsible for all of it. Let the operation be responsible for what they’re good at.
So many efficiencies can be brought by first getting everyone on the same page. Tiny changes at each stage of the process have exponential growth. We suggest checking out HubSpot’s CRM Platform, which can help you consolidate your tech stack and unify your data to a single source of truth.
5. How is this different from a modern marketing team with a cross-functional growth team targeting improvements at each stage of the customer lifecycle?
A: Focused RevOps function leads to a consistent message all across the organization.
6. Do you think that every scaleup needs to employ this discipline at the start and then avoid siloed conflict at a later stage?
A: Revenue Operations is a framework to aid in the growth of your business, so the earlier this framework is considered, the easier it will be to align your internal resources, which reduces the friction when the time comes to scale in earnest. The earlier you can justify, the quicker you can scale. Get the right people in to help you run faster.
7. Which parts of the existing organization show the most resistance to this approach?
A: Sales is usually the first to push back. Strong management will help avoid this push back. The whole point is to generate more efficiency for scale, and more revenue for the organization.
Ultimately, sales wants to earn more money. Even if they grumble, stick with being consistent. Imagine the opportunity. Don’t see the shortsighted nature of sales be a deterrent; you want them focused on the next deal.
8. What skills would a RevOps person need?
A: Candidates for RevOps roles should possess a blend of skills and experiences, ideally with a background in leading SDR teams or managing GTM tech within organizations. They should demonstrate a track record of success and adaptability in navigating complex environments.
Data-minded individuals who excel in strategic thinking and are comfortable with various technologies and datasets are well-suited for RevOps positions.
Additionally, team members with deep expertise in specific functions, such as sales development, bring valuable insights into internal processes and opportunities for improvement within the RevOps framework.
Leveraging RevOps solutions and strategies, along with understanding lifecycle stages for RevOps, can further enhance their effectiveness in driving revenue operations.
9. On average, how long would you expect it to take to implement a RevOps strategy?
A: Every organization is different. Even when it’s in place, then the cogs need to start moving. Nothing is left to chance in the GTM functions–we have data between our approaches now.
Ready to create your own RevOps strategy? Download our RevOps eBook!
Blog Last Updated on 2 months by New Path Digital
