Benefits of Revenue Operations SaaS Companies Should Know About
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Benefits of Revenue Operations Saas Companies Should Know About
Software and data technologies have become an integral part of many companies’ business models in recent years. Extensive software arsenals now help make every facet of sales, management, marketing, collaboration, and design fast and effective.
What many companies are now realizing though, as these programs and these methods of running an enterprise mature, is that it can be difficult to make all the parts of the machine function well together. As software is conceived, released, purchased, and implemented within individual branches of a company, the focus is often on optimizing that particular branch. As a result, the more tools and tech a branch acquires, the more individuated and isolated its processes are. Basically, as each branch acquires more software, data becomes more siloed, and it becomes more difficult for different segments of a company to effectively work together towards common goals.
This muddling of the big picture can be especially problematic in saas-based companies where the majority of business operations occur online or virtually. One of the biggest risks of siloing is that it will affect revenue. If multiple departments are working individually towards their own goals, they may be unknowingly jeopardizing the productivity and success of their company as a whole.
This is where revenue operations come in. This is a set of practices and tools meant to reintegrate the different departments of a business to optimize operations and drive revenue.
Any company which has upgraded their business model in response to the software-driven trends of the contemporary market should understand the risks of siloing and the potential benefits of revenue operations. In this article, we’ll explain what revops is, how it relates to other types of operations, what it’s role should be in tech-heavy companies, the benefits of revenue operations saas companies should know about, how to build a revops framework and implement it with effective strategies, and, finally, what kinds of software are necessary to see tangible results.
Revenue Operations vs. Sales Operations
At first glance, the goals of revenue operations vs. sales operations may seem identical: drive profits. While this is technically true, each discipline goes about it in a different way.
Sales operations are focused specifically on driving sales. Demand research and analytics will focus on market exploration to determine the segment of the market most interested in your software offerings. Sales intelligence will examine your pipeline and probe it for leaks and opportunities. Sales team leaders will monitor individual reps and focus on training and performance metrics. The total goal of the sales apparatus, in other words, is to be as efficient as possible in making sales.
Sales teams, managers, intelligence software, and analysts, however, may not take into account factors which are affecting revenue but which are not influencing sales.
Operational expenses are involved in each sale made and include advertising campaigns, web and data hosting, cloud storage, product development and packaging, and more. These all eat into the profits generated by saas sales. In determining the kinds of software which are in highest demand and which will be most marketable, sales departments may not stop to consider the time and resources needed to produce such offerings. They may also be unaware of the actual difficulty in building programs with certain specifications. Any redundant software or duplicate positions in sales and marketing or management may also be adversely affecting total revenue but be invisible to a sales department.
These are just a few examples of the blind spots that can exist between departments and diminish potential revenue. Revops takes data from all sectors of a business and synthesizes them to generate holistic insights about revenue trends. Detrimental practices and opportunities for improvement can be identified across all departments and teams can be made to work together to generate revenue more effectively than before.
Revenue Operations Role
Revops aims to drive revenue for the company. The difference is that revops takes into account and analyzes data from all sectors of a business as opposed to focusing on improvement through a single lens like sales, marketing, or r&d.
Revenue operations, in and of itself, however, is a department, too. It utilizes software which tracks data from throughout an organization and presents it to a dedicated analyst team and revenue operations manager who decide what to do with it.
The main revenue operations responsibilities and methods are communication and organization. In order to make the most informed decisions about revenue strategies, a revops team has to initiate and maintain communications between different branches of a company. Managers and other higher-tier team members will have to be adept at problem-solving, mediation, creative thinking, and public speaking. They’ll have to meet with department heads, learn and understand their operating models, convince them to cooperate with company-wide initiatives, and incentivize them to implement necessary changes. In other words, a revops team will need to get everyone to work together towards goals which they may not have previously considered or deem pertinent to their own sector. This can be quite difficult and requires real persistence and people skills.
The other core revenue operations role is organization. When all the different parts of a business adopt new data tools and tech-driven models independently, redundancies are almost certain to appear. This is where a revenue operations org chart can be especially useful. Revops team can carefully map out a business and compile data on individual job roles, relationships, rankings, and more. This can help make visible duplicate or vestigial structures and positions which are not helping to drive revenue. Downsizing or restructuring to eliminate these artifacts can both save a company money on wages and help it reach overarching revenue goals more quickly and easily.
Revenue Operations Framework
Your company’s revenue operations framework may or may not resemble the structure of other departments found in an SaaS-based business. Generally, it will comprise the following three components.
Your revops team will collect and analyze data from each department of your business. They’ll look at software pricing, subscription fees, prospect and client data, pipeline and advertising tactics, r&d funding, operational expenses, and much more. This will all be compiled and condensed by a range of data tools and visualizers to ensure the most pertinent information is readily available and presented in a straightforward manner.
These revenue operations metrics will be monitored and interpreted by a management team. This group will need to have the foresight and creative thinking to understand what the issues are in a system and how to best correct them to achieve revenue goals. Quick thinking and resourcefulness are imperative for this type of management.
In addition to capable management, an effective revops team will have a squad of people who partner with individual departments. They’ll work to better understand how sectors function and will also assist with the implementation of initiatives formulated by revops managers. These jobs can be performed by management, but tend to be delegated to various research and mediation teams.
Revenue Operations Strategy
A revenue operations definition will differ from company to company depending on its history of software usage and its overall business model. How data and duties are shared (or not shared) between departments will affect and determine what your revops team does to drive revenue on a company-wide level. For saas, a general revenue operations strategy might look like this.
- Assess Different Goals
Your revops team will look at the current goals of each department. It will look at sales, marketing, r&d, and other departments and study their data (pipeline statistics, ad campaigns, design features, etc.) and determine what the main objectives and techniques are for each.
- Determine Conflicts
Revops will then analyze this information and probe for conflicts between different departments which are adversely affecting revenue or operational efficiency. It will determine whether issues stem from redundancy, opposing interests, siloing, or something else.
- Brainstorm Solutions
A team of managers will then collaborate to formulate solutions to these problems. Their aim will be to get different departments running not as separate streamlined segments but as an optimized and efficient whole.
- Implement Changes
Finally, revops will work with each department to institute these new plans and practices. This may involve considerable restructuring and meet a lot of resistance, but in the end will produce a business model specially geared to maximized revenue.
Revenue Operations Software
The core of your revops strategy, however, will rely on special revenue operations software. These tools will need to be considerably more advanced even than ordinary sales and marketing programs because of the huge amounts of data they will have to crunch and the importance of their role to the success of your company as a whole.
Canopy’s industry-leading software suite offers a wide variety of tools for analyzing sales data, KPIs and metrics of all sorts. These can handle massive quantities of data with ease and, as such, are easily up-scaled for use in revenue operations applications.
Because revenue is at the core of all revops efforts, you’ll need powerful revenue analysis software to do your job well. Canopy’s augmented revenue analysis engine is at the forefront of revenue intelligence and forecasting technology and built for just such a task. Using machine learning technology, it can generate predictive models of unprecedented accuracy and adjust parameters and assumptions in real time in response to new data. With this engine, discovering and solving the problems of siloing and segmentation are made easy; for revops teams everywhere, it’s an invaluable resource.
Being able to access and analyze every tiny bit of data is vital to success in the market today. However, keeping an eye on the big picture is still necessary to ensure all operations are optimized and revenue is truly maximized. To see what Canopy’s powerful software suite can do to help your company win at revops, visit our website today.