What is RevOps (Revenue Operation)? Improve your customer experience and grow your business

As physical and operational divisions accelerate due to remote work (telework), we will work on “Revenue Operations (RevOps)” aiming for overall optimization by integrating resources and information that have been managed vertically. Companies are increasing, mainly in the United States.

Revenue Operations is about coordinating the operational functions of revenue-related departments to deliver a better customer experience. As a result, companies can expect improvements in retention rates and profitability. The Boston Consulting Group has released research showing that US B2B high-tech companies that have implemented revenue operations have seen a 10-20% increase in sales productivity.

The introduction of revenue operations not only promotes interdepartmental collaboration, but can also be expected to improve the customer experience. will be

In this article, we will introduce the points of introducing revenue operation and success stories of companies. Learn about advanced initiatives overseas and use them as hints for expanding business earnings.

Table of Contents

First, let’s understand what revenue operations are.

Revenue operation strategy to improve customer experience and increase revenue

Revenue Operations (RevOps) is an initiative that aims to increase revenue by providing a consistent, high-quality experience to customers .

Revenue operations are achieved through collaboration among the departments that affect revenue, such as marketing, sales, and customer success. We aim to improve customer experience and profits through a process that integrates and manages data from each division and shares the goals of profit divisions.

When implementing, build a dedicated revenue operations team that not only instills ideas and policies, but also backs up collaboration between marketing, sales, and customer success . By setting up a team, each department can share information and data, and the integration of operations and tools that were separated by department can be realized.

If you can build a thorough revenue operation strategy, you can expect to increase customer satisfaction and improve profits.

Revenue operations are mostly composed of the following three operations. When you set up a dedicated revenue operations team, you need to integrate functions that were separated by departments.

Sales Operations (SalesOps)

In order for the sales team to build a foundation for sustainable growth, the role of sales operations is to handle all kinds of support work, such as sales data analysis, sales forecasting, lead generation (potential customer information), and contract drafting.

Marketing Ops

The marketing operations department is responsible for driving the company’s overall marketing strategy and increasing its likelihood of success.

Customer Success Support Operations

The Customer Success Support Operations Department is a team that analyzes customer data and manages and operates related systems, with the mission of utilizing internal customer data.

Revenue Operations focuses on optimizing the entire customer lifecycle to increase profitability. The goal is not just to connect sales and marketing.

Creating a seamless, consistent, high-quality customer experience is at the heart of revenue operations .

Aligning marketing and sales alone can create a smooth purchasing experience for prospective customers, but it will not be able to sufficiently respond to subsequent inquiries and new needs, and the customer experience after purchase will be impaired. .

In order to improve the customer’s purchasing experience, in addition to marketing and sales, it is necessary to cooperate with customer success to follow up with customers after purchase with the goal of increasing the retention rate.

In order to build a revenue operation, we need 5 main elements.

Interdepartmental collaboration

Building a revenue operation requires cross-departmental cooperation and information integration, such as marketing, sales, and customer success. It is a good idea to conclude an SLA (Service Level Agreement) between departments and clearly verbalize the definitions of words used, common objectives, division of roles, etc.

Centralized data management

In order to promote revenue operations, it is essential to have an environment that can collect, integrate and manage the data distributed in each department. Utilize CRM platform tools such as Salesforce and Zoho, which are customer relationship management solutions, and HubSpot provided by our company, and build an environment that allows integrated management of the data necessary for each team’s analysis.

data analysis

Most importantly, decisions are made based on the data obtained .

It is necessary to strengthen internal data linkage and record and share KGI (key goal achievement indicators) and KPI (key performance indicators) of all departments based on corporate strategy. For example, KPIs set for each department such as the number of leads per month, number of business negotiations, customer service score, customer satisfaction score, customer lifetime value (LTV), etc., in order to achieve the common KGI profit target is shared as a whole, and each department makes decisions based on them.

In addition, when operating, it is important to manage the data in an integrated manner after selecting the data to be acquired and the evaluation index that form the basis of everything. In addition to the data linked to the above KPIs, it would be desirable to aggregate as much data as possible, such as accounting and internal information.

Earnings strategy

The data accumulated in revenue operations is useful for implementing measures and planning for sales, marketing, and customer success.

Furthermore, it can be used for formulating corporate strategies and annual plans, as well as for services and campaigns, sales and profit strategies, personnel planning, internal evaluations, sales targets, and salary decisions.

Based on the data you’ve gathered, you’ll be able to derive achievable revenue targets for your company and the steps you’ll need to take to reach them.

Revenue operations has spread rapidly, especially in the United States, and is now recognized as a new occupation.

According to LeanData research, the percentage of companies with a revenue operations department jumped from 35% to 58% in the 2018-2019 year. A 2018 Forrester study also found that “director of revenue operations” outnumbered sales-related roles such as “chief sales officer.”

Overseas, some companies are using revenue operations to improve customer experience and increase profits.

113% increase in users through customer analysis “ItsMyCargo”

ItsMyCargo is a logistics company headquartered in Copenhagen, Denmark.

As a result of the company’s own customer analysis, it was found that many of the visitors who left the site were visitors who wanted to check shipping charges. Therefore, when we renewed the website so that we could calculate the estimated amount in fewer steps, we were able to increase the number of unique users by 72.73% compared to before the renewal.

Furthermore, while conducting customer analysis, we discovered that a certain number of users were using the website as a tool for creating quotations. Based on this analysis, we provided a quotation creation tool to encourage customers to register before using it, and as a result of the sales team following up on the list of prospective customers created based on this, the number of customers using the service increased year-on-year. increased by 113% in

Revenue operation is an initiative that aims to improve customer service continuation rates and profitability by having each department share a single revenue target and cooperate with each other.

In recent years, the number of subscription-type businesses has increased, and it has become necessary not only to increase the number of new contracts, but also to strengthen relationships with customers.

With the introduction of Revenue Operations, the operating functions of revenue-related departments are integrated, enabling the provision of the optimal customer experience for customers. will connect.

In this article, we have introduced the meaning of revenue operation and the efforts of companies.

Although there are still few examples in Japan and there is not much information available for reference, services related to RevOps are beginning to appear, including the Operations Hub released by HubSpot in 2021. If you are interested, we recommend that you first try to organize the information by referring to this article.