- Function of SalesOps
- Structure of SalesOps
- Fundamentals of RevenueOps
- Making The Choice for Your Business
Sales Ops Vs. Revenue Ops
The business world is changing to meet the demands of modern marketing and customers. As the industry evolves, so do the roles that make it up. Two departments currently gaining traction are Sales Ops and Revenue Ops. If your organization wants to increase revenue, you may be pondering which of the two departments is essential. The truth is that both of these ops teams play an integral role in driving performance and ensuring smooth operations. Each has its unique role within the company’s sales and overall revenue strategy, making them different.
Are you a decision-maker trying to understand the difference between Sales Ops and Revenue Ops? If so, then this blog post is for you! ‘Sales Ops’ and ‘Revenue Ops’ are often used interchangeably. However, these two functions have distinct roles. This article will explore the definitions, key responsibilities, and benefits of adopting sales or RevenueOps into your company setup. Whether you want to get more from existing sales teams or explore new opportunities for growing revenues through operational excellence — reading this post will provide valuable insights about what you could do differently to hit objectives faster with fewer resources.
Definition of SalesOps, RevenueOps and Their Core Differences
Business operations refer to processes and activities that occur within an organization. These operations need coordination of resources like people, technology, and data. To manage business operations, different departments handle specific tasks like finance, marketing, human resources, and sales.
SalesOps is a department that focuses on improving sales operations. These operations include customer relationship management (CRM), order processing, forecasting, and budgeting. It drives efficiency within sales processes to maximize revenue. It is more familiar than other departments in many organizations because sales operations directly impact performance and profitability.
RevenueOps is a department that generates, analyzes, and optimizes revenue. It includes SalesOps and other related functions like finance and customer success operations. RevenueOps is still in its early stages, but it is becoming more popular due to its focus on aligning sales and marketing operations to maximize revenue.
SalesOps focuses on sales process optimization to increase efficiency. RevenueOps takes a more holistic approach by looking at the entire customer journey and optimizing it with data-driven insights. It looks at how data and technology can support the customer journey. SalesOps only emphasizes improving the journey through the sales funnel. Its central concern is sales operations management, while RevenueOps takes a more comprehensive view of the entire revenue process.
In short, Salesops focuses on optimizing one department only, while RevenueOps aims to optimize across departments for greater efficiency and effectiveness.
The Basics of SalesOps and Its Functions
Sales Operation is critical to any successful sales organization. It incorporates the processes and systems needed to drive sales performance and enable the sales team to be efficient and effective in their roles. Sales Ops involves everything from strategy and management to enabling the sales force with data, technology, and training.
Management and Strategy
Sales operations involve the management of both internal resources and external partners. It includes setting and monitoring sales goals, managing team performance, and creating processes to ensure compliance with regulations and policies. It also ensures that the organization is taking full advantage of existing technologies. Additionally, SalesOps involves developing a strategy for sales performance and creating implementation plans.
The sales department is responsible for creating an environment and providing tools that enable the sales team to be successful. Sales enablement tools can include customer relationship management (CRM) systems, marketing automation tools, and analytics tools to help sales reps work smarter. Training should cover product knowledge, selling techniques, conversions, and client interactions.
SalesOps should also set performance metrics, monitor sales performance, and provide feedback. Performance measurements identify areas for improvement, highlight successes, and help guide future actions. Sales KPIs must track and measure individual performance and entire sales performance.
The Structure of Sales Operations
The sales team structure is the segmentation of your team into different functions for long-term success. There are three main structures: Island structure, assembly line, and pod structure.
- Island structure: This model has little organizational structure. Each salesperson manages their accounts, leads, and pipelines in this structure. While this gives them a lot of autonomy, it also requires them to take on the entire customer journey with little to no support from colleagues.
- Assembly line structure: It is more organized than the island structure. It assigns certain tasks to different teams within the department. Reps for business development create a pipeline. An account executive receives these leads and completes the transaction. Clients then move to a customer success manager, who maintains the relationship for the rest of the client’s life cycle. This structure allows the entire team to be more efficient and effective. In his book, Predictable Revenue, Aaron Ross outlines one assembly line strategy you may use to organize your sales staff.
- The pod structure: The pod model is a hybrid between the island and the assembly line. It is customer-centric, allowing pods to handle all customer needs. Each pod comprises sales development reps (SDRs), account executives (AEs), and a customer success rep (CS Rep). This setup allows each pod to provide a holistic customer experience.
You can structure your sales team depending on your business’s size, offering’s complexity, and the target customer. Choosing the right structure is essential for an organization’s success and growth.
Fundamentals of Revenue Operations
RevOps is the practice of streamlining siloed processes across departments to increase revenue. It requires collaboration, integration, and alignment to create an effective strategy supporting a unified goal.
The three components of Revops are marketing operations, sales operations, and customer service.
- Marketing Operations: This involves using marketing technology to create, optimize, and measure campaigns and content that drive awareness, demand, and customer acquisition. It also involves creating a cohesive customer journey and ensuring that leads are qualified and nurtured. RevenueOps ensures that marketing strategies align with the entire revenue goals.
- Sales Operations: The revenue operations team collaborates with the sales team to produce more leads and streamline sales techniques. The Revops team optimizes revenue for the firm by providing insights and clarity to sales processes.
- Customer Service: Revops helps customer success teams track customer usage. Customer service ensures customer satisfaction, loyalty, and adoption of products or services by providing the customer with the necessary support. A unified CRM strategy is key to customer retention. RevOps unites customer success efforts with marketing and sales to improve customer experience and revenue growth.
The Team Structure of Revenue Operations
Revenue operations comprise four teams working in tandem: sales, marketing, finance, and customer success. It will help if you structure these teams and set up a distinct department for all aspects of the company’s revenue-related operations. But how do you create a revenue operations team?
Here’s how you design a RevOps team in steps:
- Develop Team Framework: Start by creating a framework that outlines each team member’s roles, responsibilities, and relationships within the organization. Define the core tasks of the team and ensure that roles are clearly defined, so there is no overlap between teams.
- Create Leadership Hierarchy: Establish a RevOps organization chart. This includes appointing department heads and designing the team’s reporting structure. Ensuring each team member understands the organization’s mission, strategies, and goals is also important.
- Include Support Roles: Identify support roles like data analysts and project managers. Define the responsibilities of the support roles specialists, so everyone understands the expectations and how they will support the team.
- Integrate RevOps Database: Connect the different departments by integrating CRM, CMS, and other centralized systems for easy collaboration. It facilitates access to the same resources for each RevOps sub-function. VOIP technology adds another layer of interconnectivity. It helps RevOps teams discuss, brainstorm, and troubleshoot.
- Set Unified Goals and Strategies: Establish goals and strategies for the entire team. Ensure that each team member’s tasks align with the overall goals. It will ensure a unified direction, and everyone will be on the same page.
Revenue Operations Job Description
A revenue operations specialist is key in any organization looking to drive revenue and improve operational efficiency. The job description for the role includes:
- Analyzing and optimizing revenue-generating processes across departments, such as sales, marketing, finance, and customer success.
- Identifying and implementing technology to improve data accuracy and insights.
- Developing dashboards, reports, and scorecards to track revenue performance.
- Analyzing key performance indicators and providing recommendations to senior management.
- Supporting the development of financial forecasts, budgeting, and pricing strategies.
- Working with departments to ensure operational effectiveness and compliance.
- Building and maintaining relationships with customers, partners, vendors, and other stakeholders.
- Developing and implementing best practices, processes, and procedures to drive revenue growth.
- Collaborating with teams across the organization to develop operational strategies.
RevenueOps Career Path and Salary
RevenueOps is a growing career field with opportunities for professionals to gain experience across departments. Individuals may start as business development representatives (BDRs) at the entry level. BDRs focus on prospecting for new leads and driving revenue growth. As someone in this role advances, they may transition to an account executive role. This role pursues sales opportunities with current and prospective customers while managing customer relationships.
Further, individuals may become customer success reps (CSRs). CSRs concentrate on customer retention and satisfaction. They identify customer needs and help them achieve their goals. Those looking to move into the top leadership position in RevenueOps can become a chief revenue manager. This role oversees the entire revenue cycle.
Salaries vary depending on experience, qualifications, and type of organization. For entry-level roles such as a BDR, salaries can range from $30,000 to $50,000 annually — the salary increases as the BDRs advance. According to Glassdoor, the annual salary for a revenue operations position in the United States is $95,380, with a base pay of $69,735.
Should My Business Use SalesOps or RevenueOps?
For sales efficiency, almost all businesses of all sizes require SalesOps. Larger firms evaluate the need for revenue operations, especially those with subscription business models.
Revenue operations are essential for businesses to ensure successful customer experiences — from lead generation to delivery and after-sales support. It is also vital for scaling a business and managing complexity as the company grows. For example, if you have multiple sales channels, regions, products, and services, you must have a robust RevOps system.
SalesOps and RevenueOps have different roles within an organization. Hiring one or both should be based on your company’s specific needs.
SalesOps focuses on sales enablement and operational efficiencies. They help improve lead routing, sales automation, and onboarding processes. RevenueOps focuses on revenue optimization and maximizing sales performance. They help streamline processes, improve data insights, and develop strategies for increasing revenue across all departments.
Ignite Your Sales and Revenue Engine With SFE Partners
SalesOps and RevenueOps are two distinct departments within an organization. Sales operations involve managing internal resources and external partners, providing sales enablement tools, and setting performance metrics. Revenue operations focus on streamlining siloed processes across departments to improve customer experience, increase revenue, and optimize sales strategies. The decision to bring on SalesOps or RevenueOps should be based on your organization’s specific needs.
At SFE Partners, we understand the challenge of managing teams across multiple channels and regions. Our experienced professionals will help you develop a unified sales and revenue strategy. We will help you identify areas of improvement, create an efficient CRM system, develop performance metrics, set up a data collection and analysis process, and optimize your operations.
Our community of experts has years of experience in sales, marketing, finance, and customer service. We use the latest technology to deliver insights that will help you streamline operations and maximize revenue. With SFE Partners, you can rest assured that your sales performance will be monitored and improved most efficiently and effectively.
Contact us today and take the first step in driving increased sales and revenue performance.