Why 2021 Will Bring the Rise of RevOps

Aligning marketing, sales, and customer success operations

Photo by You X Ventures on Unsplash

With the increasing innovation sprint in the field of marketing, sales, and customer success operations, many companies worldwide have recognised that working in silos is not the way to go. Silo mentality is the unwillingness to share information or knowledge between employees or across different departments within a company. These silos can create low morale, negatively impact workflows, and ultimately adversely affect the customer experience.

“A silo mentality is a reluctance to share information with employees of different divisions in the same company. This attitude is seen as reducing the organization’s efficiency and, at worst, contributing to a damaged corporate culture.” — Investopedia

With the increasing rise in innovation and the continuous increase in breaking down silos in organisations, we are currently moving towards a new reality where marketing, sales, and customer success operations work together as one. This includes increased communication between departments, more access to data in companies, better data flow between departments, and a holistic approach in looking at objectives of the organisation. Especially in current times, when combining online and offline working is more important than ever due to the COVID-19 pandemic, the way we communicate and align between departments is under pressure. Can RevOps help?

The Meaning of RevOps

RevOps is the abbreviation for Revenue Operations. The meaning of the term revenue operations can be explained in many ways. In this article, the definition of revenue operations means the alignment of marketing, sales, and customer success operations across the full customer life cycle to drive growth through operational efficiency. Revenue operations keep all teams accountable to revenue, freeing up departments to focus on the customer. Revenue operations is a holistic approach that is designed to break down silos between the departments dealing with clients.

What Are the Responsibilities of Revenue Operations?

As we now know that RevOps is mainly about the alignment of departments across the customer life cycle, we can look at what is needed to align those departments. These alignment best practices are:

1.Agreement on metrics among departments. In legacy models of working, each department has its own metrics, creating misalignment with different metrics and different definitions of the same metrics. RevOps takes control of the metrics from the beginning to the end of the customer life cycle, making sure everyone is on the same page and understands the core metrics.

2. Credibility and trust. Revenue operations help the business understand metrics and helps the business with business decisions based on insights that are credible and trustworthy. This helps the business make data-driven and credible decisions.

3. Defined ownership of the tech stack. The alignment of departments becomes harder because different departments do not use the same tools, hindering data flow, and the use of the same metrics between departments. This can also be the case with different countries in a company, using a different tech stack. Revenue operations takes control of this tech stack, aligning it between marketing, sales, and customer success operations. While doing this, RevOps collaborates with IT in order to keep privacy and security needs up to standard.

4. Change management. When aligning the marketing, sales, and customer success operations department, more people in your company become dependent on maintaining this alignment. For the same reason, decisions made by the revenue operations department impact more people in an organisation. In order to remain innovative and make changes in the alignment, RevOps needs to understand change management.

The RevOps Department

Now that we have seen the responsibility of revenue operations, let us look at how to best organise a RevOps department that can manage these responsibilities. Revenue management manages the earlier mentioned responsibilities by organising their department in the following areas of responsibility:

  • Operations management team — works on the collaboration between departments and the process of working
  • Enablement team — works on removing friction from the marketing, sales, and customer support departments, freeing up their time to work faster and with more focus on the customer
  • Insights team — providing customer insights and supports data-driven decision making
  • Tools team — responsible for the technology used in departments, including training in tools and being an administrator in the used tools

RevOps Framework and Organisational Chart

Many organisations today work via the following framework.

Source: Getfunnelcake

Revenue operations change this legacy system by working towards the following model, shown in the following framework.

Source: Getfunnelcake

As can be seen, there is better alignment between the departments when using the revenue operations framework. In order to align the departments, the revenue operations department changes the organisational chart from the Legacy org chart framework towards the Org chart with RevOps framework, as can be seen below.

Source: Getfunnelcake

Overall the department aims towards working more and more towards collaborating between departments, making sure the customer is central to all operations, which can be seen in the following flywheel framework.

Source: Twoears

What Is the Purpose of Revenue Management?

There are several benefits to starting with revenue operations in your organisations. The main benefits include:

  • Better collaboration and alignment between departments. According to research by SiriusDecisions, this alignment can drive up to 36% of your growth.
  • More predictable business performance
  • Public firms using revenue operations overall outperformed firms that did not pursue revenue operations by a 71% higher performance of stocks, according to research by SiriusDecisions.
  • More focus on the customer and KPI’s by freeing up departments from operational and technical overhead
  • Simplify the work of marketing, sales, and customer success operations to help these departments work faster.

Jobs and Functions in RevOps

According to a recent study from SiriusDecisions that collected Linkedin job titles between October 2018 and December 2018, job titles that include revenue are on the rise. More specifically, the function title Director of Revenue Operations has already surpassed the function title Director of Sales Operations by 68% in 2018. The Director of Revenue Operations, or Chief Revenue Operations (CRO) are most often the function titles of the head of the revenue operations department.

As mentioned earlier in this article, the RevOps department consists of an operations management team, enablement team, insights team, and a tools team. Together with the CRO, the people in the revenue operations department require skills in sales, marketing, customer experience specialists, technical tooling skills, and change management skills.

Companies are starting to embrace RevOps because the old approach of siloed operations teams isn’t working anymore. Centralized revenue operations functions will have a large effect on sales teams in the upcoming years. Well-run RevOps departments will be a competitive advantage for early adopters. Companies that invest in a high-quality RevOps department first will have a massive advantage.

Written by

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