Why Should Every SaaS Company Care About RevOps?
Building a sustainable revenue growth model is a massive challenge for SaaS companies. Many strategic factors can limit an organization’s growth potential, individually and collectively. Examples include money management, sales management, customer retention, marketing, etc. Below, we discuss RevOps, a revenue growth model that addresses these challenges, and understand its importance for SaaS companies.
RevOps Overview
Revenue Operations or RevOps is an intelligent integration of significant business operations, including sales, marketing, finance, and customer services. It is a strategic adoption that increases the effectiveness of procedures to attain and maintain maximum revenue growth.
Traditional business practices result in disjointed functions due to a lack of effective communications and collaborations and outdated analytics. However, in recent times, RevOps has appeared as a perfect replacement for such practices. There are three primary reasons behind its popularity:
1. Several business technologies have emerged that have revolutionized work practices and helped businesses in achieving maximum operational efficiencies.
2. There has been increased competition among businesses due to adopting modern solutions.
3. The demand and quality of customer services have increased, allowing more connectivity and personalization to the clients.
RevOps is an All-In-One package that targets and fulfills all of the above-mentioned business requirements. The following are the most common benefits of RevOps adoption:
Better Allocation of Resources
Small and medium-sized businesses have tight budgets and have no choice other than to make intelligent decisions with their limited capital. RevOps assists firms in this regard and enables insightful allocation of funds. Marketing and customer acquisition expenses are the most highly regarded expenses in RevOps. This is due to the nature of such expenses as they are directly attributable to revenue growth, one of the core purposes of RevOps integration.
Marketing trends and technologies are rapidly evolving every day. These technologies are designed to increase marketing efficiencies. They enable analytical decisions by providing valuable insights and thus reducing costs and other inefficiencies. This evolution creates new threats and opportunities concerning competition and growth, respectively. Therefore, many companies strive for the early adoption of such technologies. RevOps is the top choice for companies to incorporate new changes as it is tailored to streamlining several technologies in a unified environment. This unification ensures optimum efficiencies and returns on investments.
Updating Internal Controls
Finances are an essential aspect of RevOps integrations. These integrations are related to internal controls, which are processes and records created according to international accounting and reporting standards. These standards ensure the integrity of the financial documentation of a company and prevent mistakes and fraud. Internal controls are vital as they impact an organization at all levels.
RevOps integrations safeguard companies from inefficiencies caused due to poor internal controls. They enable financial managers to develop detailed policies and procedures to update and improve internal controls. The most critical updates may include:
Conducting regular reconciliation to avoid any discrepancies.
Consistent review and approval of processes and transactions to avoid mistakes and fraud.
Regular update and maintenance of adequate supporting documentation.
Training all staff members to improve their professional skills and behavior.
Regular evaluation and analysis of internal controls to ensure their effectiveness.
Increment in Customer Retention
Customer retention is one of the key performance indicators (KPI) for any business. It isn’t just a metric to measure customer loyalty but is also vital to a company’s marketing efforts and cost savings. This is because customer acquisition is costly and time-consuming compared to customer retention. Businesses seek to improve their retention rate to increase their customers’ lifetime value and boost their revenue growth.
RevOps helps companies retain their customers by introducing highly productive strategies and practices. Following are a few examples of such practices:
RevOps involves the integration and utilization of expert CRM systems. These systems are designed to boost customer retention by a considerable margin. They enable businesses to gain better knowledge of their customers and make intelligent segmentations. CRMs are secure and private communication channels that build a company's trust among its customers. They also enable companies to provide personalized customer services.
RevOps encourage companies to introduce customer loyalty programs that attract and retain new customers with special deals and discounts. Such programs are based on redeemable points providing extra benefits to more engaged customers. These schemes have several other benefits, including marketing cost savings due to brand advocacy, better and more reliable customer data, and boosted revenues from high cart values.
Marketing automation and feedbacks are two popular practices that come with RevOps integrations. These practices are usually tailored to enable companies to re-engage with their existing clients continually. The process involves the updating of a company’s products and services based on the client's feedback and marketing such efforts to build trust and increase customer retention.
Pillars of RevOps
RevOps is a comprehensive integration that completely remodels a company’s internal and external operations and outlook. However, experts believe three core aspects are affected by the adoption of RevOps, including business processes, platforms, and people. These three are the building blocks, and the whole RevOps ecosystem is based upon these pillars.
Processes
Creating and maintaining suitable processes is of strategic importance for all businesses. Processes establish an organization's culture that ultimately defines everything about an organization's vision and mission. RevOps targets a company's processes at the earliest stages of its integration. It ensures that the most suitable and uniform processes are in place to create a culture of collaboration and communication. This policy promotes uniformity, accountability, and trust within a company.
Platforms
Once the most appropriate processes are in place, platforms and technologies are carefully selected and implemented in a RevOps integration. Here, the most challenging concern for a company is ensuring that all its platforms are connected and uniformly aligned. This alignment is the key to creating a sustainable revenue pipeline.
Teams
The last pillar of a successful RevOps integration is creating and training RevOps teams. These teams are individuals with the required skills and experience to manage processes and platforms effectively. Building effective RevOps teams in SaaS require extensive experience and strong recruitment skills. The best option in this scenario would be to hire a SaaS recruitment agency that can help you with your RevOps recruitment challenges and find experienced candidates.
Why is RevOps important for SaaS Companies?
The SaaS industry is booming rapidly, and so is the market competition. Today, SaaS companies don’t have the luxury of affording inefficiencies in their operations. Achieving sustainable revenue growth is only possible if a SaaS company makes smart strategic choices. RevOps integration is indeed an intelligent choice for SaaS companies, and below, we discuss why every SaaS company should care about RevOps.
Growth
Revenue growth is a strategic objective of every SaaS company as it is critical to the long-term survival of the company. It helps to acquire assets, attract quality talent, and fund investments. Companies tend to sized new opportunities to expand their products and services and attract more customers. However, they face a few challenges that hinder this growth. Below we discuss a few of such issues and how RevOps assists SaaS Companies in dealing with these problems.
Outdated Processes, Platforms, and People
We have discussed the importance of setting up the right processes, platforms, and people. SaaS companies may need to update these aspects if they are unsuitable for new growth strategies. RevOps helps companies overcome these challenges and set the tone for change at all organizational levels.
Business Revenue Models Expansions
SaaS companies must continually add new revenue streams and expand their client base. RevOps introduces new technologies that assist companies in setting up new revenue streams and targeting fresh prospects.
Market Expansions
Market expansion is a remarkable strategy for revenue growth and achieving economies of scale. It is popular among SaaS companies as geographical constraints don't restrict software-based IT firms. RevOps helps SaaS companies locate the most attractive markets for business expansion and revenue growth.
Workflow Gaps in Processes, Platforms, and People
Workflow gaps appear when business processes, platforms, and people are not strategically aligned, and departments do not operate and grow uniformly. RevOps fill these gaps and introduce a collaborative environment for different teams and departments within a SaaS company.
Customer Experience
Customer experience is at the heart of many SaaS companies. It plays a vital role in increasing customer retention and new acquisitions. It boosts sales and helps SaaS companies gain a competitive advantage in their respective markets. We have discussed how RevOps integration improves customer experience by applying CRM systems and other intelligent practices to cater to customers' needs.
Conclusion
RevOps is the top choice for SMB SaaS companies and those needing strategic restructuring and revenue growth planning. Several early adopters are already leading the competition in their respective markets. Start your RevOps integration today and explore new opportunities for your business’s growth!
Looking to build hyper-productive RevOps teams? Contact SaaS Talents now!