What is Revenue Operations?
Revenue Operations (RevOps) is a strategic business function that unifies sales, marketing, and customer success under one umbrella. The purpose is to break down silos between departments, create a cohesive customer experience, and optimize the entire revenue cycle from first touch to customer retention.
RevOps has emerged as a response to the increased complexity in modern B2B sales, where the customer journey involves many touchpoints across departments, and where data and processes must be coordinated to drive growth effectively.
Why is RevOps important?
RevOps addresses several critical challenges in modern businesses.
Problems RevOps solves
- Departmental silos: Sales, marketing, and CS often work in isolation with different goals and data
- Inconsistent customer experience: Customers experience friction when handed off between teams
- Data quality problems: Inconsistent data across systems makes analysis impossible
- Inefficient processes: Manual coordination and duplicated work
- Lack of predictability: Difficult to forecast when data doesn't connect
Benefits of RevOps
- Increased revenue: Better alignment drives higher conversion and retention
- Improved efficiency: Automation and standardization reduces waste
- Better data: Single source of truth across the organization
- Faster decisions: Unified reporting enables quick action
- Scalability: Systems and processes that grow with the company
RevOps core functions
1. Operations Management
Coordination of processes across sales, marketing, and CS:
- Lead routing and qualification
- Pipeline management
- Handoff processes between teams
- Territory and quota administration
2. Systems & Technology
Management of tech stack and integrations:
- CRM administration and optimization
- Marketing automation
- Sales enablement tools
- Data integration between systems
3. Analytics & Insights
Data and analysis across the customer lifecycle:
- Funnel analysis from lead to customer
- Revenue forecasting
- Performance dashboards
- Attribution and ROI measurement
4. Enablement
Support for revenue teams:
- Training and onboarding
- Content and playbooks
- Compensation administration
- Performance management
RevOps vs. traditional roles
- Sales Operations: Focuses only on the sales team
- Marketing Operations: Focuses only on marketing
- CS Operations: Focuses only on customer success
- Revenue Operations: Unifies all three under one function
RevOps team structure
A typical RevOps team may include:
- VP/Head of RevOps: Strategic leadership and alignment with company goals
- RevOps Manager: Day-to-day operations and project management
- Systems Administrator: CRM and tech stack management
- Data Analyst: Analysis and reporting
- Enablement Specialist: Training and support
RevOps metrics
Typical KPIs for the RevOps function:
Revenue metrics
- Total revenue and growth rate
- ARR and MRR
- Pipeline velocity
- Win rate
Efficiency metrics
- Customer Acquisition Cost (CAC)
- CAC payback period
- Sales cycle length
- Lead-to-opportunity conversion
Customer metrics
- Net Revenue Retention (NRR)
- Customer Lifetime Value (CLV)
- Churn rate
- Expansion revenue
Implementing RevOps
Step 1: Assessment
- Map current processes and silos
- Identify data gaps and quality issues
- Evaluate tech stack and integrations
- Define pain points and priorities
Step 2: Alignment
- Get buy-in from leadership and stakeholders
- Define shared goals and metrics
- Establish governance and decision processes
Step 3: Execution
- Implement standardized processes
- Consolidate and integrate systems
- Build unified reporting
- Train teams on new workflows
RevOps and compensation
An important part of RevOps is sales compensation administration:
- Design of commission structures
- Quota setting and territory planning
- Commission calculation and payout
- Reporting and analysis of comp effectiveness
Related terms
- Sales Operations: Operations specifically for sales
- SPM: Sales Performance Management
- ICM: Incentive Compensation Management
- GTM: Go-to-Market strategy
- Customer Success: Function focused on customer retention
Prowi as part of your RevOps stack
Commission administration is a critical component of RevOps. With Prowi, you get a platform that integrates with your CRM, automates commission calculation, and gives your revenue teams real-time insight into their earnings. This frees up time for strategic work and ensures accuracy in compensation. Book a demo and see how Prowi fits into your RevOps strategy.