As a founder, you might wonder, "Do I need Revenue Operations (RevOps)?" or you even ask yourself: "What exactly is RevOps?" Let's understand its definition, objectives, and the hiring process for RevOps.

Definition

Revenue Operations (RevOps) is a strategic business partner for the Revenue Teams. RevOps is alignment of revenue teams with the goal of growing revenue, reducing GTM costs, and increasing profits. In a way that is predictable, scalable and sustainable.  

This is accomplished through the 4 pillars of RevOps: Enablement, Processes, Technology & Analytics.

Objective of Revenue Operations

The primary aim of Revenue Operations is to eliminate siloed thinking. Historically, marketing operations focused on marketing, sales operations on sales, and so forth. Our article "Revenue Operations vs. Sales Operations" offers a deeper insight. This isolated approach often led to team conflicts, duplicated efforts, missed opportunities, and more. Breaking down these silos can lead to cost reductions, revenue increases, and more profits.

Impact of Revenue Operations

• 100% to 200% increase in digital marketing ROI

• 10% rise in lead acceptance

• 15% to 20% boost in internal customer satisfaction

• 30% decrease in GTM expenses

• Up to 71% better stock performance

• 10-20% surge in sales productivity

• 19% accelerated growth

• 15% additional profits

  Sources: Forrester, BCG, SiriusDecisions, Inc. & Clari.

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Starting Revenue Operations

Committing to a Revenue Operations strategy is crucial. This means ensuring that the board, executive team, and you are all on board. Only with this commitment can you achieve the impacts listed above.

A pitfall to avoid is establishing a fake RevOps structure. This might occur when there's insufficient buy-in or when there's a skewed perception of the role. For instance, a former marketing ops individual might be rebranded as a RevOps professional without being granted additional authority or responsibilities. Such half-measures can lead to the perception that RevOps isn't effective. To truly benefit from RevOps, empower the individual in this role.

When Should You Hire for Revenue Operations?

Different scenarios dictate different timings.

Commercial Founder or Serial Entrepreneur

If you have a commercial background, you'll likely have a grasp on driving revenue. As your startup grows and other priorities emerge, you'll see the need for RevOps, possibly when hiring a CRO or focusing on Product-Led Growth.

Solely Technical Founder

Technical founders might need to hire for RevOps earlier, along with commercial leaders.

First-Time Founders

If scaling a startup and optimizing revenue feels daunting, an experienced RevOps professional can be a game-changer.

VC-backed vs. Non-VC-backed

VCs love RevOps as it increases the likelihood to get a return on their investment. If you're VC-backed, your VC is probably talking with you about RevOps.  If not, consider investing in RevOps. They are not doing it for fun.

It's better to be early than late.

Criteria for Your First Revenue Operations Hire

Consider these four pillars.

Strategic: The individual should be able to align company objectives with revenue-driving pillars, necessitating strategic acumen.  

Communicative: Effective RevOps demands cross-team alignment and extensive enablement, making strong communication skills essential.  

Technical: Technology facilitates revenue operations. A deep understanding of various tools and their interconnectivity is crucial. Familiarity with your current tech stack and a penchant for computer science are bonuses.

Analytical: RevOps will eventually handle vast amounts of data for reporting and decision-making. Profiles with backgrounds in statistics, economics, finance, or research are ideal.

Finding someone proficient in all these areas can be challenging. The right balance will depend on the existing skills within your organization. You might already have a suitable candidate internally, or you might need to hire externally.

Not ready to hire? Try Fractional RevOps-as-a-Services

Clearly, hiring a new role for the first time is a big commitment. An alternative is to consult Fractional Revenue Operation Consulting (RevOps-as-a-Service). The benefit of Fractional RevOps is that you get experiences RevOps professionals with less risk and an affordable budget as you will probably not need a full-time resource and an experienced RevOps is more effective. Feel free to check out our Fractional RevOps-as-a-Service page for more information.

In part two of the articles we will look at the four pillars (strategy, processes, technology, and analytics) of Revenue Operations and on what to focus on.