The Big 4 RevOps Strategies

Revenue Operations Strategies to Accelerate Company Growth

There are four ways to grow company revenues.

You can increase customer acquisitions, grow customer lifetime value, lower customer churn, or modify your prices.

Each of these methods create tradeoffs. So, all of them must be designed and managed holistically.

That means the Revenue Operations team must assume a centralized role. They will best serve the company when they design and deliver RevOps strategies that leverage every resource in the company to collectively achieve the company's priorities.

And they will accelerate their results by applying evidence-based best practices. These are the methods validated by field research, implemented with prescriptive frameworks, measured with purpose-built analytics, and automated with technology. And because they are data-driven, they can be modeled to show investment, cash flow impact, time to value, and payback.

Here are the four most powerful RevOps strategies and some of the best practices to achieve them.

1

Customer Acquisition Strategy

At a macro level, acquiring more customers is a two-step process. You need to generate more leads that go into the funnel and convert more of those leads into customers.

The most effective lead acquisition methods are built on best practices such as revenue engineering, campaign portfolio optimization and streamlined lead management.

For example, revenue engineering uses lead conversion history and predictive analytics to make pipeline growth deterministic. It measures the yield and elapsed time of leads as they progress through each stage of the funnel. It calculates the total lead-to-revenue ratio and duration. This allows you to start with a revenue target and know exactly how many leads are needed to achieve that goal.

Lead to Revenue Funnel

Campaign portfolio optimization is a structured way to mix campaigns for the highest cumulative results. It increases the value of the total portfolio by continuously reallocating budget across campaigns based on their performance at any point in time.

Best practices to convert leads to customers include, but are not limited to, applying an enterprise sales methodology, predictable sales process, and technology-enabled guided selling.

Sale methodologies are proven to increase sale opportunity close rates. That's important because increasing the win rate by only a few percentage points creates immediate, significant and sustained revenue growth.

Every company has a sales process. But most don't align with the buyers' purchase process, and few achieve predictable results. Improving this process will lead to increased productivity, faster sales cycles, fewer losses and improved forecast accuracy.

Sales Process Map

But here's the thing for all of these best practices.

None of them are maximized when performed by individual departments. So, for most companies, the first Revenue Operations responsibility is sales and marketing alignment. Only then will the company assemble all of its resources in ways that continuously increase customer acquisitions.

2

Customer Growth Strategy

Expanding customer share and customer lifetime value (CLV) is also accelerated by applying evidence-based best practices.

For example, companies with sophisticated products and longer sales cycles will benefit from Strategic Account Management (SAM). This business development technique is also extremely influential when a minority of key customers deliver most of the company's revenues or profits. These customers are your strategic accounts.

SAM uses a strategic account plan to identify, sequence and forecast future selling opportunities. The Account Plan aligns the company's products or services with the customer's vision and goals. It identifies potential upsell and cross-sell opportunities over an extended horizon to help customers achieve their evolving priorities.

Strategic Account Planning

Other best practices include customer strategies such as Customer Experience (CX) Management or a central and shared 360-degree customer view. Tactical programs include things like nurture marketing campaigns to maintain top of mind awareness and customer support programs that achieve high customer satisfaction (CSAT) scores.

But regardless of the best practices you adopt, you need to take an enterprise-wide approach to succeed.

That may mean the marketing organization acquires customer insights. The sales organization verifies those insights in their one-on-one discussions. Customer service flags new opportunities based on their support interactions. And Revenue Ops staff make all these insights available wherever they can be used.

Only when customer feedback is acquired from every part of the company will the company maximize customer growth.

3

Customer Retention Strategy

The ability to decrease customer churn delivers a significant and sustained increase to revenue growth.

Best practices include, but are certainly not limited to, voice of the customer, service level agreements, proactive customer service, technology-facilitated case management, and customer service analytics.

Or going a step further, you can take steps to reduce customer churn by preventing it from happening in the first place.

Some people believe the ability to accurately predict which customers are flight risks can lower customer attrition. Our experience with clients shows that's not really true. By the time customers show up on a churn forecast they have incurred frustrations that have festered for quarters or years. Offering apologies or assurances at this point is generally too little too late.

A smarter approach is to build a prediction model that identifies the factors that drive attrition, measures each factor's impact to churn, and provides prescriptive methods to fix them before customers appear on a flight risk report.

Customer Churn Prevention Framework

The above predictive model is an example that measures the causes of churn so they can be resolved to prevent future attrition.

Again, regardless of the methods you choose, an enterprise effort is required. Marketing can gather customer frustrations with voice of the customer surveys. Sales will incur them during renewal or upsell discussions. Customer service will learn of them during support calls. Revenue Operations staff must create shared processes and a centralized system to capture, tabulate and respond to these issues.

4

Price Optimization Strategy

A price strategy defines how the company will use price to increase market share, revenue and profit.

It models the price variables that impact the quantity sold. It statistically measures how customers respond to price changes. It compares alternative scenarios to achieve financial goals. And it identifies the optimal sale amounts to achieve revenue, profit or market share objectives.

But it should not be done at a departmental level.

Price changes create cascading effects that impact many parts of the company. Those impacts must be considered when making tradeoffs. Revenue Operations staff are needed to consider these impacts and advise optimal prices.

Price Optimization Dashboard

Research shows that a price strategy with active price optimization increases annual revenues by 2 to 8 percent. Even better, nearly all of the increase falls straight to the bottom line.

Price optimization is underutilized by most companies. That gives Rev Ops staff the power to create differentiation and make this a sustainable competitive advantage.

The Point is This

Revenue Operations strategies should be customer-centric, data-driven, and outcomes focused.

They must align sales, marketing and customer service with the buyer journey and customer lifecycle.

They must engineer the customer and business outcomes that maximize company growth.

And they must define the path to achieve targeted results in the shortest time and least cost.

It's no small effort. But the likelihood is improved when applying the right best practices to the right RevOps strategies.