The governing philosophy of RevOps is that the growth function of a business is a repeatable process. A repeatable process can be standardized, measured, and optimized over time. If you have a standardized process, you can model the characteristics of that process and project its performance over time. Then you can measure how your process is actually performing in practice and detect deviations against the model. Negative deviations may indicate areas for improvement, positive deviations may indicate opportunities for increased investment.
Use RevOps modeling to predict performance and align goals
This fundamental approach to optimization has been used across the B2B enterprise for decades. Finance uses budget to actuals. Operations uses lean practices in the same way. RevOps is the application of these principles to the growth function – sales, marketing, account management, and even product management.
In B2B, our sales cycles are typically long and complex. A RevOps model allows you to look at your pipeline today and determine what that pipeline will deliver over a single sales cycle. You can then extrapolate that model to predict bookings performance for various scenarios, such as:
- Forecast at current performance
- Forecast with 2% better deal closure
- Forecast with 15% more leads
- Forecast with 8% larger average deal size
When your model is complete, you will know what your pipeline needs to look like at any given time at every step – from lead to qualified opportunity to closed deal.
RevOps models give you confidence in your planning
Your scenarios based on RevOps modeling are going to change the way you think about planning and goal setting. Take this example (from a real company):
If I want to hit a desired bookings target for this product, the model tells me I need 600 leads per quarter. My market size will not yield that many leads because there aren’t that many accounts. We need to change our bookings target and look to other products that have a more realistic model.
Wouldn’t it be great to know that there is no way you are going to hit a particular bookings target? Or if you want to hit a particular bookings target, you either need to improve your proposal conversion rate by 10%, or increase your average deal size by 5%?
If we are going to solve problems that matter, the ones that will really impact growth, we need to know WHAT THE PROBLEMS ARE. Too often sales and marketing leaders are guessing at that. Here’s what a RevOps model can tell you:
- Your proposals are bottlenecking your sales cycle. Focus on improving your proposals.
- You can reduce your wasted sales time by 30% if sales reps focus on deals in retail and financial services.
- You can increase your deal size by 15% selling into manufacturing companies that are between 1,000 and 5,000 employees.
- You can increase your win rate by 10% if you involve IT personas in the sales process.
- Target marketing programs to Sales personas using a specific message. These result in deals that are 15% more likely to close.
These were easy to list because all of these are actual answers that ayeQ customers used to improve their annual plans.
With RevOps, you not only set bookings targets that are highly accurate, but you identify strategic areas for focus and improvement – the ones that will actually impact growth. And you align your teams around calculated goals that are critical for overall team performance.
See how RevOps modeling can help your planning process by requesting a demo of the ayeQ platform.