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Customer City
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August 1, 2022
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Does RevOps Work for B2B SaaS Companies of All Sizes?
Introduction
There's a clear trend emerging in B2B SaaS; more companies are leaning into Revenue Operations or RevOps. Considering that organizations that adopt a RevOps model are seeing over 25% gains in profit, is there any wonder?
Despite this and other impressive statistics, some businesses are still standing on the sidelines, trying to figure out what exactly Revenue Operations is, how it should function in their organization, and if it's appropriate to implement at a particular stage of growth.
As aligning Sales, Marketing, and Customer Success becomes a normal mode of operation, implementing RevOps will likewise become less of a choice and more of a requirement for any company serious about competing in a fast-paced, data-driven economy.
By 2025, Gartner predicts that 75% of the highest growth companies in the world will have implemented a RevOps model. If your company ignores this growing trend, chances are you will be outpaced and less able to compete.
In this article, we explore why implementing Revenue Operations is a smart move for companies of every size and what benefits you can expect as a startup, small-to-medium-size business, or an enterprise.
Why Was Revenue Operations Created?
Revenue Operations is an outgrowth of the Digital Transformation movement and the result of B2B companies realizing that they need to become customer-centric to remain competitive. This ethos has been adopted from the B2C market, where e-commerce sales and marketing practices long ago proved the value of placing customers' happiness first
Modern B2B SaaS operations are data-driven and give Customer Success a prominent seat at the table—which is entirely opposite to legacy B2B operations where Sales and Marketing are prioritized to acquire new buyers. SaaS companies with modern operations don't view purchases as merely transactional; instead, they focus on building relationships with buyers to extend customer lifetime value.
Below are typical aspects of a modern customer-focused B2B SaaS company:
- UX and UI are developed based on human-centered design principles
- Data silos are removed, and information is shared freely between Sales, Marketing, and Customer Success
- Departments and teams work cooperatively to support customer satisfaction
- Robust automation and AI tools are used to speed up workflows and free up human beings to perform high-value work
- Timely, targeted customer support is provided based on behavioral metrics
- Personalization and customization are used at scale to enhance the customer experience and deepen the buyer relationship
- Data is gathered and measured from every customer engagement point in a funnel, workflow, or pipeline
- Product, features, and service releases are data-driven and based on customer feedback and behavioral metrics
This evolving "new normal" has forced many B2B SaaS companies to realize that legacy operations prioritizing profit and siloed departments over customers' needs are vastly outdated. RevOps has emerged as a solution for modernizing business operations, aligning processes, and incorporating new technologies to achieve revenue excellence.
RevOps Now and In The Future
At first glance, Revenue Operations might look like a process that a startup B2B SaaS company should avoid; with limited available resources, hiring a dedicated Revenue Operations manager and building a RevOps team can be a premature expense.
The good news is that the startup stage presents an excellent opportunity for a SaaS company to get things established correctly right out of the gate. Imagine being a 20-year-old global enterprise with millions of customers running on legacy operations and a waterfall tech stack attempting to transition into a Revenue Operations model, and the advantage becomes clear.
Implementing RevOps from the beginning allows you to build a culture around collecting clean, accurate data, team cooperation, and data-driven decision-making that will be followed by all future hires to your company. Further, with the proper technical tools like Customer City's own RevOps CRM, all of this can ostensibly be handled without making extensive additional hires until your next stage of growth.
Why Is RevOps a Good Fit for Startup SaaS Companies?
At first glance, Revenue Operations might look like a process that a startup B2B SaaS company should avoid; with limited available resources, hiring a dedicated Revenue Operations manager and building a RevOps team can be a premature expense.
The good news is that the startup stage presents an excellent opportunity for a SaaS company to get things established correctly right out of the gate. Imagine being a 20-year-old global enterprise with millions of customers running on legacy operations and a waterfall tech stack attempting to transition into a Revenue Operations model, and the advantage becomes clear.
Implementing RevOps from the beginning allows you to build a culture around collecting clean, accurate data, team cooperation, and data-driven decision-making that will be followed by all future hires to your company. Further, with the proper technical tools like Customer City's own RevOps CRM, all of this can ostensibly be handled without making extensive additional hires until your next stage of growth.
Why Is RevOps a Good Fit For Mid-Size SaaS Companies?
B2B SaaS companies at this stage are commonly in the process of growth and expansion. It's not unusual for them to have secured one or several rounds of VC funding, and they may be experiencing growing pains as they push to become profitable. If they haven't already implemented RevOps in their company, now is a perfect time to start interviewing for crucial roles to build a Revenue Operations team and hire supporting roles in other operations within the company.
Because growth and reaching profitability are so important at this stage, having a clear view of what exactly is driving revenue in your organization is critical. Access to this powerful information is game-changing and can be the deciding factor that helps a business outlast and out-pace its competitors.
Why Is RevOps a Good Fit for Enterprises?
An enterprise has obviously cleared many obstacles to achieve the market share it commands; holding on to it is the next challenge. As discussed in this article, established B2B SaaS companies are taking a hard look at their operations to see how they can modernize and stay competitive.
Adopting RevOps may be one of an enterprise's most important measures to maintain its relevance and mitigate customer churn. Common problems faced by large, global companies include; struggling to manage sprawling off-shore teams, departments that don't share data or goals, outdated tech stacks that have become difficult to use or maintain, and a lack of transparency over total operations.
For a large organization, interdepartmental communication and cooperation are critical to being able to react quickly to sudden market changes or to take advantage of emerging trends. Revenue Operations was created to meet these challenges. Transitioning to a RevOps model can save an enterprise millions of dollars while also helping it capture more profit.
Is Your SaaS Company Ready For RevOps?
Revenue Operations has the potential to benefit B2B SaaS companies at every stage. Startups should not be dissuaded from adopting a RevOps model at the very beginning to ensure they are positioned to remain competitive as they grow. Mid-size companies may find that RevOps is the perfect cure for expansion and growth pains as they aim for new heights. Legacy enterprises needn't be held back by outdated operations if they are willing to adopt a cultural shift that calls for greater transparency and interdepartmental cooperation.
Customer city can help B2B SaaS companies of any size realize the full benefits of Revenue Operations. Contact us today to schedule a free demo!
