Revenue Acceleration: How to Move From Alignment to Action

Why Organizational Friction Is Hurting Your Bottom Line

In B2B organizations, the word “silo” is often used to describe a point of contention.

Revenue Operations & Revenue Acceleration

Revenue Operations, or RevOps for short, is the combining and aligning of sales, marketing, and customer success teams within a business.

  • Identify deal risk and upsides
  • Accelerate current quarter pipeline
  • And accurately predict revenue early in the quarter as well as forecast future quarters

Accelerating Revenue

If you’re not set up properly, then you’re just throwing darts in the dark when it comes to your pipeline.

  1. Engage: In this phase, the revenue teams are tasked with a crucial responsibility. They need to ensure that they’re targeting the right accounts and using appropriate messaging in their campaigns for those specific individuals. The SDR team should also be active and prospecting into accounts with the right messaging for those important personas at this stage of pipeline development.
  2. Execute: Here, you enable your sales team to convert potential leads into sales by guiding them through each step of the process. This stage includes all one-on-one meetings between reps and managers as well as forecasts for future quarters so that plans can be set in place ahead of time.
  3. Expand: In this phase, Customer Success comes into play. CS is responsible for retaining and finding new customers. They do this by helping retain the current customer base, understanding where to expand their reach, and forecasting future churn.
  1. Engage with buyers/website visitors
  2. Target potential buyers
  3. Accelerate deal cycles
  4. Grow customer value
  5. Transform customer engagement
  • The responsibility of marketing, sales, and customer service in accelerating revenue and growing CLV
  • What metrics the revenue teams use to measure their performance
  • How companies use data to help revenue teams take action
  • Best practices for targeting and engaging buyers in an increasingly digital world

Engage

Technology has changed the way marketing is done.

Marketing Metrics & KPIs

No marketing strategy can be successful without performance metrics. Marketing teams that are ruled entirely by lead generation often suffer from three pitfalls:

  • Lead quality issue
  • Failure to scale
  • Inability to effectively prove ROI:

Let’s start with the most crucial one:

LTV:CAC

Quarter-to-date pipeline created

This is volume. As previously stated, volume still matters, and it has an effect on how other teams perform.

Quarter-to-date pipeline quality

High intent or ABM accounts typically fall under here.

Sales velocity

Target account engagement

Account-Based engagement is an evolution of account-based marketing (ABM) that encourages firms to double down on creating a cohesive and holistic customer experience.

Pipeline coverage

This is the sum of your existing sales opportunities divided by your operating plan’s revenue targets.

Understanding Your Target Audience

Understanding who your audience is and what they will like is the key to everything you do. When working on campaigns, messaging, or channels, make sure you’re catering to that ideal customer profile (ICP).

  1. Who are you engaging (Unknown, known, or returning)
  2. Where are you engaging them from (website)
  3. What page are you engaging them on (product, solution, pricing, blog, resource center, contact us)
  4. Why are you engaging them/why are they engaging you ( new lead, meeting, sales/get help, talk to sales, learn more)

Engagement & Targeting

In today’s world, people are living in a constant state of “busy.” You need to consistently engage with your buyers, so when they have the time or intent to do so, they’ll be more than happy to engage with you! If not? That missed opportunity might cost you business.

Execute

The sales team is the backbone of any company. They are responsible for generating revenue, so it’s important that they are data-driven. If you want a consistent flow of cash, then you need to have a team that can track and act on performance metrics confidently.

Defining Sales Metrics & KPIs

The execution phase has two major steps: targeting potential buyers and accelerating the deal cycle. These are both measured through metrics to ensure success at the end of this phase.

Sales forecasting accuracy

Sales forecast is the key determinant of how a company invests and grows. The more accurate your sales forecast is, the better you can plan for growth and success.

Monthly recurring revenue (MRR)/Annual recurring revenue (ARR)

MRR/ARR is the monthly or yearly revenue growth of your company.

Win rate

Win rate is the percentage of closed/won deals. It shows how well a company has been doing over time and can be used to forecast the amount of pipeline coverage needed in order to hit the target.

Conversion rate

This metric helps you assess how well your sales reps are converting their leads into new clients.

Average deal size

Deal size is the total revenue per closed deal. If you want to grow sales and move upmarket, tracking the size of closed deals will help you do this.

Quota attainment

This metric compares the number of closed deals (or revenue) in a given time to the chosen quota for that period.

Pipeline coverage

Tracking pipeline coverage will help sales management see the red flags and keep things on track.

Sale linearity

Deal slippage

Slippage rates are important because they show how many opportunities you had in the past that didn’t close within their forecast period. You can use this information to identify your slipped deals and make sure you don’t let them happen again next time.

Improve Sales Effectiveness Through Coaching

The key to success for high-performing teams is having top-notch coaching, and that’s exactly what we are going to talk about in this section.

One-on-one meetings are the best way to coach your sales reps. This type of meeting should be collaborative, strategic, motivating, data-driven, and tactical. Managers work with reps on deal execution, discuss current roadblocks and how to resolve them, and strategize next steps.

Expand

With the rise of digitalization, customer experience and customer success have emerged as important factors for driving retention revenue, increasing revenue, and fostering strong relationships with customers.

Defining Customer Success Metrics & KPIs

Companies are taking a more active role in growing customer relationships and experiences. CS is developed to help businesses manage their interactions with their customers, while CX is designed to make the experience for customers more personal than ever before.

Proactive

We’ve found that a proactive approach to CS, such as continually connecting and reinforcing your business value to customers, can have a significant impact on the success of your organization.

Prescriptive

CS has an integral role in forecasting future pipeline by analyzing customer churn, revenue churn, and net dollar churn. With shifts in the economy come changes that affect all facets of any business, including these three metrics. By looking at historical data from previous years, we are able to determine what level of change may be coming down the pipe.

Technology like machine learning can help us forecast future churn more accurately. However, if that’s not an option right now, CSM and renewal managers should work together to identify the red flags as well as expansion opportunities.

  • Define healthy customer benchmarks
  • Segment customers
  • Have CSM and renewal managers work in lockstep
  • Send a survey prior to the renewal
  • Create next steps for churn and expansion

Need help in changing the system and aligning the teams in your company?
Let’s talk.

p.s. originally published on Funky Marketing

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Nemanja Zivkovic

Nemanja Zivkovic

344 Followers

CEO @ Funky Marketing | We Create Demand Generation Programs To Help B2B Companies Generate Consistent Revenue Growth https://funkymarketing.net/