Revenue Operations: A New Way to Align Sales & Marketing, Monetize Data, and Ignite Growth
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Management models evolve. Modern selling requires levels of speed, accountability, visibility, and teamwork that are unmanageable in a traditional functional organization model. The need to get sales, marketing and customer support organizations working as one revenue team is an existential issue for every B2B organization. This book explains the solution: a Revenue Operations model. It overcomes the traditional barriers to cooperation between sales and marketing and customer service by combining all these functions in one business unit, under a single leader called the Chief Revenue Officer, or CXO. The goal of a Revenue Operations model is to better align the sales teams, assets, systems, and processes around a coherent set of customer and company goals to accelerate revenue, profit, and value growth.
The majority of Boards are pushing their CEOs to pursue business model transformation to a cloud, subscription, or recurring revenue model. In response, they are aligning their sales, marketing and CX Teams around the customer to generate the growth and net recurring revenues needed to make the successful transition without significant disruptions to cash flow and profit growth. Aligning sales, marketing, and customer success teams has also become fundamental to generating the growth, customer experience, and net recurring revenues needed to scale or transition to a cloud business model with limited capital. This growing relationship between revenue growth and firm value has made Revenue Operations a critical issue with Private Equity investors who need faster organic revenue growth to justify purchase price multiples that exceed 13 times EBITDA.
The book describes six core elements to a revenue operations model, and provides Chief Revenue Officers, CMO's, CXO's, sales managers, and other sales growth leaders a roadmap for aligning their sales teams, operations, systems, and processes to grow sales and expand customer lifetime value.