RevOps Framework - Ultimate Guide 2023

Revenue Operations Framework

1. Business Model

These are the "frames" that set how your business operates daily.

(Credits to Winning by Design)

Your business can move from left to right, as well as from right to left, along this arc. Every shift causes a change in how you should price and sell your product/service.

On top of that, the business model influences yours:

• win rates
• level of risk
• go-to-market motions
• number of sales funnel stages
• sales cycle length 

All that impacts your revenue operations.

This is why a SaaS business charging customers on an MRR basis has totally different revenue operations than an enterprise service business selling one license at a time.

2. GTM Model

Here you're answering fundamental questions for your business:

• How do you do sales?
• How do you do marketing?
• How do you do customer success?

(Credits to Winning by Design)

You match go-to-market motions to your business model based on two factors:

1. The number of deals sold per year
2. The annual contract value (ACV)

E.g a SaaS business with ACV below 15k will have GTMs like:

• 1-Stage sales (MDR)
• Inbound
• Community

Whilst, an enterprise service business with ACV above 150k will have GTMs like:

• Named accounts sales 
• Account-based marketing
• Accounts customer service.

3. Growth Model

In order to accelerate growth, you need to understand at what stage your business is currently and what steps you need to take next.

(Credits to Winning by Design)

Product-Market Fit (PMF) - your company is validating its service on the market and learning how to price it.

Go-to-Market Fit - Your company learns how to sell a service to the market 

Scale-up Fit - Your company knows which GTMs work and which don't, and now is focused on scaling proven motions.

Grown-up Fit - Your company has multiple proven GTMs and shifts toward generating revenue from existing customers.

4. Data Model

This is the way you measure the effectiveness of the go-to-market motions across your funnel.

(Credits to Winning by Design)

It gives your teams:

• Visibility into the full customer journey, from initial contact up to cross-sell/up-sell.
• Shared definitions of leads, from prospect to customer and beyond.
• Shared KPIs for all teams aligned around revenue.

As well as a new set of metrics that boost your sales velocity:

1. Volume metrics - track SQLs and opportunities generated.
2. Time metrics - analyze stage progression time.
3. Conversion metrics - optimize conversion rates.
   

5. Tech Stack

This is your infrastructure (CRM and tools) that supports GTMs and the teams responsible for their execution at every stage of the buyer journey.

(Credits to Winning by Design)

Here you're asking questions:

• Are my tools connected?
• Do my people have an essential tech stack to be effective
• Does my infrastructure favor teams' efficiency or increase internal friction?

5 benefits of Revenue Operations in HubSpot for business

1. Visibility - actionable insights into opportunities for growth and investment prioritization

• Find weaknesses in conversion rates and identify areas for improvement.
  
  
  
  
• Measure your sales cycle and work on team & buyer enablement to improve the progress from one stage to another

• Track volumes over time and control business health trends.

• Monitor which ICP Tiers are most profitable for better prioritization and targeting

2. Repeatability - ensure GTM strategies are repeatable

• Measure pipeline conversion from each go-to-market motion to see if they bring repeatable results. Use these insights to refine your go-to-market strategies.
  

3. Predictability - the ability to understand if a company is going to hit their goals

• Track closed deals, and pipeline coverage against your revenue targets

• Monitor deals won vs. deals lost to identify trends and inform your strategy in real time.

4. Efficiency - streamline processes, reduce friction, and decrease operational costs.

• Free your teams from tedious tasks through automated workflows.

• Get actionable insights from your revenue analytics in the form of automated e-mails.

5. Innovation - uncover new opportunities to stay competitive and get ahead

• Streamline your processes and get actionable insights in minutes through automation and AI.

6 core Revenue Operations functions

We listed key RevOps benefits with a showcase inside HubSpot. Now, let's define its 6 primary functions to give you an overview of what to expect from RevOps in your company.

• Measurement & Forecasting - asking the right questions based on GTMs and Data Models.
• Technology -recommending, integrating, and managing the technology stack.
  
  
• Strategy & Planning - defining crucial elements for running GTM strategies.
  
  
• Process & Workflows - workflow mapping and cross-department alignment.
  
  
• Enablement - enabling and empowering human engagements across the customer journey.
  
  
• Data Governance - collecting all customer and revenue process-related data with high quality and accuracy.
  
  
• Change Management - Embracing change in the organization and ensuring adoption.

Revenue Operations implementation

To successfully implement RevOps you need a roadmap guiding your actions step-by-step in specific time frames. 

1. Revenue diagnostics - Understand your business model, processes, and key go-to-market strategies to identify the biggest opportunities and expected future state.
   
   
2. Roadmap - Create a visualization of your strategic initiatives and major areas to improve.
   
   
3. Quick wins - Implement quick solutions for processes to capitalize on low-hanging fruits.
   
   
4. Scaling - enable your teams to efficiently run go-to-market strategies at scale and break from linear growth.