06 Jan 4 reasons tech is moving to a revenue operations model
The high-tech industry is perpetually evolving to keep pace with what customers expect from their buyer journeys. A whopping 74 percent of B2B buyers now report that they’re using multiple sales channels to start and finish a single transaction, according to Salesforce industry research. That means tech companies must design infrastructure that enables customers to jump seamlessly from direct sales to partners to digital storefronts—all while preserving the customer’s specific configuration of products and services, and all while enabling the sales team to instantly access the customer’s full sales and interaction history.
The only viable way for tech companies to rapidly and reliably achieve this enhanced functionality is by embracing what we at Simplus call a revenue operations model. A revenue operations model is the antithesis of how the average tech company is structured. Instead of a traditional revenue model where people, processes, and systems tend to be fragmented and siloed across teams, a revenue operations model seamlessly and intelligently connects all of these teams together—sales, finance, partners, digital commerce, operations, and IT—creating a single, highly interconnected revenue ecosystem. All of these teams that ultimately are responsible for working together to generate revenue actually begin working in a highly coordinated fashion toward that goal. Let’s explore four key reasons tech companies are embracing a revenue operations model to keep pace with evolving customer expectations about the buyer journey:
Tech companies need a single source of truth
Tech companies cannot afford to spend time trying to rectify customer records internally. Customers already expect that all of their sales-related information is being saved and served up appropriately later. Moreover, sales teams need to be able to instantly provide cross-sell and upsell suggestions, and to deliver documents that are free of avoidable factual errors. The only way to do this is with a single source of truth that feeds CPQ and Billing, ERP, partner relationship management, and B2B commerce systems. When this single source of truth is serving up-to-date information in real time, it makes it much harder for a sales representative to manually download the wrong order form or for a billing team to inadvertently underbill for services. Moreover, a single source of truth significantly enhances the viability of adding more functionality to the ecosystem, via apps like DocuSign or Avalara that further extend what can be connected from within this single, unified revenue operations model.
Tech companies need to offer self-service experiences
Modern customers want seamless buyer journeys, and that includes self-service capabilities. Customers want to be able to configure their products on their own, taking time to consider their options and customize pricing within their digital cart without making contact with the sales team. To enable these self-service experiences, tech companies need to first be able to consolidate their product catalogs, streamline the quoting process, and automate the customer’s ability to receive discounts and special offers. A revenue operations model is essential to building the unified, interconnected infrastructure that enables tech companies to develop these seamless experiences for a growing share of self-service customers.
Tech companies need to rapidly implement new revenue streams
When tech companies identify a new monetization strategy, time is of the essence. Tech companies cannot afford to spend copious time launching a new subscription product or building out the infrastructure to support a new consumption pricing offering. Unfortunately, it’s commonplace for tech companies to spend months doing exactly this. The reality is that a tremendous amount of internal coordination is typically required to plan for and implement new types of revenue streams. With a revenue operations model, however, there’s no need for tech companies to do all of this legwork—because it’s already done. In other words, a revenue operations model gives tech companies all of the necessary interconnectivity and coordination they need to move with speed and agility in implementing new revenue streams.
Tech companies need to get rid of manual processes
When modern customers interact with a tech company, they can immediately pick up on inefficiencies, mistakes, and miscommunication that are impacting the speed and seamlessness of their buyer journey. At the root of many of these common challenges is manual processes—manual approval steps, manual data reconciliation processes, and manual transfer of data from one system to another. By unifying and integrating all of the teams and systems that are part of the buyer journey—a fundamental feature of a revenue operations model—tech companies can eliminate many of these manual processes. In fact, a revenue operations model prevents tech companies from ever going back to these manual processes even if they wanted to; this quality control is built into the model itself.
Tech companies often find themselves in constant flux—unpredictable revenue cycles, wild swings in customer needs and preferences, sudden disruptions to sales channels. A revenue operations model can bring stability, efficiency, coordination, automation, and quality control to this operating environment. With a revenue operations model, tech companies can benefit from a single source of truth for all revenue-related data, the ability to offer modern self-service customer experiences, powerful features for rapidly implementing new revenue streams, and being able to get rid of manual processes that impede the speed and seamlessness of buyer journeys.
Simplus specializes in partnering with tech companies to efficiently implement the revenue operations model using the Salesforce Revenue Cloud. To learn more about how to gain the upper hand on efficient, properly managed, multi-channel revenue growth within the tech sector, reach out to Simplus today. We look forward to helping you optimize all of your revenue growth opportunities.