Revenue operations: According to the Aberdeen report, “The New Normal: Resolving the operational challenge in a digital world”, organizations can no longer afford to have subpar operational performance.
Operational efficiency needs to be a top priority for businesses across all industries and sizes.
These businesses are facing mounting pressure from their customers, suppliers and partners.
Customers now expect flawless experiences regardless of which department they interact with or where they purchase the product or service.
Operations is an essential part of any business, enabling it to efficiently manage day-to-day activities related to supply chain management and financial reporting.
There is no company that can afford having subpar operational performance.
Here are ten ways you can improve your revenue operations if you fall under this category:
10 Ways To Improve Your Revenue Operations
Revenue operations is a broad term that covers all of the ways in which your company manages the money you earn from customers. They are accounting, collections, cash management, financial analysis and many more functions. With so many departments involved, it can be challenging to see the big picture when you’re working on smaller details. CFOs and other executives often overlook these areas until it’s too late — but that doesn’t mean you should wait to improve them. These ten tips will help you increase your revenue operations and improve your company overall. If you want to keep growing your business, read on for some great advice!
Define and track key performance indicators
Every business has KPIs (Key Performance Indicators) that help them track how they are doing. These could be related to revenue, growth, profit, or any other metric that is important to your company. Identifying which KPIs are important to your revenue operations will help you track improvements and make changes when necessary. For example, if your ROI is declining due to growing costs in collections, you’ll want to identify that trend and make changes to improve it. By keeping track of these indicators, you’ll be able to see where improvements are needed and where your company is excelling.
Automate everything you can
Revenue operations is all about collecting money, tracking cash flow, and making sure your customers don’t have any reason to complain. You’ll do this by setting up auto-pay plans, collecting bills, and getting money from any and all possible sources. Depending on the type of business you have, you can automate a lot of these tasks. For example, if you’re selling online, you can use software to manage orders and payments. You can also use online payment services like Stripe to collect payments without any software. Automating as much as possible will save you time and energy. You’ll also reduce errors and improve customer satisfaction because everything will run more smoothly.
Establish a culture of testing and measurement
If you’re in charge of revenue operations, you’ll want to create a culture of testing and measurement. This means you’ll need to hire employees that love to test and see what works best. You’ll also want to measure the results of those tests in order to make changes that improve your company. These are best practices, but they are often overlooked. People who thrive on testing and measurement are valuable members of a team because they will also improve your operations. They’ll experiment with different ways to collect bills, measure customer satisfaction, and improve the entire process from start to finish. As a CFO, you can encourage these habits at every level of the company. You can also set up metrics and KPIs to track everything from revenue to employee satisfaction. This will give you a better view of your company as a whole and help you make the best decisions possible.
Don’t neglect your aging software
If you’re using software to help run your revenue operations, make sure it’s not too old. The average lifespan of software is just two years. This means that, without any upgrades, your software will lose efficiency and become less helpful. If you’re using software in your revenue operations, make sure it’s regularly maintained and upgraded. This will ensure it stays efficient so you don’t lose time with outdated systems. You can also replace certain software with more modern options. If you use an aging customer relationship management system, you can upgrade to a modern CRM. If you’re using a clunky accounting software, you can try a SaaS solution like Xero. Many companies also offer migration services so you can switch to a better system without losing your data.
Be transparent with your data
Revenue operations is all about numbers — measuring customer satisfaction, calculating revenue, collecting bills — but you also need to be transparent with those numbers. This means that you need to share them with the right people at the right times. If you’re using metrics and KPIs, you can share these statistics with your employees. You can also publish them to your website so customers can see how you operate. This will help you maintain transparency and improve trust within your company.
Use tools to increase automation and efficiency
Revenue operations is all about maximizing efficiency — collecting the most money in the least amount of time. To do this, you can use tools that will help you automate tasks and track statistics. With software, you can automate almost everything. You can also integrate your systems to send each other data. For example, if you’re using a customer relationship management system to track payments, you can integrate it with accounting software to automatically send your customer’s information. You can also automate payments with software like Plasso. This will help you collect money more efficiently and keep tabs on all payments. By using tools like these, you can reduce the amount of time you spend on certain tasks — allowing you to focus on other areas of the company.
Don’t haggle over small amounts of cash
Every month, you’ll receive bills from various companies. You’ll also receive payments from customers. The payments will include everything from credit card processing fees to utility payments to payroll taxes. Depending on the size of your company, some of these payments may be small enough to haggle with the company. You may also decide that it’s easier to just pay them — but don’t do that for every company. Rather than haggling over every payment, create a policy for which payments you haggle and which you don’t. This will help you manage your time and energy and also reduce the number of haggling conversations you have. Keep in mind that these companies are likely offering you their best rates. You’re also likely paying more than the minimum payment needed for a utility bill.
Make sure your data is accurate
All the numbers you track through your KPIs will be useless if they aren’t accurate. You need accurate data if you want to make decisions based on your revenue operations. To make sure your data is accurate, you need to audit your systems and implement quality control checks. You’ll want to audit your accounting software regularly to ensure it is accurate. You should also have quality control processes in place to prevent mistakes from happening in the first place. For example, you can have a quality control process in place for manually entering customer data into your CRM. This will help you track customer information consistently and make sure nothing is missing or incorrect.
Operating at peak efficiency is crucial to your company’s success. For this reason, it’s important to keep an eye on the different aspects of your revenue operations. With so many departments involved, it can be challenging to see the big picture when you’re working on smaller details. CFOs and other executives often overlook these areas until it’s too late — but that doesn’t mean you should wait to improve them. These ten tips will help you increase your revenue operations and improve your company overall.