The Revenue Operations to Revenue Acceleration Framework Every Modern Business Must Know
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There is no silver bullet that can get brands to revenue acceleration. Instead, companies have to build a strong revenue operations infrastructure based on empathetic customer experience initiatives, intelligent data ops, and innovative content generation. Once you start with the end in mind, your organization can get to a sustainable — and much more feasible — revenue acceleration solution.
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The Revenue Operations to Revenue Acceleration Framework Every Modern Business Must Know
- 1. The Revenue Operations to Revenue Acceleration Framework Every Modern Business Must Know PERSONALIZED CONTEXTUALIZED RELEVANT 1ST PARTY DATA 2ND PARTY DATA 3RD PARTY DATA
- 2. The modern emphasis on shopper experience is a natural extension of the widespread adoption of digital technology. Where businesses once held most of the cards within a transactional model, customers are now empowered so much that they can - quite literally - make or break companies. If a brand wants sustainable growth in the modern marketplace, they have to adapt to the new status quo or die. ( See: BlockBuster) The Changing Marketplace and RevOps Recession of 2001-2002 2000 2010 Recession of 2008-2009 Mature Start Scale Mature Growth
- 3. In 2020, the COVID-19 pandemic accelerated online shopping trends so much that most old-school business holdouts were forced to enter the digital economy in one way or another. It’s more important than ever to understand your customer using data, particularly as the gap between in-person and digital shoppers narrows to irrelevance. A Data Explosion: Knowing Your Customers. -430 bps Change in 3 months 2000 2001 2005 2003 2007 2008 2010 2012 2014 2015 2017 2019 DEC DEC DEC MAR MAR MAR SEP SEP SEP JUN JUN 0 5% 10% 15% 20% JUN E-Commerce Share of U.S. Retail Sales Seasonally Adjusted -430 bps Change in 5 years
- 4. A Data Explosion: Knowing Your Customers. Even if somebody enters your brick and mortar store, they almost certainly have encountered multiple digital touch-points before stepping foot in person. Businesses don’t have to wonder how customers found their products; intelligent analytics can tell you each step in the path to purchase. 2017 2018 2019 2020 In Q2 2019 In Q2 2020 51% 119% Shopify Quarterly Gross Merchandise Volume
- 5. E-commerce has quickly overtaken nearly every industry, a trend that reflects consumers’ desire for greater control over how they shop. The difficulty now is not how to get more data, but knowing what to do with the thousands of insights digital tracking has made available. And that’s why having a solid data infrastructure to begin to parse consumer behavior is more critical than ever before. A Data Explosion: Knowing Your Customers. Apparel & Accessories Fitness Grocery Health & Beauty Home Pets Oct 2015 Oct 2019 Apr 2020 Oct 2020 U.S. E-Commerce Penetration by Category - Earnest Research
- 6. Similarly to the data explosion, channels are more complex than ever. Channel complexity is easier to understand when placing it in the context of customer journey mapping. Car shopping is a particularly illustrative example of the number of touchpoints it can take to complete a purchase journey. A Channel Explosion & Interpreting Data. 257 24 54 37 Visits Visits Visits Visits Researched Car Prices Searched Car Aggregator Website Researched Brand A Specs & Features Researched Car Insurance Company
- 7. Organizations have a harder time than ever finding a solution that provides the right kind of revenue-based analysis. Scott Brinker’s chart on the marketing technology landscape in 2020 highlights a truly stunning amount of platform options. A Platform Explosion & Measuring Data.
- 8. Internal org charts are getting increasingly complex as more roles get created to deal with this influx of information. The past few years have only accelerated the trend towards more honed-in departments with specific metrics and deliverables when it comes to the marketing and sales process. Combining these departments is typically the first step of building a RevOps team. Updated Internal Org Charts CFO CTO CMO CIO
- 9. It’s important to know that revenue acceleration cannot be accomplished without a strong revenue operations strategy. Brands typically have an uphill battle facing them when it comes to implementing revenue ops. The steps companies must take to surmount the Revenue Operations Chasm typically look like this: Revenue Acceleration and Revenue Operations. THE STRATEGIC REVENUE OPERATIONS CHASM At Risk Laggard Average Above Average Revenue Acceleration Anarchy Siloed Aligned Strategic Revenue Acceleration
- 10. Another way of visualizing this “chasm” in revenue operations is highlighting the differences in the org charts of companies at various stages of their RevOps journey. An increasing trend in the business world is the gradual outpacing that companies without revenue operations departments are experiencing in comparison to those with already established teams. Revenue Acceleration and Revenue Operations. Centralized Functions Reporting to CRO or Senior Leader Somewhat Centralized Function Virtually Aligned “Coalition of the Willing” 18% 40% 18% 15% 9% No Revenue Operations Function
- 11. The internal org structure of brands makes a big difference in their average revenue growth and average stock performance. In both categories, companies with a CRO and established RevOps department saw significantly better results than those without. RevOps: Requirement for Acceleration. Avg. Revenue Growth Avg. Stock Performance PERFORMANCE WITH & WITHOUT CRO & REVENUE OPERATIONS 2017 - 2018 S&P 500 2017 - 2018 S&P 500 Without CRO & Rev Ops With CRO & Rev Ops Without CRO & Rev Ops With CRO & Rev Ops 7.3% 19.5% 17.7% 30.3% +2.7x +1.7x
- 12. As mentioned before, building a revenue operations infrastructure can be extremely difficult. According to recent data, 45% of surveyed brands reported that they do not have a current RevOps team while a little over 15% are in the process of building one. The biggest issues C-suite decision makers face comes down to not knowing how to start the RevOps development process and failing to build an effective revenue operations structure. Revenue Acceleration and Revenue Operations. Business leaders don’t know when to start building RevOps All of the above Other Yes Currently building one I’m Not Sure No What is the Top Challenge Brands Face When Building Revenue Operations Today? Do You Have a Revenue Ops Team? Business leaders don’t know how to start building RevOps Business leaders are failing to build the right Rev Ops team structure Business leaders are struggling to influence organizational change Business leaders are struggling to decide who should be in charge of RevOps
- 13. Overall, the Old World model of siloed sales, services, and marketing departments is rapidly disappearing. An over-encompassing RevOps model that views each team’s efforts as part of a collective CX experience is key to how future brands will make their mark on the world. Data sharing, transparent communication, and customer-centric strategy is the new norm. Revenue Acceleration and Revenue Operations. Old World New World
- 14. The issue with the many definitions of revenue acceleration is that they trivialize and oversimplify a complex business problem, especially considering that the underlying variable to revenue acceleration — human decision making — is anything but simple. Automation spits out algorithms with the potential of making each buyer a data point, optimizing “experiences” without human empathy behind the scenes actually interpreting what that means. The Importance of CX in Accelerating Revenue.
- 15. If done wrong, accelerating revenue can easily become a brand’s overarching goal rather than a nice byproduct to a customer-led purchase experience. Customers can sense when companies prioritize their credit cards over their individual wants and emotional states. Revenue acceleration is the DIRECT effect of a brand’s overall ability to generate LTV buyers and optimize the purchase journey. The Culmination of Goals. Departments Experience Mapping Saying Feeling Assets Platforms TouchPoints Opportunities Thinking Customer Insights Map
- 16. Brands can fail to accelerate revenue for many reasons — opportunities for providing a terrible customer experience are too many to count. Several mistakes specific to the sacrifice of CX in pursuit of revenue acceleration can generally be summed up as misalignments within a company’s people, platforms, and processes. The Trap of Revenue Acceleration. Platforms Processes People
- 17. Digital adoption statistics have found that brands with intelligent data collection and analysis are 23 times more likely to acquire new customers than those without. Relying on a digital platform to aggregate and track customer behavior accurately is a must. However, it’s not that simple. BCG found that increasing odds of success in digital transformation depends on the presence of six identifying characteristics at the time of adoption: Don’t Rely on Silver-Bullet Tech Solutions. Six Identifying Characteristics 1. Deploying High Caliber Talent 2. Effective Monitoring of Progress Toward Defined Outcomes 3. Business-Led Modular Technology and Data Platform 4. An Integrated Strategy with Clear Transformation Goals 5. An Agile Governance Mindset that Drives Broader Adoption 6. Leadership Commitment from CEO through Middle Management
- 18. Internal alignment is tantamount to success or failure—especially aligning your 3Ps along with the other internal elements of your business. One of the best ways to think about this process is envisioning your business transformation journey as a set of increasingly complex layers. Building Effective Machine Learning Models. The Why Business Model The 3Ps Products & Services Channels Experience
- 19. Data, channels, and platforms relevant to revenue ops are so complex that failing to rely on a problem-solving framework puts you at a severe disadvantage. Problem-solving frameworks – specifically, StoryVesting – are critical to keeping the people, platforms, and process relevant to Rev Ops working together within your customers’ purchase journey. Relying on a Problem-Solving Framework Product/ Market Fit Internal Buy-In Brand Alignment Amazing Buyer’s Journey
- 20. The first piece to understanding this framework is identifying brand “stories” aka the brand mission. This is essentially the brand why — the why of a company’s existence and why the company matters to its consumer. When the brand why / Employee experience is aligned with the Customer Experience you’ve reached a state of brand euphoria. The StoryVesting Framework: Brand Stories.
- 21. Strategic inflection points : key shifts that require companies to “adapt or die.” How well companies navigate these periods of change directly reflects their eventual long-term success as a brand. Simplistically, there are really only three ways a brand facing a strategic inflection point can go. By relying on a transformation framework, businesses can better achieve sustained momentum. The StoryVesting Framework: Inflection Points. Adapts & Innovates = Growth Chases tactics = Dissonance Refuses to change = No growth Stagnation Obsolescence Sustained Momentum
- 22. Consumers are human beings — we are influenced by cognitive associations and the connections between the brain’s neocortex system and the limbic system. It is in a company’s best interest to tap into the emotional states that align with its core mission. The why — or the story — of a company needs to generate a corresponding emotion in consumers to create lasting significance in their lives StoryVesting Framework: Buyer Psychology.
- 23. Just like on the CX side, a focus on your employee experiences (EX) can help you create vested individuals. Vested employees are those who not only align with your customer-facing brand story, but ones that tap into its emotional resonance in each and every interaction with purchasers. As the public faces of your business, vested employees are a must before you can even begin to think about revenue acceleration. Leveraging StoryVesting: Vested Employees. I’m excited about the work we’re doing and can’t imagine working anywhere else The Brand Story Employee Experience (EX)
- 24. Developing a strong revenue ops strategy means streamlining inter-departmental processes and technology that can combine data sets. Gartner reported that sales operations increased their teams’ portfolios by an average of 2.3% with more frequent and holistic data analysis. Over 54% of companies named siloed data as the primary reason for lacking an integrated view of the state of the customer journey in 2019. RevOps: Internal Alignment. Centralized Functions Reporting to CRO or Senior Leader Somewhat Centralized Function No Revenue Operations Function Virtually Aligned “Coalition of the Willing”
- 25. Some case studies show that marketing ROI and sales productivity receive substantial boosts from adopting revenue ops — 200% increase in ROI and 20% increase in productivity. Aligning previous “lone wolf” departments in a revenue ops structure is the first step towards getting to revenue acceleration. Eliminating Silos in a RevOps Model Data-Driven Collaboration & Teamwork Status Quo Revenue Operations Transparency & Accountability from the Boardroom to the Front Line Shared Source of Truth Predictable Business Growth Higher Win Rates & Faster Sales Cycles Lone Wolf Mentality Hit or Miss Forecasting Bring-Your-Own- Report Finger Pointing & Handoffs Wasted Time & Communication
- 26. The surest way to get to outstanding CX is by leveraging data repositories to address pain points while keeping goals aligned across all departments. A cross- departmental focus on CX is crucial because your customers aren’t the same as they were five years ago. Customers in the 2020s are more empowered than ever. The internet of “things” now also includes every service imaginable – which means your brand has an infinite array of competitors. Revenue Ops Solves Journey Pain Points. Powerless Centralized buyer Checks the box Pays all upfront Takes all the risk Educated by Sales Buys best of breed & duct tapes solutions Powerful Everyone is a buyer Checks the experience Pay as they use Expects only success Educated by the website Buys all in one place & expects it to work Few Alternatives to your Products Infinite Supply of Alternatives
- 27. Revenue Ops Increases Retention. Whether via referrals or repeat business, customers with a strong LTV can literally be the strongest single asset of any company. When it comes to actually retaining customers, a study by Gartner found that focusing on perfecting the customer journey increases retention almost as much as selling a great product does. 120% 0% -70% ACCOUNT MANAGER BEHAVIORS CHANGE IN LIKELIHOOD OF RETAINING ACCOUNT Product Success & Service Aggressive Selling Confidence in Account Team Customer Improvement Not Significant 101% -61% 94%
- 28. Building a RevOps Model with the End In Mind. You cannot sacrifice good CX for a strategy of revenue acceleration. Without aligning internal processes and platforms to support that goal, you will not see sustainable growth. Working with the end in mind — really focusing on why customers stay and how your purchase experience stands out from the competition — should be the number one goal of any organization. Manual Processes One-Off Documentation Laborious Training Intelligent Operations Automation Sequential Loops Empathy-Centric Design Journey Analytics + More EX CX BX Employee Experience Customer Experience Brand Experience VS
- 29. Data Infrastructures with Agile Feedback Loops. Good data collection with an agile feedback loop is key to building a sustained, customer-first experience.. Companies that skip over developing quick-response feedback loops based on solid and consistent data will fail to create customers with high LTV. However, brands that take the time to create a solid data infrastructure are setting themselves up for future revenue acceleration. 257 Evaluation Inform Inform Customer Acquisition Cycle Customer Retention Cycle Consideration Research Exit Evaluation Consideration Purchase Conversion Emotional Trigger Emotional Trigger Engagement Engagement Customer Acquisition Cycle Acquisition Experience Retention Experience Research Customer Retention Cycle
- 30. Implementing and Using a CDP System. A CDP is a software system that compiles customer data from a myriad of sources to provide a holistic, unified view of individual shopper behavior. CDPs make it possible to aggregate data into one platform and more effectively connect the acquisition, conversion, and retention strategies of a business into one overarching, stellar customer experience. In 2020 alone, the CDP industry was projected to reach $1.3 billion dollars. Anonymized Data Real-Time Updates Long-Term Storage of Customer Profiles “Out of the Box” Onboarding Process Customer Cross-Channel Personalization Holistic Customer Data Resolution of Customer Identities IT Support Needed Alignment with CX Platform Features CRM DMP CDP
- 31. The RocketSource Approach to CDP Systems. The CDP concept we’ve developed at RocketSource is focused on agnostically unifying and gleaning insights from first- party data, second-party data, and embedded and/or third-party data. Being able to see a holistic picture of consumer behavior via a CDP allows brands to give meaning to the otherwise abstract numbers. And meaning that is based in emotion is how the minds of customers come to life in a very real and empathetic way. Data Analytics Orchestration Data Ingestion Analytics Ingestion Cross-Channel Activation AGNOSTIC [CROSS CHANNEL | DEVICE | PLATFORM ] JOURNEY PERSONALIZED CONTEXTUALIZE D RELEVANT 1ST PARTY DATA 2ND PARTY DATA 3RD PARTY DATA
- 32. The Dunning-Kruger Effect and Revenue Ops. The Dunning-Kruger effect is a psychological framework that distills the highly complex and volatile relationship between an individual’s confidence level and their actual knowledge or skill-sets into a line graph. The ease with which individuals can navigate the peaks and valleys of self- efficacy and move onto the Slope of Enlightenment has a huge impact on overall well-being, and personal and professional success. Slope of Enlightenment Valley of Despair Peak of Ignorance Plateau of Sustainability Know Nothing Competence Guru Low High KNOWLEDGE - EXPERIENCE CONFIDENCE
- 33. Dunning Kruger and Gartner Hype Cycle Once you start looking at the Dunning- Kruger and Gartner Hype Cycle graph side-by-side, the similarities immediately jump out at you. In fact, the Hype Cycle more or less charts the same cognitive and emotional process as Dunning-Kruger does, just on the scale of macroeconomics. TIME EXPECTATIONS Innovation Trigger Peak of Inflated Expectations Trough of Disillusionment Slope of Enlightenment Plateau of Productivity
- 34. The S Curve and the Gartner Hype Cycle. On the S Curve of Growth, product teams experience inflection points that significantly test their viability. These tests can come in a variety of ways; it could be a decrease in growth, an economic recession, or a sparkly new competitor among other things. Drilling into the S Curve allows us to see the Gartner Hype Cycle in action, which, interestingly enough, looks awfully similar to a strategic inflection point on the S- Curve of growth. Strategic Inflection Point Inflection Points Vary If You’re Growing You’re Shifting Sustain Forward Momentum Scale Growth Start TIME GROWTH
- 35. Dunning-Kruger, Hype Cycle, & S-Curve of Growth Slope of Enlightenment Valley of Despair Peak of Ignorance Plateau of Sustainability Know Nothing Competence Guru Low High KNOWLEDGE - EXPERIENCE CONFIDENCE Scale Growth Start TIME EXPECTATION S Innovation Trigger Peak of Inflated Expectations Trough of Disillusionment Slope of Enlightenment Plateau of Productivity
- 36. Metric to Measure Rev Acceleration: LTV : CAC. CX and LTV: a pairing that looks at customers’ long-term value as buyers (LTV) as well as the overall amount of money spent on getting them through the door (CAC). A soft, indirect relationship, such as improved CSAT scores simply isn’t good enough anymore. Revenue ops must “connect the dots” and show how all their combined efforts impact revenues and cost savings. CPL CAC ROAS/ROI CX LTV LTV : [CX] Retention Focused Conversion Focused PERSONALIZATION MATURITY REVENUE GROWTH Legacy Thinking: Tools and team structure can block revenue acceleration and successful Revenue Ops Intelligent Ops: Modern tools, bleeding edge thinking, and relevant org- structure can accelerate revenue and growth
- 37. Selling is easy. Retaining is much harder — and so much more financially worthwhile in the long-run. Summary: Rev Acceleration is Harder than It Seems. In a world of empowered consumers that expect excellent customer experience, brands can no longer view their selling process as just business. Rather, revenue acceleration and long-term growth can only be accomplished through specific, valuable strategies that aim to make customers stay. To sum up, the Three Ps need to be aligned via a revenue ops framework, geared towards generating positive CX, and adaptable based on real-time, consistent behavioral data.
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