Rev-what? A brief introduction to RevOps for contract manufacturers

Traditionally, operations teams have worked in silos, rarely pulling together to collaborate on shared growth goals. The irony of this approach is that teams fail to realise that they're all on the same side when it comes to maintaining and growing business revenue. Yet their separate ways of working, seemingly unchanged for decades, hinder more than help this common cause.

RevOps can be particularly helpful for businesses looking to bolster their revenue generation efforts despite siloed operations teams. But what exactly is RevOps, and how does it increase profitability?

What is RevOps?

Revenue Operations, or RevOps, is an integrated business approach that breaks down these long-held business silos, fostering collaboration between the sales team, marketing team and customer services to drive sustainable growth.  

Through a unified strategy and holistic framework that improves communication and data-driven decision-making, RevOps gets teams working constructively together towards the common goal of revenue growth.

Why should contract manufacturers care about RevOps?

The benefits of implementing RevOps are substantial for contract manufacturers facing unique challenges like complex supply chains, fluctuating demand, and the need to maintain high-quality standards while managing costs. 

A RevOps approach single-handedly addresses these challenges by creating cohesive alignment between teams, reducing friction and enabling quicker, more effective responses to market changes and customer needs.

Better communication, shared data insights, enhanced decision making and strategic planning all contribute to improved operational efficiency. The result? Reduced operating costs, optimal resource utilisation, a consistent and positive customer journey that boosts customer retention, and more predictable revenue cycles.

For contract manufacturers, adopting RevOps is not just about streamlining operations—it's a strategic move to gain a competitive edge and drive sustainable revenue growth.

What are the key components of RevOps?

RevOps revolves around three main components: people, process, and platform. These elements are interdependent and work together to create a seamless and efficient revenue operation. According to Forrester, companies that align the people, processes, and technology involved in their demand engine experience 36% more revenue growth and up to 28% more profitability, making these components critical priorities for companies actively pursuing growth.

People

The people component of RevOps is about bringing together the sales, marketing, and customer service teams under a unified RevOps strategy. This alignment ensures that all team members work towards the same goals, with clear communication and shared responsibilities. By fostering a collaborative culture, RevOps helps eliminate departmental silos, creating a more cohesive approach to managing customer relationships and driving revenue growth.

Process

Processes in RevOps refer to the standardised workflows and procedures that streamline operations across different departments. This includes everything from lead management and customer onboarding to sales forecasting and performance analysis. Standardised processes ensure consistency, reduce inefficiencies, and provide a clear framework for measuring and improving performance across functions. For contract manufacturers, well-defined processes are crucial for managing complex supply chains and quality control, amongst other things.

Platform

Platform refers to the tech stack that is the backbone of RevOps, providing the tools needed to integrate data and automate workflows. Key technologies include Customer Relationship Management (CRM) systems, marketing automation platforms, and advanced analytics tools.

These technologies enable contract manufacturers to gather and analyse data from various departments, providing a comprehensive view of the customer lifecycle and operational performance. This allows teams to make informed strategic choices, predict market trends, and adapt quickly to changes, thus enhancing their operational efficiency and achieving better alignment across all revenue-generating functions.

How does RevOps improve revenue?

Gartner predicts that 75% of the world's highest-growth companies will deploy a RevOps model by 2025 precisely because it enhances profitability by optimising revenue generation processes and reducing operational costs. 

With improved cross-team alignment, lead management flourishes due to optimised marketing ops, conversion rates spike thanks to sales enablement, and customer retention soars as customer service sees reduced customer churn.

Additionally, RevOps helps identify and eliminate resource-intensive and error-prone inefficiencies, such as manual data capturing, lead scoring, and follow-up communications. This helps reduce costs associated with redundant or misaligned activities, allowing resources to be better utilised on more conducive, business-generating tasks. 

RevOps boosts profitability through data-driven insights and automated manual workflows. For contract manufacturers already benefiting from automation and data-driven decision-making in their production processes, RevOps can be equally beneficial for their operations.

What are common challenges when implementing RevOps?

Here are some common challenges you may encounter when implementing a RevOps strategy and some tips for overcoming them.

1. Fragmented data systems

One of the most significant challenges in RevOps implementation is dealing with fragmented data systems across departments. This leads to data silos, which make it challenging to gain a comprehensive view of customer data and business metrics and hamper the ability to make informed, data-driven decisions.

How to overcome this challenge:

• Invest in a unified CRM platform that integrates data from all departments.
• Implement data integration tools to help centralise information and provide a single source of truth.
• Conduct regular data audits and cleanups to ensure data accuracy and integrity.
• Foster a culture of data sharing and collaboration to encourage cross-functional data usage and prioritisation.

2. Resistance to change

Change management is another common obstacle when adopting a RevOps framework. Employees may resist new processes and technologies, especially if they are accustomed to traditional working methods. This resistance can slow down the implementation process and reduce the effectiveness of RevOps initiatives.

How to overcome this challenge:

• Make effective communication and training a priority when implementing RevOps.
• Clearly explain to all stakeholders the benefits of RevOps and how it will improve their daily operations and overall business outcomes.
• Provide comprehensive training sessions to help employees become comfortable with new tools and processes.
• Involve team members in the planning and implementation phases to foster a sense of ownership and reduce resistance.

3. Misaligned goals and KPIs

There needs to be more alignment of goals and KPIs between departments to ensure the success of RevOps. When sales, marketing, and customer service teams have different objectives and metrics, it can lead to conflicting priorities and inefficiencies. 

How to overcome this challenge:

• Establish unified KPIs and goals that align with the overall business strategy. 
• Conduct regular cross-functional meetings and performance reviews to ensure all teams are on the same page and working towards common objectives. 
• Use a centralised dashboard to track and share KPIs to promote departmental transparency and alignment.

4. Lack of skilled personnel

Implementing RevOps successfully requires a dedicated revenue operations team with the right skills and expertise. A lack of skilled personnel can be a significant barrier, leading to improper implementation and suboptimal use of RevOps tools and best practices.

How to overcome this challenge:

• Invest in hiring and training personnel with the necessary skills for RevOps.
• Provide professional development opportunities to help existing employees build the required expertise. 
• Partner with RevOps consultants or specialist agencies, like Equinet, for expert guidance and support.

5. Integration of technology

Integrating various technologies used by different departments can be a complex and challenging task, but it's necessary for proper data management. Ensuring that all systems work seamlessly together and that data flows smoothly between platforms is crucial for the success of RevOps.

How to overcome this challenge:

• Choose compatible technologies that easily integrate. 
• Work with vendors who offer robust integration capabilities and support to facilitate the integration process. 
• Conduct thorough testing before full-scale implementation to identify and address any integration issues. 

How can I get started with RevOps?

Here are some initial step-by-step recommendations and tips for getting started with a RevOps framework:

1. Evaluate your existing operational processes to identify inefficiencies and areas for improvement.
2. Bring key stakeholders together to discuss and align on common goals and KPIs.
3. Choose a unified CRM platform that can integrate data from all departments, ensuring a single source of truth for customer data.
4. Develop and implement standardised workflows for lead management, customer onboarding, and performance tracking.
5. Select and implement tools that support automation, data analysis, and cross-functional collaboration.
6. Begin with a pilot project or a specific department to test and refine your RevOps strategy before rolling it out across the entire organisation.
7. Encourage open communication and regular cross-functional meetings to ensure continuous team alignment and collaboration.
8. Regularly review performance metrics and gather feedback to identify areas for improvement and make necessary adjustments to your RevOps processes.
9. Provide training to ensure all team members are comfortable with new tools and processes and offer ongoing support to address any challenges.

Conclusion

Implementing RevOps offers contract manufacturers a strategic advantage by aligning sales, marketing, and customer service into a cohesive, efficient operation with streamlined processes and enhanced performance. The unified operational approach afforded by a RevOps strategy helps growth-oriented contract manufacturers drive revenue sustainably, better positioning them to navigate market complexities, meet customer needs, and achieve their growth objectives.

Learn more about Equinet's RevOps consultancy and how we can empower your teams to deliver better results with RevOps.