We know you’re hip; you’re tapped into what’s hot in business right now. So, you’ve likely heard of Revenue Operations (RevOps) and Sales Operations (Sales Ops) a lot lately. And even though those terms are everywhere these days, you’re forgiven if you struggle to understand the difference between the two. On the surface, they seem awfully similar. And while it’s true there is some overlap, there are also vast differences.
So, what gives? Let’s start with some basic definitions.
RevOps vs Sales Ops
RevOps involves everyone your startup, all working together, supporting each other, and sharing information to increase revenue. No data silos here! Instead, RevOps partners follow the revenue lifecycle from the lead stage to closing and beyond. Kinda like a bad habit you can’t shake…only it’s a good habit.
In comparison, Sales Ops is kind of the “old way” of doing things. It could be considered a part of the many things RevOps does. Sales Ops is heavily focused on supporting all aspects of the sales team, for that department factors heavily at the center of this approach. Old doesn’t necessarily mean bad, but is it still working for you?
A Nod to Traditional Marketing
The ancient way is traditional marketing (that’s why it’s called “traditional”). It’s the “but we’ve always done it this way” route. We learned a lot from traditional marketing, but it served its purpose and it’s time for the new badassery of RevOps and RevOps Science®.
The Common Ground Between RevOps and Sales Ops
While RevOps and Sales Ops may have different scopes and priorities, they share a common ground at the heart of what they do – to drive revenue growth and improve the customer experience. This makes what they do a critical part of any organization. Think of them as cousins. Only one cousin is much more modern and efficient than the other (*cough* RevOps *cough*).
Focus on Customer Satisfaction
Both RevOps and Sales Ops are concerned with increasing customer satisfaction. And that makes sense! Everybody wants a happy customer, after all! Angry customers are zero percent fun.
Yet, each takes a different approach to this goal, sliding in from different angles. They’re both concerned with providing a positive customer experience in hopes of securing further sales in the future. Each approach works with multiple teams, like marketing and customer service, to gather insights and identify areas they can improve upon.
By continually refining processes and systems, RevOps and Sales Ops help to ensure customers receive the best possible experience and remain satisfied with your products and services. Since they prioritize customer satisfaction, they play a crucial role in driving long-term growth and success.
Data-Driven Decision Making
In today’s landscape, data-driven decision-making has become an increasingly important aspect of RevOps and Sales Ops. As a result, both functions rely heavily on data analysis and tracking specific RevOps metrics to inform their strategies and make educated decisions.
RevOps uses data to identify areas for improvement in processes and systems, to optimize revenue growth. On the other hand, Sales Ops leverages data to track sales performance, analyze sales trends, and inform sales strategies.
Using data to inform their decision-making, both RevOps and Sales Ops can make informed, data-driven decisions leading to better outcomes. They also use data to measure the impact of their initiatives and to adjust their strategies as needed.
This data-driven approach allows both functions to stay ahead of the curve and continuously improve, leading to better customer satisfaction and more ka-ching.
Collaboration Between Teams
Collaboration is a crucial component of both RevOps and Sales Ops. Both functions require close cooperation with other teams within your startup, such as marketing, customer service, and product development, to achieve their goals.
RevOps works with these teams to optimize processes and systems, ensuring they align with your overall strategy. Sales Ops collaborates with these teams to gain a deep understanding of customer needs and to develop sales strategies that meet those needs.
RevOps and Sales Ops ensure customer needs are being addressed and that their efforts are aligned with your goals. Everybody is on the same page!
The Differences Between RevOps and the Old Way of Doing Things
Despite their shared interests and goals, RevOps and Sales Ops take different approaches to achieve their end results. Their methods are dramatically different, and so is the range of area they cover. RevOps is a more sweeping effort, incorporating Sales Ops and many other initiatives.
They’re a bit like Nas vs. Jay-Z. There’s beef, but they can also co-exist.
More Holistic Approach to Revenue Generation
RevOps represents a more holistic approach to revenue generation compared to Sales Ops. While Sales Ops focuses specifically on streamlining sales processes and supporting sales teams, RevOps has a comprehensive view, looking at the entire revenue generation process from end to end.
RevOps considers the entire customer journey, from marketing and lead generation to sales, customer service, and beyond. This broad view allows RevOps to identify areas for improvement across the entire revenue generation process, leading to increased efficiency and better outcomes.
By optimizing processes and systems, RevOps helps to ensure that every aspect of the customer experience is smooth, seamless, and aligned with your goals. In comparison, Sales Ops focuses only on the sales process and may miss opportunities for improvement elsewhere in the revenue generation process.
Greater Emphasis on Automation and Technology
Automation and technology are integral in optimizing processes and systems to drive revenue growth, and RevOps leverages these tools to achieve its goals. RevOps uses technology to automate repetitive tasks, freeing up time and resources for more strategic initiatives. Automation is also helpful in eliminating human error.
RevOps uses technology to gather and analyze customer data, identify areas for improvement, and measure the impact of its efforts across the ecosystem. In contrast, while Sales Ops uses technology to support sales teams and streamline sales processes, it places a greater emphasis on people and processes.
By focusing on automation and technology, RevOps is able to drive greater efficiency and scalability. In this way, RevOps leverages technology to deliver a more comprehensive and effective solution to revenue generation compared to Sales Ops.
Integration of Marketing, Sales, Production, and Customer Success Processes
RevOps places a greater emphasis on integrating marketing, sales, production, and customer success processes than Sales Ops. RevOps ensures that all functions are aligned and working together towards a common goal.
Integrating these processes, RevOps helps to eliminate inefficiencies, improve the customer experience, and drive revenue growth. This central integration also allows RevOps to gain a comprehensive understanding of the customer journey, which in turn informs decisions and improves the overall customer experience.
In comparison, Sales Ops focuses primarily on the sales process and may not consider the broader impact of its efforts on other functions.
Emphasizing Customer Success and Growth as a Primary Metric
For RevOps, customer success and growth are key indicators of the success of its efforts. By focusing on these metrics, RevOps can understand the impact of its initiatives on the customer experience and your startup’s overall health. This focus on customer success and growth also informs decision-making, guiding the optimization of processes and systems to deliver better outcomes.
Yet still, Sales Ops only has eyes for sales performance.
We aren’t saying one function is better than the other. Oh, who are we fooling? Of course, RevOps is our number one choice! While both approaches incorporate data in their decision processes, involve team collaboration, and center around customer satisfaction, RevOps has so much more to offer. It brings in other elements that fill out the entire lifecycle of your startup.
Our landscape is highly competitive, and startups are doing more and more to win and keep customers. RevOps is the secret ingredient. Learn more about the RevOps Science® process.