In my 35-year career in a variety of revenue-generating roles, I have rarely found 2 corporate functions with less mutual understanding than sales and finance. Much has been made over the last 20 years about the need to bring sales and marketing together, and today those two engines for customer acquisition seem (generally) to be getting along much better. But the friction between sales and marketing was always rooted in competition, not a lack of appreciation for what each group does. The gulf between sales (or sales and marketing collectively) and the finance function is different. In my view, the two groups often have a deep misunderstanding of one another and what each function is charged with accomplishing on behalf of the company.
Obviously, these are extreme examples of what sales and finance professionals would actually say about the other, but I believe the sentiments are broadly accurate. The good news is that the growing field of Revenue Operations (or “RevOps”) can help bridge the chasm.
First, a brief description of Revenue Operations. It is a strategic approach that integrates the sales, marketing, and customer success functions to streamline processes and improve overall revenue performance. It typically focuses on data interpretation, process and methodology, training and enablement, and management of the tech stack used by the revenue functions. In a nutshell, RevOps provides an infrastructure that allows for easier creation of new revenue.
Done properly, a RevOps function can benefit the office of the CFO in a number of ways:
1. A 360-degree view of the entire revenue cycle
RevOps will enable CFOs to understand how different departments contribute to revenue generation and identify areas for improvement. By taking a holistic view of revenue, CFOs can align financial goals with the company’s overall growth objectives, ensuring that each department is working cohesively towards the same targets.
2. Enhanced Data-Driven Decision Making
Revenue Operations team leverage data analytics and technology to gain insights into customer behavior, market trends, and sales performance. This work is additive to the extensive work that CFOs do around bookings and revenue performance and can further enhance the CFO’s ability to make informed decisions about resource allocation, investment opportunities, and revenue forecasts.
3. Improved Forecasting Accuracy
One of the critical challenges for CFOs is providing accurate revenue forecasts. Revenue Operations implements standardized processes and metrics across sales, marketing, and customer success, providing a consistent and accurate picture of revenue generation.
4. Enhanced Cost Efficiency
Revenue Operations is responsible for reducing friction points in the revenue generation process. To do that involves optimizing marketing and sales tools, raising the efficiency of sellers, and minimizing customer attrition. While these activities will increase revenue, they will also provide opportunities for cost-saving measures that can be implemented without compromising revenue growth.
5. Scalable Growth Strategy
For any company aiming for sustainable growth, scalability is a crucial consideration. Revenue Operations ensures that growth is both manageable and sustainable by providing a clear roadmap for expansion. CFOs can use Revenue Operations insights to understand how growth will impacts different elements of the revenue generation engine.
Revenue Operations is a critical component of successful and sustainable business growth. As the custodian of a company’s financial well-being, CFOs can’t afford to overlook the potential benefits that Revenue Operations brings to the table. By taking a proactive interest in Revenue Operations, CFOs can drive strategic decision-making, enhance forecasting accuracy, and foster financial success for their organizations.
If you are a finance leader who would like to know more about Revenue operations, or if your organization needs assistance in building or developing a robust Revenue Operations function, please click the link below to schedule a free 30-minute call with a Revenue Operations expert from TechCXO.
