Revenue Operations, or RevOps strategy, is the strongest tool in your arsenal in both up and down markets. Since the world is a little on edge right now, it’s an ideal time to get clearer understanding of how smart it is to focus on RevOps.
If your marketing budget is tight, RevOps focuses on increasing profit margin through identifying and measuring customer lifetime value (CLV). Retaining customers is essential. The longer the lifecycle of a customer, the more revenue for your business. According to HubSpot research, 55% of growing companies think it’s very important to invest in customer service programs.
Customer service programs give important insights and information into what your most valued customers like about your product or service. But are you capturing this data correctly, and is it clean enough to translate into compelling contextual messages that start to capture the right leads and get the most from your marketing ROI?
You can use data from any touchpoint to make good overall business decisions if your systems are correctly configured and integrated. With the right tools and data, RevOps is a sure path to protecting and improving profit margins regardless of headwinds
RevOps in action
When the broader economic climate is unsteady, many marketers and leaders resort to cutting advertising budgets or laying off marketing staff to improve margins. Strong financial performance is key and management is under pressure to continue delivering results.
Cutting marketing costs through workforce reduction may seem an easy solution at first, however, this can quickly become detrimental to company performance. Think of the ramifications of reducing a critical part of doing business. Without fully-funded marketing:
- How will you compete?
- How will you retain customers and drive more marketing once the economy settles?
- If it is crucial to cut down on marketing spend, what would you prioritize?
RevOps delivers benefits derived from digging into information you already have and leveraging the right channels. Improving profit might be top on your list and you already know that acquiring new customers costs a lot more than retaining a new one. According to Bain & Company’s Prescription for Cutting Costs, increasing customer retention rates by just 5% can increase profits from 25%-95%.
Keeping churn rate under control becomes a percentage of critical importance to monitor and manage. Thus, increasing customer retention and transforming them into CLV for repeat sales and upselling to them would be one of your top business strategies. How do you achieve that?
Reducing churn through RevOps
Data that flows makes revenue grow. But according to research reported in Is your marketing technology stack “more complex than a black hole”?, 40% of B2B marketers said their marketing technology stack was “too complex, they need fewer solutions to deliver on marketing objectives.” Even more problematic is that 35% indicated “data is not normalized across all systems.”
This makes it harder to make data-driven business decisions. We have seen many clients in different stages of their go to market (GTM) models come to us with data collection issues and challenges. On average, small companies (10-50 employees) have about 25 different software platforms with multiple data streams.
You want to make the most of the data you have, but if your tech stack is lacking the right integrations, it’s like having a car with no wheels. You won’t get very far in your RevOps planning.
To collect, process and analyze data you need to incorporate it into every step of your marketing. Don’t be intimidated by the multiple integrations required to make your data work for you. Having a variety of disparate data applications consumes far more time and money than aligning the essential components like billing, email marketing, lead generation and other business processes.
Creating the right ecosystem for your needs means selecting the right software solution and understanding how to use it. It seems obvious, but many companies invest in expensive and complicated software only to use a fraction of the capabilities, or worse, use it incorrectly.
Partnering with the right agency well-versed in marketing technology is important to properly onboard your team. Software integration is not just for the IT team, so learning how to utilize and maximize tools should be a priority.
When the data works
There is a variety of software a company uses typically, between platforms, integrated apps, and third-party services, plus social media management tools. If these aren’t integrated, they can’t measure anything. Companies are using CMS, CRM, MAP, CSM and an ERP system for billing. This is where a powerful tool like HubSpot, nearly everything in one ecosystem, provides data for everything you need to make prudent decisions.
Data plays a starring role in defining the journey of your CLV customers. Measuring total interactions a customer has with your company should reveal where churn is occurring most. To find where we need to improve a customer relationship, every engagement has to be measured. This includes:
- Sales calls
- Special events
- Social media
- Paid advertising
It’s also very important to continue measurement after the sale. Don’t stop after the onboarding process. Many metrics stop measuring once a conversion to customer takes place, yet, a big gap that opens up is the customer’s impressions of onboarding.
Communication is key
Being precise with customer communication means knowing your customer and what they want. Your marketing plan needs to include what drives their attention, how you talk to them and empathize with their concerns. Use the tools to craft messages to nurture trust. Recognize where they are coming from and focus your spend on these sources.
Customers today expect personalized experience when they interact with your company. According to HubSpot, 89% of consumers are more likely to make another purchase after a positive experience.
Developing a robust RevOps strategy includes having in place the right systems, tools, people and data to establish a cadence of value-rich communication to your customers when they need it.
A strong RevOps plan ensures your company can weather any storm, provided you focus on increasing profit margin through identifying and measuring customer lifetime value (CLV).
If you’re trying to identify and achieve more profit without increasing top-line revenue, then you need to focus on where your marketing budget has the best ROI. One thing for sure is that you cannot afford to do nothing. RevOps empowers you to leverage data and make decisions to win the long game.
Want to talk more about RevOps? If you’re struggling to get the most out of your existing tools to accelerate your revenue operations process and growth, consider employing a team like ours at Kuno Creative. We have been at the forefront of HubSpot, revenue operations and sales enablement for more than 20 years.
Ready to connect? Schedule a consultation where we can discuss your RevOps needs.