Sales ops, RevOps—what’s the difference? They both lead to revenue growth, right?
Not always.
Despite the buzz around revenue operations (RevOps), it’s surprising that less than half (48 percent) of companies actually have a RevOps function.
But here’s the thing—knowing the difference between RevOps and sales ops could be your secret weapon for protecting your bottom line. While sales operations (sales ops) is all about fine-tuning the sales process, RevOps brings a bigger picture into focus by aligning every revenue-driving department, from sales to marketing to customer success.
When companies use sales ops to run RevOps, they often make three common mistakes that impact territory planning, cross-functional potential, and strategic forecasting. Here’s how:
1. Remain Too Focused on Sales Metrics
Studies show that over half (52.1 percent) of those filling RevOps positions have a sales background. Although these hires suggest a natural progression from sales ops to RevOps, Go-to-Market strategies also risk relying too much on sales-specific metrics. For instance, teams may have current data on quota attainment and pipeline management, but what about metrics for tracking marketing effectiveness and customer retention?
For instance, surveys show that only 40 percent of companies use a clearly defined common lead qualification to align sales and marketing teams. Moreover, 67 percent of sales leaders say their marketing teams understand the company’s sales goals.
To avoid misaligned strategies and missed opportunities to optimize revenue across the entire customer journey, properly run RevOps takes a broader view by managing the whole customer lifecycle—from lead generation to customer retention and expansion. Creating a standardized definition and centralized reporting system that covers all branches of RevOps empowers a RevOps leader (not just the head of sales or the CMO) to track patterns within the customer sales cycle. This technology also helps break down department silos.
Fullcast brings the critical components of your Go-to-Market strategy and operations into a single platform. By integrating territories, quota, capacity, and coverage assignments, we reduce errors, increase efficiency, and provide the visibility and predictability needed to achieve your revenue goals. This comprehensive management is critical for sustaining long-term revenue growth but is often overlooked in a sales ops-centric approach.
2. Lack Cross-Departmental Integration
Sales executives focus on what they’re paid to do: drive sales. However, for RevOps to function effectively, equal attention must be given to the participating RevOps teams. Only then can a company experience revenue-building alignment.
To appreciate the financial impact siloed teams can have on Go-to-Market strategies, think about what you may be missing with siloed teams.
Research shows that a well-aligned GTM team can drive up to a 200 percent increase in ROI. Can your sales team do that on its own?
RevOps encompasses all revenue-generating functions, including sales, marketing, and customer success. This holistic approach ensures that all departments align and work toward a common revenue goal, something that is often overlooked when sales ops is focused solely on the sales process. Instituting a solid RevOps that aligns sales and marketing teams achieves 36 percent more revenue growth and up to 28 percent more profitability, according to Forrester research.
3. Suffer from Inadequate Strategic Oversight
Let’s take a closer look at why sales ops and RevOps are not interchangeable. While sales ops is all about tactical execution, RevOps demands a broader, strategic approach that covers the entire revenue ecosystem. Relying on sales ops to manage RevOps can sometimes mean missing out on the big-picture thinking needed for sustainable growth, which can lead to short-term decisions that don’t keep pace with market changes.
Sales ops typically focuses on short-term sales forecasts, potentially overlooking long-term revenue planning. In contrast, RevOps is crucial in strategic planning and forecasting across the entire revenue spectrum, including marketing campaigns, sales projections, and customer success initiatives.
Mistaking sales ops for RevOps can be costly and prevent your company from reaching its full revenue potential. Some studies show misaligned revenue operations can cost companies up to 25 percent in lost revenue. Without recognizing the distinct function of either role, you risk missing out on the strategic oversight that RevOps provides, leading to misaligned goals and inefficiencies across departments.
To drive sustainable growth and stay competitive, it’s essential to differentiate these roles and ensure that sales, marketing, customer success, and finance work together to support your overall revenue strategy.
If you’re ready to get started, reach out to Fullcast today for next steps.
