Revenue Operations vs Sales Operations: Key Differences

June 22, 2023
Sheetal S Kumar
Sheetal S Kumar
Sheetal S Kumar
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Why do organizations do that? Go the extra mile to look out and find all possible ways to improve operational efficiency. 

Having a systematic operational structure will ensure that company tasks are accomplished with the judicious use of resources. It will improve efficiency and ensure quality of work, cost-effectively. 

So what are the ways operational efficiency can be brought in an organization?

The two, largely followed options are, Revenue Operations and Sales Operations. With their uniqueness, distinction, advantages, and drawbacks, the two operations help companies function with high performance and productivity.

So let's dive into these two interesting terms to understand the possibilities they open for organizations.

What is Revenue Operations (RevOps)?

Revenue operation is the strategic alignment of sales, marketing, and customer service, working together to break organizational silos and bring in administrative and management efficiency. 

This cross-department integration aims to improve revenue management and operational efficiency of the organization by enhancing visibility and knowledge sharing. By fostering collaboration among teams and optimizing data utilization, it also lays a strong foundation for more accurate revenue forecasting.

When three core teams of an organization come together as one big team, the transparency and coordination with which they work will enhance the performance and productivity of the company. As sales, marketing, and customer services work as a team, there comes an efficient system from lead generation to customer engagement, all bolstered by the insights of revenue intelligence.

What is Sales Operations (SalesOps)? 

Sales Operations supports the sales team in all functions to help them work through their sales process efficiently and thereby improve business growth. 

Sales Ops aims to provide strategic direction, take care of the administrative and technical tasks, incentive compensation management, handle territory management and sales forecasting, monitor the sales pipeline, and through all these responsibilities help organizations fulfill their growth objectives and goals. 

They are also called sales support and as the name suggests sales operations support the sales team to bring in operational efficiency and sales effectiveness. sales and operations planning example may include coordinating sales forecasts with production schedules, optimizing inventory levels, and aligning resources to meet sales targets seamlessly. 

Key Differences between Revenue Operations vs Sales Operations

From the above definition, it is clear that the purpose, structuring, and role of RevOps and SalesOps in an organization are distinct. Let's look in detail at what these differences are. 

  • RevOps brings multiple teams together to streamline operations for an efficient customer experience. While SalesOps are focused solely on the sales requirements spread across the sales process. 
  • RevOps takes a holistic approach by bringing various departments together to improve the revenue aspect of the organization, incorporating strategies visualized through a sales process flowchart. SalesOps work is focused on efficiently improving the sales process and increasing conversion rates.
  • Revops is looking to improve the customer experience at all points while SalesOps coordinate various sales functions to optimize sales.
  • RevOps functions are divided based on customer types and requirements in their customer journey as well as to bring transparency and efficiency to company operations. SalesOps functions are divided into the various requirements of the sales process including data collection, pipeline management, territory management, etc. and they coordinate to make the sales journey efficient. 
  • RevOps is an amalgamation of sales, marketing, and customer services. In that sense, SalesOps can be seen as a subset of RevOps.

Revenue Operations vs Sales Operations: Which is the Best Fit?

Choosing which operation is the best fit is solely dependent on the organization's structure, mode of operation, objectives, and goals. 

When an organization is focused on improving revenue generation, especially in the context of a B2B SaaS marketing funnel, then RevOps is the best suit for attaining your company goals. The advantage of incorporating RevOps is that it streamlines your everyday functioning as sales, marketing, and customer services work in tandem.

There is transparency and visibility in the way each team operates to achieve the company's functions. This ensures that any shortcomings can be corrected even before it turns into a problem. Even when any issue arises there is easy access to resolve it quickly and efficiently. 

Sales Operations help organizations to enhance their sales functions efficiently. The end goal of SalesOps is to improve the efficiency of the sales pipeline and increase conversion rates. 

Furthermore, through effective Sales Territory Management, the allocation of specific sales tasks among different teams enables the salesforce to concentrate on lead generation and conversion tactics, thereby maximizing their productivity and overall revenue generation.

As the data gathering and analysis jobs and other management tasks are handled by a separate group, the salesforce can better strategize their sales initiative with the support of the team. 

Conclusion

Be it sales or revenue operations that you incorporate into your company structure, the result is the same: improved efficiency in the business operations and increased revenue generation. Implementing advanced sales intelligence solutions alongside these operations can further enhance your organization's performance.

The process you take to achieve that goal is what makes the difference. For example, one way SalesOps bring focus and motivation to the sales process is through efficient incentive compensation management

Another means through which you can bring this efficiency to the sales process and sales compensation management is through digital tools that make everyday tasks seamless and efficient. 

Kennect streamlines the sales performance management by running your compensation program in cruise mode. For more information, Book A Demo TODAY! 

Author

Sheetal S Kumar

Sheetal is a content strategist and writer at Kennect. She has extensive writing experience in content marketing and research, focused on small business enterprises and B2B Saas. She is passionate about creating engaging and insightful blogs while exploring the power of content and social media.

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