Why CEOs Are Standing Up a Revenue Operations Function

3 Apr 20

CEOs are looking for ways to drive GTM efficiencies without hampering growth. Market Leaders are executing this by transforming legacy Sales and Marketing Ops teams into a centralized Revenue Operations function and realizing higher company valuations than their peers.

With Q1 coming to an end, there is no doubt COVID-19 has changed how CEOs are viewing 2020. For many, forecasts have been drastically reduced, Reduction in Forces have been executed, and there is a feeling of uncertainty as to when normalcy will return. The Pandemic is forcing organizations to come up with ways to drive the same results with less. In a recent study by Just Capital, 20% of the 100 largest US Employers have either experienced layoffs or furloughs.

Market Leading CEOs are looking at how they can drive more efficiency in their go-to-market strategy. An emerging best practice that many are adopting is the concept of Revenue Operations. Get started on transforming Marketing and Sales to Revenue Operations with our Marketing and Sales Interlock Tool to begin gaining GTM efficiencies.

What Is Revenue Operations?

It is common to have a Sales Operations, and for some a Marketing Operations Function, within an organization. The challenge is that many times each of these groups are often siloed. Creating a centralized Revenue Operations function ensures that there is clear visibility in alignment across Marketing, Sales, and Customer Success.

Revenue Operations drives efficiency not only through Sales but the entire GTM function within your organization. Revenue Operations oversees the entire customer lifecycle, giving Executives the visibility across the Sales, Marketing, and Customer Success functions.

What Is the Impact of Transitioning to a Revenue Operations Function?

Simply stated, Revenue Operations drives growth and predictability into organizations, which is critical in today’s macroeconomic environment. Public companies that have deployed a Revenue Operations function realized a 71% higher stock performance than peers who have not made this transition. Additionally, by driving strategic and operational alignment across the GTM engine, Revenue Operations see 19% faster growth and 15% more profits (Clari in Partnership with SiriusDecisions).

How can Revenue Operations have this level of impact on a company’s performance? Below are five outcomes that arise from transforming Marketing and Sales Ops into Revenue Ops that have an effect on company performance.

5 Outcomes Market Leading CEOs Gain From Transforming Sales and Marketing Ops Into Revenue Ops

  • GTM Alignment: Having alignment and a strong cross-functional interlock has been a discussion topic for the past few years. Despite this being a known benefit that organizations should enforce, many stumble on executing this. Having two distinct Operations teams within Sales and Marketing creates too many potential failure points. If the VP of Sales is setting their H2 strategy based on where Sales Operations is showing growth opportunities, is this getting relayed back to Marketing? Conversely, if Marketing is launching a new campaign on a high growth vertical, how is Sales following up with Buying Personas in the same accounts? Bringing the Ops team together mitigates this risk of running disjointed outreach efforts.
  • Amplified Market Coverage: Revenue Ops allows Marketing and Sales to have one source of truth when it comes to customer data and insights. Organizations are able to run hyper-targeted Account Based Marketing Campaigns with their largest accounts (~20%) that typically represent 80% of company revenues. Or conversely, drive prioritized Marketing and Sales campaigns in verticals that represent the greatest potential opportunity.
  • Visibility Predictability in the Business: Centralizing these functions allows Sales and Marketing Tech Stacks to be completely integrated to drive scale. All too often, executives either don’t have the access or the trust in company data to accurately forecast company growth quarter to quarter. Aligning these functions into Revenue Ops is a way to have a source of truth. In an uncertain time with the COVID-19 Pandemic, having trust in the data you are using to navigate and forecast how future growth will be impacted is critical.
  • Efficient Execution: Only in the most advanced organizations is there strong alignment and interlock between Sales and Marketing. Opportunities slip—mixed messaging to customers and unclear value propositions. With a centralized Operations function, Market Leaders optimize every opportunity.
  • Customer Retention: In a recession, customer retention is the new growth lever. Having Marketing and Sales being aligned in a unified message to the customer base is monumental for customer retention.

2020 has begun in an economic crisis. But the leaders who seize the opportunity to act now will have their organization well prepared in the back half of 2020 when things normalize. CEOs that are looking to increase efficiency in the business without sacrificing growth are turning to Revenue Operations. Get your CRO and CMO started by leveraging SBI’s Marketing and Sales Interlock Tool for a data-driven and structured recovery plan. The tool will help you:

  1. Ensure that your Marketing and Sales Operations teams are ready to successfully transform to a Revenue Operations function
  2. Align commercial strategies within Sales and Marketing Operations
  3. Drive a set of defined “big rocks” that Revenue Operations will be focused on achieving


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