Podcast
December 20, 2024
Episode 20: RevOps vs. GTM Ops
Learn the difference between revenue operations and go-to-market operations and why titles, reporting structures, and a centralized leader are critical.
In this episode of the RevOps AF podcast, host and RevOps Co-op CEO Matt Volm sits down with Shantanu Mishra, a seasoned revenue operations leader and former SVP of Revenue Strategy & Operations at Pluralsight.
Together, they explore how RevOps functions as both an art and a science to drive consistent, scalable growth. They discuss the importance of the "bowtie" model in managing the entire customer lifecycle, strategies for structuring and aligning RevOps teams, and the challenges of standardizing RevOps practices in a rapidly evolving industry.
“Through this art and science, revenue operations is supposed to deliver consistent scalable growth.” - Shantanu Mishra
Shantanu Mishra describes revenue operations as both an art and a science focused on achieving consistent, scalable growth in B2B SaaS companies. RevOps manages the entire customer lifecycle, forming a comprehensive "bowtie" structure that integrates two critical areas: the traditional lead-to-win sales funnel and the post-sale customer success funnel. This approach ensures seamless coordination from lead generation to customer renewal and expansion, emphasizing that revenue generation doesn't end with the initial sale.
Jump to the clip for Shantanu’s thoughts on what RevOps is all about.
The left side of the bowtie represents lead management, focusing on lead generation, velocity, and conversion rates. It involves coordinating marketing efforts, sales engagement, and BDR activities to efficiently move prospects through the pipeline.
The right side emphasizes customer onboarding, value realization, and growth. Here, the goal is to ensure customers successfully adopt the product, realize its full value, and are positioned for upsell and renewal opportunities.
Jump to the clip to hear about the factors that go into developing an effective bowtie model.
“There are some horizontal functions that go across everything. Then, there are vertical functions that specifically align to partner sales, direct sales, customer success, and supporting BDRs.” - Shantanu Mishra
RevOps teams always move to centralized functions, like go-to-market strategy, as they grow. This structure oversees data analytics, tools, and deal desk enablement and helps collaboration across sales, marketing, customer success, and professional services. Additionally, there are vertical functions tailored to specific departmental needs, such as territory planning for sales or workflow management for customer success.
Jump to the clip for Shantanu’s experience working in revenue operations at different companies.
While an ideal scenario might place all RevOps functions under a centralized structure, Shantanu acknowledges that reporting lines often vary across organizations. The effectiveness of RevOps hinges more on operational collaboration and strategic alignment than on direct reporting structures.
Shantanu also discusses various organizational models where RevOps reports to different executive roles such as the CRO, CFO, COO, or even directly to the CEO. He notes that while reporting to the CRO is the most common structure, the effectiveness of this arrangement depends on the RevOps leader's ability to act as an independent truth-teller and strategic partner.
Jump to the clip to hear how RevOps leaders can act as early warning systems.
“As SaaS started growing, we started realizing that, okay, our journey doesn't end when the customer signs a contract.” - Shantanu Mishra
The complexities of the SaaS model have developed RevOps from traditional sales operations. As customer success became crucial in managing post-sale activities, the need for a comprehensive approach led to the adoption of the bowtie model. This shift reflects the industry's recognition that revenue generation extends beyond initial sales to include customer retention and expansion.
Effective RevOps involves collaborating with marketing to optimize lead generation and conversion rates and with customer success to ensure value realization and customer growth. Roles within these teams should be clearly defined based on factors like customer size and whether the focus is on new logos or expanding existing accounts.
Shantanu notes that a major challenge in RevOps is the lack of industry-wide standardization. He advises RevOps leaders to adapt to each company's unique culture and existing frameworks rather than imposing a rigid template.
Jump to the clip to learn how customer success fills the gap between sales and customer support.
The definitions of RevOps, organizational structures, and key performance indicators (KPIs) can vary significantly between companies. As a result, practices and models that work in one organization may not be directly applicable to another.
Shantanu advises new leaders to approach their roles with an open mind and a willingness to adapt. Instead of imposing a rigid template or their own definitions of RevOps, leaders should first seek to understand the company's existing culture, operating model, and how RevOps fits within that framework.
Shantanu highlights that direct reporting lines are not always necessary for RevOps leaders to drive alignment and achieve results. Leaders can foster alignment through strong partnerships, recurring collaborative meetings, and clear communication.
Jump to the clip for a breakdown of how to make RevOps your own when joining a new company.
“Since the RevOps template has not yet been standardized let's not try to implement the same template everywhere.” - Shantanu Mishra
Shantanu and Matt reflect on the inherent complexity and dynamic nature of RevOps. Matt describes it succinctly as “RevOps is messy." They stress the importance of embracing these challenges as opportunities for growth rather than obstacles. Understanding that there is no perfect RevOps model, professionals should focus on making incremental improvements and remain open to adjusting strategies as they gain new insights and as the industry evolves.
Jump to the clip to find out which song Shantanu would choose to enter the stage at RevOpsAF.
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