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If you are familiar with Revenue Operations (RevOps) solutions, then you probably know that this set of strategies is critical to unlocking the revenue potential of your business.
Measuring success via Key Performance Indicators (KPIs) is integral to RevOps. As a part of our RevOps series, this article takes a deep dive into metrics you should be tracking.
You’ll get a brief RevOps summary here, but if you’re just getting started we encourage you to first read this quick RevOps introduction. This easy guide explains RevOps in detail and outlines the key goals of revenue operations.
What are RevOps?
To understand the evolution of RevOps, it helps to recall that large-scale businesses constantly evolve process management to improve efficiency and increase value.
RevOps strategies are the latest iteration of that progress.
RevOps integrates sales, marketing, and service departments
Growing businesses typically distribute duties among small teams. As companies mature, these teams grow into their own sales, marketing, and customer service departments. Each department typically has its own objectives, and they work together to achieve common goals.
Progress towards those goals is measured by data. The growth of data, catalyzed by the increased digitization of business activities over the last few years, has increased complexity, calling for novel ways to collect, analyze, and integrate that information into revenue operations.
RevOps solutions unlock the power of business data by breaking down walls between departments to release information that is useful to everyone. As a result, RevOps strategies provide accurate revenue performance indicators to improve forecast accuracy, align operations and drive additional growth opportunities.
13 Important RevOps Metrics to Start Tracking Today
RevOps cover the entire revenue-generation process across multiple siloed areas, including sales, marketing, and customer success departments.
As a result, more KPIs are associated with RevOps than any other area of your business.
Revenue Generated is the Top RevOp Metric to Track
As a general rule, the amount of new revenue generated is the dominant RevOps metric.
What it is: Revenue is the amount of sales generated from selling products and services minus the cost of undelivered or returned items.
Why we track it: Tracking revenue measures profitability by deducting total expenses from the amount of money generated by your business.
Other important RevOps metrics to watch by department include:
Marketing Metrics
Marketing metrics measure and monitor campaign performance and give insights into customer behavior. Tracking these values demonstrates how successfully your marketing strategy converts qualified leads to take actions that produce business value.
Some RevOps marketing metrics include:
Traffic
What it is: The traffic metric tracks visitors to your website. Website traffic is typically displayed by source, including direct traffic, search engines, and referrals from other sites.
Why we track it: Traffic is a critical metric because it demonstrates how effectively your campaigns direct visitors to your website.
Sessions
What it is: Sessions refer to the total number of new and repeat visits to your website. Google Analytics tracks sessions immediately after the page loads and terminates them after 30 minutes of inactivity.
Why we track it: Tracking sessions helps you determine the success of your SEO campaigns. Unlike vanity metrics such as impressions, sessions help you understand how your audience interacts with your website.
Clickthrough Rate
What it is: The Clickthrough Rate (CTR) is the number of clicks to your website from a specific ad or campaign, calculated by dividing the number of clicks by the number of times the ad is displayed.
Why we track it: CTR is critical to RevOps because it helps determine the success of your keyword choices, ad copy, and choice of graphics.
Session to Contact Rate
What it is: Session to Contact is the rate that visitors subscribe to your mailing list, fill out a form, or download an offer.
Why we track it: Tracking the session-to-contact rate demonstrates the effectiveness of your copy and the level of visitor engagement.
Attributed Revenue
What it is: Attributed revenue shows you what website content leads to sales.
Why we track it: Knowing what content drives sales enables you to create similar content to boost profitability.
Sales Metrics
Sales metrics gauge the performance of your sales team and other revenue-generating departments. Tracking sales metrics also helps you determine the lead quality produced by your marketing efforts.
Some RevOps sales metrics include:
Forecasted Revenue in Pipeline
What it is: Forecasted Revenue in Pipeline (FRP) estimates predictable revenue based on the number or percentage of customers that closed.
Why we track it: FRP helps management plan for the future by estimating cash flows. Other key metrics in this category include sales pipeline velocity, average sales cycle length, and total pipeline value.
Note: FRP does not show any gaps between budgeted and actual sales. To understand the actual gaps in expected vs. actual sales, conduct a price volume mix analysis.
Customer Lifetime Value
What it is: Customer Lifetime Value (CLV) sums up the total monetary value of a customer over the entire period of your business relationship.
Why we track it: Acquiring new customers costs more than maintaining your customer base. Strategies that increase LCV efficiently drive growth while lowering customer acquisition costs and decreasing the customer churn rate.
Customer Acquisition Cost
What it is: Customer Acquisition Cost (CAC) is the sum of all expenses incurred when acquiring a new customer.
Why we track it: Tracking CAC measures the success of your profitability when compared to LCV. CAC is also valuable for expanding your business when using a scaling business model.
Service and Support Metrics
Acquiring customers costs time, money, and resources. Keeping those customers satisfied depends on your customer success team. Service and support metrics gauge how well you serve your customers and generate recurring revenue.
Some essential service and support metrics include:
Time to Resolution
What it is: Time to Resolution (TTR) measures the average time between customer interaction initiation and issue resolution. Other TTR terms include Mean Time to Resolution (MTTR) and Time to Resolve (TTR).
Why we track it: Fast and efficient service correlates directly to customer satisfaction. Accurate measurement of TTR over time ensures that standards are maintained and/or improved.
Net Promoter Score
What it is: The Net Promoter Score (NPS) measures customer satisfaction via a single survey question following an interaction. This score is calculated by asking respondents to rate how likely they would recommend your business to a family member, friend, or colleague.
Why we track it: NPS provides critical insights into customer loyalty by aggregating the entire customer experience into one metric.
Service Level Agreement Metrics
What they are: A Service Level Agreement (SLA) outlines expectations between service providers and clients. Companies that use SLAs include IT managed service providers, Software as a Service (SAAS) providers, hosting companies, and other cloud-based businesses.
SLA metrics include server uptime, TTR, throughput, and utilization.
Why we track them: Measuring SLA metrics is critical to maintaining and/or improving services and directly correlates with customer satisfaction.
Average Client Ticket Count
What it is: Average Client Ticket Count (ACTC) is calculated by taking the total number of tickets and dividing them by the number of clients. Retainer-based and subscription model businesses typically use ACTC.
Why we track it: ACTC can be used to measure service quality, errors, and other issues within a system.
Customer-centric metrics depend on high-quality data, so be sure to regularly conduct CRM data cleanups to maintain accuracy.
What about B2B vs. B2C metrics?
Whether your business is B2B or B2C, you can use the same metrics for both.
Providing goods or services - whether to consumers or other companies - looks like B2C in the modern economy. In addition, research suggests that business customers want B2C experiences in their B2B sales, service, and support process.
Not sure what RevOps metrics to track?
Choosing RevOps metrics to track depends on your business goals. We can help you get started with a complimentary portal audit.
You’ll get an inside view of how our RevOps team operates. We’ll also configure live dashboards and pull metrics that matter most in data-driven decision-making.
How can I prevent some employees from seeing all my business data?
Implementing RevOps effectively requires a modern Customer Relationship Management (CRM) system like Hubspot or Salesforce. A new software implementation process may not be easy, but the benefits outweigh the drawbacks and provide a solid ROI.
Modern CRMs give you the tools to create user roles and assign those roles appropriately throughout your organization.
Some benefits of user roles are:
- High degree of access control across your staff, limiting what people see according to their user role
- Reduced errors
- Prevention of security breaches
For example, Aaron from sales can learn the number of support tickets that Sarah’s customer success clients opened last month. He can find this information without reading Sarah’s chat logs, and she won’t have access to how he uses that data.
A modern CRM platform geared for RevOps ensures your data remains safe and secure. Creating and assigning roles ensures that all team members have access to the data they need to do their job - no more, no less.
Ready to move on? Your RevOps journey is just getting started!
Implementing RevOps into your business operations is a big step. This series prepares you with strategic shifts that take you further on the RevOps path:
