Revenue Operations KPIs You Must Measure

Your revenue operations are a key driver of growth, aligning your sales, marketing, and customer success teams to enhance performance and boost conversions. 

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As such, RevOps professionals are constantly searching for new ways to speed up their sales cycles, streamline client communications, reduce costs, and maximize profits. RevOps departments must adopt a data-driven mindset and build their strategic development around targeted key performance indicators (KPIs) to achieve these goals. 

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In fact, 89% of RevOps professionals rank KPI measurement as a core element of their role. Revenue operations KPIs enable companies to assess the impact of process improvements, track growth over time, and identify relationships between the different arms of RevOps.

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Core KPIs for Revenue Operations

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We know tracking revenue operations KPIs is important, but what metrics should you prioritize? What data will provide the most valuable insights? Start with metrics that reflect the overarching health of your RevOps systems. 

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These might include:

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• Sales cycle length: The sales cycle starts with prospecting for leads and ends with closing a deal—in between, there are countless opportunities to encounter inefficiencies. Your average sales cycle length reflects the speed of your sales processes and how quickly you can bring in revenue for your company. You can also break down this metric into specific parts of the sales cycle with KPIs like lead response time.
• Lead conversion rate: Your conversion rate provides insights into the effectiveness of your customer engagement initiatives. As you tweak your marketing collateral and sales funnel, changes in your conversion rate can let you know if you’re on the right track.
• Customer acquisition cost (CAC): RevOps doesn’t just exist to bring in revenue—it also aims to keep your expenses low and sustainable for your long-term growth. Understanding your CAC is key to turning a profit and extracting value from your customers. 

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Measuring Sales Efficiency

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As the revenue source for your company, sales is the cornerstone of revenue operations. Having the right momentum with your sales KPIs can determine whether you’re ready to scale or make new investments in your operations. 

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Get started with these sales efficiency metrics that can help you understand the success of your sales processes:

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• Win rate: Your win rate is essentially your success rate for closing deals. The percentage of opportunities that convert to purchases directly reflects your sales team’s performance. 
• Average deal size: The average revenue you generate from each transaction provides valuable insight you can use to formulate your pricing strategy and hone in on your target audience. 
• Sales velocity: Your sales velocity measures how quickly your customers travel through your sales funnel. It considers your sales cycle length, win rate, and average deal size, providing a broad understanding of your ability to generate revenue.

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Marketing Performance Metrics

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Marketing initiatives generate brand awareness and attract customers to your business, introducing them to your sales pipeline. By keeping marketing and sales teams informed of shared KPIs, you can align their efforts and engage potential customers better. 

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Such KPIs can include:

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• Conversion rate: Conversion rates measure the percentage of people who follow up with your company after viewing marketing materials, giving you insight into the effectiveness of your marketing strategy.
• Average lead score: Your leads' average quality and interest level let you know if your marketing materials attract the right audience.
• Marketing ROI: Knowing the profitability of your marketing initiatives can help you determine which strategies impact your growth and revenue goals most.

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Customer Success and Retention Metrics

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Your ability to engage and connect with your customer base influences your capacity to grow your company’s revenue. Keep track of these metrics over time to support your long-term growth goals:

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• Churn rate: Churn rate quantifies the longevity of your customer relationships and helps you target potential sources of customer turnover. Since boosting customer retention can exponentially increase profits, keeping an eye on churn is key to optimizing your revenue strategy.
• Net promoter score (NPS): Your net promoter score reflects consumer loyalty and overall opinion of your business. Viewing your business from a consumer perspective helps you understand potential roadblocks to growing your revenue.
• Customer lifetime value (CLV): Tracking the total value of your average customer to your business is critical for accurately forecasting future revenue.

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Leveraging Technology for KPI Tracking

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While it’s possible to manually calculate KPIs and compare them to historical data, modern tech tools can provide automated, real-time insights into your revenue operations KPIs. With the right suite of analytics tools, you can consolidate data from sales, marketing, and customer success teams to quickly and accurately measure your KPI progress.

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Not sure how to get started?

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Operatus was created to provide expert RevOps as a service support to growth-minded businesses like yours. Our revenue operations specialists can outline the most relevant KPIs for your organization’s goals and then set you up with an automation and analytics system to inform your RevOps strategy. 

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To learn more about how we can maximize the value of your data through a streamlined RevOps ecosystem, check out our case studies, then chat with us directly about your unique needs.