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    How CROs Overcome 3 Barriers to Revenue Capture

    If enabling revenue operations can significantly improve performance at minimal expense, how can Chief Revenue Officers (CROs) best impact the sales process? 

    This blog outlines common roadblocks that hinder organizations’ revenue capture lifecycles. It also explores how you, a revenue executive, can unlock the potential of the three most critical inflection points in your funnel, which we’ve discussed the last few weeks. 

    What factors slow revenue capture? 

    Below are three causes of revenue inefficiency, as well as how industry leaders address and leap over them. 

    1) Poor orchestration of specialized roles. 

    Customer relationship management (CRM) software hasn't fully delivered its promise from over 20 years ago. What promise? Of unifying the revenue cycle under one umbrella, where people, process, and technology work in concert. 

    At first, CROs attempted to address the problem by honing specialized roles with expertise for each part of the revenue cycle. 

    • Demand generation teams now have digital marketers, campaign managers, account development specialists, sales development representatives, and more.

    • Sales teams include account executives, product and overlay specialists, regional sales managers, industry sales managers, pre-sales engineers, and so on.

    • Customer success teams have account managers, renewal specialists, customer success managers responsible for cross-sell and upsell, and more.

    When specialized roles didn’t produce the necessary results on their own, smart people created specialized technology to augment each specialized role. Unfortunately, this aspirational solution only compounded the problem. Statistics underscore this story well: While today’s revenue organization uses more than 20 technologies, the majority have not met their targets the last 10 years. 

    Though specialized roles and technology continue to construct a massive barrier to success today, it doesn’t have to be that way. With proper territories and quota management, CROs can more effectively coordinate expectations across every specialized role in revenue operations — enabling the delivery of predictable results.

    2) Poor field adoption due to low motivation. 

    Transforming sales reps’ time into a profitable asset means ensuring that sales reps are motivated. To do that, every Sales Performance Management (SPM) strategy must prescribe three outcomes:

    • Transparency into sales’ total rewards strategies. The more clearly revenue team members know what they’re supposed to do, and how to do it, the more time they spend effectively selling. 
    • A tight coupling of corporate and sales performance. Field adoption indicates that success for both company and professional are aligned.
    • Sales engagement directed by prescriptive guidance that leverages empirical data. Inputs like industry benchmarks and intelligent insights help teams better manage territories and quotas, optimizing existing sales resources and strategy. 

    Contrary to what many assume, low motivation reflects more than a need for better incentives—it requires a more holistic approach. SPM enables this by giving revenue teams an understanding of the basics: what are their targets, what areas do they cover, and what’s expected of them. 

    3) Poor incentive administration skyrockets total cost of technology ownership. 

    Monolithic, overly structured systems are expensive, and mismanagement can devastate results. Many companies create bad complexity with minimal cost-benefit to the business. This occurs when companies incent activity instead of results and when they automate volumes of exception handling. They prove that a fool with a tool is still a fool. 

    CROs set themselves up for success when automation builds a process around business strategy, not existing ways of doing things. They also equip their teams with the skills and agility to adapt solutions as strategy evolves. By omitting complex configuration, industry leaders eliminate blind spots. 

    Creating revenue operations success

    According to Aberdeen, Forrester, and SiriusDecisions, teams that effectively coordinate revenue operations across marketing, sales, and customer success triple company revenue. (When analysts agree like that, we all know it’s good to listen!)

    But winning executives don’t succeed purely by avoiding barriers to success. They also accelerate revenue capture by doing things differently. Read our next blog for three guiding principles that our industry-leading customers keep top of mind.

     

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