If a house is not properly constructed, it will fall. The paint might be pretty, and the door might’ve been hand sanded from the finest materials, but if the foundation and overall construction is weak, or if the materials were arranged out of order (the roof can't be the foundation!), it will fall.
In the same way, if a business has a poorly constructed revenue engine framework, it will fail, and you won’t deliver an optimal customer experience.
The company logo might be pretty, and the website might’ve been hand crafted by the best graphic designer in the business, but if the models don't interplay correctly, or if they are arranged out of order (the tech stack can’t be the foundation!), the business will fail.
A properly constructed revenue operations (RevOps) model (from the top down) looks like this:
When these fit and work together, you have an engine on your hands that would make a Bugatti owner blush.
Let the revenue engine assembly begin! The foundation of any revenue engine framework is the business model. Recognizing whether your company is a perpetual ownership model, a subscription model, or a consumption model will dictate the motions and proper alignment of the remaining models. This also impacts how you manage customer data and relationships, a crucial part of ensuring success with marketing and customer success.
Sitting squarely on top of the business model are the GTMs of sales, marketing, and CS. What is a GTM motion? It’s a plan that details how an organization can engage with customers to convince them to buy their product or service and to gain a competitive advantage.
For real revenue growth to take place, these all must be aligned (i.e. your sales team and marketing team need to play nice). It’s vital to understand how each of these fit and translate the applicable business model into a GTM model that aligns with customer relationship management (CRM)."
With the foundation (your Business Model) firmly in place and your sales, marketing, and CS GTM motions side-by-side, stacked neatly on top, the next “brick” is ready for placement. On top of the GTM motions is the Growth Model.
The Growth Model is key to a company’s expansion because it will show when you should begin doing more than one GTM motion or when it’s the right time to begin thinking about scaling. This model also clearly displays where revenue operations fits in the overall picture.
The Growth Model details the journey a company takes from the inception of a product to (potentially) scaling up into the nine figure revenue club. In total, there are four different stages:
The steady construction of the revenue engine framework continues with the addition of the Data Model, which sits squarely on top of the Growth Model. Since this framework builds on itself, the performance of a given model is dependent on the models it is stacked upon.
A company’s chosen Business Model affects the GTM motions used, which in turn affect a company’s progress in the Growth Model. Together, these will impact the Data Model.
The Data Model is key to knowing if you’re being successful in hitting your targets and when to put your measurements (volume, conversion, time) into action.
The next addition to the revenue engine framework, the Math Model, sits squarely on top of the Data Model. This model helps to effectuate change, prioritize actions for RevOps professionals, and calculate revenue growth.
The math model is not a separate entity, but rather one that operates and exists within the Data Model (bowtie funnel with volume, conversion, and time metrics). Inside said Data Model, there exist several types of numbers:
The tool/tech RevOps stack, which sits squarely on top of the Math Model, makes everything work.
Pro tip: If you’re not using HubSpot to consolidate your tool stack, then you’re doing it wrong.
The very top of the Revenue Engine Framework, RevOps Fundamentals (measurement), sits on top of the tool/tech stack and includes things such as:
This final addition to the framework is essential because it answers the question, “how do we measure?”
More specifically, it answers “how do we apply and start measuring inside our CRM?”
These questions are vital to a company’s success because if you can't measure, you can’t iterate; if you can’t iterate, you can’t grow; if you can’t grow, your business will fail.
That was…a lot of information.
Is your current revenue engine out of order, upside down, or even non-existent? Well, there’s bad news and good news. The bad news? Your revenue generation has probably been stunted. The good news? RevPartners is here to help! We offer RevOps as a service, and building revenue engines is our jam. When you make us your RevOps team, your engine will be the envy of all!