In the fast-paced world of business, efficiency and strategy are paramount for success. Companies often find themselves at a crossroads when they realize that their sales processes could be more efficient, scalable, and data-driven. It’s never too late to fix them, but the additional costs and heartache can often be prevented by making the right hire at the right time.
And this is where a Sales Operations (SalesOps) function becomes crucial. But when exactly does a company need a SalesOps function? Understanding the right time to implement SalesOps can be the difference between stagnation and accelerated growth.
What is Sales Ops?
Sales Operations, commonly referred to as SalesOps, is a team or function within a company that focuses on optimizing sales performance (not marketing, not customer success, not anything but sales). This includes everything from managing sales data, streamlining processes, implementing technology, to ensuring that the sales team has the tools and information they need to close deals efficiently. SalesOps acts as the backbone of the sales organization, providing support, strategy, the enablement that enhances overall productivity.
So exactly WHEN does a company Need to Invest in SalesOps? When is the sweet spot when it’s not too early nor too late?
Let’s evaluate, shall we? 🙂
1. Rapid Growth and Scaling Challenges
One of the most apparent signs that a company needs a SalesOps function is rapid growth. When a company is experiencing significant expansion, managing sales processes manually or with outdated systems becomes increasingly challenging. More often than not, no systems at all lead to significant lost potential revenue, with everyone just hacking together solutions to seal the holes.. And this is much easier prevented than cured. SalesOps can help streamline operations, ensuring that the sales team can handle the increased workload efficiently.
2. Inconsistent Sales Processes
Inconsistent sales processes often lead to confusion, inefficiencies, and missed opportunities. Even if business is coasting (no rapid growth), if your sales team follows different procedures, uses various tools, or lacks a standardized approach to selling, it’s time to consider SalesOps. The function will quickly standardize processes, ensuring everyone is on the same page, knows what to do when and has all the right tools and resources at their disposal. Needless to say, this ultimately leads to better performance and predictability. Not only this, but your prospects don’t hear different versions of the same story, have more confidence in the buying process (much like your sales team) and are much more likely to close.
3. Data Overload and Poor Data Quality
Companies collect massive amounts of data daily, but without proper management, this data can become overwhelming and incomprehensible. SalesOps ensures data is clean, accurate, and actionable. They manage CRM systems, integrate various data sources, and provide insightful analytics that help sales leaders make informed decisions.
As Peter Sondergaard, Senior Vice President and Global Head of Research at Gartner, Inc. said, “Data is the oil of the 21st century, and analytics is the combustion engine.” Without SalesOps (the combustion engine) actually making sense of the data, it’s just lying there and can’t lead to any tangible, positive business impact.
4. Inefficient Use of Technology
Technology is a critical component of modern sales organizations. However, not all companies use their sales tools effectively. SalesOps assesses the current technology stack, identifies gaps, and recommends or implements new solutions that improve efficiency and effectiveness. This could include CRM systems, automation tools, lead gen tools or communication platforms.
A good example is data sanity in CRMs. For some reason, companies expect everyone to be their own CRM admin and maintain the CRM flawlessly. It’s important to understand that your sales team aggressively chasing targets is busy. They have no desire or incentive to update every move in the CRM. It’s up to SalesOps to set up and maintain the CRM tailored to your company’s needs. It’s also up to SalesOps to implement checks and balances without going overboard. And it’s also up to SalesOps to control the data quality and constantly audit processes to ensure the company always has clear visibility on the business health (from a sales POV).
5. Unnecessarily Complicated Sales Strategies
As companies grow, their sales strategies often become more complex. This complexity can be challenging to manage without a dedicated team. SalesOps helps ensure every part of the sales process aligns with the company’s goals and that the team can adapt to changing market conditions. Especially in B2B sales with higher average deal values and variable pricing, SalesOps is critical.
I’ve been in companies where the CEO would step in to give their 2 cents on how every single proposal should be structured. Every proposal was then almost entirely different depending on the client. Sales (I) was frustrated, the clients too because of how long we took to respond. Finance had one foot in the grave because they could do almost nothing to forecast accurately. And everyone was wasting time over something that shouldn’t have been allowed in the first place.
SalesOps (or RevOps) could have played a crucial role here, setting up a deal-desk, involving CPQ tools if possible and setting a seamless process in place.
6. Need for Better Sales Forecasting and Reporting
Forecasting then is pretty much pointless if you don’t have structured pricing in place… but let’s assume your pricing and quote generation SOPs are more or less set. If your company struggles with forecasting accuracy or providing timely reports, a SalesOps function can help tremendously. In fact, it’s a core part of the SalesOps function. They use data analytics and modeling to provide accurate forecasts and generate comprehensive reports that give insights into sales performance and trends. And accurate forecasting is absolutely critical for a business to plan ahead (especially budgets) and prepare for the next phases to come.
7. Securing or Receiving New Funding
When a company is on track to receive funding or has just received new funding, the pressure to report accurately and deliver results increases. Investors expect to see reliable metrics, reports, accurately measured KPIs, rapid growth and efficient use of resources. SalesOps plays a vital role in ensuring that the sales processes are scalable and efficient. Without this, investors become unhappy very quickly, if they aren’t confident that the company is maximizing their potential return on investment.
8. Sales Team Demotivation Due to Ambiguity
Not often talked about as a reason to bring in SalesOps, but I think this one is huge. A demotivated sales team often stems from ambiguity in sales processes and goals. When there’s a lack of clarity and processes, salespeople can become frustrated and less productive. SalesOps is that Hero without a cape that provides clear processes, defines roles, and ensures every team member has what they need, when they need, in order to optimize their performance. This inevitably leads to a significant boost in morale and performance, almost immediately. And which company doesn’t want that?
Sales Ops vs. Rev Ops: When to Hire for Which?
While SalesOps focuses specifically on optimizing sales functions, Revenue Operations (RevOps) takes a broader approach by aligning sales, marketing, and customer success to drive overall revenue growth. If you’re solely looking to enhance sales processes and efficiency, starting with SalesOps might be the best choice (generally the case). However, if you’re aiming for a holistic improvement across multiple departments and ensuring that all revenue-generating functions are synchronized, investing in RevOps soon after would be a sound choice.
It’s actually quite simple:
Hire SalesOps if: Your primary goal is to streamline sales processes, improve data management, and enhance the efficiency and effectiveness of the sales team.
Hire RevOps if: You need to break down silos between sales, marketing, and customer success, and create a unified approach to driving revenue growth.
Being an ops guy I’d recommend hiring for both asap if you’re scaling but generally, SalesOps is priority in the initial phases of growth.
Wrapping Up
Determining the right time to implement a SalesOps function can significantly impact a company’s success. If your company is facing challenges like rapid growth, inconsistent sales processes, data overload, inefficient use of technology, complex sales strategies, poor forecasting, unhappy investors, or a demotivated sales team, it is more than likely time to consider SalesOps. This function not only optimizes sales performance but also provides a solid foundation for sustainable growth and competitiveness in the market.
In today’s business environment, where data and efficiency are key, SalesOps is no longer a luxury but a necessity for companies aiming for long-term success. By recognizing the signs and acting promptly, you can ensure your sales team is equipped to achieve and exceed their goals, driving your company toward greater heights.
P.S., I’m always happy to chat and help you discern the right time to make your first SalesOps hire. 🙂
