5 | Enabling Revenue Operations in a 21 st Century Commercial Model Copyright © Revenue Enablement Institute WHAT YOUR ORGANIZATION SHOULD BE PRIORITIZING The Revenue Operations Maturity Model provides a blueprint for identifying the unique steps an enterprise can take to continu ously improve revenues, profits, and firm value. The high level benchmark analysis below illust rates the key areas. Enterprise CXOs should focus as they deploy the elements of the Revenue Operations model that will yield immediate and measurable results. A custome r analysis like this can be generated in a few hours using the assessment tool at the e nd of this report. ENTERPRISE COMMERCIAL MODEL ARCHETYPES Archetype Growth Dynamics Key Drivers Transformers Transformers are transitioning some or all of their revenues to a subscription, SaaS and cloud based business model. Business model change increases the importance of net recurring revenues, the customer experience, and customer lifetime value as a focus o f the revenue team. The average mature SaaS business grows at 19% or higher in transition to support double digit earnings multiples and maintain cash flow as the revenue profile shifts and cover large, fixed costs. 54 ● Common purpose: Redefine incentives to focus revenue teams on customer lifetime value, retention, and annual recurring revenue. ● Sales force redesign: Reengineer roles to elevate sales development, customer suc cess manager and specialist roles and focus team resources on growing customer value. ● Key Performance Indicators: Enable quantifiable measures of opportunity potential, seller performance, account and pipeline health based on customer engagement and selle r activity data. ● Shrink the lead to cash cycle: Integrate enablement, engagement, and readiness solutions to accelerate sales Agile Enterprise Agile enterprises turn their focus on maximizing their lifetime value of their customer by cross selling the full breadth of their product portfolio and aligning revenue teams on the highest potential accounts. They maximize firm value by using team - based selling approaches to grow total contract value and customer lifetime value and pivoting their go - to - market s trategy to expand their addressable markets and drive high levels of growth at scale. ● Data - driven selling: Enable real time proscriptive sales guidance and 1:1 coaching at scale across all customer facing sales, marketing, and success functions. ● Leadership : Put in place a single CXO (Chief Revenue Officer) to align commercial teams around the customer with a broad transformation remit and authority. ● Sales force design : Reengineer the sales team roles to elevate sales development, customer success manager and specialist roles and focus team resources on growing customer value. ● Operations: Unify commercial operations to better leverage customer insights and scalable technologies across the enterprise. Margin Maximizers Enterprises that maximize marg in and price while controlling cost to sell through optimal allocation of resources, sales force emphasis, revenue enhancement technologies and the shift to digital and virtual selling. These businesses must maximize earnings growth to justify purchase pri ce valuations by PE investors that have grown to exceed 13 times EBITDA. ● Accountability : Define financially valid criteria to prioritize, size, allocate and measure the performance of all commercial teams, budgets, operations, and enablement assets. ● Commercial process management: Establish a single point of management across the enterprise customer journey to eliminate the handoffs and “air gaps” in the prospect to cash cycle to limit revenue and margin leakage. ● Revenue Enhancement: Invest in CQP and fulfillment tools to reduce revenue, price, and margin leakage in the lead to cash cycle. Complex Enterprises Complex enterprises struggle to grow and adapt to market demand because they are stifled by functional silos, the fragmented m anagement of selling resources, and overly complicated technology portfolio and disconnected customer data sets. Complex enterprises must focus and align their revenue teams and resources on the highest opportunity accounts and find ways to leverage techno logy as a force multiplier. ● Architecture: Reengineer segmentation, account priorities, and coverage model to realize more market opportunity and focus resources on customer value. ● Predictive Selling Insights : Use predictive insights to significantly focus account priorities based on potential, pr opensity to buy and coverage difficulty. ● Evaluate commercial asset effectiveness: Assess the growth technology portfolio, customer data and content assets to ID ways to rationalize the technology and eliminate waste, redundancy, or non - performing assets an d streamline the seller experience.