Revenue and GTM planning is an essential function for organizations, and the pressures are on to build a plan that's efficient, adaptable, and driven by accurate data. In the webinar "Master the Critical Inputs for Revenue Plan Success," hosted by RevOps Co-Op and sponsored by Revcast, industry experts Jeff Serlin (Revcast's chief strategist) and Shriya Ravikumar (VP of business strategy at Spruce Health) shared their insights on navigating the complexities of revenue planning and maximizing operational efficiency.
You can view the full webinar playback on Revcast's YouTube channel, and our excellent speakers also answered audience questions throughout the program, so it's worth watching the on-demand video to get the full experience! Here is our recap summary below:
The Importance of Revenue Operations
Jeff Serlin kicked off the session by emphasizing the pivotal role that Revenue Operations (RevOps) plays in the annual planning process. Over the years, he has witnessed the evolution of this function, which not only brings together data and insights from across the organization but also acts as a mediator between different teams. “RevOps is all about connecting the dots. We need to make sure that marketing's goals align with sales' expectations, and that product development is on the same page,” he stated.
The need for a cohesive strategy has never been greater, especially during challenging economic times when organizations must adapt their go-to-market strategies. The session highlighted the importance of creating a planning calendar, which organizes discussions, decisions, and inputs to foster collaboration and synchronization across teams.
Key Ingredients for a Successful Plan
Serlin outlined several critical characteristics that contribute to a successful revenue plan:
- Data-Driven Insights: Successful planning relies heavily on validated assumptions. Companies must carefully track metrics such as Average Selling Price (ASP), conversion rates, and pipeline generation to ensure their plans are grounded in reality.
- Scenario Planning: Flexibility is vital. Organizations should create multiple models to account for various outcomes, from aggressive growth to conservative scaling. Shriya pointed out that these scenarios should not simply be aspirational; they must be anchored in real data and historical performance to facilitate informed decision-making.
- Cross-Functional Collaboration: To achieve plan success, input from all relevant stakeholders is essential. Both Jeff and Shriya emphasized the significance of including finance, marketing, and sales teams in the planning process to build a shared commitment and accountability framework.
- Prioritizing Execution: "Creating a beautiful plan is one thing, but executing it is another," remarked Shriya. A strong plan must translate into actionable steps for all stakeholders. Engaging enablement teams and ensuring they understand the vision behind the plan is crucial for effective implementation.
Engaging Leadership in the Planning Process
Socializing the plan with go-to-market leaders is another pivotal aspect. Shriya shared practical advice on engaging department heads early in the process.
“Have weekly or biweekly meetings,” she suggested. This not only creates a forum for collaborative input but also builds a sense of ownership and accountability among leaders. When they feel involved, they are more likely to support the execution of the plan and drive performance accordingly.
Adjusting as External Factors Change
During their discussion, Serlin and Ravikumar also tackled the importance of being adaptable once the year gets underway. Both stressed that businesses must continually track progress against their plans and be ready to pivot when necessary. Whether it’s a change in market dynamics or shifts in customer behavior, having real-time insights allows revenue operators to make informed adjustments and seize opportunities.
Ongoing tracking and staying tactical were two areas they discussed. As Jeff said, "Every one of one of the KPIs used for planning and every one of those fundamental assumptions need to be tracked throughout the year." Deviations will happen, it's okay, and you need to make adjustments and know what those impacts are. "You constantly need to measure, gain insights... and ultimately take action against that."
Using Historical Performance to Predict Future Success
An essential component of effective revenue planning lies in analyzing past performance to forecast future outcomes. Shriya emphasized the importance of understanding cohort performance, such as the metrics associated with new customers vs. existing clients.
“Understanding how new customers behave, versus how long-tenured customers perform, is vital,” she noted. This information not only helps organizations refine their planning strategies but also allows them to set attainable quotas and establish key performance indicators (KPIs) that resonate with their broader company objectives.
Real Case Studies: Lessons from Experience
Towards the end of the webinar, Jeff and Shriya shared insights from their own experiences working together at Intercom, detailing how they structured their planning sessions to yield productive outcomes. By aligning leadership around comprehensive annual goals and using direct feedback from sales teams, they created actionable steps that resulted in measurable success.
The example they used involved crafting specific "rocks" or key initiatives for the sales team, such as focusing on efficiency improvements or expediting moves into new market segments. By detailing clear expectations and establishing quantifiable outcomes that could be tracked, the team was able to take ownership of their revenue attainment efforts.
Conclusion: The Path Forward
As organizations gear up for revenue planning, it's critical to remember that creating a plan is just the beginning. Mastering the critical inputs for revenue planning success requires collaboration, adaptability, and a relentless focus on the data-driven approach.
Being proactive in gathering insights, involving stakeholders early on, and using scenario planning strategies can empower teams to craft plans that are not only ambitious but also realistically achievable.
In conclusion, as the landscape continues to evolve, embracing these principles will not only allow revenue operators to navigate challenges but also position them to seize opportunities, ultimately driving growth and success for the organization.
For those who missed the webinar, the recording is available for review, along with additional resources that can further aid in mastering revenue planning practices. And to make your life easier with revenue planning, be sure to book a demo of Revcast to see a solution purpose-built for this task.
Happy planning!
