Insights & Tips

Already a subscriber? Login

Become a subscriber and unlock an information arsenal focused on making your sales operation more effective.

One More Reason Sales Ops Can’t Ignore Profit

You may have noticed that the editorial and research teams here at the SellingBrew Playbook are adamant about paying attention to the bottom line. Whenever and wherever we can, we try to highlight how and why it’s important for Sales Ops to focus on profit contribution as well as revenue production.

As it happens, one of the seven cautionary case studies we examine in the “Tales from the Trenches in Sales Ops” webinar clearly and compellingly illustrates what can happen when Sales Ops ignores profits.

Here’s how this little horror story played out in one company…

In this company, Sales Ops was a parallel function to Sales and both groups reported directly to the COO. By design, Sales Ops was a distinct and somewhat autonomous function.

But in the interest of “greater alignment” between the two groups, the Sales Ops leader decided to adopt the Sales team’s revenue targets…and only those revenue targets. He then directed his resources…and his budget for promotion, lead generation, appointment setting, prospect cultivation, etc…accordingly.

And they handily achieved the revenue goal! Success!

But wait….not so fast…there’s an M. Night Shyamalan twist…

After each period, the broader management team always met to discuss the company’s performance overall. And having smashed through the goals, the Sales Ops leader attended this period’s “Oversight Committee” meeting in high spirits.

But instead of being lauded and showered with praise, the Sales Ops leader was excoriated by the CFO…because their profit contribution over the period had taken a precipitous nosedive!

As you might imagine, the COO was not pleased. Understandably, he was also somewhat embarrassed that this had happened under his purview. And at this point, he began to question Sales Ops’ autonomy.

After all, what’s the point of having an autonomous Sales Ops function if it’s just going to mirror the Sales function and pursue revenue at all costs?

Yikes! That’s definitely not a question you want your boss to be asking.

So…here again, we’ll implore you to remember that revenue dollars are not all the same. Customers are not all created equal. Revenue doesn’t pay the bills and the keep the lights on. And eventually, everyone will care a great deal about “how” the revenues are being generated and at what cost.

Above all, please remember that Sales Ops can best serve the Sales team…and the company…and themselves…by paying attention to both revenue production and profit contribution.

Get Immediate Access To Everything In The SellingBrew Playbook

Related Resources

  • The Metrics Sales Leaders Should Be Managing

    You need to track and manage sales metrics, but which metrics are the most important? In this guide based on research from Vantage Point Performance and the Sales Education Foundation, Jason Jordan reveals the ones that really matter.

    View This Guide
  • Predictive Sales Analytics

    Predictive sales analytics has proven to be a powerful tool for improving effectiveness and boosting results at-scale. In this on-demand webinar, we demystify the core concepts and applications in sales environments.

    View This Webinar
  • Exploring the Sales Ops Center of Excellence

    This recorded training seminar discusses the two types of Sales Ops Center of Excellence we found in our research. Highlighting the critical differences between each type, we explore the decisions and steps that matter most in developing an effective Sales Ops Center of Excellence.

    View This Webinar
  • Inside a Sales Operations Group On a Mission

    Scott Kolar, the VP of Sales Operations at LexisNexis Risk Solutions, gives us an inside look into how his team is structured, their priorities and responsibilities, and the significant contributions they've made to the company's performance.

    View This Interview