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How RevOps can help manufacturing businesses align their KPIs

Written by Hemant Parmar | Nov 29, 2024 2:33:18 PM

Introduction

Imagine running a manufacturing business as easily as driving your car in a familiar town, where the navigation system will guide you to your destination even if you get lost. 

Wait, it is possible, with the KPIs that RevOps brings to the table. đź“Š

Why KPIs are important 

KPIs help with strategizing, informed decision-making, accountability, goal alignment, and continuous assessment. Simply put, they prevent you from getting lost in the uncertain and competitive manufacturing landscape.

Forbes recommends approaching your KPIs the SMART way - i.e by keeping them specific, measurable, achievable, realistic, and time-bound.

 

How RevOps optimizes KPIs for manufacturing success

Let’s take a look at some of the most important KPIs in manufacturing and analyze how implementing RevOps concepts can help business owners optimize that KPI:

Building a healthy pipeline for a reduced customer acquisition cost 

Reducing customer acquisition costs is critical for a higher ROI. 

Acquiring a customer becomes easier if you know how to run a successful lead-generation campaign.

You also need to optimize sales and marketing processes, identify critical touchpoints, and improve lead qualification with a lead scoring model.

Marketing automation can significantly reduce automation costs. It enhances overall operational efficiency and reduces manual dependencies. This results in cost savings. For example, Mailchimp helps you capture leads by automating your messaging.

AI agents, despite being relatively new to the scene, are becoming the go-to choice for availing services. As per Salesforce, 46% of business buyers want to work with an AI agent for faster service delivery.

If you’re still unable to generate the expected revenue, consider a cross-channel PPC audit. It gives a clear picture of campaign performance across channels.

Ensuring on-time delivery using demand forecasting

Delivering the product to your customers within the planned timeframe is critical in the manufacturing industry.

Supply chain hurdles, unrealistic production schedules, tool malfunctions, etc, can hamper on-time delivery.

RevOps helps on-time delivery using demand forecasting to boost the bottom line and improve interdepartmental communication, resource planning, and risk management.

It also reduces lead time by resolving the data flow bottlenecks through data centralization with CRM.

Optimizing the total cycle time for improved efficiencies

This measures the total time taken to complete an order, right from the initiation of production to the delivery.

RevOps unifies the various touch points in the buyer journey to reduce the total cycle time. It creates a single source of truth by streamlining data across CRM, ERP, and production systems.

It also plays a crucial role in aligning sales & production, as a result of which, harmonization happens between production and delivery estimates. Thus, the total cycle time goes down.

Streamlining data for a lower changeover time

Keeping the changeover time in check is key for maintaining efficiency for manufacturers. RevOps concepts can be implemented to centralize data across platforms and analyze KPIs such as downtime and equipment efficiency. Production volumes can be aligned with customer demand and preferences. 

Furthermore, RevOps works towards streamlining communication between functions and creating effective workflows.

Put together, these RevOps activities can optimize changeover time by a great margin.

Using deeper insights to maximize customer retention rate

What keeps customers coming back for more purchases is cohesive communication and a deep understanding of a customer’s requirements.

RevOps helps streamline the sales & marketing team’s communication pre-sale, leaving a good initial impression on prospects.

It also facilitates feedback loops, swift issue resolution, consistent messaging across all channels, and personalized email campaigns to build healthy relationships. This is vital since  70% of customers expect every representative they contact to know their purchase and issue history.

Identifying customer history, engagement, and buying patterns through CRM tools can enable users for more targeted support as well as marketing.

Increasing sales growth rate for achieving revenue goals

This KPI tracks progress toward your end goal, i.e. selling.

RevOps centralizes data hubs, improves lead management, and streamlines workflows to optimize your sales operations.

Salesforce CRM is a popular choice for improving sales as it significantly improves time and cost efficiency. It even offers personalized CRM solutions based on your industry, role, company size, and goals.

Some other ways to achieve a healthy sales growth rate are prompt lead qualification, hot leads prioritization, sales outreach contextualization, and sales process automation.

Here’s an e-book to learn more about it:

Optimizing inventory management for a balanced inventory turnover ratio

Inventory turnover ratio is the total number of times a company’s inventory has been sold and replaced within a period. Regular tracking of these KPIs helps eliminate inefficiencies promptly.

With sales & operations alignment, efficient stock management, and automated replenishment using real-time sales data, RevOps optimizes the inventory turnover ratio.

With optimized product lifecycle management, you get a picture of what products are slow movers and need additional sales focus. Also, this way you can prioritize inventory that caters the best to the prevailing market demands.

Leveraging predictive analytics for improved forecasting

What if you could predict the seasonal demand shifts and upcoming demand generation? You could prevent overstocking, overproduction, and misuse of resources. This is achievable through predictive analytics powered by machine learning.

For this, RevOps helps centralize data and unify systems like CRM, ERP, and SCM to tear down data silos. And with this repository of data resources, you can leverage collaborative forecasting by bringing together stakeholders and cross-functional team leaders.

Apart from this, Deskera recommends using predictive analytics for preventive maintenance. In this, historical data, sensor readings, and other information are assimilated to predict performance degradation and equipment failures.

RevOps also combines forecasting with sustainability. A manufacturing plant can track and predict the waste generated by each machine based on its usage levels, service time, and efficiency. The inefficient machine can be phased out for cost savings and pollution control.

Conclusion

In a manufacturing business, aligning your business goals and KPIs with your actual output and working strategy is of utmost importance. Revenue operations bridge this gap by centralizing, streamlining, and visualizing important data that helps you make informed decisions. By integrating systems and functions across the board, you’d be able to see an improvement in no time. 

RevX has helped over 250 clients optimize their business processes and achieve their revenue goals. Our experts would be glad to help you take your business to the next level.