Sales should be so simple.
Step 1: Find people with a specific business challenge.
Step 2: Reach out to them, or lure them in via inbound marketing, and explain how your product provides the solution.
Step 3: PROFIT!!!
But with an increasingly skeptical audience, lengthening sales cycles, and the rise of ever-more complex sales technology and tools, it’s anything but easy.
Indeed, Sales Insights Lab research found that three-fifths of salespeople believe selling is harder or much harder than it was five years ago.
So it’s no surprise that only one in four reps exceeded their quota in 2021.
That’s where sales operations comes in.
The sales ops team gives front-line salespeople the best chance of success by providing data, insights, and much more.
In this guide, we’ll explain what sales operations is, why you need it, and how to implement sales ops into your business.
What is sales operations?
Sales operations is a business unit that helps organizations achieve their sales objectives by enabling front-line sales representatives to sell faster and smarter.
With a broad focus covering the top and bottom lines of business performance, it’s become a key cog in a well-oiled sales machine.
By employing a range of tactics — from implementing training programs to rolling out new software tools — sales ops leaders give sales teams the bandwidth to concentrate on the important task of selling.
That’s important, with the average salesperson spending nearly two-thirds of their time on non-revenue-generating activities.
But despite the wealth of tactics and methods they might employ, sales ops isn’t about throwing a million darts at a board and seeing what sticks.
Perhaps more than anything, it’s about bringing a logical, consistent system to sales, covering everything from top-level sales strategy to the training and tech stack to tie it all together.
Why is sales operations important?
You might have the world’s greatest sales reps.
The type of people who could sell salty water to an octopus.
But if they don’t have the tools and processes to focus on what they’re best at, they’re not going to generate the necessary revenue to drive your business forward.
Asking front-line sales teams to do all that stuff themselves is a poor use of a vital (and limited) resource.
It’d be like paying Tom Brady to plan the Bucs’ travel arrangements and accommodation.
The sales operations team ensures that your sales reps:
- Spend the bulk of their time where it’s most needed.
- Go into every sales interaction armed with all the data, tools, and content they require to build stronger relationships and move leads down the sales funnel.
Evidence suggests sales ops folk are pretty damn good at what they do.
According to Salesforce’s State of Sales report, 89% of salespeople believe sales ops plays a crucial role in business growth.
So it’s no surprise to see their role expanding, with more than half of sales ops professionals reporting increased involvement in sales strategy planning, sales performance analysis, sales strategy coordination, and sales technology management.
What are the roles and responsibilities of the sales ops team?
All sales operations share a unified goal: to help front-line reps sell more efficiently and effectively.
The methods and strategies they employ to achieve that goal will naturally vary from one organization to another, based on various factors, from the size of its sales team to its digital maturity and the territories or markets it serves. But they generally fall into one of four categories:
Let’s take a look at how the sales ops team’s roles and responsibilities relate to each of those categories:
Operations is obviously a key responsibility of the sales operations team — it’s literally in the name.
This is very much a case of taking on the admin and ops-related tasks that would otherwise have to be completed by the front-line sales team, distracting them from their primary focus.
By analyzing data and optimizing processes, sales ops professionals are well placed to lead the hiring, onboarding, and continued development of sales reps.
Not only that, but once reps are established in their role, it’s up to sales operations to ensure they have the knowledge and skills to hit their targets.
Operations-based sales ops tasks might include:
- Hiring and onboarding front-line sales staff
- Developing sales training programs
- Providing market intelligence
- Drawing up contracts and service-level agreements
This is the real meat and drink of sales ops: implementing workflows and removing inefficiencies to drive sales performance.
Every organization will have its own performance-related goals and challenges, but typical sales ops responsibilities at this stage could include:
- Creating and optimizing sales compensation and incentive plans.
- Identifying key sales metrics and tracking performance.
- Implementing new lead management methodologies and systems.
- Communicating and updating sales best practices.
Strategy is a major focus for sales operations teams.
Having defined top-level sales objectives, they need to develop a sales strategy — or multiple strategies — that enable the sales function to achieve those goals.
Strategic sales ops tasks might include:
- Analyzing sales data
- Planning sales territories
- Optimizing the sales process
- Evaluating new sales technologies
- Completing sales forecasts
- Setting goals and KPIs
It’s no secret that sales has become increasingly techy.
Research from GetAccept and Pavilion found that 97% of sales teams use at least one digital selling tool, with two-thirds using between four and 10 tools in their sales tech stacks.
But using lots of different sales tools is no guarantee of success.
Your tech stack might offer unparalleled access to data and insights, but figuring out how to use all those different platforms takes time. And, as we’ve already discussed, a sales rep’s time is a precious commodity.
With that in mind, it’s up to sales ops to identify when a new tool is required, decide which platform best fits the mold, and manage the entire sales stack to remove the burden on front-line reps.
Combined, that equates to a whole lot of responsibilities, including:
- Automating sales tasks.
- Implementing and customizing a CRM.
- Identifying gaps in the existing tech stack and assessing suitable options.
- Ensuring individual apps and tools are “playing nice” together.
Sales operations vs. sales enablement: What’s the difference?
At this point, you might be thinking:
“All this stuff sounds great. But isn’t it basically the same as sales enablement?”
Sure, there’s some overlap. Both play a part in improving productivity, driving efficiencies, and growing revenue.
But sales operations has a far more wide-ranging remit than sales enablement, to the extent that it’s more appropriate to think of sales enablement as a single element of sales ops.
Sales operations pros take a strategic view, digging into the data to identify areas for improvement. Once they’ve decided on an action, sales enablement helps to deliver it.
For instance, let’s say half your sales-qualified leads sign up for a live product demo, but only one in 10 people who watch a demo end up becoming paying customers.
Seems like there’s something inefficient going on there, right?
Sales ops might determine that reps aren’t effectively tailoring demos to the needs of individual buyers.
They’d hand their findings over to sales enablement, who’d use it to create a new training program on how to prepare personalized product demos.
That’s an ideal scenario, but the relationship between sales ops and sales enablement isn’t always so smooth.
With many potential crossovers, it’s important to divide tasks and responsibilities between the two teams, along with individual goals and metrics.
It’s also a smart play to have both teams get together regularly to discuss their current priorities, thereby helping them identify potential friction points before they arise.
Sales operations team structure: What should it look like?
By now, it should be clear that for a sales operations team to thrive, it must have broad competencies.
It requires the strategic nous to plan and implement a big-picture vision and goals, coupled with the tactical chops to bring them to life.
For example, sales process optimization is a common sales ops activity.
Getting it right involves plenty of high-level thinking to identify how your sales process should work in an ideal world to deliver the best possible results. But it also needs tactical and technical skills to implement the processes and tools required to make it all happen.
Goal-setting is another good example. Strategic thinking will help your sales ops function choose the right metrics to achieve your revenue goals, while a tactical focus will help you build the automations and analyze the data to track performance.
As such, hiring for your sales ops team means searching for people capable of doing both or strong in either the tactical or strategic sides.
Beyond those broad competencies, your sales operations function should also have a bunch of more granular skills across a handful of different roles.
A successful sales ops team structure might look like this:
Sales operations representative
The most junior position in the sales ops team, the sales operations representative is responsible for things like managing the sales tech stack and generating reports.
Typically with up to two years of experience in a similar role, they need excellent attention to detail, strong technical skills, and at least some knowledge of sales and marketing automation.
Sales operations analyst
Moving up the experience scale, a sales operations analyst generally has 3+ years of experience in a sales ops role.
Involved in optimizing the sales process through data organization and analysis, they must be capable of working across multiple departments, including marketing, analytics, and product.
The best sales operations analysts can use Excel and business intelligence tools at an advanced level and must be strong problem-solvers who can work independently and proactively.
Happiest when up to their elbows in data, they should be totally comfortable with data modeling, mining, and management.
Sales operations manager
As their job title suggests, the sales operations manager supervises a team of sales ops specialists (i.e., sales operations representatives and analysts).
That means leadership skills gleaned over multiple years on sales ops teams are necessary.
The sales ops manager is ultimately responsible for building a friction-free sales process that’s perfectly formulated to achieve the organization’s revenue goals.
With a deep understanding of sales methodologies, the sales operations manager must know sales inside and out — from how sales processes work to what support reps need to hit their quota.
They’ll also need strong data analytics and modeling skills.
VP/director of sales operations
The sales operations director is a strategic visionary capable of defining the sales team’s vision and key objectives.
But it’s not all strategy. In keeping with the core competencies of the sales ops team, they must also possess the tactical (and technical) skills to build complex financial models, customize a CRM, and use sales automation software.
They work closely with the senior leadership team, reporting on progress toward optimizing the sales funnel and driving sales productivity. That requires superb communication and presentation skills.
With such a demanding job specification, the director of sales ops will typically have 10+ years of sales operations, enablement experience, and several leadership positions.
7 sales operations KPIs & metrics to track
Setting up a sales operations program takes time and effort — not to mention cold, hard cash.
So how can you tell if it’s all been worthwhile?
Simple: by identifying and tracking key performance indicators.
The “right” metrics will vary from one organization to another. After all, sales ops is about supporting and empowering the sales function to be its best self, and no two sales teams are exactly alike.
However, these are some of the most commonly tracked sales operations KPIs and metrics:
1. Average sales cycle length
What is it?
The average time from the first moment your sales team makes contact with a lead to the point when the deal is closed.
Why does it matter?
This is a key sales efficiency metric.
Generally speaking, speed is good.
The faster you move leads through the pipeline and turn them into paying customers, the sooner your reps will be able to turn their attention to the next potential customer.
However, it’s not the full story. You could slash your sales cycle length by cutting your prices, but all those extra deals might not generate any more revenue.
Rather than seeking quick wins, your best bet is to focus on process.
Can you smoothen out any speed bumps diverting reps from speaking to leads? If so, you should see the length of your sales cycle reduce over time.
2. Time spent selling
What is it?
Simply put, this is the amount of time reps spend in potential revenue-generating activities — from face-to-face meetings to phone calls to email outreach to social selling — rather than administrative tasks, like updating the CRM and attending training sessions.
There are various ways to track this metric.
Arguably the easiest — and most basic — approach is to ask your reps. They should know better than anyone how much time they spend on admin.
And if they feel the workload is reducing over time, that’s a fair sign that your sales operations program is working as intended.
Of course, this isn’t the most watertight strategy. Reps might have a vested interest in overstating how much time they spend on non-revenue-generating tasks; if they’re missing quota, it’s easy to blame it all on the volume of admin they have to complete.
So if you’re looking for a more sophisticated approach, you’ll want to track activity levels, such as:
- Daily call volumes
- Daily email volumes
- Daily/weekly meeting volumes
While this still isn’t an exact science, if those numbers are going up, it’s a good indication that your efficiency and productivity efforts have the desired effect.
Why does it matter?
Say it takes, on average, 30 hours of a sales rep’s time to get a deal across the line.
Wouldn’t you prefer them to complete those 30 hours in a fortnight rather than a month?
In other words, the more time your salespeople spend selling, the shorter your sales cycle length will be, and the more deals you can close in a given period.
3. Close rate
What is it?
The number of deals you close, divided by the number of potential buyers you pitch to.
Again, this is a big metric.
It doesn’t matter how adequate the rest of your sales cycle is if your reps just can’t get the deal across the line.
Conversely, a close rate that’s too good to be true could indicate that your pricing strategy isn’t quite right. Better to close 10 deals at $10,000 a month than 50 at $1,000 a month.
Why does it matter?
The more deals you close, the more revenue you generate. That’s the whole reason you built a sales ops team in the first place.
More specifically, the close rate feeds into pretty much every element of sales operations.
We’ve already discussed pricing, but it also affects everything from the length of your sales process to how you qualify and score leads.
4. Quota achievement rate
What is it?
The proportion of reps who hit or surpassed their quota during a set period of time.
You’d like to think that would be achievable for every one of your reps, but according to research from Sales Insight Lab, just one in four exceeded their quota in 2021.
Why does it matter?
As with all the other metrics on this list, there’s more to the quota achievement rate than meets the eye.
If 80% of your reps miss quota, your snap judgment might be: we need new reps.
But there could be a whole lot more going on here.
Maybe you haven’t implemented the right training programs. Maybe your sales territories haven’t been divided fairly. Perhaps you’re running the wrong sales incentives.
So measuring the quota achievement rate once won’t tell you a whole lot. But if you track it regularly and see more reps hitting quota, that’s a fantastic sign your sales enablement program is working.
5. Customer acquisition cost
What is it?
The costs of all your sales and marketing activity, divided by the number of deals you closed over a given period.
Customer acquisition cost is an excellent measure of sales operations success because it’s all about efficiency.
Whether directly or indirectly, the actions performed by your sales ops team should naturally translate to spending less time closing each deal.
Which, in turn, should mean a lower CAC.
Why does it matter?
The less it costs to acquire a customer, the sooner that account will become profitable.
In other words, the lower your CAC, the more money you make from each account without having to increase your retention or drive up your average deal size.
Customer acquisition cost becomes even more important as your company scales.
It’s still a big deal if you’re closing 10 deals a month — but if you’re closing 100, or 1,000, even a tiny decrease in CAC can have a massive impact on your bottom line.
6. Average deal size
What is it?
Like it sounds, this is the average monetary value of deals you close.
Calculate average deal size by dividing the total revenue generated from new customers in a given time period, then dividing it by the number of deals closed in that period.
Why does it matter?
Improving your average deal size is a (comparatively) simple way to drive more revenue without actually selling to more people.
It might only take an hour or two to convince a buyer to purchase an additional, complementary product, or upgrade to a higher product tier.
In contrast, earning extra revenue from a brand new prospect might take weeks or months.
7. Sales forecast accuracy
What is it?
Sales forecast accuracy measures the difference between your previous forecasts and the real-world results you delivered.
Again, there are various ways to calculate it, but (in our view) the best is the percentage error method. This involves:
- Subtracting forecast revenue from actual revenue
- Dividing the result by actual revenue
- Multiplying the result by 100
So if you forecasted $100,000 in revenue but only achieved $90,000, your percentage error would be 10%.
Why does it matter?
Accurate sales forecasts are a godsend for strategic decision-makers.
If you can say with confidence that you’ll deliver $100,000 in revenue over the next quarter, you can buy new software tools and equipment, grow your team, invest in your product… the list goes on.
On the other hand, if your forecasts are about as accurate as reading tea leaves or hanging a piece of seaweed outside your door to predict the weather, planning for the future becomes a whole lot harder.
5 immediate priorities for your sales operations manager
Presumably, your sales ops team is in the early stage (or it might still be a figment of your imagination).
You know what you want to achieve — a more efficient sales process, a more productive sales team, more deals, and revenue — but you don’t know exactly how to get there.
Tackling these five key priorities will help you head in the right direction from day one:
1. Set up analytics
A quick “CTRL + F” (or CMD + F, if you are on Mac) shows that we’ve used the word “data” 22 times in this article.
That’s not because we’re unimaginative; it’s because data is absolutely critical to sales ops success.
Without enough (of the right) data, your sales operations team can’t make the decisions required to level up your sales process and drive efficiencies.
For that reason, it makes sense to hand responsibility for analytics setup to your sales ops manager.
Part of this process will be about figuring out the questions they want to answer, like:
- What does it cost us to acquire a new customer?
- How long does it take to get the average deal across the line?
- How many leads turn into product demos, and how many demos turn into sales?
- Whereabouts in the sales funnel do we see the most leakage?
- Which activities eat into our reps’ time spent selling?
While setting up analytics is an immediate priority, gathering the data to answer those questions and make meaningful changes to your sales process is a long-term play.
Don’t expect results overnight.
2. Figure out how to assign leads
In the olden days, almost every sales organization had a field sales team.
Territories were assigned to each rep based on geographic area — Sergio, you take the north and west; Pam, you cover the south and east.
That’s still the case for some sales teams, but for many, sales technology has eradicated the need for feet on the ground.
This means it no longer makes sense to assign leads by slicing and dicing a map.
There’s no right way to figure out which reps get which leads.
You might do it based on strengths. For instance, one rep might enjoy dealing with startups, while another prefers speaking to enterprise-level buyers.
Or you could do it by industry, pain point, channel, product type, or any other ways.
Fact is, your sales operations manager needs to find a fair way to apportion leads so that every rep is well placed to hit quota and leverage their strengths.
3. Build a commission structure
At some point, you’ll need to hire some more reps (more on this in the next section).
But before you get there, you must figure out your remuneration plans.
Commission isn’t the only way to motivate a sales team.
In fact, research shows that a sense of purpose and the belief that they’re contributing to a greater cause has a bigger impact on a rep’s effort and performance than purely financial rewards.
However, that doesn’t mean you can overlook commission. People have to eat.
Your commission structure should be based on rewarding the right behaviors — and your sales ops manager is best placed to understand what those behaviors look like.
4. Tear up your sales process
Okay, “tear up” sounds dramatic.
But chances are your current process just isn’t fit for purpose.
For many organizations, the sales process develops organically, with little or no prior planning.
That might work fine for small businesses with tiny sales teams, but once you start to scale, a consistent, clearly defined process is absolutely critical.
No judgment from us, though: sales ops is about solutions, not finger-pointing.
It shouldn’t take long for your sales operations manager to identify gaps in your sales process that can be patched up immediately.
More substantial gains will require data to be gathered and scrutinized over weeks or months to weed out inefficiencies one by one.
5. Customize your CRM
Much like your sales process, there’s a good chance your CRM isn’t exactly operating at optimum levels.
You were probably in a hurry to start using it, which means you didn’t spend a ton of time figuring out how best to use it.
Don’t worry: your sales operations team can identify flaws in your current approach and make the necessary changes to ensure your reps get the maximum possible benefit from your CRM.
The more you customize it to the needs of your business, the more useful it will be.
Not only that, but it can drive your sales productivity through the roof.
7 best practices to build a high-performing sales ops team
Your sales operations function is up and running.
You’ve tackled the immediate priorities and positioned the team for success.
So where do you go next?
Follow these best practices to grow and strengthen your sales ops team, giving them the best chance of doing what they’re here to do: empowering your front-line reps to generate more revenue.
1. Define sales ops goals and responsibilities
Sales ops is a wide-ranging function.
There could be any number of long-term priorities.
But the areas your sales operations director chooses to focus on might not align with the senior leadership team’s objectives.
So the first step here is to set clear goals and responsibilities for your sales ops team.
Another key benefit to this: it reduces the chances of friction between sales ops and sales enablement, helping them work together to support front-line sales.
2. Choose relevant sales operations KPIs
We’ve already listed some of the most common sales ops KPIs.
To a greater or lesser extent, you’ll likely want to pay attention to all of them.
But the most important KPIs will naturally depend on the overarching mission of your sales ops team — which, in turn, will depend on the immediate and longer-term priorities of your business.
Struggling with shaky sales forecasts? Focus on forecast accuracy.
Dealing with poor cash flow? Reducing your customer acquisition cost could help.
Losing momentum through the sales cycle? Concentrate on shortening the cycle and increasing the time spent selling.
3. Build bridges between sales ops and front-line reps
Your sales ops program will be a whole lot more successful with buy-in from your sales reps.
One of the best ways to build stronger relationships between the two functions is to encourage sales ops to spend time shadowing reps.
That way, they get a clearer idea of the practical challenges front-line salespeople face, which can result in some “quick wins” around efficiency and productivity.
For instance, do reps spend a lot of time looking up and typing phone numbers? Investing in an autodialer is a simple solution that can be implemented immediately.
Additionally, the more time your reps and sales ops folk spend together, the more common ground they’ll find, and the better they’ll work together.
(Or at least that’s the idea.)
4. Establish a single “source of truth” around processes
The phrase “sales process” makes it sound like a single, consistent “thing”.
Like every rep follows the exact same set of actions with every lead they speak to.
In reality, that’s simply not the case for a lot of sales organizations.
Salespeople are competitive, and it’s common for each rep to develop their formula.
That might work for them, but it’s rarely in the best interests of your organization.
Task your sales ops team with creating a single “source of truth” around common sales tasks and group them together in a central knowledge hub.
This should become a key element of your onboarding process when hiring new reps.
5. Identify training needs
In an ideal world, what would your sales team look like?
What hard and soft skills would help them communicate more effectively with prospects and pitch your product?
Draw up a list of “dream” skills and characteristics, then map those against the actual skills and characteristics possessed by your reps.
Any areas that they’re lacking are an obvious opportunity for training.
Beyond this, there’s a strong likelihood that your sales ops team will want to implement new processes and software tools.
Again, your reps will require training to ensure they’re following those processes correctly and making the best possible use of the new tools at their disposal.
6. Plan hiring and onboarding
Back to that dream list of sales skills and characteristics…
Training will help fill some of those skills gaps.
But in some instances, your only option will be to bring in external talent.
Of course, that’s not the only reason you might need to consider hiring.
If you’re scaling up the sales function, you’ll need more resources — which typically means hiring more reps.
Before you go to market with a vacancy, build out your onboarding process, taking into account all the training a new rep will require to get up to speed.
7. Roll out sales automation technology (sparingly)
According to McKinsey & Company, about one in three sales-related activities can be automated.
Imagine how many resources you could unlock by freeing your front-line reps from all those automatable tasks?
No wonder, then, that sales automation adopters consistently report:
- Increases in customer-facing time
- Higher customer satisfaction
- Efficiency improvements of 10% – 15%
- Sales uplift potential of up to 10%
In short, any activity that can be automated should be automated.
Not only will it increase your reps’ time spent selling, but it’ll make their lives a whole lot more enjoyable by stripping out all that tedious busywork.
However, it’s important to note that more automation =/= more tools.
Ideally, you’ll find one or two tools capable of automating everything.
If your reps need to navigate a dozen different platforms to do their job, you risk losing all the efficiency benefits of automation.
In fact, they might spend more time learning and using all those platforms than they would have spent just doing the task themselves.
5 must-have software tools for sales operations teams
From automating repetitive, labor-intensive sales tasks to gathering data and visualizing sales territories, software plays a big part in the life of a sales operations team.
But, as we’ve already noted, too many tools is a bad thing, so it pays to be selective.
With that in mind, here’s our pick of five must-use sales ops software tools:
- What does it do? Sales and marketing automation
- What does it cost? From $49 per month; offers a 14-day free trial
It’s the only marketing automation solution that integrates natively with the apps your sales reps use day in, day out.
Unlock the full potential of HubSpot’s free CRM by building highly personalized user journeys in Encharge, and unify your sales and marketing operations through bi-directional integration with Salesforce.
- What does it do? Sales forecasting and analytics
- What does it cost? Custom pricing
InsightSquared is a powerful sales forecasting and analytics platform that ensures your sales ops folk have all the data they need to make smarter strategic decisions.
Sales funnels can be visualized by company, product line, time period, and individual rep, helping you track performance and identify trends to drive sales efficiencies.
Best of all, it brings together data from all your different sources, allowing sales ops to review the entire pipeline across any dimension from a single platform.
- What does it do? Automated CRM data entry and forecasting
- What does it cost? On request
Collective[i] positions itself as an AI-driven B2B sales platform.
Its proprietary technology captures every interaction between your sales team and prospective customers and automatically records it in your CRM — even if your reps don’t have a CRM license.
What’s more, it updates sales forecasts on a daily basis using data and external network factors, helping you make faster predictions with greater confidence.
- What does it do? Sales commission planning and tracking
- What does it cost? On request
Incentive planning is a key element of sales operations, so you need a tool that lets your sales ops team plan and track commissions.
CaptivateIQ could be that tool. It allows sales ops managers to calculate all elements of remuneration — from base salaries and commissions to bonuses and other incentives — for individual reps, and is capable of automatically calculating commissions on the fly by pulling data from any source.
- What does it do? Sales territory design
- What does it cost? From $1,495 per year; offers a free trial
Claiming to boost revenue by up to 12%, slash territory alignment administration by 50%, and drive sales effectiveness with 30% more selling time, eSpatial describes itself as a sales optimization mapping solution.
Its territory planning tools allow sales ops to create territories using advanced algorithms that quickly eliminate overlap.
Different alignment scenarios can be compared before you roll them out, helping sales operations to assign territories that are fair to your reps and give you the best chance of hitting your revenue targets.
Further reading: 11 Sales Operations Software Tools to Boost Your Sales Efficiency
Let Encharge support your sales operations strategy
Building a sales operations team from the ground up isn’t an overnight process.
From structuring the team to hiring the right talent to setting the most appropriate objectives and metrics, it’s a lot of work.
But the rewards are huge.
Greater sales productivity. Fewer blockages in the sales pipeline. More time spent selling. A higher close rate and lower acquisition costs.
All of which means more revenue.
Encharge can help you get there by joining up your entire sales and marketing stack without requiring any support from developers.
Automate your tools, streamline your sales and marketing process, and empower your reps to spend more time on high-value, revenue-generating activities. If that all sounds too good to be true, see for yourself by signing up for your 14-day free trial.
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