Procore is a construction management software company making life easier for owners, contractors, and project managers. But siloed operations limited the company’s ability to grow revenue efficiently.
Procore faced three key problems, according to a report commissioned by Clari: TOPO Gartner Case Study: Procore: Adopting Revenue Operations to Support Growth, April 2022.
- Departments lacked a collaboration plan. Marketing, sales, customer success, and support functions were grouped together, but there was no operational plan for how these functions would collaborate.
- They weren’t focused enough on the customer experience. Procore had a mindset of “how do we sell?” not “how do our customers buy?”
- Processes were inefficient and inconsistent. Each operations team had its own process, creating barriers and draining resources.
To improve the efficiency of the deal flow and enhance the customer journey, the CEO created a new revenue organization, consolidating sales, marketing, customer success, and support functions under a single leader, the chief revenue officer (CRO).
One team to run revenue, organized by skill
The new CRO, in turn, created a team comprising revenue, operations, strategy, and enablement, named ROSE. ROSE was aligned by skills, not function, into five Centers of Excellence (COE).
Revenue Strategy and Planning, composed of corporate strategy and financial planning and analysis (FP&A). Their role was to define business activities and strategic initiatives surrounding revenue targets and growth.
Revenue Insights, also composed of corporate strategy and FP&A. Their role was to adopt a data-driven approach to the strategic plan and identify and connect data sources.
Enablement and Readiness, composed of product marketing. They were tasked with optimizing sales enablement strategy and design and equipping frontline sellers and managers with everything they needed.
Revenue Systems, composed of IT. Their job was to select, implement, and manage revenue-related technology.
Field Operations, composed of marketing, pre-sales, sales, and post-sales. They were tasked with gathering customer and product information, sharing it with the other COEs, and reviewing programs before launching to the field.
One process to run revenue, built in Clari
Previously, systems teams would have been tasked to identify and solve Procore’s collaboration, focus, and process problems. But the new cross-functional teams, including field operations, built their processes. Each COE started using the Clari Revenue Platform as their single, shared source of truth.
“Procore chose Clari as that single revenue system,” notes the Gartner case study. “Sellers updated and managed their deals, inspected their book of business and forecast revenue results while strategy, insights and field operations teams gained confidence in the data to manage forecasts and report on strategic revenue KPIs of the business.”
The new revenue model helped Procore identify barriers and dynamically shift resources. Field operations focused on the emerging market segment because its deals, while simpler than the larger segments, were handled the same way. Once process elements were standardized for the emerging market segment, such as billing frequency, payment terms, and price protection, the resulting changes shaved time off the process.
Having one central, trusted source of data is critical to revenue collaboration and governance, and it’s helped Procore’s COEs work together to create a repeatable, predictable revenue process.
A new growth and efficiency mindset for the whole business
Adopting this revenue model gave Procore the necessary visibility to identify barriers and shift resources. Here’s what happened as a result:
- The team processed more than 70 new deals in the emerging market, thanks to the improvements in internal efficiency, which also created a better experience for customers.
- Renewals were treated with the same rigor as net new logos.
- Daily revenue reports highlighting risky deals and crucial deal metrics made a significant positive impact on end of quarter productivity.
The ROSE team aligned productivity and improved customer experience across the whole revenue organization. This focus created a growth and efficiency mindset for the entire business. Through this strategic alignment of revenue, operations, systems, and enablement, even the systems team found ways to impact productivity and revenue by removing a single click from a process.
Want to learn how to replicate this process in your business? Read the full Procore story from Gartner.