The topic of revenue operations has been extensively covered recently, not least by vendors extolling the virtues of their particular offering. But as with much of the software industry, vendors often see the market through the lens of their current product capabilities rather than what is necessarily needed. With the rise of the mixed-revenue model that includes subscription and usage pricing as well as one-time sales, combined with the growth in self-service commerce, the result is more teams within an organization being directly involved with supporting revenue generation. In response, many organizations have appointed a Chief Revenue Officer (CRO) who is responsible and accountable for all sources of revenue for an organization. And with the rise of the role of the CRO, combined with an increasing adoption of mixed-revenue models, we see this as an increasingly necessary shift. We believe that leadership will need to drive this change in approach, recognizing that this will require a shift in responsibilities and, as importantly, accountability.
Much has been written in recent years on the emergence of subscription management as a new revenue model that both vendors and buyers are embracing as the future. The benefits speak to the value of a predictable revenue stream for the vendor, but more importantly, the advantages to the customer who needs a lower initial outlay, predetermined expense over the lifetime of usage and the ability to cancel or suspend on demand.