Lloyd Thompson runs a fractional integration company, VirtualDOO, where he and his team help people achieve order in their systems, their people and their operations. Sanity, not profit, is often the first thing on their clients’ minds.
Today, however, Lloyd talks with James about how to optimize business operations to make more money.
They’ll discuss the concept of revenue operations, and why operational efficiency is crucial for profitability.
They’ll explore the role of data and tools such as CRM marketing systems in rev ops.
And they’ll look at real-world examples of businesses boosting their bottom line thanks to a skilled fractional operator.
Table of contents
1. The importance of operational efficiency in business
2. Real-world applications and examples
3. The role of data and tools in operations
4. The impact of fractional operations
5. Wrapping up: key insights
The importance of operational efficiency in business
Lloyd highlights the vital role of operational efficiency in businesses. As mentioned, many seek his help not mainly for profit, but to manage overwhelming tasks and enhance scalability of their business. The right operator, however, can actually help a business make more money. Lloyd refers to the term ‘revenue operations’ or ‘rev ops’, a growing area focused on the integration of people, processes, tools, and data to maximize business opportunities.
James shares his experience as a General Sales Manager at a Mercedes-Benz dealership, illustrating the synergy between sales, marketing, and operations. Collaboration between different departments, he says, especially with data and analytics, is crucial for turning around business fortunes.
They also touch on the emergence and significance of fractional operations in the business world. James is enthused about how companies like VirtualDOO have evolved from just organizing systems to actively contributing to a business’s profitability through efficient resource allocation and operational management.
Lloyd and James agree on the necessity of operational efficiency for business success. They note that while profit is essential, the primary focus should be on streamlining operations, managing tasks effectively, and leveraging data for informed decision-making.
Real-world applications and examples
James has seen firsthand the effectiveness of operational strategies, like improved order systems, role realignment, and conflict resolution in businesses. He prompts Lloyd for stories demonstrating the impact of rev ops in real-world scenarios.
Before sharing, Lloyd mentions a checklist available on his website at virtualdoo.com/checklist, which outlines key aspects to watch for in revenue operations. This checklist serves as a guide for businesses to avoid common pitfalls in their operational strategies.
Lloyd then describes his work with a coaching business that struggled with coordination between their sales and marketing teams using the same CRM. He details how they implemented a process to enhance collaboration between these teams, leading to a doubled deal flow within six weeks, and showing the tangible benefits of rev ops.
James relates this to his past experience at General Motors Finance, where systematic processes and handovers between departments could significantly improve operational efficiency. There’s logic, he says, in having structured transitions between different phases of operation, a practice he’s seen missing in many businesses.
The role of data and tools in operations
Lloyd speaks of a performance marketing business that struggled with effectively managing leads collected from trade shows, due to inadequate systems. The solution was the implementation of a mobile CRM, allowing for immediate data capture and follow-up, which significantly improved their lead management and helped them identify profitable events.
James has his own experience with data collection at motor shows in the 90s, when paper and pen made for a very inefficient system. He’s since seen the transition to digital tools, like an iPad for point-of-sale data collection, which streamlined the process and allowed for better tracking of sales and event effectiveness.
Lloyd and James discuss the importance of having a centralized system for data collection and management. They emphasize how scattered and unorganized data handling can lead to missed opportunities and ineffective resource allocation, underscoring the need for consistency in data management.
They both agree on the significant impact of proper data management and tools in operations. The integration of CRM systems not only aids in identifying key sales leads but also helps in evaluating team performance and allocating resources more effectively.
The impact of fractional operations
Lloyd shares a recent success story of a performance marketing business that achieved significant gains for a client via advertising campaigns. The client’s recognition of the value provided led to an expanded role for the marketing team – a win, says Lloyd, but something you don’t want happening by accident.
He emphasizes the importance of having systems in place to capitalize on such opportunities. By using data effectively within a CRM, businesses can trigger conversations for additional services, analyze lost sales, understand customer departures, and tailor their offerings more precisely.
James relates this to his experience at a Mercedes-Benz dealership, where understanding the reasons behind lost sales led to strategic changes. Insights gained from data, he says, can directly influence operational decisions, such as adapting sales strategies to counter competition.
The topic highlights that fractional operations are not just about managing current tasks but also about seeking ways to enhance business profitability. Lloyd notes that their involvement with clients often spans six to eight months, depending on the business’s growth and the development of internal capabilities.
Wrapping up: key insights
James expresses admiration for Lloyd’s work and references the useful checklist available at virtualdoo.com/checklist. For businesses interested in fractional operations services, Lloyd says he can be reached at [email protected].
One key takeaway from the episode is the crucial role of a CRM system in business operations. James emphasizes, too, the added value of fractional services, which offer the collective expertise of an entire team, surpassing the limitations of hiring a single individual.
Lloyd and James share a passion for learning and problem-solving, essential in their field. They look forward to future discussions and learning opportunities in the crazy world of entrepreneurship, something you’ll hear about in episodes to come.
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