A chief revenue officer keeps the revenues of the company streamlined and implements plans to get the most revenue. Learn all about the CRO in this blog.
What keeps a business going? Its revenue, of course. Growth is the number one requirement for most companies in the changing economic landscape. And to drive revenue of scale, companies need to hire a Chief Revenue Officer (CRO). While sales executives always have a seat at the C-Suite, it is required the Customer Success and Revenue executives also have a seat. To ensure revenue performance increases steadily, there is the emergence of a Chief Revenue Officer (CRO) as a new C-level appointment. The SaaS sector specially needs a specialised individual dedicated to focusing on revenue and prioritising expanding revenue. Let us look into everything about the CRO role, responsibilities, need for a CRO, when to hire a chief revenue officer and more.
A chief revenue officer is one in charge of all the revenue streams of the company. These revenue officers are accountable for all revenue growth. They also align all revenue-generating activities and streamline them for better output. If any department generates revenue, it is the CRO who should unify the streams and optimise them for growth. As per the Revenue Marketing Report 2021, nearly 80 percent of companies say that their executive team encourages alignment of sales and marketing teams. This alignment is caused by a customer-centric attitude and a CRO. With increased focus on Customer Success 2.0, a CRO part is needed in generating revenue.
The purpose of a CRO is to align company’s revenue strategy, GTM strategy, and optimise customer experience to improve revenue. They merge sales, marketing, business operations, account management, and customer success related revenue.
CRO is a senior member who is responsible for revenue generation. CRO will look at the long-term perspective and will not be enticed by small wins. Sales teams are focused on making the numbers roll in. Marketing needs to make sure the pipeline for the same is full. The CRO needs to ensure that customer’s revenue is optimised and maximised. So, the CRO looks at streamlining the revenue generation while a CMO looks at populating that marketing funnel.
How much does a chief revenue officer earn? Based on submissions made anonymously on Glassdoor, the average salary of a Chief Revenue Officer is around $238,972/year.
What Does a Chief Revenue Officer Do? CROs look to transform the sales and marketing division of companies via a strategy. The responsibilities include-
The Key Performance Indicators that CROs need to focus on include-
CROs need to deliver profitable growth in a hyper-fast environment. That brings us to our next segment- What are the top 5 must-have traits in a CRO?
A chief revenue officer is one who aligns marketing messaging with revenue generation and customer success to increase revenue. It creates consistent messaging that can be useful for prospects and customers. A CRO helps create environment that prospects and customers can experience. So, in a SaaS company where subscriptions are the key it is important to have a CRO who will improve the revenue.
When your company feels they need to align sales and growth- you need to hire a CRO. Some key indicators that suggest when to hire a CRO are –
Usually, the CMO under the supervision of the company implements a revenue streamlining strategy. In case that is not done well, you need to hire a CRO. CROs will analyse how your company works and see what can be offered by focussing on the positives.
A good CRO will look to ensure maximum revenue and good processes are in place.
By streamlining revenue streams, you can achieve customer success. The best way CROs can achieve revenue alignment is by rallying the company over customer experience. Companies need to have smart plans that will focus on increasing the customer lifetime value. This CLV is a key metric that impacts marketing, sales, product, and customer success teams. A chief revenue officer needs to handle this CLV by maximising it to increase revenue.17
A good CRO helps maximise revenue and is a necessary leader who can help your business. Harnessing the power of your sales, marketing, and CS teams to the right extent is the responsibility of the CRO. Hiring a team player will help implement a revenue-generating plan for company and customer success.
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