Following trends from the Silicon Valley, the job profile of Chief Revenue Officer (CRO) is gaining impetus in the recent times. As the role of CROs keeps growing in popularity, many companies –both startups & seasoned players are prioritizing hiring Chief Revenue Officers for carrying out a myriad of vital tasks & operations in the business environments. To have someone with the job of solely prioritizing & focusing on the company’s revenue seems to be an ideal role to the skills & experience of several CEOs in the SaaS-based industry with products & engineering background. In this article, we will explain you whether or not you need a Chief Revenue Officer (CRO) for your company.
What is a Chief Revenue Officer (CRO)?
A Chief Revenue Officer (CRO) is an individual who is concerned with the responsibility of taking charge of the overall revenue streams of your company. The chief revenue officers have the final accountability for accelerating the company’s revenue growth. This is brought about by leveraging & aligning different revenue-generating sectors in the company including Sales & Marketing, Customer Relations, Production, and various others. These officers perform the job of overseeing the respective growth departments in your organization along with the CMO & CXO officers –all reporting directly to the CRO.
In the early days of any startup organization, the CEO would be responsible for bringing about effective revenue generation. However, as the startup starts growing, it would become difficult for the CEO of the company to manage revenue generation along with other vital strategical challenges that might be essential for growth including raising fund, product development, recruitment, and others.
Why Does Your Company Need a CRO?
The role of the CRO (Chief Revenue Officer) is vital for your organization. A CRO is responsible for aligning all the respective revenue-generating departments in your organization. The alignment that is brought across different departments including Sales, Marketing, Customer Relations, and others is vital for bringing about sustainable growth. Without the presence of the same, communication between different departments breaks down & information could be interchanged. This would lead to the generation of several poor-quality leads that might not be fit for other departments.
The Chief Revenue Officer is given the job of aligning revenue generation along with establishing proper communication amongst different departments including Sales, Marketing, and Customer Relations such that all of these are working together towards maximizing revenue. This helps in the creation of joined-up communication & a consistent experience for the incoming prospects & existing customers through the journey of the buyers. This, in turn, creates an environment that is conducive to sustainable revenue growth.
When Should Your Company Hire the CRO?
As your company starts growing till it reaches a point where it turns out to be beneficial towards hiring a CRO in order to improve the overall growth & alignment, then you can consider hiring a professional CRO for your company. There could be two major indicators that suggest that you have reached the point at which your company should hire the highly qualified CRO:
- Your Company is Experiencing Misalignment: Are your company’s growth departments experiencing any kind of misalignment or imbalance in proper functioning? For instance, your Marketing department might be claiming that the Sales department is not closing enough deals with the respective leads handled by them. On the other hand, the Sales department might claim that the Marketing department is not generating good leads for ample conversion. Similarly, the Customer Relation department might claim that they are not able to retain customers because the Sales department is not closing deals at any costs.
The poor quality of the incoming leads, inability to close deals, and not being able to retain customers –all of these might hit your revenue hard. These factors can be improved by aligning the respective growth departments of your company and improving the level of communication between them. As such, this calls for hiring a skilled & well-experienced CRO in your organization.
- Company’s Growth Decisions are Made in Isolation: Is your Marketing department running campaigns that the Sales department might not be aware of? Or is your Sales department creating collateral on its own & not using the materials from the Marketing department? If these scenarios exist in your organization, then this could be equated to lost customers & missed sales opportunities because of fragmented communication between the major growth departments of your company. In the end, all of these factors could negatively impact the overall revenue of your company.
When you hire a CRO in your company, it will facilitate alignment & will help in improving collaborative decision-making between the different growth departments in your organization.
Acknowledge the importance of a CRO in your company and hire a highly skilled CRO to enhance the overall revenue generation process!