In a disruptive economic landscape, organizations are finding that traditional methods and processes can no longer be relied on to grow revenue and positively impact customer relationships. Hence many SaaS companies especially in Silicon Valley have created the relatively new role of chief revenue officer. This has become popular across the globe and in this discussion, we focus on the exciting role of a CRO, how it has become a C-suite game-changer and why companies need to hire one.
The role of a Chief Revenue Office or CRO was always an essential part of a company but in the current context it has taken on a whole new dimension. Simply put a CRO is "responsible for the revenue impact in businesses" begins Steve Winter as he expands on the significance the position of CRO has acquired in recent times. It is essential that the CRO is not just accountable for generating revenue for the company but also responsible for integrating various functions across the board, primarily sales, marketing, CRM and anything that can maximize the returns on marketing investment. Revenue is what keeps a business going and along with growth, it is the most important requirement for a company especially in a post Covid scenario which has changed the way companies function, both externally and internally.
Is there a real need for a CRO?
An effective CRO is in a unique position to align marketing messaging, customer relations and revenue impact successfully. By keeping the messaging consistent, creating a holistic environment for potential as well as an existing client, a CRO can make a big difference especially in a SaaS company where subscriptions are key. Sales and marketing people have similar goals, and over time their roles have become somewhat aligned. An expert CRO will have a deep understanding of both channels and will ultimately be able to project a common perspective across different departments within the organization. This role has become more essential as companies recover from a Covid 19 situation that has changed the B2B dynamic and highlighted the need to configure existing sales processes and implement digital transformation, cost cutting measures and new workplace policies. While sales and marketing focus on number crunching and pipeline conversion, the CRO must ensure that customers revenue is maximised and optimised, keeping the long-term perspective in mind while not being swayed by small wins.
Over time a good Chief Revenue Officer
can become indispensible to a company.
Here's why.
The main challenges facing top management especially in SaaS companies are ensuring that marketing and sales are fully integrated. Measuring and analyzing sales and productivity from a revenue point of view. Identifying and correcting deficiencies in sales and marketing processes.
An effective CRO needs to advise the different departments on pricing, help to boost and improve the effectiveness of customer support teams, analyze overall operations- and through this create a streamlined yet holistic approach that could have a cumulative effect in terms of returns from marketing investments. A CRO who can understand the significance of inbound marketing and has enough experience across sales and marketing channels can create immense value for a business that is building long term customer relations. To fit into the role, a CRO must be a leader, a problem solver, one who can take initiative wisely, encourage the team to focus on the main goal without compromising on integrity and maturity. In fact, the role of a CRO goes beyond revenue generation. While the main purpose is revenue impact, the actual job of a CRO is extremely process driven. And the presence of an effective CRO should be evident in every step of revenue impact, from the crucial need to identify and prevent wastage to proper allocation of budgets, as well as the appropriate use of tools and human resources.
In the past, sales executives always had a seat at the C-suite table. Now, the emerging importance of the CRO role has created a new spot that is crucial to both customer relationship management and revenue impact. SaaS companies in particular need a qualified CRO who can focus on increasing revenue especially in new markets and territories. The key responsibilities of a CRO apart from building a strategy to impact the sales and marketing divisions include various other responsibilities. Broadly put they include discovering of new leads, improving customer satisfaction, increasing scope for customer satisfaction, defining new market segments along with strategies and models and optimising the company's value positioning.Apart from apprising
Apart from apprising their role in the company Key Performance Indicators that a CRO needs to focus on includes building customer lifetime value for the company, ensure that certain annual recurring revenue and expansion revenue is assured while delivering profitable growth in a disruptive hyper fast economic environment.
Apart from apprising their role in the company Key Performance Indicators that a CRO needs to focus on includes building customer lifetime value for the company, ensure that certain annual recurring revenue and expansion revenue is assured while delivering profitable growth in a disruptive hyper fast economic environment.