Companies in search of a C-suite revenue leader will hire a Chief Revenue Officer (CRO).
This role can be found in small, mid-size, and large corporations all over the globe. You may wondering, what exactly does a CRO do? Or rather, how does their role differ from other C-suite positions or even a VP of Sales, and what skills are needed to succeed in this role?
In this post, we’ll explore all things you should know about a Chief Revenue Officer so you can get a better understanding of this sales role. Whether you are an aspiring business professional looking to become a CRO or are an organization looking to hire one, we will help you understand the responsibilities, salary, and qualifications that the position entails.
What is Chief Revenue Officer (CRO)?
A Chief Revenue Officer (CRO) is a high-ranking executive in a company who is responsible for overseeing and managing all revenue-generating functions of the business. The CRO’s primary objective is to increase the company’s revenue streams by identifying and capitalizing on new revenue opportunities while optimizing existing ones.
As a marquee player in the company’s overall growth strategy, working closely with other executives and department heads to develop and implement revenue-focused initiatives becomes more important than ever. They are responsible for overseeing and managing sales, marketing, and customer success teams, as well as developing and executing pricing strategies, identifying new markets, and expanding the company’s customer base. So, needless to say, they are responsible for the most vital part of a company, which is generating money so that a business can continue to operate effectively.
Although the name suggests that a CRO is concentrated on generating and increasing revenue, they are also held accountable for hitting revenue targets set by the company’s leadership. Like sales representatives, CROs have their own quota or key performance indicators (KPIs) that they need to achieve. As the Chief Executive Officer (CEO) measures their performance by the growth and profitability of the company.
Chief Revenue Officer Job Description
To understand the CRO position further, next we will look at its job description, or rather what the role entails. The overarching theme of a CRO is to oversee all revenue-generating functions within a company, with the goal of increasing revenue streams and driving overall growth.
Some common responsibilities that you may find or want to include in a Chief Revenue Officer job description include but are not limited to the following:
- Develop and implement pricing strategies.
- Identify new market and customer segments.
- Manage sales, marketing, and customer success teams.
- Analyze metrics and data trends to strategize.
- Collaborate with executives and key stakeholders.
- Communicate effectively to drive revenue growth.
- Interview new hires.
- Set revenue strategy and hold leaders accountable.
The above list is just some commonalities shared across a myriad of industries and company sizes. All of these we will cover in the next section that highlights in-depth the duties and responsibilities of a CRO.
Chief Revenue Officer Responsibilities
Given that the Chief Revenue Officer is a part of the C-suite team, the role is a demanding one. There are a number of responsibilities and duties that come with the role, some of which we will cover below. Although, keep in mind that the exact duties for each industry and company will vary. For the sake of continuity, we will look at some of the responsibilities that are transferrable across the board.
- Create effective pricing strategies.
- Identify and generate new revenue streams.
- Maintain the integrity of sales and marketing teams.
- Set and lead revenue strategy.
The first responsibility of a CRO is to focus on developing and implementing pricing strategies for the services and products offered at their company. The goal of this responsibility is to ensure accurate and effective pricing strategies are in place to maximize revenue and profitability. To achieve this, it is not uncommon for an officer to engage in market research and analysis of key customer data to learn more about pricing trends.
A second responsibility of the CRO is overseeing the marketing department and working closely with them to identify new markets and customer segments that can generate additional revenue streams for the company. Completion of this duty may consist of developing new products or services, expanding into new geographic regions, or targeting specific customer niches that may have been previously untapped.
Thirdly, another major responsibility of this position is the management of sales, marketing, and customer success teams, so as to ensure that each of these departments is aligned with each other to meet the overall revenue goals of the company. To do so, a CRO may have to engage in setting performance targets, meet with HR and department managers to develop training programs, and provide overarching guidance and support throughout the company.
Lastly, a CRO is expected to collaborate with the finance department or Chief Finance Officer (CFO). Communication between these two individuals is key to analyzing data and metrics to identify pertinent trends and opportunities for revenue growth. Working with the CFO and their teams will allow for the accurate development of revenue forecasts, enable a comprehensive understanding of the company’s budget, and allow the CRO to learn about customer acquisition costs (CAC), customer lifetime value (CLV), and churn rates.
Skills Needed to Become a Chief Revenue Officer
Becoming a successful Chief Revenue Officer (CRO) requires a unique set of skills and qualifications. While the exact requirements can vary depending on the company and industry, there are some common skills that most CROs possess.
To succeed as a Chief Revenue Officer, individuals need to possess a wide range of skills, including strategic thinking, analytical abilities, strong leadership, and excellent communication skills. They must be adept at identifying new opportunities for revenue growth, developing and executing strategies, and managing teams to achieve revenue goals. In addition to those previously listed, the list below offers additional detail as to what skills an effective CRO will need to possess to succeed in the role.
- Understand business strategy.
- Manage revenue and finances.
- Innovate to develop new products.
- Identify new trends and market opportunities.
- Possess strong leadership and management skills.
- Strong expertise in Sales and Marketing.
In addition to understanding the skills needed to become a Chief Revenue Officer, a company or aspiring individual will need to learn about the position’s qualifications. Currently, many CROs hold a bachelor’s or master’s degree in business administration, marketing, or a related field. Having a master’s degree is not a necessity, but it will definitely strengthen the background of potential candidates.
Aside from having an undergraduate and/or graduate degree, a CRO must have touted experience as a sales, marketing, or customer success professional. A demonstrated background with proven success noted on the resume and support from past colleagues is an immeasurable must-have when it comes to the CRO position.
How to Become a Chief Revenue Officer
To become a Chief Revenue Officer, often takes a long career of hard work, determination, and persistence in the realm of sales, marketing, or business development. One thing to consider is that every path to the CRO role will vary across the industry. For a general idea of what the steps may look like, we have highlighted six key criteria that you may want to consider below.
- Gain Relevant Experience: Start off your career in a sales, marketing, or customer success role. Starting as an SDR, becoming an Account Executive, and moving up to sales management then becoming a VP of Sales is a traditional path. Doing so will enable an individual to gain valuable experience in understanding how to generate revenue, build relationships across an organization, and look at the basic needs of a market.
- Develop Leadership Skills: Next, those that fill a CRO position should consider taking leadership and/or management classes to develop these skills. Or perhaps, they may want to consider meeting with a mentor that can help guide and educate them about how to become an effective leader.
- Build a Network: Creating a professional network that is thorough and widespread is critical to becoming a C-suite executive. For example, it is advised to attend industry events, join professional organizations, and maintain strong relationships with colleagues and peers.
- Pursue Education and Training: While a bachelor’s degree in business administration or a related field is often sufficient for entry-level sales or marketing roles, many CROs hold advanced degrees such as a master’s in business administration (MBA) or a master’s in marketing.
- Gain Industry-Specific Experience: To be a successful CRO, it’s important to have a deep understanding of the industry in which you work, which consists of gaining experience in a specific sector or vertical and staying up-to-date on industry trends and best practices.
- Seek Out Opportunities for Growth: Finally, aspiring CROs should be proactive in seeking out new opportunities for growth and development. This may involve taking on new challenges within their current organization, seeking out mentorship or coaching, helping out with Sales Enablement, or exploring new roles or industries.
Who Reports to a Chief Revenue Officer
Being a high-level executive means that there is an increased level of responsibility when it comes to overseeing departments within a company. The type of departments that are overseen by a CRO will differ from company to company, but for a general idea, we will look at some of the areas the position will be responsible for further.
Typically, a CRO will oversee the sales, marketing, and customer success departments. Each of these departments is responsible for communicating important information that ensures that their division remains functional and succeeds on a daily basis. Additionally, aside from these departments, a CRO may have to oversee areas such as finance or operations, especially if they play a marquee role in revenue generation.
|Sales:||Reports revenue, sales metrics, number of deals closed, etc.|
|Marketing:||Communicates brand awareness, campaign performance, lead generation, and more.|
|Customer Success:||Highlights key customer complaints and praises, retains and grows customers, and reports the development of important relationships.|
What Does a Chief Revenue Officer Do Each Day?
Given that a CRO has an array of core responsibilities, their day-to-day duties are likely to remain consistent across the board.
The most important daily tasks for a CRO consist of setting revenue targets and developing strategies to achieve them. This means that they will likely collaborate with sales and marketing teams routinely to analyze new trends, track revenue accumulation, and partner with department heads to explore whether or not new growth strategies need to be developed.
In addition, another core part of their daily routine is to continue to operate as a leader. Meaning, that they will bear the responsibility of ensuring that teams are performing up to standard and that they are motivated to operate as part of a team.
Aside from these core tasks, it is not uncommon for this C-suite position to meet with customers, partners, and investors outside the company. This allows them to continue to develop relationships and explore new opportunities that may benefit the company.
- Set revenue targets.
- Operate as a leader.
- Develop new revenue strategies.
- Meet with teams and other individuals.
How to be an Effective CRO
There is no specific guide or game plan for an individual to be an effective CRO. However, there are a few key patterns that have been identified amongst industry-leading CROs that should be kept in mind.
- Focus on customer success.
- Develop revenue plans.
- Collaborate with department heads.
- Leverage data and analytics.
- Act as an inspiring leader.
Firstly, pertaining to customer success, a CRO must have a deep understanding of the customer and their needs. The goal of a CRO is to ensure that the company’s revenue growth is directly tied to the success of its customers. So, they must remain focused on developing a customer-centric strategy that aligns with their company’s overall business goals.
Next, being an effective CRO also consists of having strong revenue plans that detail how a company will achieve its target KPIs. CROs need to become proficient at developing these strategies which are to include their company’s revenue goals, target markets, sales and marketing strategies, and customer success metrics.
An effective CRO must also be able to leverage data and analytics to make data-driven decisions. Those in this position should have a deep understanding of the company’s key performance indicators (KPIs) and use this data to make informed decisions.
And lastly, the CRO needs to ensure that their personality, behavior, and actions revolve around being an inspiring leader that motivates a diverse team. They must be willing and able to create a culture of accountability, performance, and collaboration that fosters innovation and continuous improvement.
Chief Revenue Officer Salary
As a CRO, the compensation is likely to be in the hundreds of thousands, although there are many factors to consider when thinking about their total compensation.
According to the data from Glassdoor, the average salary for a Chief Revenue Officer in the United States is around $490,658 per year, which includes both base pay and other means of compensation. However, keep in mind that the average will likely fluctuate depending on the size and type of the organization, industry, experience level, location, and even company performance. Furthermore, the lower and higher ranges for CRO compensation tend to spread from $368k upwards to $672k.
When looking at what factors impact the total compensation for this type of C-suite executive, the first one is usually the size of an organization. Size and the compensation for a CRO are typically directly correlated, meaning that larger companies will pay more than smaller ones and vice versa.
Another factor to consider is the industry in which a company operates. CROs in high-growth, high-revenue industries such as technology or finance may earn higher salaries than those in less profitable sectors.
Additionally, experience is also another critical piece to the equation of industry and size when determining overall compensation. Individuals with extensive experience in sales, marketing, and revenue management are often compensated more than those who are new to the role because they have a proven track record that can bring value to a company.
One of the last things that can influence a CRO’s salary is the location of a particular company. Companies that have their headquarters in high-density or high-cost-of-living areas will likely see greater earnings potential than those residing in smaller towns.
Are You Ready For A CRO?
After seeing the salary you may be wondering if your organization is ready to hire a full time CRO. It’s possible that you have the budget and the need. However, many startups and other organizations are not ready to go full time on a Chief Revenue Officer hire. In that case, a fractional CRO could be a great fit.
Connect with us by clicking here to learn more about how a Fractional Chief Revenue Officer could work for your organization.