Five Strategies for CRO Success
Within the past few years, a new role has gained prominence in the world of private equity-backed companies—the Chief Revenue Officer (CRO). Unlike traditional organizational structures where various groups are responsible for revenue, the CRO takes responsibility for the oversight and coordination of all revenue-related functions.
The CRO is hired to be a change agent and the expectations are high. Because of this, developing and implementing revenue strategies, optimizing sales and marketing efforts, and using data insights to improve performance are all priorities. In our work with middle-market companies, Craig Group has identified a number of ways a CRO can begin to drive revenue growth in the first year. Here are five.
1. LAY THE GROUNDWORK FOR FUTURE GROWTH
The CRO begins by identifying key markets and customer segments and creating a roadmap to achieve targets. If the sales and marketing teams are not in sync, now is the time to address it. Another priority for the CRO is the assessment of enablement tools and management processes.
Is the company using the right tools to track and analyze data? The right CRM systems, marketing automation platforms, and business intelligence tools will enable data-based decision making, both to define a revenue growth strategy and to optimize it. Having the knowledge and skills to use tools effectively is equally important. A CRO may need to get staff trained or seek external expertise.
Although it may require several months to see the results of these changes, the CRO can emphasize their responsibility in facilitating alignment and establishing a unified strategy by pointing all stakeholders towards a common goal.
2. LEVERAGE DATA ANALYTICS TO FIX PROBLEMS AND DRIVE OVERALL STRATEGY
In today’s data-driven landscape, successful CROs use data analytics – rather than relying on subjective opinions or assumptions – to make informed decisions. Starting with the sales funnel, the CRO can identify areas for improvement. Is the company competing? Is it closing deals? Depending on where any issue is, that’s where to make adjustments first.
If awareness is strong and there are many leads but low conversion rates, then the process and people need attention. If a company is closing deals but still isn’t profitable because the pricing is not right, then the CRO needs to address that.
Any previous or ongoing digital marketing efforts will also provide insight into the effectiveness of tactics. Metrics such as click-through rates, conversion rates, and customer engagement are available. As the B2B sales process is more complex, involving lead generation, multiple sales interactions, and longer sales cycles, it may take 90 to 100 days for a CRO to fully grasp all the data.
All of the above helps inform a comprehensive go-to-market strategy that effectively targets the desired audience, drives sales, and establishes a prominent market position.
3. ALIGN SALES, MARKETING, AND THE CUSTOMER EXPERIENCE
A successful GTM plan is also a result of the collaboration between the sales and marketing teams. While marketing focuses on lead generation, it is the sales team that can assess and determine if the generated leads are of the desired quality and suitability.
Facilitate open communication and knowledge sharing, allowing each team to leverage their strengths and insights. This entails conducting joint meetings, utilizing a shared platform for data and insights, and coordinating strategies.
The alignment of goals set by the CRO also plays a crucial role. By establishing clear metrics and key performance indicators (KPIs), the CRO enables teams to track their progress and measure their collective performance against these goals. Regular performance evaluations and feedback sessions will help identify areas for improvement.
Through the synchronization of these essential functions, CROs can enhance customer acquisition, retention, and the promotion of additional offerings, leading to higher revenue.
4. EXECUTE AND ITERATE ON REPEAT
From here, the CRO transitions to execution and continuous improvement. With a strong emphasis on tactical implementation, the focus is on deploying the strategy while closely monitoring the outcomes.
Timely tracking and analysis allows a CRO to stay responsive to changing market dynamics, customer preferences, and emerging opportunities.
By relying on concrete data instead of abstract ideas, CROs can quickly assess whether or not a strategy is working.
If certain tactics or approaches prove to be ineffective or fail to deliver the expected results, the CRO will need to initiate the necessary iterations to the execution. Changes in people, budgets, and resource allocation may be necessary to meet desired goals.
5. EMBRACE INNOVATION AND ADAPTABILITY
Five years ago, digital marketing wasn’t a big part of the B2B landscape, but now it’s an integral part of the customer journey. Today, artificial intelligence and machine learning technologies are further transforming the landscape by enabling automation, predictive analytics, and personalization in marketing content. Account-based digital marketing is a newer approach to target specific high-value accounts to enhance engagement and drive higher conversion rates.
To adapt and thrive in a landscape that continues to evolve, CROs will foster a culture of experimentation and continuous improvement. By embracing any new technologies and approaches and actively seeking customer feedback, CROs can stay ahead of the competition, unlock new revenue streams, and ensure the long-term sustainability of their business.
With expertise, insight, and leadership, a CRO can implement the right strategies to boost revenue and establish a solid foundation for sustained growth. It’s the CRO who has both the bird’s eye view and the authority to pivot. By staying proactive and adaptable, they should continue to use data to drive decision making and to capitalize on new opportunities.
For additional expertise and guidance in driving revenue growth and effective go-to-market strategies, contact Craig Group.