Chief revenue officer

A chief revenue officer (CRO)^[1] is a corporate officer (executive) responsible for all revenue generation processes in an organization. In this role, a CRO is accountable for driving better integration and alignment between all revenue-related functions, including marketing, sales, customer support, pricing, and revenue management.^[2]

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In short, a CRO is responsible for all activities that generate revenue. In most companies, the CRO is tasked with primary or shared responsibility for operations, sales, corporate development, marketing, pricing, and revenue management. Since these functions extend across multiple teams in most companies, a good CRO must maintain an excellent communication framework across the various organizational functions and share best practices among the revenue stream managers in order to maximize revenue production.

Like with any corporate officer, the performance of a CRO must be evaluated to ensure maximum return to the company and its shareholders. Performance metrics should focus on the following areas:

Sales performance: Sales strategies and tactics should aim to sell each product to the most valuable segment with a focus on generating the most revenue possible
Product creation: Micro-markets should be properly identified and segmented, with products created or defined for each
Pricing strategies: Prices for each product should correlate with each micro-market’s perceived value of that product and ensure product availability is restricted to the micro-market that generates the highest return
Pricing execution: A firm must have tools and processes for determining optimal prices that align product value with specific market segments
Advertising and promotion effectiveness: Expenditures on marketing and advertising activities must generate revenue and be analyzed and refined to isolate the activities generate the greatest ROI
Distribution effectiveness: All possible channels must be evaluated to identify the channels that provide the most effective and profitable means of distribution
Delivery: The quality of revenue generation activities should positively affect the ability of the company to maximize revenue
Customer satisfaction: Corporate communication processes should maintain a complete customer feedback loop to ensure customer satisfaction^[2]

Chief revenue officer

Roles and functions

References

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