Who ‘Owns’ Revenue In Your Business?
Phil Purcell
CRO + Above-The-Line Profitable Revenue Growth Specialist I Helping SMEs Further Monetise Their Real Value I Strengthen Revenue Control I Speaker I Interim CRO
Who ‘owns’ revenue in your business?
And are they the same person who is accountable for delivering on your profitable revenue targets?
Profitable Revenue growth is a crucial factor in driving business success. It determines the financial health and sustainability of a company, making it essential to understand who owns revenue growth and why. Worldwide, the role of the Chief Revenue Officer (CRO) is increasingly viewed as a key part in overseeing and driving revenue growth. The CRO's sole focus is revenue, regardless of the function it falls under, whether it's sales, marketing, business development, client engagement or client support.
By taking a consistent overarching view of all the factors that control and influence revenue, the CRO ensures a comprehensive and unified approach to revenue growth.
In this article, we'll explore the importance of having someone ‘own’ revenue growth in your Professional Services and aligned firms, and why a CRO is the ideal person to fulfill this critical role.
We'll delve into the strategies and tactics employed by successful CROs to optimise revenue outcomes and achieve business goals. By the end, you'll have a clear understanding of why the CRO is the linchpin for revenue success and how their expertise can revolutionise your business.
Revenue Shouldn’t Be Controlled By The Sales Or Marketing Departments
Relying solely on sales or marketing departments, as is commonly done, to control revenue in a business can be limiting. The primary focus of the 'Head of Sales' is to drive revenue by leading and managing the sales team, setting the sales targets and budgets for the team, and developing strategies to achieve them. They focus on generating leads, closing deals, and meeting sales goals.
The primary focus of the Head of Marketing by contrast is to promote the company's products or services, build brand awareness, and attract potential clients. They develop marketing strategies, manage advertising campaigns, create compelling content, and utilize various channels to reach and engage the target audience.
Sales and marketing teams each have a narrower focus on generating leads and closing deals, which means they often overlook other revenue influencers. This siloed approach leads to missed opportunities and sub-optimal outcomes. Without clear accountability, finger-pointing often replaces collaboration. With the ever-increasing complexity of the client journey, sales, and marketing may lack the vision or expertise to manage the entire revenue ecosystem.
According to Forrester...
“Companies that aligned people, processes, and technology across their sales and marketing teams achieved 36% more revenue growth and up to 28% more profitability.”
Strategic decision-making requires a more holistic view of the business, which means a dedicated ‘owner’ of revenue pays dividends and is essential to achieving predictable and profitable revenue growth.
A Dedicated ‘Owner’ Of Revenue Growth Is Crucial
Gone are the days when revenue ownership could be scattered across various departments…who should own revenue growth?
IMO… it’s the role of a CRO or Chief Revenue Officer…Whose core role is to focus on Revenue in all its many guises…
The CRO's primary responsibility and laser focus is on profitable revenue, full stop... They are looking for it in every corner and crevice. The CRO goes beyond the obvious avenues and explores both your business and your client base for untapped sources of revenue and profit.
The CRO focuses on
Their role extends beyond sales and marketing and encompasses all aspects of revenue growth and control within the business.
They are constantly brainstorming, researching, and devising strategies to create new revenue streams and opportunities. Their meticulous planning extends to maximising every single revenue opportunity, consistently optimising performance on a daily, weekly, and monthly basis.
In essence, the CRO's unwavering commitment lies in driving revenue growth and uncovering the full potential of your business.
This focus makes them the natural owner of revenue growth in a business.
The CRO is an emerging but crucial role within businesses today…and signifies a paradigm shift… towards a more holistic approach to revenue growth. This strategic role brings a laser-focused dedication to revenue generation, transcending departmental boundaries….think sales, marketing, BD, Client support…
Revenue growth is the lifeblood of any business, and the CRO plays a pivotal role in orchestrating its success.
By overseeing all revenue-related functions, the CRO continuously aligns the business towards a common revenue goal and ensures a cohesive strategy across departments.
This comprehensive ownership of revenue growth positions the CRO as a catalyst for business success.
A CRO brings focus, alignment, and accountability to revenue-generating activities, ensuring sustainable growth for the business.
Rethinking Your Approach To Revenue Growth.
Sustainable and predictable revenue growth requires an overarching view of all the things in your business that control and influence revenue… of which there are more than you think…
Having a dedicated someone ‘owning’ revenue growth and approaching revenue in a holistic way like an ecosystem in nature is the key to predictable and profitable revenue growth.
The CRO ensures that revenue is not seen as a siloed function but as an interconnected ecosystem.
A Revenue Ecosystem encompasses all revenue-driving functions within a company. From sales and marketing to service development, the life of client strategies, and client support, the CRO takes an overarching view. By understanding the interconnections and synergies between these functions, the CRO optimises revenue by identifying and leveraging various revenue influencers. It's a holistic approach that ensures no revenue opportunity goes untapped.
An Ecosystem Approach Can Power New Levels Of Performance
By considering all these revenue influencing areas the CRO identifies opportunities and eliminates inefficiencies.
“High-performing ecosystems, on average, drive 1.5 times the cost reduction, contribute 1.5 times more to annual revenue, and achieve 2.1 times the incremental revenue growth, when compared to low-performing ecosystems.”
according to EY.
This approach enables a comprehensive understanding of revenue drivers and facilitates strategic decision-making to maximize revenue potential. It also promotes cross-functional collaboration, ensuring that all departments work together towards common revenue goals.
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Revenue control is not just about increasing sales; it's about optimising every aspect of your business to maximise profitability.
Strategies For Effective Revenue Growth In Professional Services
To achieve effective revenue growth, businesses need to implement strategies aligned with the CRO's overarching revenue view.
This can include:
A Revenue Growth Plan
Create or leverage a system to help the business hit its revenue goals. This helps businesses to execute more efficiently and effectively on the company’s strategy. When fine-tuned, this system enables them to not only achieve their revenue targets but produce consistent and predictable results. Which in turn , enables the C-suite to better drive the other areas of the business that depend on revenue and profit to move forward.
Data-Driven Decision-Making:
Utilise data analysis to identify revenue drivers, customer behavior patterns, and market trends. Data-driven insights enable informed decision-making and targeted strategies.
Cross-Functional Collaboration:
Foster collaboration between sales, marketing, service development, and client support teams. Encourage open communication, shared goals, and a customer-centric approach.
Leveraging Technology:
Embrace technology and automation tools to streamline processes, enhance efficiency, and gain a competitive edge. This includes CRM systems, marketing automation platforms, analytics tools and even AI technologies..
Continuous Improvement:
Regularly assess and optimise revenue strategies based on performance metrics and customer feedback. Embrace a culture of continuous learning and adaptability to stay ahead in a dynamic business landscape.
Conclusion
In today's business landscape, revenue growth is a critical driver of success. Having a dedicated ‘owner’ of revenue, laser-focused on revenue growth is the missing link to predictable and profitable revenue growth in professional services firms.
A CRO is quite possibly the missing piece of your organisation if you're planning to grow your revenue and profit. By following these strategies and leveraging the expertise of a dedicated owner of revenue growth like a CRO, businesses can unlock predictable revenue growth, enhance profitability, and establish a strong foundation for long-term success.
By having a dedicated revenue owner, these businesses have experienced increased profitability, improved customer satisfaction, and sustainable business growth.
The benefits of having someone in your business owning revenue AKA a CRO are tangible and undeniable.
Don't let revenue control remain an afterthought. Take charge, embrace revenue ownership, and set your business on a path to long-term success.
Reach out to our experts to learn more about implementing a CRO and unleashing your business's revenue growth.
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If Profitable Revenue Growth is a priority for your business…
Whenever You're Ready, There Are 3 Ways We Can Help You:
Our Revenue Snapshot is a quickstart action plan that helps professional services businesses quickly understand the revenue blockages, identify where profit opportunities lie, and highlight priority action steps to help you achieve your profit goals.
2. If you want to grow your profitable revenue...
Our Profit Growth Advisory Service, The CRO Experience shows you how to build a custom long-term revenue engine for your business…solve your revenue challenges so you can consistently grow your profits, achieve your profit goals, and be in a position to successfully handle whatever the market throws at you.
3. If You Want To Get Your Managers On Board To Contribute To Revenue Generation…
The Rainmaker Workshops are Interactive + Practical Profit + Revenue Growth Workshops aimed at making revenue a company-wide responsibility.
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