Cash flow is an important metric that determines business success. The rise of the SaaS business model has created innovative income streams that must be leveraged if a business is to remain competitive. Traditionally, Chief Financial Officers (CFOs) have been responsible for the overall financial operations of a company. However, with highly disruptive business models emerging, companies must focus on increasing their revenue streams to stay competitive.
A CRO (Chief Revenue Officer) can be considered as the latest C-level iteration of the ‘head of sales’ whose entire focus circles around the idea of how a business sells. The officer helps the business by aligning business strategies with sales efforts, coordinating the activities of marketing and sales teams to increase cash flow, managing sales channels, and handling customer support processes to improve the customer experience.
Since not all startups and businesses can afford to hire a dedicated CRO, they can still take advantage of the benefits of assigning the role to a fractional CRO who can uninstall your sales practice and focus on the sole purpose of building it up.
Here’s how having a fractional CRO can help your business by maintaining and innovating its revenue streams.
A fractional CRO acts as an interim revenue leader. Fractional CROs are responsible for converting prospective leads to cash in as little time as possible to increase the rate. A fractional CRO helps companies design and implement sustainable monetization strategies and align revenue processes among various teams, thus growing their revenue streams.
Fractional CROs sustain and refine the frequency and regularity of a business’s revenue stream while keeping the process fully transparent. They aid Chief Marketing Officers (CMOs) in the process of developing and synchronizing go-to-market strategies while keeping their focus solely on revenue generation.
Fractional CROs help in the alignment of various organizational departments such as operations, sales, and finance, and help create a more unified revenue cycle that is more manageable and profitable., i.e., they actively coordinate with different teams, brainstorm with them provide each of them with transparency to the different business functions, and makes strategies which focus on revenue growth.
To stay competitive, businesses need to design and set practical, and achievable revenue targets while keeping them in line with their goals and objectives. Companies that have fractional CROs oversee the budgeting of marketing or sales operations or projects to keep an optimal balance between expenses and expenditures. They also help bring forward innovative and sustainable monetization strategies, such as cross-selling opportunities, usage-based pricing, and implementing the required practices to regulate revenue flow.
One of the most important duties of a fractional CRO is to define which revenue model to follow, what promotions to market, and what discount thresholds to make to attract more revenue growth. It helps businesses with lead and demand generation. Fractional CROs assess, plan, design, and identify untapped revenue streams while keeping the benefit-to-cost ratio optimal.
Fractional CROs can also collaborate with Chief Technology Officers (CTOs) and technical leads to explore various ways in which the customer experience can be enhanced. In most cases, CROs can leverage AI, data analysis, and data visualizations to develop a better insight into current industry trends.
Fractional CROs can use metrics generated by your HR department to identify inefficiencies in organizational processes that are hindering revenue growth. By mitigating inefficiencies, they can enhance revenue processing platforms to optimize the ‘Lead-to-cash’ lifecycle.
Fractional CROs are also responsible for risk management and mitigation. They can identify potential problems in revenue models for a business’s new ventures early on and can use technology to project quantifiable metrics that executive teams can use to make more informed decisions.
Moreover, fractional CROs can also provide quality mentoring to your sales and marketing team and help get things in order.
At Mahdlo, we provide businesses with competitive CRO services that allow you to stay competitive and innovative as you scale your business. Contact us if you’re curious to learn more about how our experts can help you enhance your marketing efforts or schedule a free, no-obligation consultation now if you’re ready to dive in as soon as possible.