Glossary:

Sales Roles & Team Structure

Master the essential revenue and financial metrics that drive B2B SaaS success. From ARR and MRR to retention metrics and customer economics, these terms are critical for understanding pipeline health, forecasting growth, and making data-driven decisions.

Chief Revenue Officer (CRO)

Short Definition

The executive responsible for all revenue-generating functions. Typically owns strategy, execution, and results across the full customer lifecycle.

Definition

A Chief Revenue Officer (CRO) is the senior leader accountable for designing, operating, and scaling a company’s revenue engine across the entire customer journey—from initial demand generation through new business, renewals, and expansion. The CRO’s mandate is to create predictable, efficient, and sustainable growth by aligning go-to-market (GTM) strategy, processes, and incentives across functions like Sales, Marketing, Customer Success, and Revenue Operations.

Unlike a traditional VP of Sales, who typically focuses on new business and direct sales teams, a CRO owns a broader charter that includes pipeline generation, sales execution, retention, and expansion. In many SaaS organizations, the CRO is the CEO’s primary partner for hitting ARR, NRR, and profitability targets.

Core Responsibilities

1. Setting Revenue Strategy and Targets

  • Translate company goals and board expectations into ARR, NRR, and profitability targets.
  • Define GTM strategy, including segmentation, ICP, territories, and coverage models.
  • Decide where to invest headcount and budget across sales, marketing, CS, and RevOps.

2. Designing and Leading GTM Organization

  • Structure sales, marketing, and customer teams (e.g., SDR/BDR, AE, AM, CSM, SE).
  • Hire, develop, and retain GTM leaders; create clear charters and reporting lines.
  • Align compensation plans and incentives to company strategy and financial goals.

3. Owning Forecasting and Revenue Performance

  • Run forecasting processes, from weekly pipeline reviews to quarterly outlooks.
  • Ensure forecast accuracy, pipeline coverage, and visibility across segments.
  • Intervene on key deals and at-risk renewals; manage performance against quota.

4. Driving Alignment Across Sales, Marketing, and CS

  • Align messaging, ICP, and handoffs across marketing, sales, and success.
  • Set SLAs and processes for lead flow, opportunity stages, and post-sale transitions.
  • Ensure customer feedback informs GTM, pricing, and product roadmap decisions.

5. Optimizing Revenue Operations and Efficiency

  • Oversee or closely partner with Revenue Operations to standardize processes and data.
  • Own GTM tech stack decisions (CRM, engagement tools, CS platforms, analytics).
  • Continually improve funnel conversion, sales velocity, sales cycle, and unit economics (e.g., CAC payback).

CRO In The Leadership Team

CROs typically report to the CEO and sit on the executive leadership team. They partner closely with...

  • CFO: To align revenue plans with budgets, headcount, and profitability.
  • CPO/CPTO: To bring market and customer insight into product strategy and roadmap.
  • COO or COO-equivalent: To align operations, support, and delivery with growth goals.
  • CMO (if separate): To coordinate demand generation, brand, and pipeline contribution.

In many high-growth SaaS companies, the CRO is one of the key voices in board meetings, responsible for explaining performance, pipeline health, forecast confidence, and major GTM bets.

CRO vs VP Of Sales vs CCO

Role Primary Focus Scope Key Metrics Typical Span Of Control
CRO End-to-end revenue engine Sales, marketing, CS, sometimes partners and RevOps ARR, NRR, growth efficiency, forecast accuracy Multi-function GTM org
VP of Sales New business and sales execution Direct sales org (AEs, SDR/BDR, SEs) New ARR, quota attainment, win rate Sales teams only
CCO (Chief Customer Officer) Post-sale value and advocacy Customer success, support, sometimes services GRR, NRR, CSAT, NPS CS + support + services

Some companies combine CRO and CCO responsibilities; others keep them separate but tightly aligned.

Key Metrics

CRO performance is typically evaluated on a small set of core metrics, cascaded into more granular KPIs:

  • ARR / New ARR: Total recurring revenue and new logo/expansion contribution.
  • Net Revenue Retention (NRR): Expansion and retention performance across existing customers.
  • Gross Revenue Retention (GRR): Baseline renewal health and churn control.
  • Quota Attainment: Percentage of sales teams hitting target and overall attainment.
  • Pipeline Coverage & Velocity: Depth and movement of pipeline versus targets.
  • Unit Economics: CAC, LTV:CAC, CAC payback period, and sales efficiency ratios.
  • Forecast Accuracy: Reliability of revenue projections versus actuals.

High-performing CROs create systems where these metrics are visible and actionable weekly.

CRO Archetypes and Org Models

Archetype Strengths Risks Best Fit Stage
Sales-first CRO Strong deal coaching, enterprise sales leadership May underweight marketing and CS Earlier stage or heavy enterprise
Marketing/Growth CRO Deep demand gen, funnel optimization, PLG May lack complex sales experience PLG/SMB or marketing-led GTM
Customer-led CRO Strong retention, expansion, and NRR focus May invest late in top-of-funnel SaaS with large existing base
Operator/RevOps CRO Process, data, and systems excellence Might need strong front-line managers Scale stage, multi-segment GTM

The exact org under a CRO can vary; sometimes marketing reports directly to the CRO, sometimes to a separate CMO; sometimes Customer Success rolls up to CRO, sometimes to a CCO or COO.

Common Challenges

  • Misalignment Across Functions: Sales, marketing, and CS working in silos with conflicting goals and definitions.
  • Forecast Volatility: Inconsistent forecasting discipline, leading to surprises at quarter end.
  • Over- or Under-Investing: Headcount added without clear productivity models, or underinvestment in CS and RevOps.
  • Role Creep And Ambiguity: Unclear boundaries between CRO, CMO, CCO, and VP-level leaders.
  • Change Management: Resistance when shifting comp plans, territories, or methodologies across large teams.

Effective CROs address these with clear operating rhythms (QBRs, forecast calls, pipeline councils), transparent metrics, and deliberate org and incentive design.

Frequently Asked Questions

What does a Chief Revenue Officer do day to day?

Day to day, a CRO reviews pipeline and forecast, meets with GTM leaders, inspects key deals and renewals, adjusts hiring and investment plans, and aligns cross-functional stakeholders around the revenue plan.

Does a CRO always own marketing and customer success?

Not always. In some companies, marketing reports to a CMO and CS to a CCO or COO. In others, both roll into the CRO. The key is that the CRO still has clear accountability for the end-to-end revenue number.

How is a CRO different from a VP of sales?

A VP of Sales is primarily responsible for new business sales execution, while a CRO is accountable for the entire revenue system, including demand generation, sales, retention, expansion, and the operations that support them.

What makes a successful CRO?

Successful CROs combine strong GTM strategy, operational discipline, cross-functional leadership, and deep understanding of customer needs. They create clarity on goals, design scalable systems, and consistently deliver predictable results.