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I agree with my Silicon Valley buddy, Nick Mehta, CEO of Gainsight on this. ⚙ Why? One of the things I always say is that, "It all starts with sales." 🤔 Without sales, there is no company. The better the sales org operates, the better the company will do. So why not optimize and unify the sales organization by having the CCO report to a CRO (rhetorically asked). 📈 It's a great way to ensure that customers are delighted post-sales and that they keep coming back. 🤝I've seen this configuration foster a cohesive strategy for maximizing customer satisfaction and revenue growth. This alignment ensures that customer-focused initiatives are deeply integrated into the organization's broader revenue strategy, enhancing the effectiveness of both functions. 🙌 It seems to promote a unified approach to identifying and capitalizing on customer insights, ensuring that customer needs are addressed proactively. This reporting structure also facilitates better communication and coordination, leading to more comprehensive customer engagement and streamlined decision-making processes. 💪 I believe this configuration strengthens the organization's ability to enhance customer experiences and drive sustainable revenue growth, contributing to long-term business success. #leadership #management #sales #innovation #venturecapital
This might be the biggest Hot Take ☀️ I’ve ever made: sometimes it makes sense for a #CustomerSuccess executive to report to a leader who owns all of the customer journey (sales and CS). [Ducks for cover] I’m a big believer in the need for a Chief Customer Officer role. Someone should be accountable for the customer experience. Someone senior needs to own retention. And in a company going through transformation toward a customer centric culture, a CCO reporting to a CEO helps bring that mindset to the leadership table. For startups this is often the only choice. In addition, many of the top CCOs 💪🏾 want to report to a CEO. But there are situations where an integrated organization makes sense: ✅ All revenue is centralized under one leader. ✅ The sales process is a huge part of the customer journey - so having pre and post sales together can drive a more integrated customer experience. ✅ In this model CS executives can more easily own expansion revenue (good for sustainability of their teams and for their own careers). Some CS executives have had a bad experience reporting to a CRO. But I'd argue that’s often because the CRO is a “sales leader” who also owns CS. There is a new crop of CROs and Presidents who are rising up to the challenge of owning the full revenue lifecycle. They look at themselves as a customer leader - not just a revenue leader. Increasingly I’m seeing people who own the entire lifecycle thinking of themselves as Chief Customer Officers versus sales leaders. I was prompted to write this because I was having coffee with a CS exec I trust and she said that she’s learned that all of go to market under one leader makes a lot of sense. Again this isn’t for everyone. If you need a big transformation, you may need to split out the CCO role. If you don’t have the right CRO, it may be impractical. And sometimes, to get the best person, you need to offer a role under the CEO. But my own POV is that it’s more important to be successful in a job than obsessing over to whom you report. And increasingly, a playbook that succeeds is to break the silos between and pre and post sales. Indeed, the idea of “pre” and “post” sales needs to go away. What benefits and drawbacks have you seen from having CS under a CRO? P.S. BTW the CRO doesn't have to come from a sales background. Increasingly, I'm watching CROs like Emily McEvilly and Sangeeta Chakraborty coming from a CS point of view.
Managing Director at Portola Valley Partners
7moGreat perspective!