Why Revenue Growth Requires a Team, Not Just an Officer
Achieving revenue growth is a multifaceted issue that extends beyond the capabilities of a lone fractional CRO. A fractional CSO and a fractional sales management team also play invaluable roles in a well-rounded revenue plan. No matter how good they are, a CRO is only one person.
Below, we show why a dedicated revenue growth team is vital for continued business success by discussing the following:
- Overview of how revenue growth has changed in the modern age.
- Five reasons a fractional CRO alone is not enough to succeed.
- Highlighting the core role of collaborative efforts in revenue growth.
There is a lot to discuss, so get ready to take notes.
The Complexity of Revenue Growth in Modern Business
In this modern age, revenue growth is no longer a linear, one-to-one act of buying a product or service from a business. Shifts in customer behaviors, technological integrations, and market dynamics have changed how business owners approach their sales and marketing strategies.
People today have endless options for when, where, and how they spend their money and what brands to support. Illustrative of this is the extent to which younger consumers are involved in social causes and prioritize shared values over other needs. Businesses that fail to meet their market halfway fail.
As a result of these changes, business owners must constantly adapt to keep up with evolving demands. That makes it almost impossible for a single fractional CRO to assist a client alone. Nurturing leads is a team effort because each sales funnel section has unique challenges.
Below, we look at pivotal points in the evolution of revenue growth and how they affect planning:
1. Emergence of New Revenue Streams
Today, small business owners can branch out with relative ease. For instance, it is common for restaurants to operate a brick-and-mortar store and eCommerce platform. Modern revenue strategies also leverage social media (e.g., TikTok) and delivery apps (e.g., DoorDash).
Tapping into multiple marketing channels at once unlocks more opportunities and means of driving revenue. However, each one requires a distinct strategy that remains connected to your overall revenue plan to maximize growth. That means you need dedicated workers for each channel.
For instance, a local donut shop promotes its new app by handing in-store customers a discount code to use. The app offers exclusive flavors to distinguish itself as a revenue stream and periodically carries dine-in coupons. Each campaign has a separate team to ensure its success.
2. How Branding Affects Your Customers
Consumers are more selective of the brands they support, and a brand’s image is often a deciding factor. Attracting and retaining customers is more than just offering a unique solution. First and foremost, the emphasis is on creating genuine connections and winning people’s trust.
Consistency is key here. Information has to flow freely among channels to ensure that your brand has a recognizable and relatable image. Even the smallest misstep in branding sows doubt about brand authenticity. This, in turn, hurts your revenue growth in all possible areas.
For example, many of today’s consumers are conscientious about sustainability and do not support brands with wasteful production methods. A clothing manufacturer who wants to prepare for the market's future should transform its business to reflect its new brand, values, and corporate goals.
3. Managing the Customer Relationship
As mentioned above, revenue growth is not just about finding new revenue streams. It is also connected to branding. Your business’s relationship with its target market affects its ability to convert and retain customers. The way you present your business creates expectations for it.
For instance, a software developer who promises quick responses and full support throughout development should prepare to deliver. Regardless of whether they can or cannot, clients hold them to that standard, and falling short of it leads to disgruntled customers who give low ratings.
Given that, how you approach customer service is another aspect of managing relationships. A feedback mechanism allows your business to collect valuable information on where and how to improve to capture more customers. This also forms a core part of solid retention strategies.
4. Using Technology in Revenue Growth
Managing marketing channels and revenue streams is a tall order for any business, even with help from a fractional CRO and marketing team. However, coordinating information and sharing insights is quick and easy with a customer relationship management (CRM) system in place.
Technology is integral to revenue growth, and marketing software such as HubSpot highlights this by making collaborative work smooth and simple. A fractional CRO knows how to analyze data and strategize, but they require a team to assemble and execute all of their plans.
It is unreasonable to expect a single person (no matter their background) to manage every hub alone. Technology and automation make work easier, but specialists still hold critical roles in revenue growth. This is set to intensify as marketing and sales roles become more specialized.
5. Adapting to Shifts in the Environment
Recent years have seen a dramatic shift in sales, from the rise of influencer marketing tactics to a massive spike in eCommerce activity. External factors, such as economic changes or industry trends, contribute to how much revenue growth fluctuates. Therefore, response time is crucial.
A diverse team is better equipped to adapt to changes, uncover new solutions, and capitalize on market niches to benefit your business. However, hiring a fractional CRO to lead your marketing and sales teams is just as critical. Each member contributes to success with their unique skills.
To illustrate, a fractional CRO, fractional CSO, and fractional sales management team can help a hotel optimize its pricing and marketing strategies to maximize overall revenue. These include devising packages, special promotions, and targeted campaigns for all parts of its target market.
Five Pitfalls of Relying Solely on a CRO for Revenue Growth
The demands of revenue growth plans are impossible to fulfill without coordinated efforts across different specialized teams. Putting all responsibilities on a single person to cut costs or limit loss of control is fatal. Below are five reasons why having a full team is best for revenue growth:
1. Narrow perspective. A fractional CRO working alone has next to zero input to help filter their ideas. The risk of oversight and imbalance in strategy and investment leads to failure. It is crucial to have a fractional marketing team to temper ideas and find sensible solutions.
2. Personal limitations. No person, regardless of past success, can handle the weight of revenue growth on their own. Responsibilities multiply exponentially, leading to inevitable burnout or critical mistakes that hinder your business. Build a strong team and delegate.
3. Restrictive thinking. Innovation is a cornerstone of staying ahead in business. A failure to consider outside perspectives or new angles limits your ability to adapt to changes in the market. Hiring a fractional CSO to assist your CRO adds to your strategic proficiency.
4. Slow response time. Another weakness of relying on a lone fractional CRO is that the market will likely shift faster than they can adapt. Having a team exponentially speeds up the process because each person focuses on a specialized role that fits their skill set.
5. Inadequate capability. A fractional CRO is trained to lead a team, provide guidance, and create the structure for revenue strategies. Initiatives that require highly specialized skills or knowledge, such as data analytics or AI, are often beyond their capabilities.
Why a Collaborative Revenue Growth Team Works Better
To summarize the points outlined above, revenue growth is a team effort because it requires all parts of the process to flow smoothly into one another. Although many tools and software, such as HubSpot, provide necessary support and organization, a fractional CRO alone still has limits.
Below are three reasons why building a fractional sales management team is the better choice:
1. Expertise and Experience Matter
A fractional CRO has the advantage of a top-level perspective on how to enhance revenue and profitability. Focusing on the bigger picture is what puts them in a prime position to make tough decisions. Years of practical experience in the industry have honed their judgment.
However, this also means that they have a lackluster sense of what should happen at the lower levels of the hierarchy. Their understanding of tasks and concepts delegated to specialist staff is often surface level. Both fractional executives and specialists play key roles in revenue growth.
In other words, by playing to each person’s strengths (e.g., leadership, research, or analysis) to build and execute a cohesive strategy, a fractional CRO and CSO know how to lead and coordinate, while a fractional sales management team knows the best ways to get results.
2. Diversity Provides More Options
Another advantage of hiring an entire team is that it allows you to form reliable contingency plans and cover more bases. This makes your business more adaptable to changes in the market and customer demands, allowing it to maintain momentum. Response speed is always crucial.
A diverse team has the flexibility to explore multiple avenues for revenue growth by drawing on each person's skills, backgrounds, and experiences. This leads to more creative outputs and inclusive strategies that raise the likelihood of a successful marketing or sales campaign.
For instance, a social media specialist and a product development specialist can leverage customer feedback to refine a business’s offerings. This partnership also drives online engagement and brand loyalty by tapping customers for their opinions.
3. Avoid Creating an Echo Chamber
Having only one person decide on your revenue strategy is dangerous at best. If you have no system of checks and balances to temper the process, your fractional CRO or CSO is essentially living in an echo chamber. This discourages them from having a fully objective view.
Team members act as a sounding board by offering their insights at every stage of your strategy to create a more robust and well-rounded approach. Each person adds something valuable to decision-making and keeps everyone focused on their shared goal of boosting revenue growth.
As an example, leveraging blended account-based marketing (ABM) for revenue growth requires a thorough investigation of potential and existing clients. This is how you categorize them into the appropriate account within your strategy that best fits their needs. It requires team effort to work.
Although a fractional CRO and a fractional CSO play crucial roles in revenue growth, building a team is the smart option to address the daily challenges that a modern business faces. A revenue team combines expertise, adaptability, and technology to maximize every revenue opportunity.
The diversity within teams fosters creativity and innovation, ensuring that businesses remain in top shape to overcome the hardships of revenue growth. Fractional sales management does not imply that your strategy must be piecemeal or created by a single person. Rather, it simply means that they operate as needed.
Need help building a revenue growth team? Contact Digital Authority Partners (DAP) to learn how we can help.
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