WHAT IS A FRACTIONAL CRO?
Scott Growth Strategies – Fractional Chief Revenue Officer (fCRO) Service
A fractional Chief Revenue Officer (fCRO) helps your company win and improve all sales and revenue generating activities.
A CRO will grow your revenues, align your sales and operations, and execute your growth strategy plan.
Our fractional CRO service works to improve sales performance, create pricing strategies, increase customer retention, and create a scalable approach to grow your business through consistent revenues, funding, and stability.
How does a Fractional CRO work in terms of hours?
A fractional Chief Revenue Officer (CRO) is a leader who works on contract at a full-time or part-time basis for your business. They perform the tasks as a full-time CRO and lead sales operations, oversee implementation of software’s and systems, and create pricing/sales strategies involved in company growth initiatives.
They help businesses achieve their revenue goals and are hired for engagements of 12-24 month timeframes. They focus on sales efforts while providing value that results in consistent growth, efficiency, and scalability.
A Fractional Chief Revenue Officer (CRO) works part-time, offering high-level expertise without the commitment of a full-time executive.
Our focus is on setting the strategy then executing it. Hours worked is depending on the needs of the company, but usually we work on an hourly basis, retainer-basis, or on a project-basis.
Hourly Commitment
A typical range of hours is 10-20 hours per week, though this can vary based on requirements. Some might work as few as 5 hours a week or as many as 25-30 hours, depending on the scope of responsibilities.
There is incredible flexibility as the hours are flexible, allowing the fractional CRO to focus on high-impact activities, such as strategy development, coaching and mentoring sales teams, or driving revenue growth initiatives.
Project-Based vs. Ongoing
Your fractional CRO will work on a project-basis or an ongoing one. In some cases, a fractional CRO might be brought in for specific projects, such as a product launch, market expansion, or turnaround strategy, which could dictate their hours.
In other situations, the engagement might be ongoing, where your fractional CRO works a set number of hours each week to continuously oversee revenue-related activities.
Time Allocation
A significant portion of their time is spent on strategic planning, reviewing performance metrics, and aligning the sales, marketing, and customer success teams. And, they often spend time working directly with various departments, ensuring everyone is aligned with the revenue goals.
Your fractional CRO will dedicate time to reporting to the CEO or board of directors, providing insights into revenue performance and strategic direction.
Availability and Cost Efficiency (It won’t cost a million dollars)
A Fractional CRO might be available on an on-demand basis, meaning their hours could fluctuate depending on the needs of the business. Some companies prefer a more structured approach, where the CRO has set hours each week.
For companies, hiring a fractional CRO is cost-effective as they only pay for the time and expertise they need, without the overhead costs of a full-time executive. In essence, a CRO provides flexibility and high-level expertise, allowing companies to access top talent in revenue generation without full-time commitment.
How much does a Fractional CRO cost?
The cost of a Fractional Chief Revenue Officer (CRO) vary depending on factors such as the CRO’s experience, the scope of work, industry, and geographic location. Here’s a general overview:
Hourly Rate
The hourly rate for a Fractional CRO typically ranges from $200 to $500+ per hour. More experienced CROs or those with a proven track record in specific industries may charge at the higher end of this range or even exceed it.
Monthly Retainer
Many Fractional CROs work on a monthly retainer basis, which could range from $5,000 to $20,000+ per month. The retainer usually depends on the number of hours committed per month and the complexity of the work. For example, a commitment of 10-20 hours per week might fall in this range.
Project-Based Pricing
For specific projects, a Fractional CRO might charge a fixed fee, which can range from $10,000 to $50,000+ depending on the project’s duration and strategic importance.
Some CROs may agree to a performance-based model where part of their compensation is tied to achieving specific revenue goals or milestones.
Equity Compensation and Additional Costs
In some cases, particularly with startups or early-stage companies, a Fractional CRO might take a lower cash compensation in exchange for equity in the company. This arrangement aligns the CRO’s incentives with the long-term success of the business.
If the role requires travel, those expenses might be added on top of the base compensation. In some cases, a CRO might bring in additional resources or a small team to support their work, which could add to the overall cost. Hiring a Fractional CRO is an investment that pays off by driving substantial revenue growth and providing strategic leadership without the full-time salary of a permanent executive.
What is the focus of a Fractional CRO?
The focus of a Chief Revenue Officer (CRO) is to drive revenue growth and ensure that all revenue-generating processes within a company are aligned and optimized. The role is strategic and cross-functional, overseeing various aspects of the business that directly impact revenue. Here’s a breakdown of the key areas of focus:
Revenue Strategy and Planning
The CRO is responsible for developing and executing strategies that drive revenue growth, whether through new customer acquisition, expanding existing customer relationships, or entering new markets.
They work on accurate revenue forecasting, setting realistic sales targets, and aligning them with overall business goals.
Sales Leadership
The CRO often leads the sales team, ensuring they have the tools, training, and motivation needed to meet or exceed revenue targets.
They take your company through sales optimization process where they refine and simplify your sales process, from lead generation to closing deals, to improve conversions while decreasing sales cycles.
Sales and Marketing Alignment
The CRO ensures that sales and marketing teams are aligned, with coordinated efforts to generate leads, nurture prospects, and convert them into customers. They focus on optimizing marketing spend, ensuring that campaigns are effectively driving revenue and that the marketing team is contributing to overall growth.
Customer Success and Retention
The CRO oversees customer success strategies to ensure high retention rates and minimize churn, recognizing that retaining customers is often more cost-effective than acquiring new ones.
They also work on developing the Customer Lifetime Value process where the goal is to increase the lifetime value of customers by upselling, cross-selling, and ensuring customers see ongoing value in the product or service.
Product and Pricing Strategy
The CRO collaborates with product teams to ensure that the company’s offerings are meeting market demands and that any gaps are addressed. They will have input into pricing strategies, ensuring that pricing models align with revenue goals and market positioning.
Data-Driven Decision Making and Innovation
The CRO relies heavily on data to make informed decisions, tracking key performance indicators (KPIs) like customer acquisition cost (CAC), average revenue per user (ARPU), and sales funnel conversion rates. They use insights from data to continuously refine strategies, improve processes, and pivot when necessary to meet revenue objectives.
The CRO looks for new revenue streams, whether through new products, services, partnerships, or market expansions. They focus on scalable growth strategies, ensuring that the company can sustainably increase revenue as it grows.
“The value was in the conversations and leadership we had with Dave. That’s where you’re really going to get the gems of wisdom.”
– Hector Ortiz, CEO & Co-Founder, Dega Systems
You should hire a Fractional CRO.
Here’s why:
Experience and leadership
A fractional CRO will organize your team and devise revenue-focused growth plans that grow your businesses profitability and top line revenues.
Flexibility
A fractional CRO’s contract can be stopped and started to meet the changing needs of your company.
Fewer hiring risks
Hiring a fractional CRO is less risky than hiring a full-time CRO, as the recruitment process is faster, and they can be more easily replaced if they perform badly in the role.
Chance to test creative, innovative sales and marketing campaigns
Hiring a fractional CRO allows you to test different skill sets in the role without the fear of being permanently locked into a disagreeable arrangement.
Budget savings
Fractional CRO’s are more affordable than traditional CRO’s as their cost is lower, and they are entitled to fewer benefits than full-time employees.
Third party outside perspective
Outsiders find it easier to identify areas for improvement.
Getting Started is Simple
Schedule a Discovery Call
This gives us the opportunity to get to know you. Together, we work to understand your business goals and growth objectives. You get to decide if we’re a good fit to work together.
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We ask you to go through a one-time audit to get everyone aligned. We need to learn what’s working and what’s not, then assess your growth strategy to present the findings and get you on track.
Sign up & grow your business
We offer multiple packages for the fCRO service. Once chosen, we work together to grow, grow, GROW your business using the right plan and data-driven tactics.
Based in Minneapolis, MN, and Fargo, ND.