6 CRITICAL DECISIONS FOR CROs: #2 Lack of Focus = Lack of Success

In my original newsletter in this series, I set out the backdrop against which CROs are operating today. I highlighted that there are a number of choices CROs make on a daily basis and, more importantly, at a strategic level. There are six specific decisions I’ve witnessed across a variety of B2B businesses large, small and across different industries and geographies, that separate winning CROs from the rest of the pack. These decisions blend personal and business themes, require both hard and soft support, and require a mix of art and science in their execution. But the one common denominator is that they make these decisions consciously, with a very deliberate goal in mind.

Having laid out the six decisions previously (the WHAT and the WHY), I want to take time diving deeper into HOW these decisions are driving outcomes. Over the coming weeks, I’ll share examples of the supporting initiatives and techniques that are being deployed by CROs to support these decisions and generate real-life impact.

??Decision 2: They focus on the sweet spots ??

In other words, they instill a ruthless, laser-like understanding of the critical areas of growth for the business. They decipher the hottest areas of opportunity for sustainable, profitable revenues and align the troops accordingly. Why? Because this optimizes resources and maximizes the probability of success.

This decision is not left to chance. Successful CROs take specific actions to guarantee their understanding – not just as a one-off exercise, but to ensure ongoing focus.

Here are some specific actions CRO’s can take:

?? Deploy a growth-orientated segmentation model for existing customers

Lazy CRO’s tend to organize their front line teams against some form of ‘size’ orientated customer template…e.g. Large, Medium, Small etc. And these teams might reside (sensibly) within vertical market sectors.

But, without segmenting the customer base with a “growth opportunity” lens, the business won’t be optimizing skills and resources – nor will it be maximizing the chance to generate profitable revenues. ?Segmentation (at least from an internal, operational perspective) MUST be growth-orientated with an eye on white space and potential spend. ?Else, front line teams will decide for themselves which customer gets prioritized, often from a reactive standpoint. The worst outcomes include high attrition rates, missed cross-sale opportunities and decreasing profitability of customers.

?? Deploy a customer-centric operating model

Using the growth-orientated segmentation model as the foundation, effective CROs align their precious resources and (importantly) skills to the sweet spots as appropriate. For example, hunter style account managers pro-actively attack customers with the most opportunity to grow, supplemented with relevant specialist support. Equally, marketing effort mirrors the segmentation plan.

In parallel, those customers with high amounts of spend, but less white space, get treated with much love and affection – but leveraging appropriate styles and skills of account managers, support and marketing.

Targets, and ratios of resources to customers, are tailored to the size of the prize…be that related to retention or cross/up sales. Digital channels, inside sales, face to face management etc. are utilized effectively and scientifically to mirror the plan.

New business is never compromised with the creation of hybrid hunter/farmer roles. Pure hunters are clearly separated in the organization with a clear set of targets and a supporting sales and marketing machine.

?? Create a plan to leverage the customer ecosystem

Black belt CROs recognize the massive opportunity to exploit the unlimited benefits that exist across the market landscape. They build a centralized partner plan that contains all the players across their customers’ ecosystem…suppliers, partners, integrators, consultants etc. These parties provide (often free) advice, intelligence, introductions and leads to the business – often because sharing knowledge is not considered a competitive threat.

Importantly, this activity is separate from more formal ‘Partner Management’ that relates to channel plans and/or product development.

?? Recruit from customers’ world

Smart CROs back up their intention to focus on market and customer sweet spots by consciously recruiting resources from within their customers’ world. As such, they don’t worry about these people understanding their own products – these can be taught quickly. More important is their ability to hit the ground running, using customer language and understanding their pains. They naturally gravitate to their own personal sweet spot and operate without the distraction of internal politics or legacy issues.

???? 6 Decisions Webinar

On Monday I presented a live webinar on this topic. If you missed it here's a link to the replay:

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