This is really a pretty easy question to answer. A Chief Revenue Officer is the person in your firm that is responsible for anything that has to do with revenue. It’s really very simple, unless you have someone assigned to managing and creating new revenue your firm won’t do as well as it could.
Here are some things you might want to think about:
What is your marketing strategy?
This is where you should start. I hope you do understand that marketing and sales are two very different activities. Marketing is the strategy of how you create a new client. Sales are the activities that you use to create revenue.
Without having a real marketing strategy you’re going to have to work much harder to create new sales. Doesn’t it make sense to have a sales process that’s easier to use? That’s where marketing comes in. Do yourself a favor and first work on a marketing strategy. You’ll grow much faster if you do.
How do you manage the sales process?
I’m assuming that more than one person in your firm is responsible for creating new clients. Even if you’re the only person who creates new clients you still need to have a sales process and a process that’s managed.
Do you have a funnel that helps potential clients learn that you’re the right firm for them? If so, how do you know where they are in the process of deciding your firm is right for your potential clients? Do you have a pipeline where you take people who have become a logical process that helps them become clients?
I know there’s a ton of jargon above. It’s part of the language of sales. Like all activities in the world, there is a special language that gets formed to help you use a shorthand method for understanding the world of sales. Learning what the jargon means will help you manage your sales process.
When you think about revenue what does it include?
For me, revenue would include market movement, new clients, new services, and having clients use more of your services. Research shows the more services that your clients buy from you, the more tied in to your firm they become. Hopefully some of those services won’t be commodities.
If the only service you sell is a commodity, it makes it much easier for a client to move away from you. If you’re services are real value adds like becoming a thinking partner for your clients it’ll become much more difficult for another firm to take clients from you. Let’s face it; client retention is a really important activity in the life of a CRO.
Do you have a niche?
This is probably the most important question I’m going to ask you today. When you have a niche, you have a way for potential clients to recognize that you’re the right firm for them to work with.
A niche is not someone who has enough money to hit your minimum. It isn’t a high net worth individual. A niche is narrow, it’s something that’s easily recognizable.
Here’s the description of the niche we serve…..You are an RIA wealth management firm that does more than $2,000,000 in annual revenue. You have a need to become a firm that has $5,000,000 or more in revenue. You’re willing to be coached and mentored to learn new skills to make your firm into a business that someone else would want to buy. You’re ready to start thinking about your firm as a business and you’re willing to start taking actions that successful business owners regularly do. You’re concerned about creating value for your clients as a primary driver of why you get up in the morning. You enjoy life and are fun to work with.
You see, our niche description is pretty long and descriptive. Think about the people you want to do business with. The narrower you make your niche, the easier it is for people who might want to work with you to find you.
What do you think? Are you willing to think about being a Chief Revenue Officer in your firm? Let me know what your thoughts are.