Role: Sales & Marketing
Organization: Private Equity
“Chief Sales Officer (CSO)? Chief Revenue Officer (CRO)? Chief Commercial Officer (CCO)? Which executive do we need to support our growth strategy?”
It’s a common question among private equity investors and portfolio company CEOs deciding which executive is needed to drive growth. Because these roles share overlapping responsibilities, many assume they’re essentially the same—a different title that performs the same function. While these roles do share common elements, executives in these roles have their own strategic imperatives, managerial styles, and performance expectations that align closely with the specific title, all of which can drastically impact a company’s growth trajectory.
Private equity investors and portco CEOs must understand the key differences between CSOs, CROs, and CCOs to ensure they select a leader that can support specific growth objectives and business needs. Below is an overview of the primary responsibilities of each role:
Chief Sales Officer
The primary role of a CSO is to lead a company’s sales operations, ensuring teams and managers are aligned to hit revenue goals. While CROs and CCOs sometimes take on responsibilities in areas like marketing or new business development, CSOs focus strictly on sales activities. Key responsibilities include:
Sales Strategy: Creating the company’s sales strategy and establishing KPIs that align with both short- and long-term goals
Training/Performance Management: Training and regularly assessing sales teams to ensure they successfully execute strategies
Market Analysis/Competition Research: Researching market trends and analyzing competitors to uncover new opportunities and refine sales strategies
Sales Forecasting and Budgeting: Managing sales budgets, establishing quarterly/yearly financial projections, and determining realistic revenue targets for sales teams
Chief Revenue Officer (CRO)
The primary role of a CRO is to have complete oversight of a company’s revenue activities, ensuring that all streams are optimized across channels and aligned with the company’s objectives. Many of a CRO’s core responsibilities intersect with sales, marketing, customer success, and product development. These can include the following:
Revenue Strategy Development: Creating strategies to increase revenue through market analysis, product positioning, and price optimization
Sales Enablement: Supporting sales teams with the tools, resources, and guidance to convert leads into customers
Marketing Alignment: Collaborating with marketing teams to ensure lead generation focuses on high-value prospects and sales objectives
Customer Success Management: Nurturing and maintaining positive customer relationships, ensuring their needs are met while promptly mitigating problems
Chief Commercial Officer (CCO)
The primary role of a CCO extends more broadly than that of a CRO, encompassing the entire commercial direction of the company. Although revenue generation is a key focus for CCOs, their role goes further by contributing to market strategy, strategic collaboration, and brand presence. Other core responsibilities for CCOs include:
Market Expansion: Identifying new markets, both domestic and international, to boost growth and devising strategies to enter and capture them effectively
Partnership Development: Cultivating strategic partnerships with other organizations to expand offerings, extend reach, and drive new revenue
Brand Management: Overseeing the company’s branding and messaging, ensuring it resonates with target audiences
Commercial Innovation: Improving and refining commercial processes, business models, and company offerings to adapt to market changes and rising competition
CRO, CCO, and CSO—Which Executive is Needed?
Executive roles are much more fluid in startups and smaller companies, with leaders wearing multiple hats and supporting multiple business areas. Because of the unstructured nature and undefined strategy of smaller companies, a designated CSO, CRO, or CCO may be unnecessary. In many cases, an experienced CEO can delegate responsibilities to Sales Leaders or Vice Presidents.
For mid-sized and large-scale organizations, or those undergoing rapid growth, having a designated CSO, CRO, or CCO becomes imperative. As companies scale, business operations grow more complex. Entering new markets, managing and creating new revenue streams, and strategizing against competitors becomes too much for a CEO to manage alone. Hiring a CRO, CCO, or CSO provides direct support for specific revenue objectives from a specialized expert.
A CSO is appropriate if a company:
- Lacks a solid sales strategy with defined goals
- Needs stronger sales leadership to improve performance
- Struggles with a poorly managed sales pipeline and inefficient processes
A CRO is appropriate if a company:
- Regularly misses revenue goals due to misalignment between sales, marketing, and customer teams
- Lacks a clearly defined revenue strategy for pricing, retention, and upselling
- Requires guidance on optimizing existing revenue streams and creating new ones
A CCO is appropriate if a company:
- Demands a leader with experience entering new markets
- Needs expertise in forming strategic partnerships
- Must strengthen its commercial strategy for a competitive advantage
Choosing between a CSO, CRO, or CCO is a crucial decision that can have a lasting impact on a company’s growth and financial outlook. While they do share similarities, their differences are more significant than most realize. Private equity investors and portco CEOs must understand the subtle differences between these roles to ensure they select an executive who aligns with the business’s growth objectives.
Insights in your inbox
Stay up to date on the latest trends and insights shaping the executive search landscape from JM Search’s Blog.