Why do SaaS CROs fail?

In today’s fast-paced SaaS sales world, the average tenure of a SaaS VP Sales (CRO) barely scratches 18 months. A decade ago, that might have been labeled “job hopping,” but in today’s startup scene, it’s more like speed dating.

As a Sales SaaS Leader, your career path resembles a rollercoaster ride, with twists and turns you never saw coming. Every seasoned CRO has their share of triumphs to boast about and a collection of hard-earned lessons from the school of hard knocks.

So, why do SaaS CROs drop the ball? Let’s take a peek at the top 10 blunders:

1. Wrong CRO hiring decision: That’s the most common reason. CEOs often pick a CRO without a clear Ideal Candidate Profile, resulting in a mismatch akin to trying to fit a square peg in a round hole. I had put a previous blog with some CRO (or VP of Sales) hiring tips — that might be useful in avoiding common hiring mistakes.
2. Pretending to know how to hit new targets: Some CROs, especially those fresh out of middle management, nod confidently when handed lofty targets, only to realize later they’re in way over their heads. And what is even worse — they hide it and are scared to ask for advice.
3. Signing up for impossible plans: It’s like agreeing to climb Everest without oxygen — sure, it sounds adventurous, but it’s a recipe for disaster. Great CROs always build their targets, the weak ones will sign up for whatever target they can. That’s a way to fail and get fired.
4. Poor Leadership Skills: A CRO without leadership chops is like a ship without a rudder — it’s going nowhere fast. That’s why I always ask about hiring experience and track record of re-building their teams in the past. Also, other poor leadership aspects might include limited communication skills, Sales and Marketing organization misalignment, and an inability to motivate the team.
5. Avoid the pitfall of hiring managers weaker than the new CRO: Your management team should be a powerhouse of experience and skill. Promoting green sales reps to management positions won’t cut it. Instead, bring in seasoned managers who’ve been there, done that, and can teach you a thing or two. After all, you want managers you can learn from, not ones you’ll have to teach on the job.
6. Unrealistic optimism on product performance: Picture a rookie CRO betting the farm on a product that’s about as appealing as day-old sushi — it’s a recipe for heartbreak. That’s a common scenario for early-stage Startups with weak ICP product fit and un-launched (or poorly launched) new product features. That happens a lot with inexperienced CROs.
7. Not walking the talk and working in isolation: Imagine a CRO who’s about as communicative as a mime stuck in a soundproof box — not exactly a recipe for success. Great CROs are proactively managing expectations with all C-level executives in a team. Also, they always ask for advice and guidance from more established leaders in the company who know “the lay of the land” in the organization. If you feel that the new CRO works in isolation and starts skipping regular 1:1s — that’s a red flag sign and an indication of failing performance going forward.
8. Poor Sales Process and Pipeline Management: Without a solid process, it’s like trying to juggle flaming torches in a windstorm — things are bound to go up in flames. If the CRO does not establish robust sales processes and effectively manages the sales pipeline, it can lead to inefficiencies, lost deals, and revenue leakage. It’s not rocket science but requires methodology and practice.
9. Ineffective Use of Sales Technology: It’s like having a Ferrari but driving it like a lawnmower — you’re not going to get very far. While sales technology can streamline processes and enhance productivity, it must be implemented and utilized effectively. Failure to leverage sales tools and CRM systems properly can impede sales performance. Modern automation for Sales and Marketing operations requires multiple tools knowledge, implementation skills, and usage discipline.
10. Lack of Accountability and Metrics: Without clear metrics, it’s like navigating through a dense fog with a broken compass — you’re lost at sea. Without clear performance KPIs, accountability mechanisms, and regular performance reviews, it can be challenging for the CRO to monitor progress, identify areas for improvement, and drive sales team performance effectively. Putting together a set of tailored Sales and Marketing KPIs, as well as a weekly Rhythm of Business routine (ROB), is essential to any Sales leader’s success.

And finally, I want to mention personality fit. Every organization is a projection of the owner’s (founder, sometimes CEO) individual character and personality. If there is no character and/or personal values “click” between the CEO and CRO, this particular relationship will not last long. I am not talking about large enterprise-size corporations here, but rather about SMB and MM-size companies.

Understanding these common pitfalls can help CEOs avoid hiring mishaps and ensure their sales teams are set up for success.

Happy selling, and stay tuned for more insights on sales management!