Dear SaaStr: Does It Make Sense to Have Post-Sales Functions Report into Sales?
In many ways, this is the question of the day. So many SaaS companies, faced with slower growth, are moving CS in particular in to the sales department, trying to get more growth from the base.
Is it a good idea though?
In theory — maybe. In theory, why not let sales “keep” the customer longer? They already know the customer, after all. At least in theory.
But in practice — this doesn’t work that well for the customer. Even if having a CRO own post-sales and CS is becoming much more common these days.
A “true” VP of Sales often wants nothing more to do with a customer after a deal closes. Not unless there is an easy-ish upsell opportunity to be had.
Because most great VPs of Sales are closers. They want to close, and move on. And close another one. Managing support, customer success, any part of post-sales is a distraction. And one that keeps her away from hitting her ARR or bookings quota.
And yet … often times, a good VP of Sales over time wants to own more, and become a bit of a Chief Revenue Officer. They want “more” than just being a VP of Sales.
And so today, it’s more and more common CROs often own the entire revenue cycle process.
But to do that right — they have to hire a great VP of Sales under them.
That’s the issue. Most can’t. Most start-up CROs I see never hire a great VP of Sales under them.
Most take the title and role as a vanity. And fail because of it.
If nothing else, we wary of giving post-sales to sales to manage in the earlier days at least. And in the higher-growth days. Even if you have no one else to manage it.
Because if you do — it will devolve into a sales function. The customers will get worse support, and it will be a distraction to closing new deals in most cases. Maybe later it may make sense, if you hire a true CRO that can manage 2 VPs and both functions. Maybe.
But for most of you I say — not today.
