Dear SaaStr: Does It Make Sense to Have Post-Sales Functions Report into Sales? - The Entrepreneurial Way with A.I.

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Saturday, August 17, 2024

Dear SaaStr: Does It Make Sense to Have Post-Sales Functions Report into Sales?

#SmallBusiness

Dear SaaStr: Does It Make Sense to Have Post-Sales Functions Report into Sales?

In theory — maybe.  In theory, why not let sales “keep” the customer longer?  They already know the customer, after all.

But in practice — this doesn’t work that well.  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.

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.

The End of Customer Success As We Knew It

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.  Even if you have no one else to manage it.  Because it will devolve into a sales function, the customers will get worse support, and it will be a distraction to sell 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 not today.

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Jason Lemkin, Khareem Sudlow