What is the Difference Between a VP of Sales and a CRO?

VP of sales vs CRO

Running a small to medium-sized enterprise can feel like steering a ship through choppy waters. Among the many decisions CEOs face is understanding the nuances between key leadership roles, particularly the VP of Sales and the CRO (Chief Revenue Officer). These roles might seem similar at first glance, but they each have distinct responsibilities that are crucial to your business’s success. So, what is the difference between a VP of Sales and a CRO? Let’s explore!

When it comes to driving revenue and growth, understanding the roles of Fractional CRO and the Chief Revenue Officer job description is essential. These positions are designed to strategically align with your company’s goals and propel your business forward.

Who is Over the VP of Sales?

In many companies, the CRO is the senior executive who oversees the VP of Sales. The CRO vs VP of Sales comparison is a common one, as both roles are focused on generating revenue, but their scopes differ significantly. While the VP of Sales primarily focuses on managing the sales team and achieving sales targets, the CRO has a broader mandate. The CRO not only oversees the sales function but also oversees marketing as it relates to revenue generation, customer success such as the customer conversion process, and sometimes product development to drive overall revenue growth. This 10,000 foot view approach is what sets the VP of Sales apart from the CRO.

So, what is the difference between a VP of Sales and a CRO? The VP of Sales is like the coach of a sports team, focusing on tactics and performance, whereas the CRO is the strategist, ensuring all revenue-generating departments work in unison towards common goals.

Fractional CRO earns more than VP of Sales

What is Higher Than VP of Sales?

Naturally, you might wonder, then what is higher than VP of Sales? In the corporate hierarchy, the CRO typically holds a higher position. This is reflected not only in responsibility but often in compensation as well. According to recent data, a VP of Sales salary can vary widely depending on the industry and company size, but generally, CROs earn more due to their broader role and impact on the company’s financial health.

Here are some general salary examples for the VP of Sales:

• Small to Midsize Companies: In small to midsize companies, a VP of Sales can typically earn between $120,000 and $200,000 per year.
• Larger Companies: In larger companies, the salary can range from $200,000 to $300,000 or more annually.
• Bonuses and Commissions: In addition to base salary, VPs of Sales often receive performance-based bonuses and commissions, which can significantly increase their total compensation. These bonuses can range from 20% to 50% of the base salary or even higher in some cases.

What is the Difference Between a Chief Growth Officer and a VP of Sales?

Another layer of complexity is added when comparing the Chief Growth Officer (CGO) and the VP of Sales. The CGO’s role is all about fostering growth across various dimensions—new markets, new products, and strategic partnerships. They are the trailblazers, always on the lookout for the next big opportunity.

In contrast, the VP of Sales focuses primarily on the sales strategy and execution. They ensure that the sales team meets its targets and drives revenue through direct sales efforts. The CGO, however, looks at the bigger picture, aligning the company’s growth strategy with its long-term vision.

Fractional CRO vs CSO

What is the Difference Between a CSO and a VP of Sales?

Lastly, let’s address the distinction between the Chief Sales Officer (CSO) and the VP of Sales. The CSO is responsible for the overall sales strategy and its implementation across the organization. This role involves high-level planning and often includes overseeing the entire sales department.

On the other hand, the VP of Sales is more focused on the day-to-day operations of the sales team. They work closely with sales managers and representatives to achieve short-term sales goals and maintain performance metrics.

While both roles are crucial, the CSO typically operates at a more strategic level, ensuring the sales strategy aligns with the company’s broader objectives.

Understanding the differences between these key roles can help you make informed decisions about your leadership team. Whether you’re exploring the benefits of a Fractional CRO or drafting a detailed Chief Revenue Officer job description, knowing these distinctions is essential for optimizing your business strategy.

Ready to align your executive team for success? Explore our comprehensive guide on Fractional CROs today! Or if you’re serious about kicking your revenue up on hyper-drive, schedule your CEO Flash Focus Meeting with us today—a preliminary focused and high-level 15-20-minute meeting to highlight the main challenges. No selling. Just solutions.