      SaaStr · 2013-12-04
      · 4564d
    

The Chief MRR Officer: A Critical Hire Around $4-5M ARR

Jason Lemkin argues that SaaS companies need a dedicated executive responsible for maximizing Monthly Recurring Revenue (MRR) across the entire customer lifecycle once they reach $4-5M ARR. The article identifies structural conflicts between Sales (focused on new business/bookings) and Customer Success (focused on retention) that prevent optimal revenue growth, and proposes appointing a Chief MRR Officer or Chief Revenue Officer to own the intersection of these functions.

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Metrics in this report

Critical ARR threshold where MRR ownership gap becomes apparent

8-10millions

median

SaaS companies without dedicated MRR owner

Expected revenue growth improvement from Chief MRR Officer hire

10%

estimate

companies around $4-5M ARR

Marketo ARR at time of Gainsight case study

100millions

minimum

reference company for org structure benchmarking

Optimal ARR threshold for Chief MRR Officer appointment

4-5millions

minimum

SaaS companies with significant installed base revenue