Professional Documents
Culture Documents
Your Chief Customer Officer
Your Chief Customer Officer
35 Snow Drive | Littleton, MA 01460 | (978) 226-8675 curtis@ccocouncil.org | www.ccocouncil.org 2012 Chief Customer Officer Council, Inc.
Curtis N. Bingham
Founder and Executive Director Chief Customer Officer Council
Curtis Bingham is the recognized authority on chief customer officers and the first to promote this role as a catalyst for competitive advantage. He is the creator of the CCO Roadmap, a groundbreaking work containing 100+ critical strategies essential for customer centricity. As an international speaker, author, and consultant, Curtis is passionate about creating customer strategy to sustainably grow revenue, profit, and loyalty.
Customer services may learn one thing from a customer during the course of its daily interactions, your marketing department may pick up another. Yet another tidbit may be gleaned by your sales force during a sales call. Individually, all these tidbits may be meaningless but together they could spell significant opportunities. Who is responsible at your firm for developing this kind of across-the-board insight that leads to new opportunities, new markets, and increased profits? Unfortunately, usually it is nobody's job. While most executives, managers and employees truly have the customer's interest at heart, they either don't have time or the clarity of focus to develop this insight. Nor will they typically possess the organizational clout to reach across and into divisional silos to effect change based on customer insight. In addition, C-Suite and board members too often get preoccupied with customer acquisition and cost reductions, leaving the gleaning of "customer insights" to the back-burner, rarely or never to be picked up again. In my research of companies such as Sun Microsystems, Cisco, Hewlett-Packard, Unica, Monster.Com, Fidelity and others, I have found that the only way to guarantee increased revenues, as well as stronger, longer and more profitable customer relationships, is to establish executive level accountability for organization-wide customer insight by creating the chief customer officer (CCO) role. Only through such a role will companies be able to a) adequately gather customer insight, b) make it actionable and c) deliver products and services that are guaranteed to succeed in the marketplace.
view to drive both corporate strategy and organizational changes and initiatives, so critically necessary for profitably servicing customers and adapting to the marketplace. In general, CCOs have four primary goals: 1. To increase revenue: The CCO can help identify opportunities to secure new customers and a larger share of the customer wallet. 2. To inject customer balance into executive decision making: CCOs can and must counter the C- Suite's and the Board's traditional focus on revenue growth and cost containment, two activities that frequently result in damaged customer relationships and diminished long term results. 3. To view and manage customer relationships as valuable assets: Customer relationships must be managed as carefully as other assets when attempting to control costs and maximize effectiveness. 4. To proactively gather customer insight and drive organization-wide change: A CCO will constantly be gathering objective knowledge on the needs of the firm's customers, prospects and the marketplace, using it to drive organizational change and initiatives, often cutting across departmental or functional boundaries. What are the primary functions of the CCO? There are three: 1. Service Revenue Driver: Focuses on increasing services and maintaining revenues by caring for the percentage of total revenue derived directly from existing customer relationships. The CCO reports to the CEO but usually has primary line management responsibilities for such service departments as customer service, technical support, field application engineering and consulting services. 2. Generalist CCO: Instead of being tied solely to existing customers, CCOs are responsible to existing customers as well as developing new markets, customers, prospects and organizational divisions. They are also responsible for market sensing, customer segmentation, aiding marketing & sales, and managing and protecting existing customer relationships, while influencing service and maintaining renewal revenue. 3. Champion by Committee. Customer advocacy committees are comprised of various "C" levels or VPs across product lines and share the responsibility of the aforementioned CCO types. The choice of which CCO model to deploy in your company depends upon corporate goals, the maturity of the company and the size of the installed customer base. Stereotypically, younger companies focusing 3
35 Snow Drive | Littleton, MA 01460 | (978) 226-8675 curtis@ccocouncil.org | www.ccocouncil.org 2012 Chief Customer Officer Council, Inc.
on new customer acquisition with a small installed customer base may be better suited to the Generalist, whereas companies with a larger installed base and whose primary focus is in servicing customers and maximizing existing customer profitability may be best suited to a Service Revenue Driver. Other companies with a very strong and pervasive customer centric culture that, for whatever reason, are not ready to create an executive level position may be able to leverage the Champion by Committee model.
35 Snow Drive | Littleton, MA 01460 | (978) 226-8675 curtis@ccocouncil.org | www.ccocouncil.org 2012 Chief Customer Officer Council, Inc.
5. Develop a clear, consistent view of customer's needs. Customers buy for one reason and one reason only: to satisfy a need, or, in other words, to make a problem go away. Therefore, the CCO must develop a clear and consistent view of customers' needs that will drive product development, marketing, sales, and service strategies. 6. Aid the organization in becoming customer-focused. The larger the company, the more separated its employees tend to become from its end user customers. In many cases, they may lose the vision of what impact, positive or negative, their daily activities are having on customers. A CCO can bring customers in for customer visits, share customer success stories, and communicate customer pain points with individuals throughout the company. This will enable employees to retain their focus when endeavoring to deliver actionable, meaningful products and services to real customers.
Conclusion
When
you
think
about
it,
there
are
quite
a
number
of
benefits
reaped
by
establishing
a
chief
customer
officer
function
in
your
company.
By
doing
so,
you
will
be
able
to
increase
the
strength
and
size
of
your
customer
base
asset
and
more
profitably
service
existing
customers.
In
addition,
you
will
grow
your
business
by
making
your
existing
customers
satisfied
even
as
you
explore
new
markets
and
customers
without
sacrificing
your
existing
base.
35 Snow Drive | Littleton, MA 01460 | (978) 226-8675 curtis@ccocouncil.org | www.ccocouncil.org 2012 Chief Customer Officer Council, Inc.
For more resources from Curtis Bingham and the CCO Council, including articles, videos, and The Bingham Advisory, visit www.ccocouncil.org.
Copyright Notice
All
content
contained
in
this
article
is
copyright
protected
material.
Reproduction,
in
whole
or
in
part,
in
any
form
or
medium,
without
the
express
written
permission
of
the
Chief
Customer
Officer
Council
is
strictly
prohibited.
Contact
ea@ccocouncil.org
for
reprints.
35 Snow Drive | Littleton, MA 01460 | (978) 226-8675 curtis@ccocouncil.org | www.ccocouncil.org 2012 Chief Customer Officer Council, Inc.