2013 Predictive Consulting Group, Inc.

All rights reserved. Reproduction prohibited.

CHIEF CUSTOMER OFFICER COUNCIL
www.ccocouncil.org | (978) 226-8675 Page 1
Customer Strategy
Basi cs

by Curtis N. Bingham

2013 Predictive Consulting Group, Inc.
All rights reserved. Reproduction prohibited.
CHIEF CUSTOMER OFFICER COUNCIL
www.ccocouncil.org | (978) 226-8675 Page 2
Customer Strategy Basi cs


Curti s N. Bi ngham
Founder and Executi ve Di rector
Chi ef Customer Offi cer Counci l
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8y now, a dlsclpllned focus on Lhe cusLomer has evolved from belng nlce Lo have" Lo belng mlsslon
crlLlcal. PlsLory and buslness llLeraLure are full of companles punlshed wlLh ulLlmaLe fallure for
developlng and deploylng producLs and offerlngs ln a vacuum of cusLomer lnpuL or for lgnorlng
cusLomer Lrends wlLhln Lhelr markeLs unLll lL was Loo laLe Lo change course. Many companles now
regularly lncorporaLe cusLomer feedback ln producL developmenL, Lhough surprlslngly, lL's sLlll noL all of
Lhem.
ln more recenL years, cusLomer lnslghL was a way of Lrlaglng cusLomer problems Lo sLem Lhe Llde of
defecLlng cusLomers aL raLes approachlng Lhe same as Lhose newly acqulred. And even Loday, an
lncreased cusLomer focus ls sLlll belng used by some companles Lo dlmlnlsh Lhe alarmlng frequency and
severlLy of cusLomer lawsulLs pursued by hugely dlssaLlsfled cusLomers whose buslness ls severely
lmpacLed by underperformlng and someLlmes even mlsrepresenLed producLs and servlces. ln oLher
words, alLhough lL has lncreased, cusLomer focus has lncreased for Lhe wrong reasons, lL has been
reacLlve, noL proacLlve.
As a way of measurlng and drlvlng Lhls lncreased cusLomer focus, cusLomer saLlsfacLlon surveys were
born and cusLomers were bombarded wlLh survey afLer survey aL Lhe end of every LransacLlon: onllne,
vla phone, aL Lhe reglsLer. Companles were horrlfled Lo learn LhaL so--called saLlsfled" cusLomers were
defecLlng Lo compeLlLors aL Lhe same raLe as Lhose who were dlssaLlsfled. LnLer Lhe LoyalLy movemenL,
where saLlsfacLlon ls buL a precursor Lo loyalLy. A loyal cusLomer has an emoLlonal connecLlon Lo a
company LhaL drlves repurchase and may forglve mlnor mlsLakes LhaL would oLherwlse damage
cusLomer relaLlonshlps.
A ma[or manufacLurer of flre prevenLlon sysLems found LhaL slx years of lnvesLmenL had produced
sLrongly lmproved saLlsfacLlon and loyalLy scores. ?eL, execuLlves were vexed as Lo why, desplLe
lncreased lnvesLmenL, scores hadn'L lmproved durlng recenL years. Llke Lhls manufacLurer, many

2013 Predictive Consulting Group, Inc.
All rights reserved. Reproduction prohibited.
CHIEF CUSTOMER OFFICER COUNCIL
www.ccocouncil.org | (978) 226-8675 Page 3
companles are flndlng LhaL desplLe Lhelr besL efforLs, loyalLy scores have plaLeaued. ConLlnued
lnvesLmenLs ln loyalLy lnlLlaLlves are noL prevenLlng cusLomers from defecLlng. roflLs are sLlll under
pressure. CompeLlLors are sLlll a consLanL LhreaL.
LoyalLy cannoL overcome Lhe posslblllLy LhaL your cusLomers may be Lhe wrong ones, or LhaL you slmply
don'L have a vlable producL/servlce sLraLegy, and even worse, LhaL some cusLomers wlll remaln flckle
and prlce consclous-and even unproflLable, no maLLer how much money ls lnvesLed ln changlng Lhelr
behavlor.
eLer urucker sald ln 1934: 1he
purpose of a buslness ls Lo creaLe
and keep a cusLomer." lL's noL
revenue. lL's noL proflLs. lL's noL
shareholder value. lL's noL loglsLlcs. lL's noL operaLlonal excellence. All of Lhese Lhlngs are anclllary. lf you
creaLe and keep Lhe rlghL cusLomers, Lhe resL follow. A cusLomer sLraLegy wlll help you proflLably
acqulre, serve, and reLaln your mosL valuable cusLomers.
roperly deflned, a cusLomer sLraLegy ls Lhe process by whlch you allgn yourself wlLh your mosL
proflLable cusLomer segmenLs and maxlmlze Lhe value you dellver Lo and derlve from each cusLomer.
1he cusLomer sLraLegy ldenLlfles Lhe mosL valuable cusLomers LhaL musL be aLLracLed and reLalned aL all
cosLs, uncovers Lhelr mosL crlLlcal purchase drlvers, and helps make sure Lhe company ls unlquely
poslLloned Lo dellver producLs and servlces agalnsL Lhese value drlvers more effecLlvely and proflLably
Lhan compeLlLors. As well, Lhls sLraLegy orchesLraLes every faceL of Lhe cusLomer's experlence wlLh Lhe
company, ensurlng Lhe experlence across all channels lncludlng markeLlng, sales, servlce, supporL, eLc. ls
conslsLenLly relnforclng Lhe value belng provlded Lhe cusLomer and Lhe value of Lhe cusLomer Lo Lhe
company, creaLlng loyal and proflLable cusLomers.
*



*
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.
Customer strategy |s the process by wh|ch you a||gn yourse|f
w|th your most prof|tab|e customer segments and max|m|ze
the va|ue you de||ver to and der|ve from each customer.


2013 Predictive Consulting Group, Inc.
All rights reserved. Reproduction prohibited.
CHIEF CUSTOMER OFFICER COUNCIL
www.ccocouncil.org | (978) 226-8675 Page 4
About CURTIS N. BINGHAM
1he flrsL Lo promoLe Lhe role of chlef cusLomer offlcer (CCC) as caLalysL for
compeLlLlve advanLage, CurLls ls recognlzed as Lhe world's foremosL auLhorlLy on
CCCs. Pe ls founder and LxecuLlve ulrecLor of Lhe Chlef CusLomer Cfflcer
Councll` and creaLor of Lhe CCC 8oadmap and Lhe CusLomer CenLrlclLy MaLurlLy
Model: groundbreaklng, proprleLary works LhaL asslsL companles achleve
cusLomer cenLrlc culLure and revenue growLh. CurLls ls a champlon of cusLomer
engagemenL as a crlLlcal growLh englne and flrsL Lo ldenLlfy engagemenL as Lhe
nexL evoluLlonary sLep beyond loyalLy. An lnLernaLlonal speaker, auLhor, and
consulLanL, CurLls ls passlonaLe abouL creaLlng powerful cusLomer sLraLegles and
LrusLed for hls buslness acumen, acLlonable lnslghLs, and commlLmenL Lo
measurable buslness resulLs.
About THE CHIEF CUSTOMER OFFICER COUNCIL
1he CCC Councll ls a powerful and lnLlmaLe gaLherlng of Lhe world's
leadlng cusLomer execuLlves from wldely dlverse lndusLrles. 1he
Councll helps execuLlves achleve ob[ecLlves fasLer and more easlly by
leveraglng besL pracLlces. lL helps valldaLe and reflne sLraLegles and
lnlLlaLlves Lo avold experlmenLlng aL cusLomer expense. Membershlp
ls by lnvlLaLlon only, and purposefully cross-polllnaLed wlLh Lhe mosL
forward-Lhlnklng companles, large and small, so as Lo help cusLomer
execuLlves dellver solld, cusLomer-cenLrlc buslness resulLs. lor more
lnformaLlon, emall lnfo[ccocouncll.org or call 978-226-8673.


Io|n the conversat|on
www.ccocouncll.org
LLAkN MCkL A8CU1 CUS1CMLk LNGAGLMLN1
!"# %&'()*#+ ,-./.#*#-( !+/0#1()+2 - ln Lhls 34-."/* 5674')+2 CurLls
provldes a framework for undersLandlng where engagemenL emerges ln Lhe
buslness-cusLomer relaLlonshlp Lo provlde lLs greaLesL value.
ln addlLlon, you'll also learn how real world companles such as MeLLlfe, Cracle,
and 8loL Cames are engaglng Lhelr cusLomers and en[oylng boLLom llne
lmprovemenLs Lo revenue and shareholder value as a resulL.
D0?)60,2 30"# 4#.. /053 $02,3 ,$ www.ccocouncll.org/Lheblnghamadvlsory/
1hought-|ead|ng V|deos
ccocouncll.org/vldeo

More Art|c|es by Curt|s
ccocouncll.org/excluslveresources

L|nkedIn D|scuss|on for CCCs
(lor vs and above)
CCC Councll neLwork