the customer conscience
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35 Snow Drive | Littleton, MA 01460 | (978) [email protected] |www.ccocouncil.org2012 Chief Customer Officer Council, Inc.
The CustomerConscience: The ChiefCustomer Officers Key
Responsibilities by Curtis N. Bingham
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35 Snow Drive | Littleton, MA 01460 | (978) [email protected] |www.ccocouncil.org2012 Chief Customer Officer Council, Inc.
The Customer ConscienceThe Chief Customer Officers Key Responsibil it ies
Curtis N. Bingham
Founder and Executive Director
Chief Customer Officer Council
CurtisBinghamistherecognizedauthorityonchiefcustomerofficersandthefirsttopromotethisroleasacatalyst
forcompetitiveadvantage.HeisthecreatoroftheCCORoadmap,agroundbreakingworkcontaining100+critical
strategiesessentialforcustomercentricity.Asaninternationalspeaker,author,andconsultant,Curtisispassionate
aboutcreatingcustomerstrategytosustainablygrowrevenue,profit,andloyalty.
Doorganizationshaveacustomerconscience?Aretherevoiceswithincorporatestructurestodaythat
demandtobeheard,insistingthatcustomersneedsbeconsideredateveryturn?Isitactuallyanyones
jobtoprovidebalancetothetraditionalcostcuttingandrevenue-growthstrategies?
ThePredictiveConsultingGrouprecentlystudiedcompanieswithanexecutive-levelcustomerchampion
suchasSunMicrosystems,Cisco,Hewlett-Packard,Monster.com,Fidelity,andothers,andfoundthat
manycompaniestodayhaveindeedinstitutionalizedthisrole.Oneofourinterviewees,Marissa
Peterson,ChiefCustomerAdvocateandEVPofWorldwideOperationsforSunMicrosystems,responded
toourquestionsbylabelingherselfSunscustomerconscience.MarissaoverseestheSunSigmaandotherprogramsthroughwhichSunproactivelygathersVoiceoftheCustomerinsightanduseresulting
datatomakestrategicdecisionsthroughouttheorganization.
Key Responsibilities
Anexecutivemustbeheldaccountableforthecustomerrelationship,insightgathering,andcustomer
strategyprocesssuchthatthecustomerneedscanbeproperlyweighedagainstrevenue,cost,andother
strategicbusinessdrivers.Aswell,theroleofcustomerchampionmustbeanexecutive-levelpositionto
effectivelygaintrustincustomerandprospectorganizationsaswellasdrivechangethroughoutmany
differentdivisions.Duringthestudywefoundthattheonlysuccessfulalternativetothiswasadirector-
levelchampionthathadsignificantCEOsponsorshipandreportedtotheCEO.Inotherwords,the
championwasachiefcustomerofficerinallbutstatus.
Itcanbefataltoassumethatthesnapshotofcustomers,segments,&marketsgatheredatsomepoint
intimewillbeaccuratein4-6months.Theorganizationneedstomonitoritscustomers.Theyneedto
usereal-timedatatonarrowthegapbetweenresearchandaction.(Nelson2003)Thecustomer
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35 Snow Drive | Littleton, MA 01460 | (978) [email protected] |www.ccocouncil.org2012 Chief Customer Officer Council, Inc.
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championshouldbeaccountableforensuringthatcustomerinsightisproactivelyandregularly
gathered,updated,madeavailablethroughouttheorganization,andmostimportantly,madeactionablethroughouttheorganization.Toomanycompaniesfailintheexecutionofthislaststepand
endupwithvolumesofmeaninglessdatathathaveminimal(ifany)impactonthebusiness.
Beingheldaccountablefortakingactiononcustomerinsight,thecustomerchampionisuniquely
responsibletobridgethegapbetweendatagatheringandprocessimprovementthroughoutthe
organization.
Thoughthereareamultitudeofresponsibilitiesthatachiefcustomerofficerorotherexecutive-level
customerchampioncouldhave,dependingupontheorganizationalgoals,growthplans,structure,and
marketsegments,alloftheexecutivesweinterviewedsharedthefollowing4criticalgoals:
1. Ultimatelyincreaserevenue2. Bringcustomerbalancetoexecutivedecision-makingprocesses3. Managethecustomerrelationshipasanasset4. Proactivelygathercustomerinsight&driveorganization-widechange
IncreaseRevenueAcrosstheboard,everyoneisultimatelyresponsibleforincreasingrevenue.championscanhelpshorten
salescyclesthroughcustomermanagementandreferenceprograms.Revenuecanbeincreasedthroughanincreasedfocusonsoftwaremaintenancerenewals,theidentificationofnewproductsandservices.
Newopportunitiesforsecuringalargershareofwalletoftheexistingcustomerbaseareoftenwaiting
tobenoticedandexploited.
Bringcustomerbalancetoexecutivedecision-makingprocesses
Executive-levelcustomerchampionscancountertheC-suitesandtheBoardstraditionalfocuson
revenuegrowthandcostcontainment,whichhasoftenresultedindamagedcustomerrelationshipsand
diminishedlong-termresults.
Managethecustomerrelationshipasanasset
DespitethefactthatUSaccountingprinciplesdonotconsideracustomerrelationshipasanasset,
perhapsoneofthemostimportantresponsibilitiesistomanagecustomerrelationshipswitheverybit
thesameamountofeffortthatcapitalassetsthroughoutthecompanyarecarefullymanagedtocontrol
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35 Snow Drive | Littleton, MA 01460 | (978) [email protected] |www.ccocouncil.org2012 Chief Customer Officer Council, Inc.
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costsandmaximizeeffectiveness.Strategiccustomerrelationshipsneedtobedefinedand
strengthened,thecustomerexperiencecarefullymanaged,andcustomerloyaltycarefullycultivated.
Proactivelygathercustomerinsight&driveorganization-widechange
Satisfactionisfleetingandcustomersneedschangefasterthanwewouldliketoadmit.Competitionis
alwaysseekingtostealawaycustomers.Tobesuccessful,thecustomerchampionmustproactively
gatherobjectiveknowledgeoftheneedsofcustomers,prospects,andthemarketplace,using
techniquessuchasregionalusergroups,executiveroundtables,championsforkeyaccounts,anda
CustomerHallofFame.
Insightaloneiswhollyinsufficient;itmustbemadeactionableandrequisitechangesdriventhroughout
theentireorganization.Employeesshouldhaveaccesstointerpretationsbycustomerchampionsorproduct/servicespecialistsaswellasrawdataforsubsequentinterpretationorreinterpretation.
Employeesshouldbemeasuredandcompensatedaccordingtocustomer-facingmetrics.Perhapsmost
importantly,themeasurement,analysis,andchangecycleshouldberelentlesslycontinuous.
Conclusion
Doyouhaveacustomerconscience?Doesyourorganizationknowforcertainwhatcustomersand
prospectsneed,want,andwhattheyarewillingtopayfor?Withachiefcustomerofficerasyour
customerconscienceyoucanbringbalancetotheexecutive-leveldecision-makingprocessesashave
thecompaniesstudiedinoursurvey.Theyhavefoundthatincorporatingacustomerconscienceleadsto
longerandmoreprofitablerelationshipswithkeycustomers,whichinturnleadstoachievingthe
ultimategoalofincreasedandmoreprofitablerevenues.
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Conversationswith theCCO:HelenBurt SharesCustomerEngagementStrategies In thisQ&Afrom an
onlineinterviewbyCurtisN.Bingham,HelenBurt,ChiefCustomerOfficerofPG&E,discussesinitiativesand
lessonslearnedindrivingcustomercentricityandengagementatoneofthenationslargestutilities.
Downloadyourfreecopytodayatwww.ccocouncil.org/exclusiveresources/
About CURTIS N. BINGHAM
AsExecutiveDirectoroftheChiefCustomerOfficerCouncil,CurtisBinghamis
therecognizedauthorityonchiefcustomerofficersandthefirsttopromotethis
role as a catalyst for competitive advantage. He is the creator of the CCO
Roadmap,agroundbreakingworkcontaining100+criticalstrategiesessentialfor
customercentricity.Asaninternationalspeaker,author,andconsultant,Curtisis
passionateaboutcreatingcustomerstrategytosustainablygrowrevenue,profit,
andloyalty.
About THE CHIEF CUSTOMER OFFICER COUNCIL
TheChiefCustomerOfficerCouncilis thefirstof itskind;amember-led peer-advisory network offering unparalleled insight into the
critical issues facing CCOs. It was created to provide a safe
environmentwhere CCOs canshare ideas, concerns, andbuild best
practices that wellhelp them, their companies, andespecially their
customers succeed. The Council includes CCOs from diverse
industries, purposefully cross-pollinated with the most forward-
thinking companies, large and small. For more information, visit
www.ccocouncil.org,[email protected].
FormoreresourcesfromCurtisBinghamandtheCCOCouncil,includingarticles,videos,and The
BinghamAdvisory,visitwww.ccocouncil.org.
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