the customer conscience

7/29/2019 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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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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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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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.

Copyright Notice

Allcontentcontainedinthisarticleiscopyrightprotectedmaterial.Reproduction,inwholeorinpart,inanyformormedium,withoutthe

expresswrittenpermissionoftheChiefCustomerOfficerCouncilisstrictlyprohibited.Contactea@ccocouncil.orgforreprints.

the customer conscience

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