2013 Predictive Consulting Group, Inc.

All rights reserved. Reproduction prohibited.

CHIEF CUSTOMER OFFICER COUNCIL
www.ccocouncil.org | (978) 226-8675 Page 1
Seven Measurements
that Shoul d Be on
Every Chi ef Customer
Offi cers Dashboard

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
Seven Measurements that Shoul d Be on Every
Chi ef Customer Offi cer s Dashboard

Curti s N. Bi ngham
Founder and Executi ve Di rector
Chi ef Customer Offi cer Counci l
!"#$%& (%)*+,- %& $+. #./0*)%1.2 ,"$+0#%$3 0) /+%.4 /"&$0-.# 044%/.#& ,)2 $+. 4%#&$ $0 5#0-0$. $+%& #06. ,& , /,$,63&$
40# /0-5.$%$%7. ,27,)$,*.8 9. %& $+. /#.,$0# 04 $+. !!: ;0,2-,5< , *#0")2=#.,>%)* ?0#> /0)$,%)%)* @AAB /#%$%/,6
&$#,$.*%.& .&&.)$%,6 40# /"&$0-.# /.)$#%/%$38 C& ,) %)$.#),$%0),6 &5.,>.#< ,"$+0#< ,)2 /0)&"6$,)$< !"#$%& %& 5,&&%0),$.
,=0"$ /#.,$%)* /"&$0-.# &$#,$.*3 $0 &"&$,%),=63 *#0? #.7.)".< 5#04%$< ,)2 603,6$38

ln laLLer years, we've seen slgnlflcanL progress ln correlaLlng CCC lnlLlaLlves Lo revenue and proflLablllLy,
progress LhaL everyone should sLrlve Lo accompllsh. lrom my own work wlLh more Lhan 130 CCCs durlng
Lhe pasL decade, l have ldenLlfled seven key areas where Lhe correlaLlon beLween CCC lnlLlaLlves and
proflLablllLy ls clear enough Lo be monlLored and measured. 1hese seven areas, presenLed below, should
be consldered for lncluslon ln every chlef cusLomer offlcer's dasbhoard.
WlLhln Lhese areas, Lhe CCC Councll has furLher ldenLlfled poLenLlal meLrlcs whlch represenL proxy"
measures for revenue and proflLablllLy. A crlLlcal aspecL Lo keep ln mlnd when uslng proxy measures" ls
LhaL you musL obLaln buy-ln from Lhe corporaLe level LhaL Lhese meLrlcs are lndeed Lled Lo your
company's revenue and/or proflLablllLy, albelL lndlrecLly. WlLhouL Lhls consensus, )0 dashboard can
demonsLraLe value for Lhe CCC.
1he meLrlcs dlscussed below are ordered based on daLa readlness and access, Lhe easlesL measures are
llsLed flrsL.
The CCO Dashboard: Measures and Metrics
!"# %&&'()* +",%*-')./-0 /"%,*/1 MonlLorlng Lhe healLh of key accounLs ls one of Lhe responslblllLles of
Lhe CCC. ln Lhe slmplesL form, accounL relaLlonshlp managers posL weekly Lhe sLaLus of key accounLs,
Lhose ln green have no lssues, Lhose ln yellow have some emerglng lssues noL of a crlLlcal naLure, and
red accounLs are Lhose ln greaLesL [eopardy. 1he CCC hlmself musL Lake responslblllLy for ensurlng LhaL
red accounL lssues are resolved.
!"#$%&'D E+. 6.)*$+ 04 $%-. %$ $,>.& $+. !!: $0 %2.)$%43 $+. 5#0=6.-< 5"$ , #.&06"$%0) 56,) %)
56,/.< ,)2 %-5#07. $+. ,//0")$ &$,$"& ,#. 50$.)$%,6 -.$#%/& 40# $+. 2,&=+0,#28

2013 Predictive Consulting Group, Inc.
All rights reserved. Reproduction prohibited.
CHIEF CUSTOMER OFFICER COUNCIL
www.ccocouncil.org | (978) 226-8675 Page 3
23"+%,, %)4 5"# &(.*'6"+ ")7%7"6")*1 lL has been shown LhaL more engaged cusLomers spend more
money. 1he degree of cusLomer engagemenL can be measured based on raLes of parLlclpaLlon ln
cusLomer programs such as execuLlve forums, producL developmenL, and parLlclpaLlon ln corporaLe
sLraLegy lnlLlaLlves. Cne company LhaL has heavlly lnvesLed ln cusLomer engagemenL programs lncreased
cusLomer loyalLy by 11. 1he mosL engaged cusLomers lncreased Lhelr spendlng wlLh Lhls company by
33.
!"#$%&'( E+. )"-=.# 04 /"&$0-.# .)*,*.-.)$ 5#0*#,-& ,)2 $+.%# *#0?$+ %& 0). -.$#%/8 E+.
6.7.6 04 %)7067.-.)$ 04 /"&$0-.#& %) .)*,*.-.)$ %)%$%,$%7.& ,)2 $+. &5.)2%)* 5,$$.#)& 04
/"&$0-.#& ,$ 2%44.#.)$ 6.7.6& 04 .)*,*.-.)$ ,#. ,22%$%0),6 -.$#%/& 40# /0)&%2.#,$%0)8
8'#%,*# 6"%.(+".1 Academlc research has proven LhaL Lhe hlgher Lhe level of cusLomer loyalLy Lhe
greaLer Lhe spend level. A number of commerclally avallable survey lnsLrumenLs can be used Lo measure
cusLomer loyalLy.
!"#$%&'( E+. /+,)*. %) /"&$0-.# 603,6$3 /,) =. -.,&"#.2 "&%)* &$,)2,#2 %)2"&$#3 &"#7.3
%)&$#"-.)$&8 !0-=%)%)* , /"&$0-.#F& &5.)2%)* 07.# $%-. G0=&.#7.2 =.+,7%0#H ,)2 /"&$0-.#
603,6$3 G$35%/,663 &$,$.2 %)$.)$%0)H -,>. *002 5#0I3 -.,&"#.&8
9+'7+".. *':%+4 +".',(*-') '; &+-*-&%, &(.*'6"+ -..(".1 ldenLlfylng and focuslng resources on resolvlng
crlLlcal cusLomer lssues ls an lmporLanL role for Lhe CCC. Many companles are ldenLlfylng and holdlng
execuLlves accounLable for resoluLlon of Lhe Lop flve or 10 cusLomer dlssaLlsflers LhaL represenL a
comblnaLlon of Lechnlcal, operaLlonal, and process lssues.
!"#$%&'( E+. %2.)$%4%/,$%0) ,)2 &5..2 04 #.&06"$%0) 04 $05 4%7. 0# @A /"&$0-.# %&&".& %& , *002
-.$#%/ $+,$ .)*,*.& $+. .I./"$%7. $.,- ,)2 $+. .)$%#. 0#*,)%1,$%0)8
<"0*/ %)4 =+"%4*/ '; &(.*'6"+ &")*+-&-*# %. 0%+* '; */" &(,*(+"1 1hls ls a concepL LhaL ls dlfflculL Lo
measure buL key Lo demonsLraLlng Lhe value of Lhe CCC.
!"#$%&'( J0/"-.)$ +0? -,)3 .-5603..& +,7. /"&$0-.# /.)$#%/%$3 -.$#%/& G/"&$0-.#
&,$%&4,/$%0)< /"&$0-.# 603,6$3< #.&50)&. $%-.< .$/8H %) $+.%# K(:& ,)2 +0? $+,$ %& /+,)*%)* 07.#
$%-.8 K.,&"#. $+. )"-=.# 04 %)2%7%2",6& $+,$ +,7. &0-. 5.#/.)$ 04 $+.%# =0)"& $%.2 $0 /"&$0-.#
/.)$#%/%$3 -.,&"#.& ,& ?.66 ,& ?+,$ 5.#/.)$ 04 =,&. &,6,#3 $+. /"&$0-.# /.)$#%/%$3 -.,&"#.&
/0)$#%="$.& $0 $+. =0)"&< %2.)$%43 $+. )"-=.# 04 .-5603..& $+,$ ,#. %)7067.2 %) 7,#%0"& /"&$0-.#
/.)$#%/ 5#0*#,-&< ,)2 +0? $+,$ /+,)*.& 07.# $%-.8
>);,(")&" (0') '3"+%,, +"3")("1 1he CCC has lndlrecL and dlrecL lmpacL on revenue. ulrecLly Lhe CCC
can lnfluence new sales and reLenLlon raLes lf Lhey have auLhorlLy over Lhose areas. CCCs can also
lmprove cusLomer faclng processes whlch have led Lo more efflclenL operaLlons whlch leads Lo overhead
reducLlons. uependlng on Lhe scope of responslblllLy, Lhe CCC may have oLher, less dlrecL opporLunlLles
Lo lnfluence proflLablllLy and revenue. 1here are proxy measures (cusLomer engagemenL and cusLomer
loyalLy) where documenLaLlon exlsLs of Lhelr poslLlve lmpacL on Lhe flnanclal healLh of Lhe company.

2013 Predictive Consulting Group, Inc.
All rights reserved. Reproduction prohibited.
CHIEF CUSTOMER OFFICER COUNCIL
www.ccocouncil.org | (978) 226-8675 Page 4
When uslng proxy measures lL ls crlLlcal Lo galn consensus LhaL such measures do lmpacL revenue and
proflLablllLy.
!"#$%&'( K.,&"#.& ?%66 7,#3 =3 /0#50#,$%0)< &0-. -.,&"#.& -%*+$ %)/6"2. $#,/>%)* /+,)*.& %)
&5.)2%)* =3 ,//0")$ =,&.2 0) 603,6$3 &/0#.& ,)2 /"&$0-.# .)*,*.-.)$ ,& $+.&. -.$#%/& +,7.
=..) &+0?) $0 %-5,/$ #.7.)".8 E+. !!:F& %)7067.-.)$ %) $+. &,6.& 5#0/.&& ,)2 /+,)*.& %) 2.,6
/60&.& ,)2 "5&.66%)* &+0"62 =. /0)&%2.#.2 ,& ?.668
>);,(")&" ') */" 5"# 0"+;'+6%)&" -)4-&%*'+. '; '*/"+ 6"6="+. '; */" ?@A(-*"1 lnlLlaLlves of Lhe CCC
should poslLlvely affecL Lhe key erformance lndlcaLors of peers. Lvery execuLlve should be able see
lmprovemenLs ln Lhelr meLrlcs lf Lhe CCC ls effecLlve.
!"#$%&'( E+. %)46".)/. 04 /"&$0-.# /.)$#%/ %)%$%,$%7.& 0) L.3 M.#40#-,)/. N)2%/,$0#& 04 0$+.#
2.5,#$-.)$& %& , ?,3 04 .7,6",$%)* !!: .44./$%7.).&&8 N-5#07.-.)$ %) $+. &,6.& /3/6.< /60&. #,$.<
).? &,6.& 2". $0 !!: ,/$%7%$%.& ,#. .I,-56.& 04 2,&+=0,#2 -.$#%/&8
Conclusion
When Lhe CCC ls successful, Lhe company ls successful. CLCs and 8oards of ulrecLors musL undersLand
and commlL Lo provlde Lhe CCC wlLh vlslble and conLlnuous supporL, provlde approprlaLe resources, and
develop meLrlcs Lo demonsLraLe Lhe value of Lhls lmporLanL role. 1here are many such resources
avallable Lo CCCs Lo gulde Lhem Lhrough challenges Lo success and Lo keep Lhem from experlmenLlng aL
Lhe expense of Lhelr cusLomers. 1he CCC Councll lLself wlLh addlLlonal research and peer neLworklng
guldes many CCCs ln Lhelr mlsslon. lor more lnformaLlon abouL Lhe CCC Councll, see below.
*1



*
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.

This article is excerpted from The Bingham Advisory: Eight Imperatives for the Chief Customer Officer, available for
free download from the CCO Council website at: http://www.ccocouncil.org/thebinghamadvisory/.

2013 Predictive Consulting Group, Inc.
All rights reserved. Reproduction prohibited.
CHIEF CUSTOMER OFFICER COUNCIL
www.ccocouncil.org | (978) 226-8675 Page 5
About CURTIS N. BINGHAM
As LxecuLlve ulrecLor of Lhe Chlef CusLomer Cfflcer Councll`, CurLls 8lngham ls
Lhe recognlzed auLhorlLy on chlef cusLomer offlcers and Lhe flrsL Lo promoLe Lhls
role as a caLalysL for compeLlLlve advanLage. Pe ls Lhe creaLor of Lhe CCC
8oadmap, a groundbreaklng work conLalnlng 100+ crlLlcal sLraLegles essenLlal for
cusLomer cenLrlclLy. As an lnLernaLlonal speaker, auLhor, and consulLanL, CurLls ls
passlonaLe abouL creaLlng cusLomer sLraLegy Lo susLalnably grow revenue, proflL,
and loyalLy.

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.


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CCC Councll neLwork