35 Snow Drive | Littleton, MA 01460 | (978) 226-8675

curtis@ccocouncil.org | www.ccocouncil.org
2012 Chief Customer Officer Council, Inc.

When Do You Need a
Chi ef Customer
Offi cer?

by Curtis N. Bingham

35 Snow Drive | Littleton, MA 01460 | (978) 226-8675
curtis@ccocouncil.org | www.ccocouncil.org
2012 Chief Customer Officer Council, Inc.

When Do You Need a Chi ef Customer Offi cer?


Curtis N. Bingham
Founder and Executive Director
Chief Customer Officer Council

cottls 8loqbom ls tbe tecoqolzeJ ootbotlty oo cblef costomet offlcets ooJ tbe fltst to ptomote tbls tole os o cotolyst
fot competltlve oJvootoqe. ne ls tbe cteotot of tbe ccO kooJmop, o qtoooJbteokloq wotk cootololoq 100- ctltlcol
sttoteqles esseotlol fot costomet ceottlclty. As oo lotetootloool speoket, ootbot, ooJ coosoltoot, cottls ls posslooote
oboot cteotloq costomet sttoteqy to sostoloobly qtow teveooe, ptoflt, ooJ loyolty.

As LxecuLlve ulrecLor for Lhe CCC Councll, l am ofLen approached by senlor level execuLlves and asked lf
Lhelr company really needs a chlef cusLomer offlcer. 1helr LhoughL process ofLen revolves around Lhe
ldea LhaL Lhere are Lhose companles LhaL have a need and requlre a CCC and Lhose LhaL do noL. My
answer ls ofLen ln Lhe form of a correcLlon, as Lhey are asklng Lhe wrong quesLlon. 1he rlghL quesLlon ls
wbeo do you need a CCC?" because hlrlng a chlef cusLomer offlcer ls noL an lssue of lf, buL of wbeo.
A decade ago, l posLulaLed LhaL Lhe CCC was a caLalysL, galvanlzlng organlzaLlons Lo change. Leadlng Lhe
way Lowards organlzaLlonal cusLomer cenLrlclLy Lhey could plan Lhelr own obsolescence. Powever, [usL
because a recenLly hlred ClC has lmplemenLed flscal conLrols doesn'L mean LhaL he or she ls no longer
necessary. 1ax rules, markeLs, lnsLrumenLs, and cusLomers change, ensurlng Lhe conLlnued need for Lhe
ClC. 1he same loglc holds Lrue for Lhe CCC. CusLomers, compeLlLlon, and markeL condlLlons change, and
lncreaslngly, cusLomer cenLrlclLy ls aL Lhe core of compeLlLlve advanLage, maklng Lhe CCC a crlLlcal
componenL of Lhe C-SulLe.
Lvery company needs a CCC, buL Lhe Llmlng ls essenLlal for lL Lo be a success for Lhe company and Lhe
chlef cusLomer offlcer. 1he followlng are slx key crlLerla Lo help answer Lhe quesLlon, wbeo?
Is there an appetite at the top for customer centricity?
uoes Lop leadershlp have an appeLlLe for developlng cusLomer cenLrlclLy? l have seen numerous chlef
cusLomer offlcers hlred because lL was Lhe rlghL Lhlng Lo do", or compeLlLors are dolng lL so Lherefore
we have Lo do so as well." unforLunaLely, mosL of Lhese CCCs falled mlserably. 1he momenL Lhe
company hlLs a revenue road bump Lhe CCC ls asked Lo leave. 1he average Lenure of Lhe CCC ls a mere
29.4 monLhs, Lhe lowesL of any member of Lhe C-SulLe. 1he mosL prevalenL reason ls LhaL Lhese

35 Snow Drive | Littleton, MA 01460 | (978) 226-8675
curtis@ccocouncil.org | www.ccocouncil.org
2012 Chief Customer Officer Council, Inc.

3
execuLlves are ouL of allgnmenL wlLh company sLraLegy and don'L have expllclL supporL of Lhe CLC. 1hls
crlLerlon Lrumps all Lhe resL.
1here are Lhree Lypes of CCC auLhorlLy, sLarLlng flrsL wlLh elLher poslLlonal auLhorlLy or auLhorlLy
borrowed from Lhe CLC and qulckly earnlng such auLhorlLy on Lhelr own. WlLhouL such clear auLhorlLy,
culLural reslsLance Lo change, confllcLlng prlorlLles, and a hosL of oLher obsLacles prevenL CCC success.
wlll tbe cO ooJ otbet membets of tbe c-5olte ptovlJe tbls bottoweJ ootbotlty to loltlote ooJ eosote
soccess?
Is there a recognized strategic business imperative for the CCO?
CusLomer cenLrlclLy ls ofLen vlewed as a nlce Lo have" raLher Lhan a sLraLeglc buslness lmperaLlve. ln
many organlzaLlons, Lhe CCC conLrlbuLlon Lo Lhls lmperaLlve ls poorly deflned. As a resulL, a commonly
heard concern of CCCs ls Lhe need Lo conLlnuously explaln and defend Lhelr value Lo Lhe organlzaLlon.
Many CCCs spend beLween 20 and 30 of Lhelr Llme defendlng Lhelr poslLlon. 1hls ls clearly Llme
wasLed because lL ls noL Llme spenL wlLh cusLomers.
WhaL ls your burnlng plaLform LhaL wlll galvanlze people Lo acLlon? 1he CCC ls golng Lo be Lasked wlLh
maklng huge changes ln Lhe organlzaLlon, and enLrenched culLures reslsL such change unless faced by a
greaLer LhreaL of upseL.
ln worklng wlLh over 130 CCCs durlng Lhe pasL decade, l've ldenLlfled Lhree key reasons why CCCs are
hlred:
Chronlc cusLomer lssues LhaL need Lo be made Lo go away"
8educe severe cusLomer churn
ueslre Lo esLabllsh compeLlLlve advanLage
SofLware/hardware defecLs, unfulfllled cusLomer commlLmenLs, producL recalls, eLc. resulLlng ln bad
press, LhreaLs of lawsulLs, decreased sales/renewals are all examples of longsLandlng cusLomer lssues
LhaL have noL been resolved desplLe Lhe company's besL efforLs and all are caLalysLs for hlrlng a CCC.
Many growLh companles are surprlsed Lo flnd LhaL Lhey are loslng cusLomers ouL Lhe back door as fasL as
Lhey are brlnglng new ones ln Lhe fronL. 1hey Lyplcally hlre a CCC Lo curLall Lhls churn and sLablllze long-
Lerm revenue.
?eL oLher companles recognlze LhaL glven Lhe lnLense compeLlLlve landscape and demandlng cusLomer
base Lhere musL be unlversal agreemenL Lo achleve Lhelr goals, Lhey musL do whaLever lL Lakes Lo
become cusLomer cenLrlc as a compeLlLlve advanLage.

35 Snow Drive | Littleton, MA 01460 | (978) 226-8675
curtis@ccocouncil.org | www.ccocouncil.org
2012 Chief Customer Officer Council, Inc.

4
1be cO ooJ 8ootJ most tecoqolze tbe qtowloq boJy of ptoof tbot costomet-ceottlclty ls tbe oew bosls
fot competltlve oJvootoqe wltb Jemoosttoble bosloess tesolts. wbot ls yoot bosloess lmpetotlve? now ls
tbe ccO pott of tbls sttoteqlc lmpetotlve?
Can strategy be driven across the highest levels to systematize change?
An army of one does noL wln Lhe war, nor does lL brlng abouL cusLomer cenLrlclLy. ln Lhe lasL decade,
many CCCs have falled because Lhey were Lhe only cusLomer advocaLe, someLlmes spendlng as much as
30 of Lhelr Llme [usLlfylng Lhelr exlsLence.
Cne deflnlng characLerlsLlc LhaL seLs Lhe CCC aparL from oLher funcLlonal execuLlves ls Lhe ablllLy Lo
drlve sLraLegy aL Lhe hlghesL levels of Lhe company. LxecuLlves and employees cannoL abdlcaLe Lhelr
shared responslblllLy for cusLomers Lo Lhe CCC. 1he successful CCC wlll culLlvaLe sLraLeglc allles across
every funcLlon, drlvlng process change across Lhe company LhaL enhances proflLablllLy of Lhe broadesL
cusLomer segmenLs.
ls yoot compooy motote eoooqb to tempet teoctloooty moooqemeot lo fovot of o mote cooslJeteJ,
sttoteqlc ptocess tbot oJJtesses eoJemlc lssoes ooJ Jtlves sttoteqy ot tbe blqbest levels of tbe compooy?
Is there a willingness to create, capture, and act upon customer data?
When faced wlLh Lhe 8oard's suggesLlon of dolng a cusLomer saLlsfacLlon survey, one mld-slze company
execuLlve reslsLed furlously, saylng, We're so proud of our operaLlonal efflclency, we won'L lnvesL ln
lmprovemenL regardless of Lhe ouLcome! Why boLher?"
8esources are always scarce and allocaLed accordlng Lo prlorlLy. 1he way Lo wln Lhls prlorlLy baLLle ls
wlLh hard cusLomer daLa. ?ou need daLa Lo move from realm of Louchy feely" Lo solld buslness
declslons wlLh quanLlflable resulLs. 1he organlzaLlon needs Lo be wllllng Lo lnlLlaLe cusLomer daLa
collecLlon acLlvlLles (surveys, LransacLlons, behavlor), Lurn Lhese daLa lnLo acLlonable lnslghLs, and
ensure people are held accounLable for Laklng acLlon.
uo tbe cO ooJ 8ootJ bove teollstlc expectotloos of tbe tesootces tepolteJ fot o ccO to be soccessfol
ooJ ote tbey wlllloq to moke o commltmeot to sopply tbose tesootces? Ate tbey wlllloq to ollow Jeclsloos
to be Jtlveo by costomet Joto?
Can metrics be created that tie customer activities to revenue?
8evenue, proflLablllLy, 8Cl-Lhese are all hard meLrlcs by whlch prlorlLy declslons are made wlLhln Lhe C-
sulLe. WlLhouL Lhe ablllLy Lo correlaLe cusLomer-cenLrlc acLlvlLles Lo Langlble buslness resulLs, Lhe CCC

35 Snow Drive | Littleton, MA 01460 | (978) 226-8675
curtis@ccocouncil.org | www.ccocouncil.org
2012 Chief Customer Officer Council, Inc.

5
wlll be hamsLrung. !eb uasLeel, Sv and CCC of Cracle and 2009 CCC of Lhe ?ear found LhaL hlghly
engaged cusLomers generaLed 33 greaLer revenue Lhan Lhose slmllar buL dlsengaged.
now coo yoo cteote o cleot lloe of slqbt ftom costomet-ceottlc octlvltles to tbe botJ mettlcs tbot tbe cO
cotes oboot?
Does the individual culture desire to serve customers?
Lven Lhough Cracle ls known Lo have an exLremely aggresslve sales culLure, Lhe lndlvldual employees
desperaLely wanL Lo beLLer serve cusLomers, Lhey slmply need Lo know whaL Lo do! Conversely, lf Lhe
8osLon ubllc 1ranslL AuLhorlLy were Lo hlre a CCC and aLLempL Lo effecL change, Lhey'd have Lo flre 93
of all Loll collecLors. 8egardless of Lhe level of execuLlve supporL, culLure can someLlmes squash change.
lmplemenLlng change ls challenglng for mosL organlzaLlons and reslsLance Lo change ls human naLure.
CCCs flnd LhaL reslsLance Lo change ls Lhelr greaLesL challenge requlrlng a slgnlflcanL amounL of Llme and
efforL. A company wlLh a maLure workforce LhaL has always done Lhlngs ln Lhe same way" ls golng Lo be
more reslsLanL.
uo yoot ftoot lloe employees ttoly Jeslte to setve costomets? coo tbey be coovloceJ to Jo so?
Conclusion
Clven Lhe lnLense compeLlLlon and lncreaslngly educaLed and demandlng cusLomers, Lhe quesLlon ls noL
ll you need a chlef cusLomer offlcer, buL WPLn. 8uzzwords llke CusLomer CenLrlclLy and CusLomer
Lxperlence can be enLranclng and many companles are sLarLlng Lo [ump on Lhe chlef cusLomer offlcer
bandwagon. 1he problem LhaL Loo many companles encounLer ls LhaL Lhey can [usL as easlly fall off Lhe
bandwagon lf Lhey hlre a CCC aL Lhe wrong Llme. 1o ensure success, you need Lo make sure your
company ls prepared Lo make Lhe CCC a core sLraLeglc lmperaLlve raLher Lhan merely a flgurehead. uo
your homework, declde on Lhe rlghL Llme Lo hlre your CCC and puL hlm or her ln Lhe opLlmal poslLlon for
success. ?our cusLomers wlll qulckly reward you for your due dlllgence lnsLead of punlshlng you for a
knee [erk reacLlon.


35 Snow Drive | Littleton, MA 01460 | (978) 226-8675
curtis@ccocouncil.org | www.ccocouncil.org
2012 Chief Customer Officer Council, Inc.

6
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 Chlef CusLomer Cfflcer Councll ls Lhe flrsL of lLs klnd, a member-
led peer-advlsory neLwork offerlng unparalleled lnslghL lnLo Lhe
crlLlcal lssues faclng CCCs. lL was creaLed Lo provlde a safe
envlronmenL where CCCs can share ldeas, concerns, and bulld besL
pracLlces LhaL well help Lhem, Lhelr companles, and especlally Lhelr
cusLomers succeed. 1he Councll lncludes CCCs from dlverse
lndusLrles, purposefully cross-polllnaLed wlLh Lhe mosL forward-
Lhlnklng companles, large and small. lor more lnformaLlon, vlslL
www.ccocouncll.org, emall lnfo[ccocouncll.org or call 978-226-8673.

lor more resources from CurLls 8lngham and Lhe CCC Councll, lncludlng arLlcles, vldeos, and 1be
8loqbom AJvlsoty, vlslL www.ccocouncll.org.

Copyright Notice
All cooteot cootoloeJ lo tbls ottlcle ls copytlqbt ptotecteJ motetlol. keptoJoctloo, lo wbole ot lo pott, lo ooy fotm ot meJlom, wltboot tbe
exptess wtltteo petmlssloo of tbe cblef costomet Offlcet cooocll ls sttlctly ptoblblteJ. cootoct eoccocooocll.otq fot teptlots.
!"# %&' ()*#"+,#-.+-/ 0. %&'" 1'2.&,#"32 ()*#-2#4 - ln Lhls arLlcle by CurLls n. 8lngham, you'll learn seven
ways Lo drlve more proflLable cusLomer behavlor, whlle mlnlmlzlng Lhe rlsk of negaLlve consequences for
your cusLomers and Lhelr loyalLy Lo your brand.
uowolooJ yoot ftee copy toJoy ot www.ccocooocll.otq/slte/excloslve-tesootces.ospx

35 Snow Drive | Littleton, MA 01460 | (978) 226-8675
curtis@ccocouncil.org | www.ccocouncil.org
2012 Chief Customer Officer Council, Inc.

7