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Jeanne Bliss Jeanne Bliss   Bio
03.30.06

Is It Time for You to Hire a CCO?

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CEOs no longer need to be convinced of the importance of developing relationships with profitable customers and keeping them around. What they need now is...

...a way to accomplish this feat. Some are considering the creation of a C-level position to drive the action.

Suggesting a "Chief Customer Officer" may seem frivolous to leaders who believe they already focus on customers. There’s often a proliferation of tactics and projects underway…the problem is they don’t amount to anything significant for customers.

So first decide: will leaders be okay with someone (other than themselves) driving consensus on customer strategy and deliverables? You may be saying, “We have consensus now.” I’m sure that you’ve had some good meetings, but how much of it stuck? When they were over, did everyone return to their respective corners and business as usual?

What about sustaining the work? After the first and second meeting of what I call “the funky task force” on the customer work, people start to lose interest. You know these meetings. The kick-off has 40 people at the table, some who clamored for an invite. One month later, six regularly show up. And the person who got the job to run the task force layered on top of his/her “regular” job? Well, they’re losing interest fast.

Now let’s discuss the sticky wicket of “how” to move past the hoopla of meetings and empty commitments. Do you have a central roadmap that everyone follows on how you’ll drive the customer work and measure progress? I didn’t think so. How about consistent metrics everyone agrees to? We have metrics galore in our companies and of course the ‘customer’ is now on our scorecards. But these are typically neither clear nor connected down to the operational level.

Roles and responsibilities and holding people accountable are a slippery slope in the customer work. This is about the hand-offs between the silos. Most companies need a task list that clearly states what each part of the organization will do and when to get the priorities accomplished. But most don’t have one. Do you?

Is funding customer projects like pulling teeth? This may be due to duplicate spending across the organization. Everything is pitched as an individual program from inside the silos. At planning time these investments are often vulnerable in the first round of budget cuts. Why? Because each project shows up as a one-off tactic. There’s rarely an annual plan for understanding and managing customers as a key corporate asset - determining how many were lost and why and pooling resources to keep and grow profitable customers. Why? Because it’s no one’s job to do this job.

Most leaders wouldn’t refute that any of these actions are important. They want them to happen. They’ve always wanted them. Their failure has been in assuming the company could miraculously defy the laws of the silos to make them a reality. Separate motivation, the metrics and the mechanics have stayed firmly rooted in each silo. And they will continue to stay there until someone duct-tapes the silos together in a unified and executable customer plan.

Is it time you established a Chief Customer Officer to connect your company for customers?



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Comments

We are a small (9 person) grassroots marketing firm. We recently took our own medicine and promoted someone to "Customer Evangalism Manager" with the role of ensuring that our clients are not only happy, but spreading the word. We consider is "quality control" for a service business.

Posted by: Justin Foster | 04.03.06

Justin:

Bravo! Customer evangelism is sometimes considered only necessary for the big guys...but often just like in families, the dysfunction and silos may be even stronger in smaller organizations. Some of the gnarliest challenges I saw were during the dot-com bubble when all the start ups sprang up and didn't take the time to think through how they'd work together and how what they did might land in a heap in their customers' lap. In a service business, such as yours...the service is the product. So ensuring that you can "tangibilize" the byproduct of what you give customers and create consistency and reliability in what they get from you is crucial. When I was at Coldwell Banker and was responsible for the loyalty of the franchisees - a big part of what we worked on was ensuring that they could see, understand and then articulate back in their own words what they got from us. But that couldn't and didn't happen naturally. We had to work on figuring out the mechanics of what those deliverables were...and then also had to work real hard on boosting and developing skills to be able to deliver on the promise. To summarize, the key things you should push your evangelist to do are:
1. Establishing consistency in the process of service delivery
2. Making sure there's communication wrapped around that service
3. Connecting the organization for unified delivery
4. Making sure there's recognition and reinforcement for the direction you want to go.

Again..bravo! Keep pushing...it WILL pay off! Jeanne

Posted by: jeanne bliss | 04.03.06

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