So you think you need a Chief Customer Officer ... well, consider this...

Over the past decade, we’ve witnessed an increasing number of companies employing a Chief Customer Officer (CCO). Sometimes the role is referred to as a Customer Success Officer or VP of Customer Success. This individual typically aligns somewhere between Chief Revenue Officer (i.e., VP of Sales), Chief Marketing Officer and maybe even Chief Operating Officer. The purpose of the role is to drive customer success, satisfaction and loyalty which will in turn lead to higher revenues, lower cost and improved brand success.

But how do you know if your firm or organization needs a CCO? And if one is necessary, how do we know that individual is properly positioned and supported internally so they can achieve their desired goals? 

Here are a few considerations for those considering hiring a CCO or perhaps those simply trying to realign their existing Customer Success mission. 

In short, a CCO is needed if:

1. You have an unacceptably high level customer churn or turn-over -- It costs a considerable amount of time, effort and resources to acquire a new client. However, they can leave very quickly and without warning. Experience has shown that when clients feel neglected or unwanted, they will quickly seek other providers and be all-too-happy to tell everyone they know why they left.
2. You are unable to effectively cross-sell or up-sell within your existing client base -- Obviously, your best clients are those with whom you are already doing business. If you are unable to grow or expand your business relationship with your current clients, warning bells should be ringing.
3. Your customer satisfaction scores are below par or not where you want them to be -- This is another obvious sign. While your sales team may be successful initially, there may not be enough focus on client success and customer satisfaction after the sale. 
4. Not enough clients are willing to be used as references — The importance and power of a client reference is well recognized. Having a real-life and impartial advocate for your product or service is priceless. 
5. Your business is based on a model where your customers pay on a subscription basis and/or the barriers to switching are low — More and more businesses are moving to a pay-as-you-go revenue model. This puts a premium on ensuring your current clients are delighted and stay that way. 
6. Your Sales or Marketing or Operations leadership teams do not have the band-width to effectively assume all or a portion of this role — The larger the firm, the more important and relevant a CCO becomes. Understandably, smaller firms may not yet have the resources or client base to support a CCO. However, as a firm grows, having a part-time CCO (shared with the sales or marketing team) will not suffice. 

Assuming it’s been determined that a CCO is needed, the next step is to decide where they should fit within the organization and what tools and resources they should be provided. The most common belief is that the CCO should be a C-Suite role reporting to the CEO. I have no firm rule on the exact organizational position for the CCO. However, regardless to whom this individual reports, they must have unquestioned authority to speak and act on behalf of the client. That means they have direct input in product, sales, manufacturing, support and operational matters. 

It is also best if the CCO has properly aligned metrics unique to their role AND a budget.  That shows everyone within the organization that they are a force for good and that the organization is sincere about its desire to put the client first. This will eliminate the possibility that the CCO is treated as just a figurehead with no real power to represent the customer to the organization.  

We’ll spend more time in Part II of this article covering the key responsibilities of today’s CCO’s.

Now, I’d like to hear what you think...