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Decoding the
Chief Customer Officer
This abbreviated report details some of the background,
rationale and implications of appointing a Chief Customer Officer
as per original research conducted by ORESA Executive Search
www.oresa.co.uk +44 (0)203 675 1459
Introduction
Socio-economic change and advances in technology have
given rise to an increasingly demanding and empowered
global consumer.
This new paradigm means that, to be a market-leading
consumer brand, companies need to:
Differentiate
& Innovate
Compete
Innovation does not apply only to systems and models but
also to having a customer-centric organisational design that
enables operational excellence.
For some organisations this has necessitated a change
in the construction of their boards and senior leadership.
In some cases this has led to the appointment of a
Chief Customer Officer (herein referred to as CCO).
“Customer first was once and must again
be the mantra for businesses.”
Orlando Martins, CEO, ORESA
Methodology
The results in this report were originated from (1) a survey
of ‘C Suite’ leaders from Retail, Technology, Brand and
Agency (2) interviews with hundreds of candidates in relevant
disciplines and (3) commentary from our debate on the CCO
in December 2015.
The Journey to Customer Centricity
As per the ORESA series on the Changing Customer
(Published online in April-May 2015) and, according to
Forrester Research, we are in ‘the age of the customer’.
“A 20 year business cycle in which the most successful
enterprises will reinvent themselves to systematically
understand and serve increasingly powerful customers”.
Over the last decade, consumer businesses have had to evolve
from ‘stock shifters’ to experiential omni-channel retailers
and brands. This has fundamentally changed the way
customers are addressed.
Why change is required
By 2014 a rising voice recognised that
•	 Board and leadership structures were not delivering
•	 Siloed single channel empires were delivering sales but not
holistic experiences
•	Customer data should be used to drive insight, not just
used as a trading tool
•	The shift from insight-backed brand marketing to
	 metric-based digital trading meant customers were
connected but emotionally separated
Most importantly, organisations were waking up to the fact that
they needed to listen to, and truly address, customer needs.
As Jeanne Bliss, author of The Chief Customer Officer 2.0 said:
“To make customers the strategic core of the
business, company leaders need to personally
take on the job...”
As such, companies require a customer focused director
aligned to the mission. Enter the CCO.
The Need for a CCO
Our respondents were in no doubt that:
the role of the CCO will
increase in importance
over the next five years
90%
there is a need for the
role of the CCO
66%
The Purpose of a CCO
Our respondents suggests that the CCO should take an holistic
view over the proposition and ensure customer needs are met.
“Responsibility for the end-to-end customer journey
and ensuring a maximised mutual exchange of value
between customer & business”.
Kate Simon, MD, New Business, Majestic Wine PLC
www.oresa.co.uk +44 (0)203 675 1459
toP 4 KPis for the cco
80% customer satisfaction e.g. nPs
75% customer retention
70% customer Acquisition
60% number of Active customers
if companies want to drive customer centricity, they need to
ensure that there are shared KPis for the company and cco.
having linked KPis will ensure there is a single view of what
good looks like; whilst operational KPis will drive the sales and
P&l performance of the business.
WhAt comPetencies Does A
chief customer officer neeD?
this person should be able to translate data into actions
and drive profitable outcomes via the development
of a customer-centric strategy.
It’s someone that understands consumer data, understands the
journey from beginning to end, and has the strategic horsepower
to influence the entire organisation.”
Beth Butterwick, ceo, Bonmarché
Whilst there were some sectorial variations, our respondents
across retail, technology, fmcg, Agency and Brands were
in agreement that the soft skills required of a cco are:
influencing
communication
visionary leadership
interpretation
they believe that the cco needs to use a range of softer and
more intuitive skills; which reflect the growing call for less
‘command and control’ and more authentic and intuitive
leadership.
www.oresa.co.uk +44 (0)203 675 1459
functionAl resPonsiBility
there are at least six different potential structures, including
variants where sales responsibility is held by the cco. We have
included two examples below, of which example two is the most
popular at this stage.
Example One
marketing
Brand
ecommerce
Example Two
marketing
ecommerce
Data, insight and loyalty
Brand
customer proposition
it is essential to set the right organisational design and ensure
clarity of responsibility and accountability. for advice on the
most appropriate structure and/or advice on building the
perfect job specification please contact us.
“Clarity of what this role enables versus what
this role does is really important.”
matt Atkinson, cmo, saga
metrics for success
it can be difficult to measure the effectiveness of fledgling
boardroom positions as companies attempt to get a handle on
what success looks like. once established, companies have to
consider how these KPis contribute and align to the overall
business objectives.
www.oresa.co.uk +44 (0)203 675 1459
So who should you promote?
“There are a lot of what I would call traditional marketers,
still at the top and they’re doing a good job, but actually
they’ve not got a broad enough skillset, so the only way to get
around that is to create a different role”
Susan Aubrey-Cound, Consultant
Functional backgrounds from which CCOs typically
come from are:
Marketing
DigitalBrand
Sales
The CEO of tomorrow?
Currently there are CCOs sitting on the Executive Board,
Operating Board and within senior leadership.
Our view is that as boards re-shape to meet the needs of their
customers, and where the role encapsulates sales as well as
other functions, increasingly this role will become a key part
of the C-Suite.
of those polled believe the Chief Customer
Officers of today are the Chief Executives
of tomorrow.
Having considered the holistic dynamic we believe that the
CCO should become a part of corporate succession plans.
Conclusions
Competitive advantage
through change
The speed of change for dynamic customer businesses will
continue at a tortuous pace. It is evident that the customer
landscape is changing and, to survive, businesses need to adapt.
If holistic customer experience is the key to competitive
advantage then businesses must ensure that they listen and
address their customers’ real, not perceived needs.
Every business needs to assess how they are meeting these
needs and consider the potential benefit of developing this
role as part of the senior leadership team, if not the
‘C-Suite’ itself.
Any company taking this seriously, must appoint someone
with the responsibility, accountability and ‘bite’ to make
it happen.
It is therefore crucial that businesses have a clear definition
of what this role looks like, where functional responsibilities
end, and, importantly, where this role fits in with the overall
proposition.
6 Recommendations for Change
•	Focus on how you can engineer your business to deliver
a customer centric proposition
•	Use competitor led structural and talent insight to inform
your decisions
•	Be bold but be aware: take calculated risks
•	Bespoke the right organisational design for your company
•	Be creative: consider agile and lean structures that include
outsourcing as well as internal builds
•	Align your internal talent to the business plan, to ensure
it all joins up!
56%
JOIN THE DEBATE
@oresaexecsearch Oresa Executive Search
www.oresa.co.uk +44 (0)203 675 1459
“I provided ORESA with a brief and they exceeded my
expectations, enabling me to understand my internal talent
capability and see what was possible. They then recruited the
team that is now delivering my vision.”
tom Joule, ceo
recent Assignments
Chief Customer Officer
NEDChief Financial Officer
Chief Marketing OfficerB&M Director
MD Commercial Director
Head of CRMBrand Communications
Global
Marketing
Director
Customer Director
Group HRD
Group Supply Chain & Logistics
CEO Designate
“ORESA have a great reputation, they spent time
to understand our culture, skillsets and the brief.
Myself and the senior management team can depend
on their confidence, discretion and expertise
…I cannot recommend them highly enough.”
Beth Butterwick, ceo
ABout oresA
founded eight years ago, we provide executive search,
organisational Analysis & Design and consultancy services
for retail, fashion & digital clients who need to attract and
retain world-class commercial teams.
We are chosen for our market-leading expertise in digital and
multi-channel business and our deep knowledge is matched
by our genuine passion for these sectors.
We will work with you to look beyond the obvious, to inspire
business solutions and find the leadership personalities
that will shine. this way you can stay cutting edge today
and tomorrow.
our research aims to, prompt debate, drive change and offer
guidance and support to clients in the fashion, retail
and digital industry.
services
candidate validationexecutive search
consultancy
team Buildingorganisational Design
neXt stePs
If you would like to receive or discuss the full report,
require help on defining a CCO vacancy/related structures
or to discuss any of the points raised in this report
please contact us:
ceo, founder orlando@oresa.co.uk
senior consultant John@oresa.co.uk
consultant leandro@oresa.co.uk
see WhAt’s PossiBle

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Decoding The Chief Customer Officer: How forward thinking retailers are evolving

  • 1. Decoding the Chief Customer Officer This abbreviated report details some of the background, rationale and implications of appointing a Chief Customer Officer as per original research conducted by ORESA Executive Search
  • 2. www.oresa.co.uk +44 (0)203 675 1459 Introduction Socio-economic change and advances in technology have given rise to an increasingly demanding and empowered global consumer. This new paradigm means that, to be a market-leading consumer brand, companies need to: Differentiate & Innovate Compete Innovation does not apply only to systems and models but also to having a customer-centric organisational design that enables operational excellence. For some organisations this has necessitated a change in the construction of their boards and senior leadership. In some cases this has led to the appointment of a Chief Customer Officer (herein referred to as CCO). “Customer first was once and must again be the mantra for businesses.” Orlando Martins, CEO, ORESA Methodology The results in this report were originated from (1) a survey of ‘C Suite’ leaders from Retail, Technology, Brand and Agency (2) interviews with hundreds of candidates in relevant disciplines and (3) commentary from our debate on the CCO in December 2015. The Journey to Customer Centricity As per the ORESA series on the Changing Customer (Published online in April-May 2015) and, according to Forrester Research, we are in ‘the age of the customer’. “A 20 year business cycle in which the most successful enterprises will reinvent themselves to systematically understand and serve increasingly powerful customers”. Over the last decade, consumer businesses have had to evolve from ‘stock shifters’ to experiential omni-channel retailers and brands. This has fundamentally changed the way customers are addressed. Why change is required By 2014 a rising voice recognised that • Board and leadership structures were not delivering • Siloed single channel empires were delivering sales but not holistic experiences • Customer data should be used to drive insight, not just used as a trading tool • The shift from insight-backed brand marketing to metric-based digital trading meant customers were connected but emotionally separated Most importantly, organisations were waking up to the fact that they needed to listen to, and truly address, customer needs. As Jeanne Bliss, author of The Chief Customer Officer 2.0 said: “To make customers the strategic core of the business, company leaders need to personally take on the job...” As such, companies require a customer focused director aligned to the mission. Enter the CCO. The Need for a CCO Our respondents were in no doubt that: the role of the CCO will increase in importance over the next five years 90% there is a need for the role of the CCO 66% The Purpose of a CCO Our respondents suggests that the CCO should take an holistic view over the proposition and ensure customer needs are met. “Responsibility for the end-to-end customer journey and ensuring a maximised mutual exchange of value between customer & business”. Kate Simon, MD, New Business, Majestic Wine PLC
  • 3. www.oresa.co.uk +44 (0)203 675 1459 toP 4 KPis for the cco 80% customer satisfaction e.g. nPs 75% customer retention 70% customer Acquisition 60% number of Active customers if companies want to drive customer centricity, they need to ensure that there are shared KPis for the company and cco. having linked KPis will ensure there is a single view of what good looks like; whilst operational KPis will drive the sales and P&l performance of the business. WhAt comPetencies Does A chief customer officer neeD? this person should be able to translate data into actions and drive profitable outcomes via the development of a customer-centric strategy. It’s someone that understands consumer data, understands the journey from beginning to end, and has the strategic horsepower to influence the entire organisation.” Beth Butterwick, ceo, Bonmarché Whilst there were some sectorial variations, our respondents across retail, technology, fmcg, Agency and Brands were in agreement that the soft skills required of a cco are: influencing communication visionary leadership interpretation they believe that the cco needs to use a range of softer and more intuitive skills; which reflect the growing call for less ‘command and control’ and more authentic and intuitive leadership. www.oresa.co.uk +44 (0)203 675 1459 functionAl resPonsiBility there are at least six different potential structures, including variants where sales responsibility is held by the cco. We have included two examples below, of which example two is the most popular at this stage. Example One marketing Brand ecommerce Example Two marketing ecommerce Data, insight and loyalty Brand customer proposition it is essential to set the right organisational design and ensure clarity of responsibility and accountability. for advice on the most appropriate structure and/or advice on building the perfect job specification please contact us. “Clarity of what this role enables versus what this role does is really important.” matt Atkinson, cmo, saga metrics for success it can be difficult to measure the effectiveness of fledgling boardroom positions as companies attempt to get a handle on what success looks like. once established, companies have to consider how these KPis contribute and align to the overall business objectives.
  • 4. www.oresa.co.uk +44 (0)203 675 1459 So who should you promote? “There are a lot of what I would call traditional marketers, still at the top and they’re doing a good job, but actually they’ve not got a broad enough skillset, so the only way to get around that is to create a different role” Susan Aubrey-Cound, Consultant Functional backgrounds from which CCOs typically come from are: Marketing DigitalBrand Sales The CEO of tomorrow? Currently there are CCOs sitting on the Executive Board, Operating Board and within senior leadership. Our view is that as boards re-shape to meet the needs of their customers, and where the role encapsulates sales as well as other functions, increasingly this role will become a key part of the C-Suite. of those polled believe the Chief Customer Officers of today are the Chief Executives of tomorrow. Having considered the holistic dynamic we believe that the CCO should become a part of corporate succession plans. Conclusions Competitive advantage through change The speed of change for dynamic customer businesses will continue at a tortuous pace. It is evident that the customer landscape is changing and, to survive, businesses need to adapt. If holistic customer experience is the key to competitive advantage then businesses must ensure that they listen and address their customers’ real, not perceived needs. Every business needs to assess how they are meeting these needs and consider the potential benefit of developing this role as part of the senior leadership team, if not the ‘C-Suite’ itself. Any company taking this seriously, must appoint someone with the responsibility, accountability and ‘bite’ to make it happen. It is therefore crucial that businesses have a clear definition of what this role looks like, where functional responsibilities end, and, importantly, where this role fits in with the overall proposition. 6 Recommendations for Change • Focus on how you can engineer your business to deliver a customer centric proposition • Use competitor led structural and talent insight to inform your decisions • Be bold but be aware: take calculated risks • Bespoke the right organisational design for your company • Be creative: consider agile and lean structures that include outsourcing as well as internal builds • Align your internal talent to the business plan, to ensure it all joins up! 56% JOIN THE DEBATE @oresaexecsearch Oresa Executive Search
  • 5. www.oresa.co.uk +44 (0)203 675 1459 “I provided ORESA with a brief and they exceeded my expectations, enabling me to understand my internal talent capability and see what was possible. They then recruited the team that is now delivering my vision.” tom Joule, ceo recent Assignments Chief Customer Officer NEDChief Financial Officer Chief Marketing OfficerB&M Director MD Commercial Director Head of CRMBrand Communications Global Marketing Director Customer Director Group HRD Group Supply Chain & Logistics CEO Designate “ORESA have a great reputation, they spent time to understand our culture, skillsets and the brief. Myself and the senior management team can depend on their confidence, discretion and expertise …I cannot recommend them highly enough.” Beth Butterwick, ceo ABout oresA founded eight years ago, we provide executive search, organisational Analysis & Design and consultancy services for retail, fashion & digital clients who need to attract and retain world-class commercial teams. We are chosen for our market-leading expertise in digital and multi-channel business and our deep knowledge is matched by our genuine passion for these sectors. We will work with you to look beyond the obvious, to inspire business solutions and find the leadership personalities that will shine. this way you can stay cutting edge today and tomorrow. our research aims to, prompt debate, drive change and offer guidance and support to clients in the fashion, retail and digital industry. services candidate validationexecutive search consultancy team Buildingorganisational Design neXt stePs If you would like to receive or discuss the full report, require help on defining a CCO vacancy/related structures or to discuss any of the points raised in this report please contact us: ceo, founder orlando@oresa.co.uk senior consultant John@oresa.co.uk consultant leandro@oresa.co.uk see WhAt’s PossiBle