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The Customer Is Speaking – But Are We Really Listening?

The “Voice of the Customer” in any organization is heard through multiple internal channels, and may even sound different depending on which department or employee is listening. Sales may hear one voice while they're closing a deal, marketing yet another based on surveys and market analysis and customer service a completely different viewpoint when responding to questions, complaints and support calls.

In times of increased competition and continued commoditization of goods and services, connecting with customers is more important than ever - so why aren't organizations set up to capture and respond to these different viewpoints in a coordinated way? Because taking an integrated view of the customer is hard – and it requires breaking down traditional boundaries between departments.

Programs aimed at integrating the voice of the customer vary greatly, but typical components include gathering input from a variety of sources and methods, including:

• Focus groups

• Interviews (internal and external)

• Electronic surveys

• Field surveys

• Feature requests

• Customer complaint logs

• Customer service representatives

The challenge is in pulling this input together and developing an integrated program that can address trends and issues that cross departmental boundaries. No where is this challenge more apparent than when implementing a system to manage this information.

Who owns the CRM System?

CRM systems continue to be classified as the holy grail for enterprises wanting to better connect with, and manage, customer information. Companies are spending millions of dollars on these systems – yet still not getting the desired results. When these systems fail, the organization often looks to IT or the software vendor or the project manager to explain what went wrong.

Yet do we ask who in the organization “owns” this system? Is it sales, marketing, customer service, or someone else? Who chooses which system is the best fit, and whose priorities win out when functionality needs to be reduced or deferred? With a finance system, the CFO is the natural sponsor and “owner.” Similarly, the HR Director owns the HR system, and the COO typically owns the inventory and production systems.

If any one department drives the implementation of the CRM system, can they really represent the entire view of what the organization needs to connect with the customer? Different priorities, budgets and perspectives necessitate that departments focus on what will help make them most successful – and breaking this silo mentality with a CRM system and processes is difficult. Therefore, a different approach and structure is needed.

Introducing the CCO

Many organizations are moving to implement new positions and reporting structures to break down these barriers and manage an integrated view of the customer across the enterprise. This approach often includes creating the position of Chief Customer Officer (CCO) to ‘own' the view of the customer.

T he concept of an executive who is responsible for customer advocacy is not new, but the CCO role has recently gained popularity as companies attempt to define who will be responsible for interpreting the customer insights that drive new opportunities, growth and client satisfaction. Companies such as Fidelity, Sun Microsystems, Hewlett-Packard, Cisco and Monster.Com have all moved to this type of model to better align their organizations around the customer.

The CCO should be empowered and held accountable for collecting customer insights, expanding relationships and ongoing revenue from existing customers, and ensuring marketing and sales are targeting the right customers. The CCO is charged with managing the customer relationship as another asset of the company.

Typical programs and responsibilities under the CCO include:

• Manage customer feedback mechanisms and improvement programs.

• Capture and communicate customer needs and desires.

• Drive customer segmentation and “lifetime value” analysis.

• Investigate and prevent customer defections.

• Instill a customer advocacy mentality across the organization.

• Manage the CRM systems and drive the analysis of customer data.

While not a silver bullet, implementing a position of the Chief Customer sends a strong message to employees and customers that the company is serious about listening to the “Voice of the Customer” and doing something about it.

Ray Makela is a principal of Codesic Consulting and has over nineteen years of management and consulting experience in the public and private sectors. In his role as Chief Customer Officer at Codesic, he focuses on developing and managing programs to strengthen Codesic's relationships with strategic customers. Makela is responsible for ensuring Codesic's services are aligned with the market and the client needs, and for managing customer feedback programs and CRM tools to drive both corporate strategy and customer initiatives.