What the heck is a Chief Customer Officer?

Advertising disclosure: This blog participates in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means to earn fees by linking to Amazon and affiliated sites.

More companies are adding a Chief Customer Officer (CCO).

It sounds like a positive development, but you're not alone if you don't know exactly what a CCO does. I'll admit—I had to do some digging myself. 

Thankfully, two experts gave me the inside scoop.

Customer experience pioneer and bestselling author, Jeanne Bliss, literally wrote the book on this topic. The book, Chief Customer Officer 2.0, spells out in great detail the role of the CCO.

Judy Weader is a senior analyst at Forrester who researches the field of customer experience (CX). You can find her quoted in publications like Forbes and the Wall Street Journal.

In this post, I'll attempt to answer a few questions with help from Bliss and Weader:

  • What does a Chief Customer Officer do?

  • Does a CCO need to have functional responsibility?

  • What’s the difference between a CCO and a CXO?

  • Is the CCO role a fad or a real trend?

  • How do you know if your company needs a CCO?

What does a Chief Customer Officer do?

"The Chief Customer Officer is responsible for building and guiding an organization’s customer experience strategy," explained Weader.

Customer experience extends beyond just customer service. It extends to all the interactions a customer has with your brand, including advertising, sales, delivery, support, and even the product itself.

A CCO should help ensure all of these functions work seamlessly together.

According to Bliss, the CCO is ultimately responsible for "Uniting the c-suite to elevate the organization to become an admired company and earn the right to customer-driven growth."

This means more than just collecting and presenting survey results or fixing problems. The CCO should give senior leaders enough information to grow the business.

Does a CCO need to have functional responsibility?

Both Bliss and Weader agree that a CCO doesn't necessarily need departments reporting to them such as customer service, marketing, or sales.

"I have yet to find one single mold for a CCO that establishes one typical set of functional responsibilities outside of CX," said Weader. "However, I’ve come across a number of CCOs who are also responsible for brand, marketing, sales, customer success, and/or the contact center. Some of this relates to their reporting structure; if the CCO reports directly to the CEO (which is the most common alignment), then they’re more likely to have a specific function beyond CX reporting to them in order to be efficient at the executive layer."

Bliss agreed that a CCO should report directly to the CEO in order to have the appropriate level of influence within the organization. 

She also pointed to a few criteria shared by most successful CCOs:

  1. Already a senior executive when they're promoted.

  2. Experience building collaborative teams.

  3. Have led an operation.

Bliss explained that top CCOs have "dirt under their fingernails" from running part of the business. This helps them better understand the real challenges of continuously improving customer experience.

Whats the difference between a CCO and a CXO?

Generally speaking, the titles of CCO and CXO can be used interchangeably. 

"Importantly, Chief Customer Officers may not always go by this title—Chief Experience Officer (CXO) and Chief Client Officer (also CCO) are seen, as well," said Weader.

Is the CCO role a fad or a real trend?

This appears to be a real trend.

Bliss published Chief Customer Officer in 2006. The second edition, Chief Customer Officer 2.0, was released in 2015. The role of the CCO has only continued to proliferate since then.

Weader cited research from her colleague at Forrester, Angelina Gennis. "From 2014 to 2019, we noted explosive growth in CX leadership roles at the executive level, including the CCO: in 2019, there were over 10,000 current job titles for CX executives (including CCO and CXO), versus fewer than 1,000 only 5 years prior."

How do you know if your company needs a CCO?

Bliss offers an excellent 10-point checklist in Chief Customer Officer 2.0 to help you decide whether your company needs a CCO.

I won't share all of it here—you should really get the book—but here are a few highlights:

  1. Do you need someone to clarify and champion the customer experience vision?

  2. Is there a roadmap for the customer experience work to be done?

  3. Do clear metrics exist for measuring progress?

A "no" to one or more of those questions might indicate the need for a CCO. 

Interestingly, Bliss also advocates that CCOs try to work themselves out of a job. As an organization matures its customer-focused culture, the CCO function should become embedded in the daily work of every other executive.

Conclusion

This insight Bliss and Weader shared makes a lot of sense. I've observed CCOs struggle when they haven't been put in a position to succeed:

  • They weren't a member of the senior leadership team.

  • Their role was limited to collecting and presenting survey data.

  • The position was added to chase a trend, not because of a strategic imperative.

On the other hand, I’ve seen Chief Customer Officers make an impact on their organization under three conditions:

  1. A strategic need exists for this person.

  2. There's clarity around what this person does.

  3. The CCO is a senior executive.

Does Your Company Need a Chief Experience Officer?

Advertising disclosure: We are a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for us to earn fees by linking to Amazon.com and affiliated sites.

Customer Experience futurist, Blake Morgan, recently wrote an article for Forbes titled, "The Case Against a Chief Customer Officer."

In it, Morgan argues that creating the role of Chief Customer Officer or Chief Experience Officer (CCO and CXO, respectively) is often just paying lip service to the idea of customer-centricity. It's a solid point.

I posted the article on LinkedIn and there was a lively discussion. Some people agreed Morgan was spot-on, while others disagreed and advocated for a CXO role. Unfortunately, data and examples were slim.

So I decided to find some data, or at least a few examples, that could answer whether having a CXO makes sense.

The words “CX” and “Customer Experience” surrounded by illustrations of business people.

Do customer-centric companies have a CXO?

The short answer is not necessarily.

Some do, but not all. And there's a huge variable that seems to determine whether this role is actually successful. (More on that in a moment.)

I'll be the first to admit my study is narrow, but it's a start. There are 11 customer-centric companies profiled in my book, The Service Culture Handbook, so I decided to examine them.

How many of these companies have a senior level executive whose title is CCO, CXO, or something substantially similar?

The answer is 36 percent, or 4 out of 11.

A list of organizations profiled in The Service Culture Handbook.

When does having a CXO make sense?

Another way to look at the small sample of customer-focused companies from The Service Culture Handbook is 7 out of 11 do not have a CXO. Yet these companies like REI, Shake Shack, and Zendesk are all highly customer-focused.

There's one variable that seems to determine whether a CXO role makes sense for a company: whether or not that person has functional responsibilities.

All of the CXOs in Service Culture companies oversee some specific function. 

Ian Deason, Sr. Vice President of Customer Experience at JetBlue, oversees all customer-facing operations. This includes the airports, customer support, and inflight departments.

Brooke Skinner Rickettes, Chief Experience Officer at Cars.com, is in charge of marketing. She also leads strategy for product and design.

I've talked with several CXOs off the record who were without any functional responsibilities. In each case, they expressed frustration about being unable to effectively influence other parts of the company. It seemed the CEO had delegated customer experience by creating the role, and other executives ignored it because it wasn't their responsibility.

Take Action

The real question for your business is not, "Should we add a CXO?"

Adding one doesn’t automatically make your company more customer-centric. Not having one doesn’t mean your company can’t have a strong service culture, either.

A better question is, "What governance structure best fits our strategy?" It doesn't make sense to create a CXO position if they don't have a specific role to play.