Bad Reasons For NOT Having A Chief Customer Officer

I recently updated our research on enterprisewide customer experience leaders, who we refer to as “chief customer officers” or CCOs. While they often don’t have that exact title, we identified around 600 individuals who carry a mandate to improve the end-to-end customer experience at their company. We did some deeper research on close to 200 of them in order to understand the general profile of these people as well as how their positions are structured within their companies.

Forrester has witnessed a marked increase in the position over the past six years. And for good reason: Competitive forces are shifting dramatically in what we call the “age of the customer” (from Forrester report "Why Customer Experience? Why Now?"). Firms struggle to compete on product innovation alone, as global outsourcing and cloud-based computing lower barriers to entry and create scores of substitutes. Customer power has grown, as 73% of firms trust recommendations from friends and family, while only 19% trust direct mail (from Forrester report "Consumer "Ad-itudes" Stay Strong"). Firms have turned to customer experience as a way to differentiate in this commoditized world, which has led to the surge in CCOs. In my new report, I profiled key characteristics of CCOs as well as models for the kinds of organizations they oversee.

At the same time, as high-profile firms like Fidelity, The Washington Post, and General Motors have put in place senior customer experience leaders over the past year or so, I’ve been struck by the wide assortment of reasons that firms use to rationalize NOT putting a chief customer officer in place.

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