CCO's Role in the C-Suite: Insights from the CCO Online with Sangeeta Chakraborty
# CCO Online
Omid Razavi
September 25, 2023Summary
The Chief Customer Officer (CCO) is gaining prominence within the C-Suite, driving shareholder value through revenue retention and a steadfast focus on customer success. This revelation emerged during our recent session at the CCO Online Forum, featuring Sangeeta Chakraborty, Chief Revenue Officer (CRO), at Miro on September 21, 2023. We uncovered enlightening perspectives on the evolving role of CCOs, particularly within SaaS enterprises.
The Role of CCO
The forum delved into the CCO's role and collaboration within the C-Suite. Sangeeta described the CCO's mandate as charting a clear and purposeful customer value journey that consistently delivers the promised value. CCOs significantly impact the company's financial health and overall valuation through customer retention and net revenue growth. We emphasized the importance of CCOs acting as allies and partners to every executive team member toward shared objectives.
CCO and CRO
The forum featured substantial discussions regarding the roles of CCO vs. CRO. We agreed that the CRO should concentrate on "revenue direction," identifying growth opportunities, and executing revenue strategies, while the CCO primarily focuses on "value direction." The latter involves validating the product's value proposition with customers. Drawing from her experience in both roles at Miro, Sangeeta explained:
"The CRO is primarily forward-looking, identifying opportunities for growth and steering the company's revenue strategy. Her tasks include determining how to approach the market, segmenting the customer base, deciding whether to use direct sales or channels and defining the nature of customer deals. The CRO focuses on the 'revenue direction,' strategizing market expansion and pinpointing how it should evolve."
"The CCO emphasizes customer value, ensuring that the business can validate its value proposition to customers. By doing so, the CCO sets the stage for the CRO to secure subsequent sales." The CCO is also instrumental in cultivating advocates in the industry who can vouch for the product, providing the customer advocacy foundation for the Chief Marketing Officer (CMO). We agreed that for a company to thrive, the CRO and CCO roles must coexist harmoniously and collaborate closely.
CCO and Product and Engineering Leaders
CCOs are pivotal in ensuring that the product's value proposition and performance align with customer expectations and needs, even when they don't directly manage products or run engineering operations. They must keep pace with the rapid evolution of products to meet changing customer demands and market dynamics. In addition to aligning the product's value proposition with customer expectations and needs, the emphasis will be on user experience, adoption, knowledge, support, and success.
CCO at PLG Companies
In a Product-Led approach, the product itself serves as the primary salesperson and Customer Success Manager (CSM). The challenge lies in effectively aligning PLG strategies with enterprise-driven value and sales motions. Establishing the right relationships with customers at various levels, even in scenarios with minimal direct communication, is crucial for facilitating the customer's value journey.
"One of the challenges with a PLG approach is that while you might have a strong base of users, there's often a lack of deep understanding about them because there's been minimal direct communication," Sangeeta explained. "The key is to use customer success strategies to build the right relationships at appropriate levels, ensuring the customer's value journey continues. As the relationship grows and becomes more significant, departments like procurement and finance often get involved with inquiries. It's essential to navigate these interactions smoothly through customer success."
"While a PLG approach provides insight into user behavior and engagement," she continued. "merely having user activity doesn't necessarily translate into revenue in today's market. It's crucial to align with the strategic direction of the client company, ensuring they recognize the value and rationale for investing in your product. Given the trend of software consolidation, where companies aim to reduce the number of applications they use, it's vital to justify why they should allocate budget for your product."
CCO and CFO
Establishing a solid and collaborative relationship with the Chief Financial Officer (CFO) is paramount, as it profoundly impacts resource allocation and financial sustainability necessary to secure the resources to drive customer-centric initiatives, whether through investing in customer success programs, enhancing the customer experience, or expanding support services. A harmonious relationship based on sound financial models empowers the CCO to deliver exceptional customer value efficiently.
CCO and CHRO
The partnership between CCOs and the Chief Human Resources Officer (CHRO) is crucial for recruiting, developing, and retaining top talent aligned with the company's focus on DEI (diversity, equity, and inclusion) and customer-centricity. This collaboration extends to ongoing talent development and retention, ensuring that employees possess the necessary skills and that the company retains valuable staff who contribute to customer-centric success and revenue growth.
CCO and the CEO
CCOs must have a unique connection with the CEO, providing rapid field feedback and ensuring informed decision-making at the executive level that aligns with customer needs and drives growth. This relationship underscores the value of data-driven customer insights in shaping the company's strategies and direction. It ensures that organizations prioritize customer feedback, enhancing the brand's reputation and competitive advantage.
Advice to Aspiring CCO
It is essential that CCOs have revenue and efficiency targets and not be viewed as overseers of certain functions. You must be accountable for the metrics that deal with monetization, consumption, renewals, and service figures. To achieve these goals, naturally, you must collaborate closely with your Sales and avoid using the term "post-sales!" Categorizing activities as "post-sales" doesn't make sense in SaaS because you never truly stop selling, and labeling as "post-sales" confines roles. CCOs are expected to sell and lend credibility to many of their sales pitches. We're all in this together!
Conclusion
While all executive roles remain critical in the C-Suite, the growing centrality of the CCO challenges traditional hierarchies. This trend indicates that the influence of CCOs within the C-Suite will continue to expand in the future.
Acknowledgments
Special thanks to our forum participants, Ansa Sekharan, Chad Wolf, Elaine Cobb, KimThu Doan, Kshama Swamy, Kevin Hodgkins, Rohit Khanna, Sam Loveland, Sanjeet Kaur Bali for their engaging discussion and valuable insights.
About our Special Guest
Sangeeta Chakraborty, a distinguished business executive and board director, is celebrated for her notable contributions to high-velocity SaaS companies.
About CCO Online Forum
The CCO Online Forum provides a trusted space for CCOs to address challenges, share insights, and learn from peers, ensuring they remain informed and poised for individual and organizational success.
Your Thoughts Matter
We welcome your perspective on the CCO's role in the C-Suite. How do you see the CCO's impact? Feel free to comment below. You can also subscribe to our CCO Perspectives newsletter for ongoing discussions. If you're interested in attending the CCO Online Forum, contact the author for an invitation. Your contributions and active participation are greatly valued.
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