The role of the Chief Customer Officer (CCO) has evolved significantly in recent years, transitioning from a tactical function to a strategic leadership position. CXFocus interviews Michael Dart, the Chief Customer Officer for Energy Queensland about what it takes to be a successful Chief Customer Officer and being at the forefront of driving customer-centricity across an organisation.
CCOs today face a myriad of challenges, including measuring customer satisfaction beyond traditional metrics like CSAT and NPS, navigating the complexities of digital transformation to ensure seamless and personalised customer experiences, balancing the need to collect and analyse customer data with stringent data privacy regulations, and cultivating a customer-centric culture that involves every employee in the organisation,
A successful CCO must be adept at understanding customer needs and translating them into actionable insights, while also championing the customer’s voice within the organisation, influencing decision-making at all levels. Dart comments, “History is replete with examples of businesses that failed to prioritise the customer. A CCO must prevent this by ensuring the customer is central to every decision”.
What does it take to be a Chief Customer Officer
A CCO requires a diverse skill set to effectively lead customer-centric strategies. According to the CXPA (Customer Experience Professionals Association) core competencies include:
- Visionary Leadership: The ability to develop long-term customer-centric strategies aligned with the overall business goals.
- Data-Driven Decision Making: The skill to analyse customer data to identify trends, opportunities, and potential challenges.
- Empathy: The ability to understand and share the feelings of customers, putting yourself in their shoes.
- Advocacy: The passion and determination to champion the needs and interests of customers within the organisation.
“Beyond these core competencies”, advises Dart, “A CCO should possess strong leadership skills to guide and inspire teams, effective communication skills to articulate the customer’s perspective clearly and persuasively, and a deep understanding of marketing and communication to effectively reach and engage customers. Ultimately, a successful CCO builds a team that can continue to advocate for the customer, even in their absence”.
Having the right mindset
To effectively balance customer and business needs, a mindset rooted in authenticity and trust is essential. Trust is a delicate asset, easily earned but easily lost. Dart explains, “Trust meanders into town on a tricycle and it leaves in a Formula One Ferrari. It is hard-earned and easily lost. Therefore, it’s crucial to approach every customer interaction with their needs as the primary focus”.
“For a service provider like us, particularly in the aftermath of disasters like cyclones, floods, or storms, trust is paramount. It’s the only way to ensure that customers heed our advice for their safety. By consistently prioritising authenticity and trust, we can build strong relationships with our customers and solidify our position as a trusted partner in Queensland communities”.
“As the Chief Customer Officer, I’m constantly striving to ensure our customers receive the best possible service at the most affordable price. One of my primary concerns is preventing customers from falling through the cracks, particularly vulnerable customers who may face challenges during the transition to renewable energy”.
“To foster a customer-centric culture, we’ve made customer satisfaction one of our top five KPIs. This commitment is embedded in our performance agreements with both shareholders and employees, emphasising the importance of putting customers at the heart of everything we do”.
Driving customer-centricity
Cultivating a customer-centric culture requires a top-down approach, involving every employee in the organisation. Though CCOs play a crucial role in driving this cultural shift, they need buy-in from the CEO and other senior executives in the organisation, Dart comments, “Our CEO and board made a very deliberate decision to have a Chief Customer Officer on the executive and part of the C -suite for Energy Queensland. The decision was driven by the desire to ensure a strong customer voice at the executive and board levels. They wanted to guarantee that customer insights and experiences were regularly presented to the board and risk and compliance committee, including instances where the company fell short, and the lessons learned”.
“Inspired by recent inquiries into the Australian banking industry and other institutions, the board recognised the critical importance of a customer-centric approach. This decision aligns perfectly with Energy Queensland’s ethos and principles.”
To drive customer-centricity, CCOs employ various strategies, such as customer journey mapping, personalisation, omnichannel experiences, active customer feedback mechanisms, and employee empowerment. Energy Queensland’s customer and community strategy is built upon three principles, as Dart explains, “Our customer and community strategy is grounded in three fundamental principles: knowing our customers, making it easy, and delivering value. These principles underpin everything we do. However, to further refine our strategy, we recently engaged with our customers, customer groups, and employees across the organisation”.
“It’s been great to see we have been able to maintain our three core principles while expanding our focus to empower our customers. This means not only engaging with Queenslanders but genuinely valuing their input and enabling them to participate in a way that hasn’t been possible before. To achieve this, we’ve established a continuous Voice of the Customer program involving everyday Queenslanders from across the state. These individuals actively engage with our business, proposing projects and programs that aim to enhance customer experiences and deliver superior products and services”.
“This customer-centric approach is now integrated into our overall business strategy, ensuring that customers are at the heart of everything we do. By actively listening to and engaging with customers, we empower them to make a lasting impact on our business and the way we deliver products and services across the state”.
Future opportunities to deliver value to customers
Technology has revolutionised the way CCOs operate. AI-powered analytics tools enable CCOs to gain deeper insights into customer behaviour, while automation and chatbots streamline customer interactions. Additionally, emerging technologies like virtual and augmented reality offer new opportunities to enhance the customer experience. “Artificial intelligence is reshaping industries, and ours is no exception. While AI presents significant opportunities to enhance customer and employee experiences, it’s essential to carefully manage the associated risks. In our retail operations, we’ve integrated AI-powered software that analyses historical call data to predict customer inquiries, enabling our agents to better anticipate and address customer needs”.
While AI offers significant opportunities, it also presents risks such as misinformation and data privacy breaches. “We approach AI implementation cautiously, prioritising customer data protection. In our network business, we’re utilising AI to create a digital twin of our network, enabling us to predict the impact of future developments like renewable energy projects, housing growth, and industrial expansion. This allows us to optimize network infrastructure, reduce costs, and drive economic growth across Queensland. However, we remain vigilant about potential risks, ensuring that any AI implementation prioritizes network reliability and customer data security”.
The role of the CCO is more important than ever. By understanding the challenges and opportunities, prioritising key metrics, and implementing effective strategies, CCOs can drive customer-centricity and achieve lasting business success. By centralising customer focus, driving customer satisfaction and loyalty, leveraging data-driven insights, and fostering a competitive advantage, a CCO plays a pivotal role in the long-term success of an organization. They ensure that the customer voice is heard at the highest levels, leading to better business outcomes and increased customer satisfaction.