This week's post is a guest post from my dear friend Rachel Orston.

Rachel is the Chief Customer Officer at Instructure. She and I have participated in several small-group CCO communities over the years. One of the things I love about Rachel is her candor. She’s always willing to open up about what’s working and what’s not in an effort to both learn and teach.

My life and career have been enriched by Rachel’s friendship and mentoring, and I hope you enjoy her perspective on the modern CCO role.

Note, this piece was originally shared a couple weeks ago on LinkedIn. If you would, please give it a quick “like” or a comment.

Let’s dive in…

↓

My friend Jay Nathan has been talking a lot lately about the Chief Customer Officer (CCO) role, and how CCO’s are “essential business leaders” who must possess a strong foundation in financial literacy, operational efficiency, and cross-functional collaboration. (Plug: if you haven’t subscribed to Jay’s newsletter, what are you waiting for? See link in comments)

In a recent post, Jay took a slight left turn and talked about how Customer Success leaders (including CCO’s) often report to the Chief Revenue Officer (CRO), and what that means for the CRO role.

Is the CRO really just a head of sales on steroids? Or are they an experienced business executive tasked with, and rewarded for, the overall growth of the business.

🤔I think what Jay is really asking is… can a CRO be both hunter and farmer? What about a CCO? Can CROs and CCOs be hunters, farmers and strong operators?

The answer might be “yes” to all three, but let’s be honest…these leaders are unicorns and are among the small minority of the 12,000 CCO's out there. I consider myself a member of this small group (and Jay too for that matter), but we are the exception and not the rule. As awkward as this next statement is for me to write - I would suggest that we don’t need unicorns. We need focused C-Suite leaders who have clear roles, and know how their roles support the success of their C-Suite peers.

Why?

Let me be clear. I believe CCO's should own a number and be responsible for all post-sales across the business. Key metrics should be gross and net retention, but let's also not forget about EBIDTA. I'm compensated across all three today and I wouldn't change that.

I’ve heard the CCO vs. CRO debate for some time and I think it’s the wrong conversation for larger businesses in more mature markets. Strong sales leaders are critical and we need to stop muddying the waters and let great Sales leaders do what they do best - sell.

In SaaS sales the majority of Chief Revenue Officers (CROs) lean toward the "hunter" profile due to their focus on driving new business and expanding the customer base. Hunters thrive on closing new deals, exploring uncharted markets, and maintaining a fast-paced, target-driven approach. This makes them highly suitable (and justifiably paid) for roles in highly competitive environments where every percentage point of ARR growth matters. It’s time we evaluate the numerous projects and internal distractions that get in the way of much-needed coaching and development of sales teams.

In these same competitive environments customer-centricity is also paramount, and this is where the Chief Customer Officer (CCO) role has been evolving at a rapid pace.

Traditionally, CCOs were responsible for managing customer relationships, enhancing satisfaction, and ensuring retention. But as the SaaS industry has matured, so has the CCO role, transforming into something much broader and more strategic. Today, many organizations are finding that the role of the CCO is naturally expanding into a new kind of Chief Operating Officer (COO) role, overseeing all customer-related functions and making decisions that shape the future of the business.

A good Chief Customer Officer can also serve as the Chief Operating Officer and be measured by retention, ARR growth and EBITDA. This shift is significant and speaks to the ways in which CCOs are being called upon to impact broader organizational strategy and outcomes.

The Changing Landscape of the Chief Customer Officer

In a SaaS business, the customer lifecycle is continuous. From onboarding to support, renewals and expansion, every stage depends on a seamless customer experience. CCOs are uniquely positioned to understand and influence these stages, which has led to an increased focus on embedding customer needs and feedback throughout the company’s operational fabric.

As a result, CCOs are taking on responsibilities that extend beyond the traditional scope of customer experience and success. Many now oversee the data analytics that support the product strategy, as well as operational aspects such as sales and marketing alignment around customer value.

👉 Why the CCO Role is Moving Closer to COO Responsibilities

The shift towards a COO-aligned CCO role stems from several market dynamics that require a higher level of strategic alignment between customer outcomes and business operations:

💡End-to-End Customer Journey Ownership: As SaaS companies focus on creating value throughout the customer journey, the CCO’s role now includes optimizing every touchpoint. This requires oversight across departments that influence customer experience, from sales and marketing to product development and customer support. The CCO, therefore, takes on a COO-like role in ensuring operational efficiency and alignment across the entire organization.

💡Data-Driven Decision-Making: Customer usage patterns, churn signals, and satisfaction metrics are not only useful for the CCO’s traditional scope but also for informing broader business decisions. By leveraging data analytics, CCOs can identify trends and drive strategic initiatives that align with company objectives. This data-driven approach is what enables CCOs to bridge the gap to a COO role, making decisions that affect the company’s product roadmap, sales strategies, and overall operational priorities.

💡Product Influence and Development: Customer feedback is invaluable in shaping new features and identifying areas for improvement. By working closely with product teams CCOs can ensure that development is closely aligned with customer needs and preferences, thereby driving adoption and satisfaction.

💡Cross-Functional Collaboration: Successful CCOs are highly collaborative, working alongside departments like marketing, sales, and product to ensure a seamless customer experience. As they assume responsibilities that traditionally belong to the COO, CCOs become a linchpin of cross-functional coordination. This collaboration not only breaks down silos but also drives alignment on strategic goals and customer-focused initiatives.

The Growing Importance of Data Proficiency

To effectively transition into a COO-like role, CCOs need a strong grasp of data analytics to understand customer behaviors, pinpoint areas for improvement, and predict future needs. This proficiency allows them to make informed decisions on a variety of fronts, such as product development, customer support optimization, and even pricing strategies.

Moreover, CCOs who can leverage data effectively are better equipped to present business cases for new initiatives, foster a data-centric culture, and drive accountability across teams. As companies continue to navigate the complexities of customer needs, data insights become crucial in decision-making processes. A CCO who is skilled in data analysis can transition seamlessly into the role of a COO, where decisions are often based on a comprehensive analysis of company-wide metrics.

The Road Ahead: CCO as the Center of Customer-Focused Operations

The rise of the CCO-turned-COO is not just a trend—it’s a testament to the changing nature of SaaS businesses. Customer-centricity is more than a buzzword; it’s a strategic imperative that influences everything from product development to revenue growth.

👉For CCOs looking to grow into a COO role, there are a few key areas to focus on:

💡Data Literacy: Invest in building a strong foundation in data analytics and data-driven decision-making.

💡Cross-Functional Collaboration: Develop relationships with leaders across product, sales, marketing, and operations.

💡Strategic Vision: Hone your ability to translate customer insights into actionable business strategies that drive growth and operational efficiency.

Today’s CCO is not only the voice of the customer but also an architect of the company’s operational strategies. The CCO who steps into a COO-like role will be the one leading the charge in shaping the future of customer-focused businesses.

Resources:

1. Nathan, J. GrowthCurve. (2024). What Skills Do CCOs Need?

2. Wilson, R., & Harris, K. (2022). From CCO to COO: The Changing Role of Customer Leaders. Harvard Business School Publications.

3. Richards, L. (2023). Data-Driven Decision-Making in SaaS: A Guide for CCOs. SaaS Analytics Journal, 21(2), 73-85.

4. Roberts, S., & Turner, M. (2022). Customer Feedback and Product Development in SaaS. Journal of Product Management, 19(5), 201-215.

5. Choudhury, S. (2021). Cross-Functional Collaboration in SaaS Businesses. Harvard Business Review.

6. Gartner Research. (2022). The Evolving Role of the Chief Customer Officer. Gartner Insights.

7. Stevenson, P. (2023). Data Skills for CCOs in SaaS. SaaS Leaders Magazine, 11(2), 56-68.

8. Smith, J., & Rowe, A. (2021). Driving Strategy with Customer Insights. Customer

9. Nelson, E. (2023). Why Customer-Centricity is the Future of SaaS Operations. SaaS Strategy Journal.

10. Taylor, M., & Gray, H. (2022). Strategic Alignment and Growth for CCOs. Harvard Business School Case Studies.

11. Williamson, R. (2023). Leading the Way: CCOs Shaping SaaS Businesses. SaaS Leadership Quarterly, 9(3), 102-119.

🤘

Was this email forwarded to you?

ChiefCustomerOfficer.io is a weekly newsletter for Chief Customer Officers (or those aspiring to become).

Join over 4,000 subscribers who are leveling up their companies and their careers.