The CEO as the Chief Consumer Advocate
Many CEOs find themselves focusing more on markets and technology rather than their customers. Despite having survived the test of time and being a turnaround case study on leadership from industry giants, consumer centricity often takes a back seat. This article delves into why CEOs must be Chief Consumer Advocates (CCAs), leading the consumer charge from the top down.
Business is a minefield of contradictions.
We love stories where CEOs get into the nitty-gritty, as if they still worked on the shop floor. This hands-on approach is often celebrated as the key to success. Think of Giorgio Armani personally arranging window displays at his Via Manzoni store or Bernard Arnault emailing his management teams from store visits, providing input on which shoes store staff should wear.
Yet, despite these examples, many CEOs focus more on markets and technology rather than their customers.
Take a quick look at the Harvard Business Review's content. You'll find thousands of articles on transformation, digital transformation, and AI. However, articles on customer centricity are sparse, with fewer than 310, and none from 2024.
Why aren’t more top leaders obsessed with their customers?
Consumers Don’t Belong to the Marketing Team
In many companies, the consumer is often the responsibility of a specific department, like marketing, CRM, or customer service. This siloed approach leads to inconsistent experiences and poor execution. Even with a strong understanding of the consumer, divisive management means that the more powerful department typically wins out, and it’s rarely the one representing the consumer.
A Successful Transformation Isn’t Hands Off
Ramping up “consumer departments” like CRM or eCommerce won’t make a company more consumer centric.
To the contrary, more emphasis on a new way to see or do things only creates an us vs. them mentality. It shifts the focus away from the consumer to internal battles over data accuracy and priorities. This is where the CEO must step in, not as a referee but as the Chief Consumer Advocate (CCA).
The CEO as the Chief Customer Advocate
At MLR Consumer&Commerce, we argue that the CEO must be the CCA.
As we explained in our article "Consumer Strategy IS Business Strategy," the consumer is the external common denominator on which the strategy should be based. The same principle applies within the business. The CEO must advocate for the consumer at every turn, ensuring their needs and expectations shape the company's trajectory.
Becoming the Chief Consumer Advocate
The Microsoft Example
When Satya Nadella took over as CEO in 2014, Microsoft was facing stagnation. By understanding consumer needs for flexibility, scalability, and efficiency, he spearheaded a transformation towards cloud computing. Nadella focused on customers’ evolving needs, shifting Microsoft's strategy to embrace the cloud with Microsoft Azure.
This pivot not only revitalized Microsoft's product offerings but also led to significant growth, making Azure one of the leading cloud platforms globally. Under his leadership, Microsoft's market value has tripled, showcasing the power of consumer-centric transformation driven from the top.
Nadella didn’t just push for a technological shift; he fostered a culture that prioritized customer feedback and continuous improvement. Advocating for the consumer at every level ensured that the entire organization aligned with the new vision.
All That Responsibility Is Scary
So why don’t more CEOs do this?
For those from retail or marketing, thinking from the consumer’s POV may come naturally. For those from finance or operations, it might take some getting used to.
Taking on the responsibility for the consumer is daunting. It means getting into the nitty-gritty of what the consumer experiences. And frankly, coming to terms with what is under the hood of the organization – process, culture, structure.
This hands-on approach is the beginning of a consumer-centricity transformation.
You Don’t Need to Know Everything about the Consumer
The Chief Consumer Advocate role is one of curiosity, not certitude.
You must not know everything about the consumer. But you must have the curiosity to dig into behavior and test assumptions – much like with any other area of business.
The true challenge is in being willing to make educated guesses. Not getting stopped up by a need for the definitive answer. If you have a clear image of the consumer you should be able to make intelligent assumptions. No need to undertake endless analyses and surveys to feel confident. You have the data there. Test and learn.
Getting Started
Take Responsibility. Own the consumer.
Set Up. Put consumer research and analytics teams under your direct oversight.
Dig In. Understand what your company knows about the consumer.
Do you have clear groups or personas?
Is your consumer strategy crystal clear?
Are your journeys intentional?
What is missing?
Enable Long-Term Growth. Follow our Consumer Centricity Framework to fully move from product-centric or process-centric to consumer-centric.
For more inspiration, check out our articles Understanding Consumer Centricity and Consumer Strategy IS Business Strategy.
Conclusion
The responsibility for understanding and prioritizing consumer needs rests with the CEO, ensuring that the entire organization aligns with this focus.
When the CEO takes on the role of Chief Consumer Advocate, it sets a clear direction and common purpose for all departments. This alignment not only fosters a unified culture of curiosity, testing, and continuous improvement but also drives sustainable growth and success. Ultimately, the CEO's commitment to consumer advocacy is indispensable, as it ensures that consumer-centric strategies are effectively implemented and championed across the company.
The buck stops with the CEO, making his or her role crucial in leading and maintaining a consumer-centric transformation.
