• by Sarah Mahoney  @mahoney_sarah, October 10, 2011

Just as 95% of people believe they are above-average drivers, plenty of companies think they put customers first.  Most are fooling themselves, says Chris Stutzman, principal analyst at Forrester Research. He fills Marketing Daily in on how to make the leap from customer-focused to customer-obsessed, and why CMOs should lead the charge.

Q:  First, could you explain what customer obsession is?

A:  It’s an elevated form of customer focus, a heightened awareness. Over the past century, companies have built very successful brands using essentially three strengths: Manufacturing, distribution and information. Think of companies like Ford, Toyota, Federal Express, or GE.

That’s all good. But it’s not enough to keep customers, when you consider the disruption that’s going on in so many industries, such as music, movies, banking, video, and airlines. But companies like Facebook, Amazon, and IBM elevate the importance of the customer in everything they do.

Q: Which other companies do this well?

A: It’s easiest to see it in online companies, liked Zappos, Mint.com, or Elance. It’s not the second or third priority. It’s first. It means that the company’s strategy, energy, and budget all enhance knowledge of and engagement with customers. Customers matter to them more than any other audience, even shareholders. They do it so well it becomes a competitive advantage.

Q: You see customer obsession has to be enterprisewide. Can you explain that?

A: Sure. Take Patagonia. It’s well known as a sustainable brand, and that’s why its customers love it. So to make sure it is delivering on that promise, it didn’t leave that key piece just with people who buy the materials and merchandise, or just with sales associates. It started the Footprint Chronicle, a website that tracks the environmental impact of every item it sells.

Another good example is Tesco. It was struggling to get market share in South Korea, and its usual tactics weren’t working. So the company empowered local teams to assess customers. They bypassed traditional stores and online commerce. Instead, since Korea has high mobile usage and is heavily urban, it turned the subways into virtual stores--people can order groceries on their way to and from work, and have their order delivered within 30 minutes.

Q: So why should the CMO lead the way?

A: Who better to quarterback this?  CMOs are the hub of customer intelligence, competitive intelligence, brand strategy, communications, and sometimes customer service. Marketers trick themselves into thinking they are customer focused, saying things like “customer aligned.”

For CMOs, language really matters.  Customer-obsessed CMOs will lead the pack because they are able to see new opportunities where others don’t. As disruptions continue, customers get access to more and more information, giving them more leverage over brands. So every company will seriously reexamine the fundamental question, “What business are we in?” That means CMOs will find themselves faced with career-defining moments to reshape the course of their company’s trajectory.