Phelon Blog


CEO's Really DO Get References:

Friday, May 19, 2006

A few weeks ago, I was the guest of a colleague at a private CEO roundtable event hosted by Korn/Ferry-a very smart and interesting event at that. My colleague, Dave Thomson, is the author of Blueprint to a Billion, presented insights from the research and thinking that led to this incredible book and concept about what makes a successful company and what drives exponential growth. There were 30 or so CEOs and top executives from companies in various industries in the room. During one of the panels, filled by folks like Craig Conway (former CEO of PeopleSoft and Board member at SalesForce.com) the discussion turned to the key principles and drivers of growth and success. The panel and audience talked about one principle in particular-Marquee Customers. In Dave's book, he talks extensively about how companies that can cultivate and leverage Marquee Customers (i.e. vocal advocates) are able to propel growth. After 20 minutes of such discussion, someone asked, "Who owns creating marquee customers?" From the back of the room someone said "marketing." Almost instantly panel members chimed in with their two cents. After I shared Phelon Group experiences of working with CEOs of major organizations who feel they own it, the consensus became clear: the CEO affects how the organization views the customer and is therefore the chief owner of the creation of marquee customers. Some after-burner conversation about 'why': One person chimed in that the CEO owns marquee customers because he is ultimately the person who makes organizational trade-offs and drives a culture of being customer-led, service-driven or uncompromising in its profitability. Anyhow, this group of execs was very lively. They really got the concept that success stories and lists of customer names on the Web site will not enable exponential growth. But the customers in which your company "co-invests" ...those who pick up the phone and tell their colleagues about your services... the vested bunch... they are the ones who really do drive exponential growth. I share this experience because you-as a marketer building or thinking of building a program that leverages customers-not only have to deal with the task at hand - you also have to play the role of gathering and relaying intelligence to the executive in a way that is meaningful. CEOs are getting smarter about customer referencability and advocacy. They understand that "marketing cannot create what isn't there." Promise Phelon, Partner promise.phelon@phelongroup.com