The position of the chief buyer officer has turn out to be an important perform in subscription-based enterprise fashions comparable to software-as-a-service (SaaS), the place buyer retention is paramount and requires executive-level management.
SaaS allows prospects to commerce the massive capital expenditures related to conventional enterprise software program for smaller working bills: a decrease price of entry, and minimal IT infrastructure to handle. SaaS companies, in the meantime, profit from predictable streams of recurring income.
Nevertheless, that profit comes with dangers. Key amongst these is the truth that subscription funds imply a payback interval: a SaaS firm must preserve a buyer for a sure time period to interrupt even after which revenue. If a buyer churns earlier than the payback interval is met, it’s a monetary web loss.
Therefore, the the position of a chief buyer officer (CCO) which we outline this manner.
What does the chief buyer officer position embody?
A chief buyer officer is an operational position liable for all customer-facing exercise post-sale. This usually contains main implementation, buyer success and buyer help groups. Key tasks embrace securing buyer renewals and expansions, that are measured by gross income retention (GRR) and web income retention (NRR).
The CCO position is comparatively new in comparison with different C-suite titles. If an organization wants to rent a chief advertising and marketing officer (CMO), they’ll discover many advertising and marketing leaders with 20 or 30 years of expertise. In contrast, as a result of the CCO position is comparatively new, only a few candidates can credibly declare such a protracted observe document.
So, what ought to an organization looking for to rent a CCO search for, and what needs to be included within the job description?
The specialists we work with counsel trying to find leaders who’ve labored in a number of post-sale purposeful roles. Preferrred candidates are strategic thinkers with operational expertise and collaboration abilities. A stable write-up by the enterprise capital agency a16z, on hiring a CCO, recommends candidates have core competencies in management, group, course of design, and a “tolerance for ambiguity.”
Three chief buyer officer job descriptions we love
That candidates ought to have a “tolerance for ambiguity” sums up each the talents required of candidates, and the sensation some companies could have in hiring a CCO. Writing a job description together with key tasks and necessities can appear daunting.
To assist take away a few of that ambiguity, we perused dozens of job descriptions for CCOs and highlighted a couple of that we predict are mannequin examples.
1: Chief buyer officer at Semrush
Semrush is a advertising and marketing expertise firm finest recognized for its search engine optimisation instruments. The corporate relies in Boston and the CCO place is a hybrid position reporting on to the CEO.
Listed below are some strains from the job description (PDF copy right here) that stood out to us:
- “Develop a complete customer-focused technique aligned with the corporate’s general targets. Outline clear objectives and key efficiency indicators (KPIs) to measure success.”
- “Act because the voice of the client throughout the group, advocating for his or her wants and preferences throughout decision-making processes. Champion a customer-centric tradition all through the corporate.”
- “Collaborate with advertising and marketing, gross sales, product growth, and different departments to align buyer wants with enterprise targets. Encourage cross-functional collaboration to ship seamless buyer experiences.”
What we love about it: Enterprise, buyer and monetary metrics are evenly cited a number of instances within the description. This underscores why titles like “chief happiness officer” received’t make the grade anymore. CCOs make a vital contribution to enterprise.
2: Chief buyer officer at JAGGAER
Primarily based in NC’s Analysis Triangle Park, JAGGAER is a procurement and spend administration software program supplier. The corporate, previously generally known as SciQuest, has a 25-year historical past and employs greater than 1,250 individuals.
Listed below are some strains from the job description (PDF copy right here) that stood out to us.
- “Personal and drive all the buyer lifecycle journey, together with onboarding, adoption, enlargement, and renewal, by establishing finest practices and processes to maximise buyer success and satisfaction.”
- “Take part in M&A [due] diligence and supreme onboarding of acquired targets’ buyer bases.”
- “Collaborate with gross sales and account administration groups to determine and pursue upsell and cross-sell alternatives for different software program merchandise {and professional} companies.”
What we love about it: This job description does nicely to border the job across the buyer lifecycle journey. That’s a recognition that prospects have many steps to take even after a deal is signed. That the corporate needs the CCOs participation in M&A due diligence demonstrates how central this position is to the enterprise.
3: SVP, buyer operations / chief buyer officer at Lemonade
Insurance coverage is likely to be one of many OGs of subscriptions, however Lemonade is a publicly traded (NYSE: LMND) insurance coverage firm with a social twist:
“Lemonade reverses the standard insurance coverage mannequin. We deal with the premiums you pay as if it’s your cash, not ours. With Lemonade, the whole lot turns into easy and clear. We take a flat price, pay claims tremendous quick, and provides again what’s left to causes you care about.”
Listed below are some strains from the job description (PDF copy right here) that stood out to us:
- “Because the strategic chief liable for all of our customer-facing groups—together with CX, Claims, Underwriting, and Gross sales—you’ll oversee and optimize all the buyer expertise throughout Lemonade.”
- “Enhance operational excellence and drive buyer loyalty throughout all touchpoints.”
- “Act because the buyer advocate throughout the group, guaranteeing the client’s voice is heard and regarded in decision-making processes.”
What we love about it: The corporate has modified this place to suit their group. Whereas we don’t sometimes advocate that gross sales stories to the CCO, this firm believes that’s the most effective construction for them. That’s the fantastic thing about enterprise and rising roles: you may and will mould them to finest meet your wants.
One commonality: proudly owning the voice of the client
Most of the CCO descriptions had similarities, however one attribute we noticed in almost each itemizing was the “voice of the client.” This highlights the notion that essentially the most profitable CCOs will assist their organizations to raised perceive their prospects.
Certainly, the position is larger than simply fixing buyer issues right now—and asking for a renewal. It’s about serving to an organization to evolve with their prospects and meet their wants sooner or later as nicely.
Often requested questions
How do corporations measure the success of a chief buyer officer?
Corporations measure the success of a chief buyer officer by quite a lot of metrics that replicate buyer satisfaction, retention, and income development. These embrace gross income retention (GRR), web income retention (NRR), buyer satisfaction scores (CSAT), Internet Promoter Rating (NPS), buyer lifetime worth (CLTV), and churn charge. Success can also be measured by the CCO’s capability to implement methods that result in improved buyer experiences, elevated engagement, and finally, a constructive affect on the corporate’s backside line.
What challenges do chief buyer officers face in subscription-based fashions in comparison with conventional enterprise fashions?
Chief buyer officers in subscription-based fashions face challenges comparable to managing excessive buyer expectations for ongoing worth and repair, decreasing churn, and sustaining a aggressive edge in markets the place prospects can simply change to opponents. They have to additionally navigate the complexities of recurring income fashions, the place the emphasis is on long-term buyer satisfaction and retention slightly than one-time gross sales.
What’s the affect of expertise and digital transformation on the CCO position?
Know-how and digital transformation have considerably impacted the chief buyer officer position by offering new instruments for understanding and fascinating prospects, comparable to buyer success software program, information analytics, and digital communication platforms. These applied sciences allow CCOs to realize deeper insights into buyer conduct, personalize buyer experiences, and automate buyer interactions. The digital transformation additionally challenges CCOs to constantly adapt methods to satisfy altering buyer expectations in a digital world.
How do CCOs affect product growth and innovation?
Chief buyer officers affect product growth and innovation by guaranteeing that buyer suggestions and insights are built-in into the product lifecycle. They work carefully with product growth groups to determine buyer wants, preferences, and ache factors, guiding the creation of options and companies that deal with these areas. CCOs additionally advocate for user-centric design rules and should lead initiatives to check and refine merchandise based mostly on buyer suggestions.
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