CEOs – Putting Customers First

According to a recent article in 1to1 Media, after years spent dealing with issues revolving around governance and regulatory changes, CEOs at public companies are focusing more on a long-overlooked aspect of their business: customers.

That's one of the main conclusions drawn from the third annual "NYSE CEO Report," compiled for NYSE Magazine by Opinion Research Corp. The survey collects data from CEOs of 240 of the New York Stock Exchange's listing companies.

For example, CEOs are planning greater investment (both budget- and time-wise) on managing customer relationships than in the past. The importance of sales growth -- driven by customers -- as a performance measure has increased by 11 percent since the prior study. And on the strategic side, brand, reputation, and investments in corporate social responsibility -- all focused on winning customers -- are increasingly important. CEOs continue to recognize the costliness of losing customers.

What's more, they're putting money where their mouths are. Almost one third of CEOs plan to spend more time on customer relations in the coming year, while more than half expect to spend more money on customer contact. The report also found a 10 percent increase in the amount of time a CEO feels he should spend on customer relationships.

Most CEOs (81 percent) believe they take sufficient action to manage their companies' reputation, and going hand-in-hand with the issue is an increased focus on social responsibility, which is an important factor not just in customer relations and retention, but in employee retention as well. Social-responsibility initiatives are seen as having a greater impact on employee retention in companies with greater than $3 billion in market capitalization (where 46 percent of respondents tagged it as an important factor in employee retention), compared with companies with $1 billion to 3 billion in market cap (16 percent) and below $1 billion (29 percent). Such initiatives range from encouraging employees to volunteer at homeless shelters to instituting and enforcing environmentally friendly ideas like recycling and tree planting.

More information can be found at www.SupportIndustry.com.