Traditionally, when a CFO gets promoted to the position of CEO, it’s not uncommon to expect the firm to take a more analytical approach and, perhaps, double down on cost efficiency and working the numbers.
However, that’s not what happened when Khozema Shipchandler moved from CFO into the role of CEO at Twilio, after Jeff Lawson stepped down in January of last year.
Instead, according to sources at Twilio, Shipchandler decided that he wanted to know ‘what was going on (in the business)’ and set out to talk to lots and lots of customers.
That decision has had a ripple effect on the senior team, with many of them now also speaking to customers on a regular basis.
So, what has happened one year on from that shift in leadership behaviour?
Well, Twilio just released its fourth-quarter and full-year results for 2024, and they show that they generated revenue of $1.19 billion in the fourth quarter of last year and revenue of $4.46 billion for the full year, both of which are up 11% and 9%, respectively, on 2023 levels.
Now, can all of this growth be attributed to this new behaviour set? Probably not.
But it’s not unreasonable to think that it is playing a role. By all accounts, this new behaviour appears to be bridging the gap between senior leadership, the front lines, and what customers genuinely need and desire. As a result, this is making the business more customer-focused and customer-centric, as well as fostering greater connection and dynamism across the business.
However, Shipchandler is not the only CEO who is making talking to customers a central part of their role and reaping the benefits.
For instance, Anand Subbaraj, CEO and co-founder of Zuper, a field service management software provider, told me recently that “Being on the ground, meeting customers face-to-face, and immersing myself in their world is non-negotiable for me. It’s how I gain a deep, firsthand understanding of their challenges, aspirations, and pain points.” He went on to say, “I see my direct involvement as a critical differentiator. These personal connections provide insights that no spreadsheet or report can capture. They’ve directly influenced our product roadmap, service offerings, and even our company culture. More importantly, it sends a clear message to our customers: their success is my priority, and Zuper’s leadership is fully invested in their journey. This level of commitment builds trust and fosters partnerships that go beyond transactions.”
Despite all these benefits, here’s the problem: Too few CEOs are willing to follow in Shipchandler and Subbaraj’s footsteps, even though many extol the importance of being customer-focused and data-driven in their decision-making.
A new CEO survey from McKinsey backs this up and finds that while 63% of CEOs cite customer feedback as a key source for generating growth ideas, just behind internal R&D at 64%, a mere 15% state that they consistently integrate customer input into their decisions, and only 23% report that they regularly engage with customers to ensure their offerings provide genuine value.
However, McKinsey’s research also shows that CEOs who lean into customer feedback produce better results, are more innovative, and keep customers for longer.
Now, some folks may stop here and think, ‘Oh, that means we just need to survey our customers more or do more analytics on the data that we have.’
That, I believe, is the very minimum that is required. And, for the 37% of CEOs, according to the McKinsey study, who don’t factor customer feedback into their decision-making, that is the one thing they should definitely do.
But what Twilio and Zuper’s senior teams are showing is that there are levels to being a data-driven decision-maker.
Yes, you can gather the data, and yes, you can then analyze it. However, it is only when you go out and talk to customers in their own environments that you can put context and meaning into the data. And, often, that’s where the real insight and opportunity lies.
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