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Posted April 4, 2005
Don't buy it - opt for 'MANAGING CUSTOMER RELATIONSHIPS'
Having worked in line management with relationship marketing for many years, Peppers & Rogers have inspired my thinking on 'One-to-One' tremendously. I believe that Peppers & Rogers' most important contribution is to change a company's focus from customer acquisition to customer retention. That is: Stop spending all your money getting new customers and start spending more on keeping and growing existing customers. But if you have high expectations - like I had back in 2001 -, then this book on 'B2B One-to-One' will be a huge disappointment. The real good stuff on one-to-one is all found in the first part of the book. But even that is merely a summary of their previously published material. The case stories - being the bulk of this book - are not very inspiring (except perhaps the inevitable Dell Premier case). I cannot recommend you wasting your time on them. They were already of poor value when published in 2001. The only real value of 'B2B One-to-One' is provided in few charts as well as a small table on page 64 of the book. Curiously, the authors do not expand on the table's valuable content. If you have read some of the authors' previous publications, you'll already be familiar with their core concept of the IDIC-model (Identify-Differentiate-Interact-Customize): Phase 1: IDENTIFY What B2B firms typically do: Identify the most valuable customers by value. Know key contacts in the customer organization. What B2B firms should do: Map all contacts in the customer organization. Map and remember every contact's influence on the buying process. Create a programme specifically targeting end-users. Phase 2: DIFFERENTIATE What B2B firms typically do: Treat different customers differently. Provide superb service levels to the most valuable customers. Differentiate reactively on customers' expressed needs. What B2B firms should do: Rank customers by lifetime value and strategic value (most growable customers!). Develop strategies for unprofitable customers. Differentiate proactively the handling of different needs-based customer categories. Phase 3: INTERACT What B2B firms typically do: Keep interaction only via sales reps. Believe that sales reps will resist change towards sales automation or CRM initiatives because they see them as a threat. Restrict EDI to the largest customers. What B2B firms should do: Remember interactions with the customer across all interaction points ... including the Internet. Compensate sales reps for reporting details on the customer interaction. Market the Internet as an alternative to EDI. Phase 4: CUSTOMIZE What B2B firms typically do: Customize products and services on request from the largest customers on an ad-hoc basis. Develop and execute account plans. What B2B firms should do: Mass-customize products and services by modularizing the production, delivery, and services processes. Make a template for handling individual customers by using a needs-based segmentation on a routinely basis. Develop and execute specific customer strategies - including strategies for individual contacts within the customer organization. For the insight provided by this table's content, I rate the book 2 stars. I recommend that you buy Peppers & Rogers 2004-publication 'MANAGING CUSTOMER RELATIONSHIPS' instead. If you read my online review of that book, you'll see why. Peppers & Rogers' 'ONE TO ONE FIELDBOOK' (1999) is also highly recommended. It's a hands-on book with many checklists and inspiring tools for Monday morning. And it has a dual focus: Both B2C and B2B. Peter Leerskov, MSc in International Business (Marketing & Management) and Graduate Diploma in E-businessWas this review helpful? Yes NoThank you for your feedback. Report this reviewThank you, this review has been flagged.