Customer Relationship Management: A Strategic Imperative in the World of e-Business / Edition 1

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As the business world increasingly shifts from product focus tocustomer focus, most organizations recognize that treating existingcustomers well is the best source of profitable and sustainablerevenue growth. But in the age of e-business, companies arechallenged more than ever before to truly satisfy their customers.

In the face of increasing competition, mature markets, and theever-demanding customer, it is easier than ever for customers todefect from your organization when they are just a click away fromchecking out the competition.

Customer Relationship Management (CRM) is the keycompetitive strategy you need to stay focused on the needs of yourcustomers and to integrate a customer-facing approach throughoutyour organization. CRM is an enterprise-wide approach to not onlyacquiring and deploying knowledge about your customers, but also toimproving and automating the business processes that deliver valueto your organization's customers, suppliers, and employees. Inshort, CRM is critical to your business success.

Sound complicated? It's not. Customer RelationshipManagement: A Strategic Imperative in the World of e-Businessoutlines what it takes to be effective in managing the customerrelationship:

  • What CRM is and how you can use it as a key competitiveadvantage
  • Leading trends and best practices in CRM
  • Successes and failures of organizations around the globe thathave implemented CRM
  • The 20 key steps in implementation of CRM
  • The role of people, processes and technology to enable CRM
  • How to define strategies for customers, channels and products,and infrastructure
Information-enabled enterprises are the business model of thefuture. The next evolution in CRM, eCRM, involves integrating newweb technologies with other traditional channels to improvecustomer service and satisfaction, and to contain costs. Newtechnologies allow your firm to have relationships with thousands,or even millions, of customers, but on a one-to-one basis.Customer Relationship Management: A Strategic Imperative in theWorld of e-Business:
  • Explains how new technologies enable CRM as never before.
  • Shows how back-office solutions create front-lineefficiencies.
  • Features examples and case studies of best-in-class companiesthat have integrated new web technologies with traditional channelsto give them the right marketing mix (for interaction withcustomers rather than simply forcing self-service).
  • Demonstrates how to implement and integrate several CRMtechnologies at once.
  • Includes contributions from PricewaterhouseCoopers CRMconsulting partners and senior professionals from around theglobe.

A proven, best-practices approach to achieve CRM

In order to compete effectively in today's marketplace, organizations must be customer-focused, not product-focused. Customer relationship management (CRM) is the way to integrate this approach throughout an organization. This book covers all aspects of CRM, including developing a market-oriented strategy, innovation in products and services, sales and channels transformation, customer relationship marketing, and customer care. It shows how CRM links people, process, and technology to optimize an enterprise's revenue and profits and provide maximum customer satisfaction.

Case studies from organizations PricewaterhouseCoopers has worked with, including Motorola, Compaq, and Lufthansa.

The Market and Customer Management (MCM) Practice of PricewaterhouseCoopers assists businesses in transforming themselves to achieve sustainable growth in revenues and profits. The practice is fully integrated into PWC's industry groups and leverages the market recognized capabilities of PWC's core strategic change, process improvement, and technology solutions practices.

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What People Are Saying

From the Publisher
"This book is not an academic exercise in the concept of CRM,rather, it is a hands on, 'live' account of how to apply CRM toincrease revenues. It highlights the need for development,segmentation and differentiation of channels, products andcommunication, ...capabilities required to create a sustainable,profitable and invincible customer relationship."
Gunnar Brock, President and CEO, Tetra PakInternational

"Customer Relationship Management provides acustomer-focused business strategy designed to optimizeprofitability, revenue, and customer satisfaction across allinteraction channels. It highlights why a web strategy must now beadditive to the existing CRM strategy to create a 'longitudinalview' of the organization that is more engaging to the customer andresults in a more satisfying relationship."
Michael Maoz, Research Director, CRM Practice, SalesLeadership Strategies, GartnerGroup

"This book is must reading for companies that want to be morecompetitive. It provides businesses with thought-provokingsolutions to consider in their quest for superior results."
J.A. Sinex, III, Manager, Customer Care ServicesCenter, Global Services Business, DuPont Company

"Customer Relationship Management provides a structurefor those wanting to create optimal relationships with theirstrategic customers. It provides an important e-businessperspective and a practitioner's guide to lessons learned."
Larry Flynn, Vice President Merchandising, LCBO

"Customer Relationship Management provides the readerwith an impressive array of specific examples and best practicesthat illustrate a step-by-step approach to customer care. Itprovides practical advice and guidance to move an organizationalong the CRM journey."
Steve Hoisington, Vice President Quality, JohnsonControls, Inc.

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Product Details

  • ISBN-13: 9780471644095
  • Publisher: Wiley
  • Publication date: 5/28/2000
  • Edition number: 1
  • Pages: 376
  • Product dimensions: 6.28 (w) x 9.35 (h) x 1.08 (d)

Meet the Author

Stanley A. Brown is the Contributing Editor of CustomerRelationship Management and a Partner in the CustomerRelationship Management (CRM) consulting practice atPricewaterhouseCoopers. He leads PricewaterhouseCoopers'International Centre of Excellence in Customer Care.

He is a frequent speaker on the topic of customer care, andwrites regularly for newsletters and magazine around the globe. Heis the author of five previous books: Strategic Customer Care:An Evolutionary Approach to Increasing Customer Value andProfitability (Wiley, 1999), Breakthrough Customer Service:Best Practices of Leaders in Customer Support (Wiley, 1997),What Customers Value Most: How to Achieve BusinessTransformation by Focusing on Processes That Touch YourCustomers (Wiley, 1995), Total Quality Service, andCreating the Service Culture.

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Read an Excerpt

Chapter 1: Putting CRM to Work

With Mass-Media Advertising on the decline as a tool, marketers are focused on customer relationship management (CRM) as the best way to win, retain and grow business. The mass-media ad campaigns of yesteryear, the ones that made people want to reach out and touch someone and that evoked warm feelings toward the phone company, are a relic of a much less complicated time and market. Today, with more and more services available, organizations can no longer expect results from broad advertising and marketing campaigns aimed at the broad mass of customer. Increasingly, organizations are finding that they must use more select methods and channels to reach their varied customer segments. Some are turning to customer relationship management (CRM), learning what their customers want and tailoring their marketing accordingly.

Many organizations have been competing almost entirely on price, using advertising to assert that their products were significantly less expensive than their competitors'. Pricing strategy is still vital, but because of the fragmentation and commoditization of services, it is increasingly difficult to compete on the basis of price alone. As an example, in the telecommunications industry, since July 1997, margins on residential communications in the United States have declined 26 percent while the number of competitors has increased 14 percent, according to the Federal Communications Commission (FCC). Similar conditions exist for organizations in other countries with competitive telecom markets. This decline in margins and increase in competitors is unlike any other industry and thus has created unique challenges.

As the marketbecomes increasingly fragmented and commoditized, organizations are finding it difficult to use traditional massmedia marketing techniques to capture market share. Broad marketing and advertising campaigns are simply no longer as effective as they once were. One message does not fit all. Because of the proliferation of services and customer needs, organizations need to market to many more types of users. Further, customers' use of media has also fragmented, and the media used to reach them have proliferated.

In the past, organizations could be relatively confident that if they ran an advertisement they would be reaching a broad audience. Today, with the proliferation of cable TV channels (53 percent growth in 1999 vs. 1998, according to the Newspaper Association of America), decline in prime-time TV viewership (down 3 percent), and increased use of the Internet, organizations cannot reach the same number of people they did in the past through a single medium. More important, as with most mass-media campaigns, they cannot be sure that they are reaching the audience they are targeting.

To succeed in the future, organizations will need to better understand what customers want. Marketing will be more finely tuned and managing the relationship with the customer will be paramount. To counter the decline of mass media as a vehicle for effective advertising, communications organizations are moving quickly to embrace customer relationship management (CRM).

But what exactly is CRM? Simply defined, it is the process of acquiring, retaining and growing profitable customers. It requires a clear focus on the service attributes that represent value to the customer and that create loyalty.

Customer relationship management has several advantages over traditional mass-media marketing. It:

  • Reduces advertising costs
  • Makes it easier to target specific customers by focusing on their needs...
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Table of Contents


Putting CRM to Work: The Rise of the Relationship.

The Need for a Market-Intelligent Enterprise (MIE) (SM).

A Case Study on CRM and Mass Customization: Capital One.


Creating Loyalty: Its Strategic Importance in Your CustomerStrategy.

From Customer Loyalty to Customer Dependency: A Case for StrategicCustomer Care.

Customer Acquisition and CRM: A Financial ServicesPerspective.


Customer Relationship Management through New ProductDevelopment.

Channel Management and Customer Relationship Management.

Embracing the e-Channel.

e-Channel Management: Electronic-Customer RelationshipManagement.

The Customer-Centric Organization in the Automotive Industry-Focusfor the 21st Century.


The Tools for CRM: The Three Ws of Technology.

Using the Tools: Database Marketing, Data Warehousing and DataMining.

CRM in the Telecommunication Industry: A Case Study ofSwisscom.


Implementing CRM: 20 Steps to Success.

Using Catalytic Measures to Improve CRM.

Best Practices in Outsourcing CRM and Lessons Learned.

Learning and Knowledge Management Programs in the Age of CRM.

Implementing CRM: The Need for Performance Alignment.



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