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

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Overview

Maximize customer satisfaction and maximize your bottom line

Over the last decade, too many organizations have assumed that their products or services were so superior that customers would automatically keep coming back for more. But in order to compete effectively in today's marketplace, organizations must change their strategy to become more customer focused, not product focused. Customer Relationship Management (CRM) is the best way to integrate this customer-facing approach throughout an organization. Aimed at understanding and anticipating the needs of an organization's current and potential customers, this innovative book shows how CRM links people, process, and technology to optimize an enterprise's revenue and profits by first providing maximum customer satisfaction.
* Covers developing a market-oriented strategy, innovation in products and services, sales and channels transformation, customer relationship marketing, and customer care

Stanley A. Brown (Toronto, Canada) is Partner in Charge of the Centre of Excellence in Customer Care at PricewaterhouseCoopers in Toronto.

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 to increase revenues. It highlights the need for development, segmentation and differentiation of channels, products and communication, ...capabilities required to create a sustainable, profitable and invincible customer relationship."
Gunnar Brock, President and CEO, Tetra Pak International

"Customer Relationship Management provides a customer-focused business strategy designed to optimize profitability, revenue, and customer satisfaction across all interaction channels. It highlights why a web strategy must now be additive to the existing CRM strategy to create a 'longitudinal view' of the organization that is more engaging to the customer and results in a more satisfying relationship."
Michael Maoz, Research Director, CRM Practice, Sales Leadership Strategies, GartnerGroup

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

"Customer Relationship Management provides a structure for those wanting to create optimal relationships with their strategic customers. It provides an important e-business perspective and a practitioner's guide to lessons learned."
Larry Flynn, Vice President Merchandising, LCBO

"Customer Relationship Management provides the reader with an impressive array of specific examples and best practices that illustrate a step-by-step approach to customer care. It provides practical advice and guidance to move an organization along the CRM journey."
Steve Hoisington, Vice President Quality, Johnson Controls, 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 Customer Relationship Management and a Partner in the Customer Relationship Management (CRM) consulting practice at PricewaterhouseCoopers. He leads PricewaterhouseCoopers' International Centre of Excellence in Customer Care.

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

FIRST PRINCIPLES IN CRM: OVERVIEW.

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.

STEP ONE: BUILDING AND IMPLEMENTING THE CUSTOMER STRATEGY: OVERVIEW.

Creating Loyalty: Its Strategic Importance in Your Customer Strategy.

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

Customer Acquisition and CRM: A Financial Services Perspective.

STEP TWO: THE NEED FOR EFFECTIVE CHANNEL AND PRODUCT STRATEGIES: OVERVIEW.

Customer Relationship Management through New Product Development.

Channel Management and Customer Relationship Management.

Embracing the e-Channel.

e-Channel Management: Electronic-Customer Relationship Management.

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

STEP THREE: THE INFRASTRUCTURE STRATEGY: OVERVIEW.

The Tools for CRM: The Three Ws of Technology.

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

CRM in the Telecommunication Industry: A Case Study of Swisscom.

ENABLING THE CRM STRATEGY: OVERVIEW.

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.

Conclusion.

Appendix.

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