The Handbook of Key Customer Relationship Management: The Definitive Guide to Winning, Managing and Developing Key Account Business

Overview

The value of knowledge - in particular customer relationship knowledge - is only just being appreciated. The dot.com revolution is spearheaded by companies whose worth is measured not by profits but by the extent of their customer databases and their ability to mine that information.

Companies will spend more than [pound]5 billion on new CRM applications by 2002 55% of companies plan to review Sales and Marketing systems within 12 months; 33% will purchase new, 22% will upgrade....

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Overview

The value of knowledge - in particular customer relationship knowledge - is only just being appreciated. The dot.com revolution is spearheaded by companies whose worth is measured not by profits but by the extent of their customer databases and their ability to mine that information.

Companies will spend more than [pound]5 billion on new CRM applications by 2002 55% of companies plan to review Sales and Marketing systems within 12 months; 33% will purchase new, 22% will upgrade. But software is only about 25% of the cost. The real cost (and risk) is in implementation, and particularly with your key customers; Ken Burnett's book focuses on getting your KCRM implementation right.

Implement your KCRM strategy now.

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Product Details

  • ISBN-13: 9780273650317
  • Publisher: Pearson Education
  • Publication date: 12/30/2000
  • Pages: 256
  • Product dimensions: 6.42 (w) x 9.44 (h) x 1.04 (d)

Table of Contents

Figures ix
Tables x
About the author xii
Acknowledgements xiv
Overview xv
1. So how much do you really know about KCRM? 1
Self evaluation 2
How can key customers be 'managed'? 3
What will KCRM do for your company? 10
Is KCRM right for your company? 14
How does KCRM affect the sales function? 19
What are the implications for human resources? 21
How do I make KCRM work in my organization? 24
Summary 24
Exhibit 1a The pan-European contract 26
2. Is your organization really customer driven? 31
Self evaluation 32
Evolution and revolution 33
The changing face of purchasing 36
Exhibit 2a Siemens' purchasing strategy 39
Exhibit 2b Nissan (UK) purchasing strategy 42
Exhibit 2c Dow Corning (Europe) purchasing strategy 43
The influence of the quality movement 48
Gaining and sustaining competitive advantage 50
Summary 61
3. How much do you really know about your customers? 63
Self evaluation 64
What is a key customer? 65
How do you prioritize key customers? 66
Other implications in evaluating attractiveness 73
Measuring the current relationship status with key customers 79
Calculating attractiveness and relationship status scores 79
The nine-cell customer strategy grid 82
How do you develop strategies to increase key customer business? 84
What can you do to develop positive key customer relationships? 86
Relationship bonding 87
Summary 102
4. How much do you really know about creating an effective KCRM organization? 103
Self evaluation 104
Doing the right things before doing things right 105
Analyzing the customer mix 105
Exhibit 4a Customer management structure: the Apex Component Company coverage plan 114
Exhibit 4b Customer management structure: The Xerox Company 121
How do you plan internal resources? 122
How can you improve your sales forecasting? 127
How do customer teams work? 129
Summary 132
5. How much do you really know about planning your business? 134
Self evaluation 135
The key customer manager as adviser and counsellor 137
Supporting the value chain in your business 138
Why do you need a business plan? 141
How do you structure a company business plan? 143
Summary 160
6. Do you really know how profitable your key customers are? 161
Self evaluation 162
Competing for resources 163
How to create a key customer profitability statement 165
Exhibit 6a Profitability statement: fast-moving consumer goods 169
Exhibit 6b Profitability statement: industrial companies 170
The horizontal costing system 170
Summary 181
7. Do you really have a business plan for each of your key customers? 182
Self evaluation 183
Using information to create a business building plan 184
The customer development planning process 186
Customer mapping identifies the 'soft' information 195
Performance reviews and competitive value analysis 216
Customer penetration strategies 224
Summary 228
8. How much do you really know about selling your ideas? 230
The KCRM culture shift 231
How can you make communication more effective? 232
Making written proposals more effective 238
Making better one-to-one presentations 238
The skills of the effective communicator 239
Summary 240
Exhibit 8a Presentation to directors: Farmhouse Foods Ltd 240
Exhibit 8b Presentation to customers: Pennyweather Paper Mills 245
9. How much do you really know about CRM information technology? 249
Self evaluation 250
Strategy before software 251
Front-end sales automation systems 253
How do you evaluate CRM software? 256
What are your objectives in CRM system implementation? 258
Ten implementation success factors 259
An action plan for implementing a CRM system 262
What to look for in an effective CRM system 270
Summary 274
10. How much do you really know about motivating people and building effective customer teams? 276
Self evaluation 277
Sharpening our sensitivities 283
Behaviours, attitudes and personality 284
A structured approach to motivation analysis 285
Motivation analysis 1: needs 287
Motivation analysis 2: roles 290
The group dynamics of key customer teams 294
Internal team dynamics 300
Everybody has a team role 300
How do you build effective customer teams? 305
The games people play - planning and leadership 308
Summary 313
11. How much do you really know about negotiating with key customers? 314
The best game in town 315
Negotiation as a process 316
The fabric of negotiation 320
The games people play - negative negotiation 329
The tools of negotiation 334
Negotiating styles 348
The six phases of negotiation 353
The negotiation audit 358
Summary of negotiation principles 359
12. You don't bring me flowers any more 364
Why are customers lost? 365
Changing the organization to meet specific customer needs 369
The distraction of competitive focus 372
An excess of quality? 373
Appendix A Customer development plan 375
Appendix B Competitive value analysis 389
Index 395
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