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Managing Customer Relationships: A Strategic Framework / Edition 2

Managing Customer Relationships: A Strategic Framework / Edition 2

by Don Peppers


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Managing Customer Relationships: A Strategic Framework / Edition 2

In today's competitive marketplace, managing customer relationships or customer relationship management (CRM) is critical to a company's profitability and long-term success. To become more customer-focused, skilled managers, IT professionals, and marketing executives must understand how to build profitable relationships with each customer and how to make everyday managerial decisions that increase the value of a company by increasing the value of the customer base. The goal is to build long-term relationships with customers and generate increased customer loyalty and higher margins. In Managing Customer Relationships, Don Peppers and Martha Rogers, credited with founding the customer-relationship revolution in 1993 when they coined the term "one-to-one marketing," provide the definitive overview of what it takes to keep customers coming back.

Presenting a comprehensive framework for CRM, Managing Customer Relationships provides CEOs, CFOs, CIOs, CMOs, privacy officers, human resources managers, marketing executives, sales teams, distribution managers, professors, and students with a logical overview of the background, the methodology, and the particulars of managing customer relationships for competitive advantage. Peppers and Rogers incorporate many of the principles of individualized customer relationships that they are best known for, including a complete overview of the background and history of the subject, relationship theory, IDIC (Identify-Differentiate-Interact-Customize) methodology, metrics, data management, customer management, company organization, channel issues, and the "store of the future." One of the first books designed to develop an understanding of the pedagogy of managing customer relationships, with an emphasis on customer strategies and building customer value. The techniques in Managing Customer Relationships can help any company sharpen its competitive advantage.

Product Details

ISBN-13: 2900470423478
Publisher: Wiley
Publication date: 01/11/2011
Edition description: NE
Pages: 528
Product dimensions: 7.32(w) x 10.10(h) x 1.60(d)

About the Author

DON PEPPERS is a Founding Partner at Peppers & Rogers Group. He is a former CEO of a top-20 direct marketing agency. He is a globally respected thought leader, futurist, and consultant. He holds a degree in astronautical engineering from the U.S. Air Force Academy and a master's in public affairs from Princeton University's Woodrow Wilson School. His popular blog, "Peppers Unplugged," can be found at

MARTHA ROGERS is a Founding Partner at Peppers & Rogers Group and is in demand for speaking and thought leadership on six continents. She is also an adjunct professor at the Fuqua School of Business at Duke University. She earned her PhD at University of Tennessee as a Bickel Fellow, and has led multi-year, multimillion-dollar research programs.

PEPPERS and ROGERS have published eight best-selling books and are "always working on the next one." Their first book, The One to One Future, was named "Book of the Year" by Tom Peters and "one of the two or three most important business books ever written" by George Gendren, then editor of Inc. Their second book, Enterprise One to One, was given a five-star rating by the Wall Street Journal. The books appear in nineteen languages. They have also published in Harvard Business Review and other academic publications.

Table of Contents

Part 1Principles of Managing Customer Relationships1
Chapter 1Evolution of Relationships with Customers3
Roots of Customer Relationship Management5
The View from Here11
Get, Keep, and Grow Customers in the Twenty-First Century17
What Is a Relationship?19
The Technology Revolution and the Customer Revolution23
Chapter 2The Thinking behind Customer Relationships35
What Characterizes a Relationship?35
Thinking about Relationship Theory38
CRM: The Customer's View51
The Nature of Loyalty56
Part 2IDIC Implementation Process: A Model for Managing Customer Relationships63
Chapter 3Customer Relationships: Basic Building Blocks of IDIC and Trust65
Trust and Relationships Happen in Tandem66
IDIC: Four Implementation Tasks for Creating and Managing Customer Relationships68
How Does Trust Characterize a Learning Relationship?71
The Trust Equation: Generating Customer Trust72
Becoming the Customer's Trusted Agent78
Relationships Require Information, But Information Comes Only with Trust81
Chapter 4Identifying Customers87
Individual Information Requires Customer Recognition88
What Does "Identify" Mean?93
The Internet's Role in Customer Identification: Betting on Amazon97
Customer Data Revolution98
Role of Smart Markets in Managing Relationships with Customers103
Chapter 5Differentiating Customers: Some Customers Are Worth More Than Others113
Customer Value Is a Future-Oriented Variable114
Different Customers Have Different Values120
Convergys: A Case Study in Using Proxy Variables to Rank Customers by Their Value127
Chapter 6Differentiating Customers by Their Needs137
Differentiating Customers by Need: An Illustration141
Understanding Needs145
Using Needs Differentiation to Build Customer Value147
Differentiating Customers by Their Needs: A Practical Approach148
Chapter 7Interacting with Customers: Customer Collaboration Strategy161
Dialogue Requirements162
Implicit and Explicit Bargains164
Succeeding at Interaction Strategy Means Integrating across Touchpoints169
Integrated Marketing Communications and CRM: Friends or Foes?172
Customer Interaction and Dialogue Management179
Complaining Customer as Collaborators185
Chapter 8Using the Tools of Interactivity to Build Learning Relationships191
Customer-Based Software Sampler192
Using E-Mail to Interact with Customers196
Using E-Mail to Build Customer Value196
Evolution of the Customer Interaction Center in the Context of IDIC203
Wireless Rules: How New Mobile Technologies Will Transform CRM208
Chapter 9Privacy and Customer Feedback213
Permission Marketing217
Privacy Issues for the Information Age223
Individual Privacy and Data Protection228
Privacy in Europe Is a Different World232
Privacy Pledges Build Enterprise Trust235
Submitting Data Online238
Privacy on the Net241
Chapter 10Using Mass Customization to Build Learning Relationships255
How Can Customization Be Profitable?256
You're Only as Agile as Your Customers Think263
Technology Accelerates Mass Customization277
Customization of Standardized Products and Services279
Value Streams282
Who Will Write the New Business Rules for Personalization?287
Part 3Measuring and Managing to Build Customer Value297
Chapter 11Measuring the Success of Customer-Based Initiatives299
Brand Equity versus Customer Equity300
Nature of Customer Loyalty: Attitude or Behavior?301
Economics of Loyalty302
Customer Profitability Metrics307
Longitudinal Metrics and Short-Term Gain309
Measuring Customer Satisfaction315
Managing Customer Relationships: Metrics Case Study321
Chapter 12Customer Analytics and the Customer-Strategy Enterprise341
Optimizing Customer Relationships with Advanced Analytics350
Chapter 13Organizing and Managing the Profitable Customer-Strategy Enterprise359
Capabilities for Forging Customer Relationships363
Relationship Governance370
How to Get There from Here: Transitions to Customer Management375
The Manager of Portfolios of Customers380
Stages of Change to Become a Customer-Strategy Enterprise381
Transition across the Enterprise386
Managing Employees in the Customer-Strategy Enterprise397
Overcoming Employee Resistance397
Loyalty-Based Management400
Momentum Building in the Customer-Based Enterprise407
Chapter 14Delivery Channel Issues of the Enterprise Focused on Building Customer Value411
Dealing with Channel Pain412
Distribution System Management417
General Motors' Vauxhall Division: Managing the Customer Experience across Channels and Touchpoints420
Demand Chain and Distribution428
Supply Chain Management and Managing Customer Relationships430
Chapter 15Store of the Future and the Evolution of Retailing451
Consumer Direct Channel454
Using Operational Excellence as a Competitive Advantage: Tesco464
The Online Store and the Role of the Brand in Online Shopping472
Final Mile to Consumers479
Logistics Business Models for Success483
AppendixWhere Do We Go From Here?487
Leadership Behavior of Customer Relationship Managers488
Managing Customer Relationships: The Technology Adoption Life Cycle489

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