Managing Customer Relationships: A Strategic Framework / Edition 2

by Don Peppers

Overview

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 www.1to1media.com.

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

	Preface	vii
Part 1	Principles of Managing Customer Relationships	1
Chapter 1	Evolution of Relationships with Customers	3
	Roots of Customer Relationship Management	5
	The View from Here	11
	Get, Keep, and Grow Customers in the Twenty-First Century	17
	What Is a Relationship?	19
	The Technology Revolution and the Customer Revolution	23
Chapter 2	The Thinking behind Customer Relationships	35
	What Characterizes a Relationship?	35
	Thinking about Relationship Theory	38
	CRM: The Customer's View	51
	The Nature of Loyalty	56
Part 2	IDIC Implementation Process: A Model for Managing Customer Relationships	63
Chapter 3	Customer Relationships: Basic Building Blocks of IDIC and Trust	65
	Trust and Relationships Happen in Tandem	66
	IDIC: Four Implementation Tasks for Creating and Managing Customer Relationships	68
	How Does Trust Characterize a Learning Relationship?	71
	The Trust Equation: Generating Customer Trust	72
	Becoming the Customer's Trusted Agent	78
	Relationships Require Information, But Information Comes Only with Trust	81
Chapter 4	Identifying Customers	87
	Individual Information Requires Customer Recognition	88
	What Does "Identify" Mean?	93
	The Internet's Role in Customer Identification: Betting on Amazon	97
	Customer Data Revolution	98
	Role of Smart Markets in Managing Relationships with Customers	103
Chapter 5	Differentiating Customers: Some Customers Are Worth More Than Others	113
	Customer Value Is a Future-Oriented Variable	114
	Different Customers Have Different Values	120
	Convergys: A Case Study in Using Proxy Variables to Rank Customers by Their Value	127
Chapter 6	Differentiating Customers by Their Needs	137
	Definitions	138
	Differentiating Customers by Need: An Illustration	141
	Understanding Needs	145
	Using Needs Differentiation to Build Customer Value	147
	Differentiating Customers by Their Needs: A Practical Approach	148
Chapter 7	Interacting with Customers: Customer Collaboration Strategy	161
	Dialogue Requirements	162
	Implicit and Explicit Bargains	164
	Succeeding at Interaction Strategy Means Integrating across Touchpoints	169
	Integrated Marketing Communications and CRM: Friends or Foes?	172
	Customer Interaction and Dialogue Management	179
	Complaining Customer as Collaborators	185
Chapter 8	Using the Tools of Interactivity to Build Learning Relationships	191
	Customer-Based Software Sampler	192
	Using E-Mail to Interact with Customers	196
	Using E-Mail to Build Customer Value	196
	Evolution of the Customer Interaction Center in the Context of IDIC	203
	Wireless Rules: How New Mobile Technologies Will Transform CRM	208
Chapter 9	Privacy and Customer Feedback	213
	Permission Marketing	217
	Privacy Issues for the Information Age	223
	Individual Privacy and Data Protection	228
	Privacy in Europe Is a Different World	232
	Privacy Pledges Build Enterprise Trust	235
	Submitting Data Online	238
	Privacy on the Net	241
Chapter 10	Using Mass Customization to Build Learning Relationships	255
	How Can Customization Be Profitable?	256
	You're Only as Agile as Your Customers Think	263
	Technology Accelerates Mass Customization	277
	Customization of Standardized Products and Services	279
	Value Streams	282
	Who Will Write the New Business Rules for Personalization?	287
Part 3	Measuring and Managing to Build Customer Value	297
Chapter 11	Measuring the Success of Customer-Based Initiatives	299
	Brand Equity versus Customer Equity	300
	Nature of Customer Loyalty: Attitude or Behavior?	301
	Economics of Loyalty	302
	Customer Profitability Metrics	307
	Longitudinal Metrics and Short-Term Gain	309
	Measuring Customer Satisfaction	315
	Managing Customer Relationships: Metrics Case Study	321
Chapter 12	Customer Analytics and the Customer-Strategy Enterprise	341
	Optimizing Customer Relationships with Advanced Analytics	350
Chapter 13	Organizing and Managing the Profitable Customer-Strategy Enterprise	359
	Capabilities for Forging Customer Relationships	363
	Relationship Governance	370
	How to Get There from Here: Transitions to Customer Management	375
	The Manager of Portfolios of Customers	380
	Stages of Change to Become a Customer-Strategy Enterprise	381
	Transition across the Enterprise	386
	Managing Employees in the Customer-Strategy Enterprise	397
	Overcoming Employee Resistance	397
	Loyalty-Based Management	400
	Momentum Building in the Customer-Based Enterprise	407
Chapter 14	Delivery Channel Issues of the Enterprise Focused on Building Customer Value	411
	Dealing with Channel Pain	412
	Distribution System Management	417
	General Motors' Vauxhall Division: Managing the Customer Experience across Channels and Touchpoints	420
	Demand Chain and Distribution	428
	Supply Chain Management and Managing Customer Relationships	430
Chapter 15	Store of the Future and the Evolution of Retailing	451
	Consumer Direct Channel	454
	Using Operational Excellence as a Competitive Advantage: Tesco	464
	The Online Store and the Role of the Brand in Online Shopping	472
	Final Mile to Consumers	479
	Logistics Business Models for Success	483
Appendix	Where Do We Go From Here?	487
	Leadership Behavior of Customer Relationship Managers	488
	Managing Customer Relationships: The Technology Adoption Life Cycle	489
	Index	498