Managing customer relationships : a strategic framework

In today's competitive marketplace, customer relationship management 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 to make managerial decisions every day designed to increase the value of a company by making managerial decisions that will grow 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 invented the term "one-to-one marketing," provide the definitive overview of what it takes to keep customers coming back for years to come.

Presenting a comprehensive framework for customer relationship management, 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. Here, renowned customer relationship management pioneers 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, Managing Customer Relationships features:

Pioneering theories and principles of individualized customer relationships

An overview of relationship theory

Contributions from such revolutionary leaders as Philip Kotler, Esther Dyson, Geoffrey Moore, and Seth Godin

Guidelines for identifying customers and differentiating them by value and need

Tips for using the tools of interactivity and customization to build learning relationships

Coverage of the importance of privacy and customer feedback

Advice for measuring the success of customer-based initiatives

The future and evolution of retailing

An appendix that examines the qualities needed in a firm's customer relationship leaders, and that provides fundamental tools for embarking on a career in managing customer relationships or helping a company use customer value as the basis for executive decisions

The techniques in Managing Customer Relationships can help any company sharpen its competitive advantage.

Author Notes

Don Peppers and Martha Rogers, PhD, are the founding partners of Peppers and Rogers Group

Philip KotlerRoger SiboniJulie Edell Britton and Josh RoseJames G. BarnesCharles H. GreenStewart AlsopRashi GlazerJill CollinsJennifer B. Monahan and Nichole Clarke and Laura Cococcia and William C. Pink and Valerie Popeck and Sophie VlessingDon E. SchultzDerek ScruggsElizabeth RechFred B. Newell and Katherine N. Lemon, PhDSeth GodinJosh W. Stailey and Stacey ScruggsLarry A. Ponemon, PhDEsther DysonB. Joseph Pine IIBruce KasanoffJames GoodnightJudy Bayer and Ronald S. SwiftGeorge S. DayMiriam Washington KendallMarijo Puleo, PhDFrederick F. ReichheldPatricia B. SeyboldRoger Blackwell and Kristina StephanPatricia B. Seybold and Ronni T. MarshakRavi Dhar and Dick R. WittinkGeoffrey A. Moore

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

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