Managing Customer Relationships: A Strategic Framework

Managing Customer Relationships: A Strategic Framework......Page 3
Contents......Page 5
Preface......Page 13
PART I PRINCIPLES OF MANAGING CUSTOMER RELATIONSHIPS......Page 19
CHAPTER 1 Evolution of Relationships with Customers......Page 21
Roots of Customer Relationship Management......Page 23
Traditional Marketing Redux......Page 28
The View from Here (Philip Kotler)......Page 29
Who Is the Customer?......Page 36
Return on Customer: Measuring the Efficiency with Which Customers Create Value......Page 39
Initial Assessment: Where Is a Firm on the Customer-Strategy Map?......Page 42
Royal Bank of Canada’s 18 Million Loyal Customers......Page 44
CRM ROI in Financial Services......Page 48
Summary......Page 51
Glossary......Page 52
Why Do Companies Work at Being “Customer-Centric”?......Page 55
What Characterizes a Relationship?......Page 57
Thinking about Relationship Theory (Julie Edell Britton)......Page 60
Cultivating the Customer Connection: A Framework for Understanding Customer Relationships (James G. Barnes)......Page 73
Customer Loyalty: Is It an Attitude? Or a Behavior?......Page 82
Loyalty Programs......Page 84
Summary......Page 86
Glossary......Page 87
PART II IDIC IMPLEMENTATION PROCESS: A MODEL FOR MANAGING CUSTOMER RELATIONSHIPS......Page 89
CHAPTER 3 Customer Relationships: Basic Building Blocks of IDIC and Trust......Page 91
Trust and Relationships Happen in Tandem......Page 92
IDIC: Four Implementation Tasks for Creating and Managing Customer Relationships......Page 94
How Does Trust Characterize a Learning Relationship?......Page 97
The Speed of Trust (Stephen M. R. Covey)......Page 98
The Trust Equation: Generating Customer Trust (Charles H. Green)......Page 100
Becoming the Customer’s Trusted Agent......Page 107
The Age of Transparency (Dov Seidman)......Page 108
Corporate Heresy......Page 111
The Man with the Folding Chair......Page 113
Relationships Require Information, but Information Comes Only with Trust......Page 115
CRM Scenario: Governments Develop Learning Relationships with “Citizen-Customers”......Page 117
Glossary......Page 119
CHAPTER 4 Identifying Customers......Page 121
Individual Information Requires Customer Recognition......Page 122
Real Objective of Frequency Marketing Programs......Page 124
What Does Identify Mean?......Page 127
Customer Data Revolution......Page 131
Role of Smart Markets in Managing Relationships with Customers (Rashi Glazer)......Page 135
Food for Thought......Page 137
Glossary......Page 138
CHAPTER 5 Differentiating Customers: Some Customers Are Worth More than Others......Page 139
Customer Value Is a Future-Oriented Variable......Page 141
Recognizing the Hidden Potential Value in Customers (Pelin Turunc)......Page 148
Different Customers Have Different Values......Page 153
Pareto Principle and Power-Law Distributions......Page 154
Customer Referral Value......Page 159
Is It Fair to “Fire” Unprofitable Customers?......Page 162
Dealing with Tough Customers......Page 164
Canada Post: Using Value to Differentiate Customer Relationships (Janet LeBlanc)......Page 169
Summary......Page 173
Glossary......Page 174
CHAPTER 6 Differentiating Customers by Their Needs......Page 177
Definitions......Page 178
Differentiating Customers by Need: An Illustration......Page 181
Scenario: Financial Services......Page 183
Understanding Customer Behaviors and Needs (Kerem Can Ozkısacık)......Page 184
Needs May Not Be Rational, but Everybody Has Them......Page 186
Categorizing Customers by Their Needs......Page 187
Understanding Needs......Page 189
Community Knowledge......Page 191
Healthcare Firms Care for and about Patient Needs......Page 194
Using Needs Differentiation to Build Customer Value......Page 196
Scenario: Universities Differentiate Students’ Needs......Page 198
Summary......Page 201
Glossary......Page 202
CHAPTER 7 Interacting with Customers: Customer Collaboration Strategy......Page 203
Dialogue Requirements......Page 204
Implicit and Explicit Bargains......Page 205
Do Consumers Really Want One-to-One Marketing?......Page 207
Two-Way, Addressable Media: A Sampling......Page 209
Technology of Interaction Requires Integrating across the Entire Enterprise......Page 210
Touchpoint Mapping (Mounir Ariss)......Page 213
Customer Dialogue: A Unique and Valuable Asset......Page 219
Customizing Online Communication (Tom Spitale)......Page 221
Not All Interactions Qualify as “Dialogue”......Page 223
When the Best Contact Is No Contact (Bill Price and David Jaffe)......Page 224
Is the Contact Center a Cost Center, a Profit Center, or an Equity-Building Center? (Judi Hand)......Page 227
Cost Efficiency and Effectiveness of Customer Interaction......Page 228
Complaining Customers: Hidden Assets?......Page 229
Summary......Page 231
Glossary......Page 232
CHAPTER 8 Customer Insight, Dialogue, and Social Media......Page 235
The Dollars and Sense of Social Media......Page 236
Listening to Customers......Page 240
The Importance of Listening and Social Media (Becky Carroll)......Page 241
Crowd Service: Customers Helping Other Customers (Natalie L. Petouhoff)......Page 245
Age of Transparency......Page 253
Social Media: Power to the People! (Yochai Benkler)......Page 256
Glossary......Page 259
CHAPTER 9 Privacy and Customer Feedback......Page 261
Permission Marketing (Seth Godin)......Page 266
Individual Privacy and Data Protection (Larry A. Ponemon, Ph.D.)......Page 272
Privacy in Europe Is a Different World......Page 275
European Organization for Economic Cooperation and Development Privacy Guidelines......Page 276
Privacy Pledges Build Enterprise Trust......Page 277
Ten Points to Consider in Developing a Company’s Privacy Pledge......Page 280
Submitting Data Online......Page 281
Blown to Bits (Hal Abelson, Ken Ledeen, and Harry Lewis)......Page 282
Privacy on the Net (Esther Dyson)......Page 286
Summary......Page 291
Glossary......Page 292
CHAPTER 10 The Payoff of IDIC: Using Mass Customization to Build Learning Relationships......Page 293
How Can Customization Be Profitable?......Page 294
Demand Chain and Supply Chain......Page 296
Mass Customization: Some Examples......Page 301
Technology Accelerates Mass Customization......Page 303
Redefining the Business: Tesco......Page 304
Customization of Standardized Products and Services......Page 306
Value Streams......Page 309
Bentley Systems Creates Value Streams......Page 310
Who Will Write the New Business Rules for Personalization? (Bruce Kasanoff)......Page 313
Culture Rules......Page 319
Food for Thought......Page 321
Glossary......Page 322
PART III MEASURING AND MANAGING TO BUILD CUSTOMER VALUE......Page 323
CHAPTER 11 Optimizing around the Customer: Measuring the Success of Customer-Based Initiatives......Page 325
Customer Equity......Page 330
What Is the Value Today of a Customer You Don’t Yet Have?......Page 333
Customer Loyalty and Customer Equity......Page 335
Return on Customer......Page 339
Return on Customer = Total Shareholder Return......Page 340
Measuring, Analyzing, and Utilizing Return on Customer (Onder Oguzhan)......Page 345
Leading Indicators of LTV Change......Page 349
Stats and the Single Customer......Page 357
Maximize Long-Term Value and Hit Short-Term Targets (Yücel Ersöz)......Page 358
Food for Thought......Page 364
Glossary......Page 365
CHAPTER 12 Using Customer Analytics to Build the Success of the Customer-Strategy Enterprise......Page 367
Verizon Wireless Uses Analytics to Predict and Reduce Churn......Page 369
CRM in the Cloud......Page 371
Optimizing Customer Relationships with Advanced Analytics (Judy Bayer, Ronald S. Swift)......Page 377
Holistic Customer View Is Essential for Managing Customer-Centric Strategies (Jim Goodnight)......Page 379
Boosting Profits by Upselling in Firebrand Real Estate Developers (Yücel Ersöz)......Page 386
Looking for the Right Time to Sell a Mortgage Loan (Yücel Ersöz)......Page 393
Summary......Page 396
Glossary......Page 397
CHAPTER 13 Organizing and Managing the Profitable Customer-Strategy Enterprise: Part 1......Page 399
Capabilities That Yield a Relationship Advantage (George S. Day)......Page 401
Becoming a Customer-Strategy Organization (Marijo Puleo)......Page 408
Relationship Governance......Page 414
Customer Experience Maturity Monitor: The State of Customer Experience Capabilities and Competencies (Jeff Gilleland)......Page 418
Glossary......Page 425
CHAPTER 14 Organizing and Managing the Profitable Customer-Strategy Enterprise: Part 2......Page 427
Pilot Projects and Incremental Change......Page 428
Picket Fence Strategy......Page 430
Segment Management......Page 431
Customer Portfolio Management......Page 432
Transition across the Enterprise......Page 433
Using Up Customers......Page 435
Customer Service Starts when the Customer Experience Fails (Christopher J. Zane)......Page 438
How Do We Fix Service? (Bill Price and David Jaffe)......Page 442
Improving Customer Service at an Online Financial Services Firm......Page 448
Transformation from Product Centricity to Customer Centricity (Pelin Turunc)......Page 450
Transition Process for Other Key Enterprise Areas......Page 451
HOW (Dov Seidman)......Page 457
Managing Employees in the Customer-Strategy Enterprise......Page 461
The Everyday Leader (Marilyn Carlson Nelson)......Page 464
Summary......Page 465
Glossary......Page 466
CHAPTER 15 Where Do We Go from Here?......Page 469
Managing Customer Relationships: The Technology Adoption Life Cycle (Geoffrey A. Moore)......Page 470
Looking To the Future: Business Becomes Truly Collaborative (Paul Greenberg)......Page 478
Leadership Behavior of Customer Relationship Managers......Page 482
Maintain and Increase the Trust of Customers......Page 484
Summary......Page 498
Food for Thought......Page 499
Name Index......Page 501
Term Index......Page 505