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More About This Title Managing Customer Experience and Relationships: AStrategic Framework, Third Edition
English
Managing Customer Experience and Relationships, Third Edition positions the customer as central to long-term strategy, and provides essential guidance toward optimizing that relationship for the long haul. By gaining a deep understanding of this critical dynamic, you'll become better able to build and manage the customer base that drives revenue and generates higher margins. A practical framework for implementing the IDIC model merges theory, case studies, and strategic analysis to provide a ready blueprint for execution, and in-depth discussion of communication, metrics, analytics, and more allows you to optimize the relationship on both sides of the table. This new third edition includes updated examples, case studies, and references, alongside insightful contributions from global industry leaders to give you a well-rounded, broadly-applicable knowledge base and a more effective CRM strategy. Ancillary materials include a sample syllabus, PowerPoints, chapter questions, and a test bank, facilitating use in any classroom or training session.
The increased reliance on customer relationship management has revealed a strong need for knowledgeable practitioners who can deploy effective initiatives. This book provides a robust foundation in CRM principles and practices, to help any business achieve higher customer satisfaction.
- Understand the fundamental principles of the customer relationship
- Implement the IDIC model to improve CRM ROI
- Identify essential metrics for CRM evaluation and optimization
- Increase customer loyalty to drive profits and boost margins
Sustainable success comes from the customer. If your company is to meet performance and profitability goals, effective customer relationship management is the biggest weapon in your arsenal—but it must be used appropriately. Managing Customer Experience and Relationships, Third Edition provides the information, practical framework, and expert insight you need to implement winning CRM strategy.
English
DON PEPPERS is founder emeritus of Peppers & Rogers Group, and LinkedIn's most authoritative Influencer on the topic of "customer experience," with more than a quarter million followers.
MARTHA ROGERS, PH.D., is founder emerita of Peppers & Rogers Group, and has served as adjunct professor and Director of the Relationship Management Center at Duke University. She now heads Trustability Metrix.
Peppers and Rogers have published eight bestselling books together, including Return on Customer, Rules to Break and Laws to Follow, and The One-to-One Future. Their most recent book is the revised and updated paperback edition of Extreme Trust.
English
Foreword by Phil Kotler xiii
Preface xvii
Acknowledgments xxi
About the Authors xxiii
PART I PRINCIPLES OF MANAGING CUSTOMER EXPERIENCE AND RELATIONSHIPS 1
CHAPTER 1 Evolution of Relationships with Customers and Strategic Customer Experiences 3
Roots of Customer Relationships and Experience 5
Traditional Marketing Redux 11
What Is a Relationship? Is That Different from Customer Experience? 20
Who Is the Customer? 21
How to Think about Customer Experience 22
Return on Customer: Measuring the Efficiency with Which Customers Create Value 25
The Technology Revolution and the Customer Revolution 28
Royal Bank of Canada’s 16 Million Loyal Customers 30
The ROI of Building Customer Relationships in Financial Services 34
Summary 38
Food for Thought 39
Glossary 39
CHAPTER 2 The Thinking behind Customer Relationships That Leads to Good Experiences 43
Why Do Companies Work at Being “Customer-Centric”? 44
What Characterizes a Relationship? 46
Continuing Roles for Mass Media and Branding 46
Characteristics of a Genuine Business Relationship 47
Building Genuine Customer Connections: A Framework for
Understanding Customer Relationships (James G. Barnes) 50
Customer Loyalty: Is It an Attitude? Or a Behavior? 61
Loyalty Programs 63
Summary 66
Food for Thought 67
Glossary 67
PART II IDIC IMPLEMENTATION PROCESS: A MODEL FOR MANAGING CUSTOMER RELATIONSHIPS AND IMPROVING CUSTOMER EXPERIENCES 71
CHAPTER 3 Customer Relationships: Basic Building Blocks of IDIC and Trust 73
Trust and Relationships Happen in Unison 74
IDIC: Four Implementation Tasks for Creating and Managing Customer Experiences and Relationships 79
How Does Trust Characterize a Learning Relationship? 82
The Speed of Trust (Stephen M. R. Covey) 82
The Trust Equation: Generating Customer Trust (Charles H. Green) 85
Becoming More and More Trustable to Customers 92
The Age of Transparency (Dov Seidman) 96
Basic Principles of Twenty-First-Century Trustability 101
Do Things Right and Do the Right Thing 102
Be Proactive 103
The Man with the Folding Chair 106
Relationships Require Information, but Information Comes Only with Trust 108
Scenario: Governments Develop Learning Relationships with “Citizen-Customers” 111
Summary 116
Food for Thought 116
Glossary 117
CHAPTER 4 Identifying Customers 119
Individual Information Requires Customer Recognition 120
The Real Objective of Loyalty Programs and Frequency Marketing Plans 124
What Does Identify Mean? 129
Customer Data Revolution 133
The Role of the “Internet of Things” and Smart Products in Managing Relationships with Customers 138
Summary 139
Food for Thought 139
Glossary 140
CHAPTER 5 Differentiating Customers: Some Customers Are Worth More Than Others 143
Customer Value Is a Future-Oriented Variable 145
Assessing a Customer’s Potential Value 158
Different Customers Have Different Values 159
Pareto Principle and Power-Law Distributions 160
Customer Referral Value 165
Is It Fair to “Fire” Unprofitable Customers? 170
Dealing with Tough Customers 171
Canada Post Customer Value Management Program: Using Value to Differentiate Customer Relationships (Janet LeBlanc) 179
Summary 182
Food for Thought 183
Glossary 184
CHAPTER 6 Differentiating Customers by Their Needs 187
Definitions 188
Demographics Do Not Reveal Needs 191
Differentiating Customers by Need: An Illustration 192
Scenario: Financial Services 193
Understanding Customer Behaviors and Needs 194
Needs May Not Be Rational, but Everybody Has Them 196
Why Doesn’t Every Company Already Differentiate Its Customers by Needs? 197
Categorizing Customers by Their Needs 198
Understanding Needs 200
Community Knowledge 202
Using Needs Differentiation to Build Customer Value 206
Scenario: Universities Differentiate Students’ Needs 208
Summary 212
Food for Thought 213
Glossary 213
CHAPTER 7 Interacting with Customers: Customer Collaboration Strategy 217
Dialogue Requirements 219
Implicit and Explicit Bargains 220
Do Consumers Really Want One-to-One Marketing? 222
Two-Way, Addressable Media: A Sampling 223
Technology of Interaction Requires Integrating across the Entire Enterprise 226
Managing Customer Experiences by Taking the Customer’s Perspective (Mounir Ariss) 229
Customer Dialogue: A Unique and Valuable Asset 234
Customizing Online Communication (Tom Spitale) 236
Not All Interactions Qualify as “Dialogue” 239
When the Best Contact Is No Contact (Bill Price and David Jaffe) 240
Contact Centers Take a New Approach to Customer Interactions (Elizabeth Glagowski) 243
Cost Efficiency and Effectiveness of Customer Interaction 244
Complaining Customers: Hidden Assets? 245
Summary 248
Food for Thought 248
Glossary 249
CHAPTER 8 Customer Insight, Dialogue, and Social Media 253
The Dollars and Sense of Social Media 254
Listening to Customers 260
The Importance of Listening and Social Media (Becky Carroll) 261
Crowd Service: Customers Helping Other Customers (Dr. Natalie L. Petouhoff) 267
Age of Transparency 277
As Interactions Multiply, Trust Becomes More Important 277
Influencing the Influencers 283
Summary 286
Food for Thought 286
Glossary 287
CHAPTER 9 Privacy and Customer Feedback 289
The Trust Advantage of Robust Data Stewardship (John Rose) 294
Individual Privacy and Data Protection (Larry A. Ponemon, Ph.D.) 303
Privacy in Europe Is a Different World 306
European Organization for Economic Cooperation and Development Privacy Guidelines 307
Privacy Pledges Build Enterprise Trust 310
10 Points to Consider in Developing a Company’s Privacy Pledge 313
Submitting Data Online 314
Universal ID 317
Summary 318
Food for Thought 318
Glossary 318
CHAPTER 10 The Payoff of IDIC: Using Mass Customization to Build Learning Relationships 321
How Can Customization Be Profi table? 322
Demand Chain and Supply Chain 325
Technology Accelerates Mass Customization 331
Customization of Standardized Products and Services 333
Value Streams 337
Bentley Systems Creates Value Streams 338
A Quick Primer on Business Rules (Bruce Kasanoff) 342
Culture Rules 346
Summary 349
Food for Thought 350
Glossary 350
PART III MEASURING AND MANAGING TO BUILD CUSTOMER VALUE 355
CHAPTER 11 Optimizing around the Customer: Measuring the Success of Customer-Based Initiatives and the Customer-Centric Organization 357
Customer Equity 364
What Is the Value Today of a Customer You Don’t Yet Have? 373
Customer Loyalty and Customer Equity 376
Return on Customer 380
Return on Customer = Total Shareholder Return 384
Measuring, Analyzing, and Utilizing Return on Customer 389
Leading Indicators of LTV Change 393
Stats and the Single Customer 401
Maximize Long-Term Value and Hit Short-Term Targets 402
Summary 409
Food for Thought 410
Glossary 410
CHAPTER 12 Using Customer Analytics to Build the Success of the Customer-Strategy Enterprise 413
Verizon Wireless Uses Analytics to Predict and Reduce Churn 415
CRM in the Cloud 417
Customer Intelligence in the Era of Data-Driven Marketing (Jim Goodnight) 424
Boosting Profits by Up-Selling in Firebrand Real Estate Developers 431
Looking for the Right Time to Sell a Mortgage Loan 439
Summary 443
Food for Thought 444
Glossary 445
CHAPTER 13 Organizing and Managing the Profitable Customer-Strategy Enterprise, Part 1 447
Customer Experience: What, Why, and How (Alan Pennington) 449
How Do We Fix Service? (Bill Price and David Jaffe) 460
Improving Customer Service at an Online Financial Services Firm 464
Customers, Customer Service, and the Customer Experience (Christopher J. Zane) 467
Relationship Governance 470
Understanding Customer Experience through Customer Journey Mapping (Valerie Peck) 476
Customer Experience Capabilities and Competencies Compared to Financial Performance (Jeff Gilleland) 502
Summary 507
Food for Thought 507
Glossary 508
CHAPTER 14 Organizing and Managing the Profitable Customer-Strategy Enterprise, Part 2: Transitioning from Traditional Business to Customer Centricity 513
Becoming a Customer-Strategy Organization (Marijo Puleo, Ph.D.) 514
Pilot Projects and Incremental Change 519
Picket Fence Strategy 521
Segment Management 523
Customer Portfolio Management 524
Transition across the Enterprise 525
Using Up Customers 528
Transformation from Product Centricity to Customer Centricity 531
Transition Process for Other Key Enterprise Areas 533
Managing Employees in the Customer-Strategy Enterprise 540
The Everyday Leader (Marilyn Carlson Nelson) 544
Summary 546
Food for Thought 547
Glossary 548
CHAPTER 15 Futureproofing the Customer-Centric Organization 553
Leadership Behavior of Customer Relationship Managers 554
Maintain and Increase the Trust of Customers 556
Reciprocity in Action 559
JetBlue Builds Trust into Its DNA 560
Summary 575
Food for Thought 576
Name Index 577
Term Index 585
