Up Close and Personal

by Gamble, Paul R.; Stone, Merlin; Woodcock, Neil; Foss, Bryan; Gamble, Paul R.

• ISBN13: 9780749438319
• ISBN10: 0749438312
• Edition: 2nd
• Format: Hardcover
• Copyright: 2003-02-01
• Publisher: Kogan Page Ltd

Summary

* Includes a new free CD-ROM * Published in association with IBM and Ogilvy Effective customer relationship marketing (CRM) is one of the most important challenges faced by the management team of a modern enterprise. In a highly competitive and demanding environment, more and more companies are seeking to establish the strategies, culture, processes and technologies that will make it just that little bit harder for customers to make a switching or even a multi-sourcing decision. Nobody can completely predict human behavior but the ideas behind CRM are certainly designed to ensure the best chance of success. CRM remains the biggest revolution yet in marketing, the power of new technology having swept it to the forefront of management thinking. Although based on apparently simple ideas involving keeping in touch and responding to customer contacts, many companies still shy away from the awesome task of building a relationship with thousands, or even millions, of people. As customers become increasingly sophisticated in their expectations, the diversity and range of products and services on offer gets even wider. So how can you ensure that your product or service is their preferred choice, and, importantly, that it continues to be? Do customers become confused by too extensive a choice? Will people welcome a close relationship with their suppliers or will they find it over-intrusive and an invasion of privacy? Database technology of different kinds can facilitate a range of relationship marketing techniques. The important issues for modern enterprises, large and small, are to understand the why, what, how, when and where of using them. "Up Close and Personal?" provides important andpractical new insights into effective customer relationship marketing by looking in depth at: * Strategies, policies and plans; * Measuring the impact; * Segmentation; * The implementation program; * Customer loyalty and continuity; * Transparent marketing, customer value and process management; * Customer knowledge management; * Technical systems and data management; * Managing good and bad customers * Establishing ROI and satisfying the Board This second edition has been fully updated throughout and contains new material on data management, key performance indicators and benefit analysis. It also comes with a free CD-ROM containing a diagnostic tool to enable you to determine how well your enterprise might be positioned to take forward a new CRM initiative. Based on worldwide research into CRM supported by IBM, Up Close and Personal? brings together the work of four leading experts in the field: Gamble, Stone, Woodcock and Foss provide a combination of marketing theory, practical guidance, case studies and implementation techniques, while emphasizing the need for constant re-evaluation. It is clear that businesses that develop closer relationships with their customers can compete better. However, these relationships cannot be built overnight. The capabilities necessary to sustain and develop them require careful consideration. Enterprises that build their CRM systems now will be the organizations of the future.

Author Biography

Bryan Foss is Customer Loyalty Solutions Executive with IBM Global Financial Services.

Table of Contents

Forewords	ix
Acknowledgements	xi
Customer relationship marketing: one more time?	1	(30)
Why is relationship marketing important?	3	(1)
Is customer relationship marketing profitable?	4	(3)
Customer-led or market oriented?	7	(3)
What's different about customer relationship marketing?	10	(4)
Problems with functional marketing	14	(1)
The evolution of customer relationship marketing	15	(3)
The basis of a customer relationship marketing audit	18	(3)
Gaining a competitive edge	21	(3)
Virtual products and services	24	(3)
Personal contact	27	(3)
Summary	30	(1)
Relationships with customers	31	(23)
Who is a customer?	31	(6)
Levels of relationship	37	(3)
Consumer buying models	40	(7)
Business-to-business buying models	47	(3)
Customer relationship marketing and the sales process	50	(3)
Summary	53	(1)
Buy-in, policies and plans	54	(29)
Buy-in top to bottom	54	(1)
Strategy as fit and strategy as stretch	55	(5)
Transforming the organization	60	(4)
Top down leadership	64	(4)
Bottom up management	68	(3)
Core process redesign	71	(7)
Summary	78	(1)
Checklist for REAP planning	78	(5)
Measuring the impact	83	(27)
Ten guidelines for a relationship marketing strategy	83	(4)
Key performance indicator (KPI) measures	87	(3)
The KPI hierarchy	90	(6)
Quantifying relationship marketing	96	(10)
Fixing the budget	106	(2)
Summary	108	(2)
Segmentation and the top vanilla offer	110	(31)
Traditional and relationship marketing planning	110	(8)
Developing the capability for relationship marketing	118	(1)
Customer management differentiation	119	(2)
Segmentation	121	(9)
A practical approach to segmented relationships	130	(2)
The top vanilla approach	132	(2)
Key principles of top vanilla	134	(3)
The risks of top vanilla	137	(2)
Summary	139	(2)
Getting the show on the road	141	(27)
Introduction	141	(1)
Barriers to implementation	141	(4)
The implementation programme	145	(2)
Evaluating current practice	147	(4)
Developing the business case	151	(5)
Customer contact strategy	156	(9)
Customer management key performance indicators	165	(2)
Summary	167	(1)
Customer loyalty and continuity	168	(29)
What is customer loyalty?	168	(6)
Loyalty and product type	174	(2)
Which customers do you want to be loyal?	176	(4)
Customer acquisition -- six steps to success	180	(4)
Customer retention -- six steps to success	184	(4)
Loyalty management -- six steps to success	188	(5)
Are loyalty schemes win-win?	193	(1)
Summary -- ten steps to successful loyalty schemes	194	(3)
Transparent marketing, customer value and process management	197	(29)
Transparent marketing	197	(6)
Do customers want transparent relationships?	203	(9)
Customer value management and process contribution assessment	212	(12)
Summary	224	(2)
Customer knowledge management	226	(33)
Why manage knowledge?	226	(9)
Tacit knowledge, explicit knowledge and products	235	(6)
Implementing knowledge management -- critical success factors	241	(1)
Making knowledge management a reality -- seven steps to success	242	(3)
Customer knowledge management and organizational alignment	245	(13)
Summary	258	(1)
Integrating the technology of customer management systems	259	(32)
Introduction	259	(3)
The overall approach	262	(2)
The CRM ecosystem	264	(6)
Learning through experience	270	(4)
Updating current IT systems	274	(4)
Building the brain	278	(4)
The impact of mergers and acquisitions	282	(1)
Integrating customer management systems	283	(2)
Information where it's needed... when it's needed	285	(2)
Simplifying data migration and integration	287	(2)
Summary	289	(2)
Managing good and bad customers	291	(32)
The moral maze	291	(3)
What is a good customer?	294	(2)
What is a bad customer?	296	(1)
Predicting goodness and badness	296	(10)
Managing the risk	306	(5)
Dealing with complaints	311	(2)
The customer perspective	313	(5)
Organizational and business customer management strategies	318	(3)
Summary	321	(2)
Justifying the CRM investment	323	(35)
Delivering customer value through relationship marketing	323	(5)
Some marketing paradigms	328	(5)
Satisfying the board	333	(11)
Keys to achieving the most from your customer relationship marketing investments	344	(1)
E-business and globalization	345	(5)
So what next?	350	(7)
Summary	357	(1)
Appendix 1: A complete relationship marketing planning recipe	358	(9)
Appendix 2: C-View 02©: your customer relationship marketing audit tool	367	(5)
References	372	(5)
Index	377