Managing Customer Experience and Relationships
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Don Peppers. Managing Customer Experience and Relationships
Table of Contents
List of Exhibit
Guide
Pages
Managing Customer Experience and Relationships
Foreword The View from Here
Note
Preface
How to Use This Book
Notes
Acknowledgments
About the Authors
CHAPTER 1 Evolution of Marketing and the Revolution of Customer Strategy
ROOTS OF CUSTOMER RELATIONSHIPS AND EXPERIENCE
How to Think About Relationships and Customer Experience as Key to Business Strategy
Traditional Marketing Redux
Continuing Roles for Mass Media and Branding
INITIAL ASSESSMENT: WHERE IS A FIRM ON THE CUSTOMER STRATEGY MAP?
COMPARING MARKET-SHARE AND SHARE-OF-CUSTOMER STRATEGIES
WHAT IS A RELATIONSHIP? IS THAT DIFFERENT FROM CUSTOMER EXPERIENCE?
Who Is the Customer?
How to Think about Customer Experience
LEARNING RELATIONSHIPS: THE CRUX OF BUILDING CUSTOMER VALUE
Notes
CHAPTER 2 Treat Different Customers Differently: How Learning Relationships Lead to Better Experiences and Higher Profit
FOCUS ON RELATIONSHIP EQUITY
THE STRATEGY: TREAT DIFFERENT CUSTOMERS DIFFERENTLY (TDCD)
THE TECHNOLOGY REVOLUTION AND THE CUSTOMER REVOLUTION
Customers Have Changed, Too
WHAT CHARACTERIZES A RELATIONSHIP?
Characteristics of a Genuine Business Relationship
CUSTOMER LOYALTY: IS IT EMOTIONAL? OR BEHAVIORAL?
CUSTOMER RETENTION AND ENTERPRISE PROFITABILITY
The Financial Payoff of Building Customer Relationships in Financial Services
Why Do Companies Work at Being Customer-Centric?
Return on Customer: Measuring and Increasing the Efficiency with Which Customers Create Value
Notes
CHAPTER 3 Better Customer Experiences for Better Shareholder Return
FRICTIONLESS: THE IDEAL CUSTOMER EXPERIENCE MAY BE NO EXPERIENCE AT ALL
How Hard Does Your Customer Have to Work for You To Make Money?
The Shoe Salesman's Hidden Motivation
PRODUCT COMPETENCE
Customer Experience Duality
CUSTOMER COMPETENCE
Don't Run Your Business on the Goldfish Principle
UNDERSTANDING CUSTOMER EXPERIENCE THROUGH CUSTOMER JOURNEY MAPPING
What Is Not Customer Journey Mapping?
What Makes a Good Map?
CJM Outcomes
Notes
CHAPTER 4 IDIC and Trustability: Building Blocks of Customer Relationships
IDIC: FOUR IMPLEMENTATION TASKS FOR CREATING AND MANAGING CUSTOMER EXPERIENCES AND RELATIONSHIPS
Making It Look Easy
Relationships and Trust Happen in Unison
HOW DOES TRUST CHARACTERIZE A LEARNING RELATIONSHIP?
Becoming More and More Trustable to Customers
DO THINGS RIGHT, DO THE RIGHT THING, AND BE PROACTIVE
Basic Principles of 21st-Century Trustability
The Man with the Folding Chair
RELATIONSHIPS REQUIRE INFORMATION, BUT INFORMATION COMES ONLY WITH TRUST
BEHIND THEIR CUSTOMERS' BACKS
HOW TRUSTABLE COMPANIES OPERATE
RECOVERING LOST TRUST
Trustability Proof Points
Notes
Part I: Food for Thought
Note
CHAPTER 5 IDIC Step 1: Identify Individual Customers
INDIVIDUAL INFORMATION REQUIRES CUSTOMER RECOGNITION
Step 1: How Much Customer Identification Does a Company Already Have?
The Real Objective of Loyalty Programs
Step 2: Get Customers to Identify Themselves, and Make Sure to Identify Customers Accurately Through Any Channel
WHAT DOES IDENTIFY MEAN?
Four Ways to Integrate the Online and Contact-Center Experience
Customer Identification in a B2B Setting
Customer Identification in a B2C Setting: Unify Omnichannel Marketing Programs
CUSTOMER DATA REVOLUTION
What Data Do We Need When We Identify a Customer?
Why Is Identification Important?
First-Party, Second-Party, and Third-Party Data
Cookies and Privacy
Integrating Data to Identify Customers
SaaS, the IoT, and Customer Relationships
Notes
CHAPTER 6 IDIC Step 2: Differentiate Customers by Value
CUSTOMER VALUE IS A FUTURE-ORIENTED VARIABLE
CUSTOMER LIFETIME VALUE
Customer Contribution versus Customer Profit
RECOGNIZING THE HIDDEN POTENTIAL VALUE IN CUSTOMERS
The Potential Value of Prospective Customers
Growing Share of Customer
Assessing a Customer's Potential Value
DIFFERENT CUSTOMERS HAVE DIFFERENT VALUES
Pareto Principle and Power-Law Distributions
CUSTOMER VALUE CATEGORIES
CUSTOMER REFERRAL VALUE
Is It Fair to “Fire” Unprofitable Customers?
Dealing with Tough Customers
Managing the Mix of Customers
Final Thoughts on Value Differentiation
Notes
CHAPTER 7 IDIC Step 2: Differentiate Customers by Needs
DIFFERENTIATING CUSTOMERS BY NEED: DEFINITIONS AND EXAMPLES
Needs
Customers
Demographics Do Not Reveal Needs
Some Examples of Needs Differentiation
Scenario: Financial Services
UNDERSTANDING CUSTOMER BEHAVIORS AND NEEDS
Needs May Not Be Rational, but Everybody Has Them
The Difference Between Customer Behaviors and Needs
WHY DOESN'T EVERY COMPANY ALREADY DIFFERENTIATE ITS CUSTOMERS BY NEEDS?
Content Marketing
CATEGORIZING CUSTOMERS BY THEIR NEEDS
COMMUNITY KNOWLEDGE
Pharmaceutical Industry Example
USING NEEDS DIFFERENTIATION TO BUILD CUSTOMER VALUE
Final Thoughts on Needs Differentiation
Notes
CHAPTER 8 IDIC Step 3: Interact to Learn and Collaborate
DIALOGUE REQUIREMENTS
IMPLICIT AND EXPLICIT BARGAINS
DO CONSUMERS REALLY WANT ONE-TO-ONE MARKETING?
Ubiquitous Interactivity
Omnichannel: Myth versus Reality
Customer Interaction Redefines “Integrated Marketing”
CUSTOMER DIALOGUE: A UNIQUE AND VALUABLE ASSET
Golden Questions
Not All Interactions Qualify as Dialogue
EFFICIENT AND EFFECTIVE CUSTOMER INTERACTION
COMPLAINING CUSTOMERS: HIDDEN ASSETS?
The Dollars and Sense of Social Media
EMPOWERING CUSTOMERS TO DEFEND THE BRAND
Listening to Customers
AGE OF TRANSPARENCY
As Interactions Multiply, Trust Becomes More Important
Influencing the Influencers
Cultivating Customer Advocates
Notes
CHAPTER 9 IDIC Step 3: Interact/Privacy Considerations
PROTECT PRIVACY AND EARN CUSTOMER TRUST TO ENCOURAGE INTERACTION
GENERAL DATA PROTECTION REGULATION
CUSTOMER LOYALTY: IS A CUSTOMER LOYAL TO A COMPANY, OR A COMPANY LOYAL TO A CUSTOMER?
PRIVACY PLEDGES BUILD ENTERPRISE TRUST
The Web That Might Have Been
Points to Consider in Developing a Company's Privacy Pledge
Notes
CHAPTER 10 IDIC Step 4: Customize to Build Learning Relationships
HOW MASS CUSTOMIZATION WORKS
HOW CAN CUSTOMIZATION BE PROFITABLE? ANSWER: CONFIGURATION
Demand Chain and Supply Chain
Not All Customization Is Equal
TECHNOLOGY ACCELERATES MASS CUSTOMIZATION
CUSTOMIZATION OF STANDARDIZED PRODUCTS AND SERVICES
VALUE STREAMS
CUSTOMER SUCCESS MANAGEMENT
The Challenger Model
CULTURE RULES
TECHNOLOGY'S REAL RAINBOW: COLLABORATIVE LEARNING RELATIONSHIPS
Notes
Part II: Food for Thought
CHAPTER 11 Measuring and Managing to Build Customer Value
CUSTOMER EQUITY
What Is the Value Today of a Customer You Don't Yet Have?
CUSTOMER LOYALTY AND CUSTOMER EQUITY
RETURN ON CUSTOMER
Return on Customer = Total Shareholder Return
Using Up Customers
Measuring, Analyzing, and Utilizing Return on Customer
Customer Lifetime Values: Practical Considerations
LEADING INDICATORS OF LTV CHANGE
STATS AND THE SINGLE CUSTOMER
Notes
CHAPTER 12 Customer Analytics, Martech, Critical Thinking, Data Science, and the Customer-Strategy Enterprise
CUSTOMER-SPECIFIC DATA AND LONGITUDINAL INSIGHT
Product Analytics
Customer Analytics
The Many Uses of Customer Analytics
Real-Time Customer Analytics
BIG DATA
Cleaning and Maintaining Data
Welcome to the Digital World
What's the Story?
Qualitative Analytics
LIKELIHOODS, PROBABILITIES, AND REALITY
The Direction of Causation
A/B Testing: Some Guidelines for Non-Statisticians
One Variable at a Time
Sample Size
Randomness
Participation Rate
CONDITIONAL REASONING AND BAYESIAN ANALYSIS
Bayesian Analysis Simplified
Making Objective Decisions and Overcoming Bias
Analytics Run Amok
A SMALL SECTION ON A BIG TOPIC: USING MARTECH TO BUILD CUSTOMER VALUE AND FOR MARKETING TASKS
AN ANALYTICAL FABLE
Lesson 1: Remain Open-Minded
Lesson 2: Have Patience
The Dilemma Resolved
Lesson 3: Share
Notes
CHAPTER 13 Organizing and Managing the Profitable Customer-Strategy Enterprise
WHO OWNS THE CUSTOMER RELATIONSHIP?
WHAT IS THE FINANCIAL CASE FOR INVESTING IN CUSTOMER EXPERIENCE?
Understanding the Customer Perspective
Principle 1: Eliminate Dumb Contacts
Principle 2: Create Engaging Self-Service
Principle 3: Be Proactive
Principle 4: Make It Really Easy to Contact Your Company
Principle 5: Own the Actions Across the Company
Principle 6: Listen and Act
Principle 7: Deliver Great Service Experiences
Improving Customer Service at an Online Financial Services Firm
Improving Service at a Local Retailer
How Do We Measure the Success of Customer Service?
RELATIONSHIP GOVERNANCE
MAKING IT HAPPEN
1. Pilot Projects and Incremental Change
2. Picket Fence Strategy
3. Segment Management versus Customer Portfolio Management. Segment Management
Customer Portfolio Management
How Has the Sales Department Changed?
Compensating the Sales Force
The Customer Success Management Discipline
HOW DOES RELATIONSHIP GOVERNANCE AFFECT CUSTOMER SERVICE MANAGEMENT?
Notes
CHAPTER 14 Leading to Build Customer Value
HOW MARKETERS WORK WITH THE FINANCE DEPARTMENT
HUMAN RESOURCES: MANAGING EMPLOYEES IN THE CUSTOMER-STRATEGY ENTERPRISE
Leaders Manage People in a World Ever More Automated
Reprise: Culture Rules
KEEPING AND GROWING CUSTOMERS IS ALIGNED WITH KEEPING AND GROWING EMPLOYEES
The Importance of Corporate Culture
A Culture Based on Customer Trust Will Welcome Innovation
LEADERSHIP BEHAVIOR OF CUSTOMER RELATIONSHIP MANAGERS AND OTHERS LEADING THE CUSTOMER-CENTRIC ORGANIZATION
The Everyday Leader
The Long View
FUTUREPROOFING THE CUSTOMER-CENTRIC ORGANIZATION
Notes
Part III: Food for Thought
Glossary
Name Index
Term Index
WILEY END USER LICENSE AGREEMENT
Отрывок из книги
A Strategic Framework
FOURTH EDITION
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e Bloomberg Business, “Sales Moves Beyond Face-to-Face Deals onto the Web,” January 10, 2013, available at: https://www.bloomberg.com/news/articles/2013-01-10/sales-moves-beyond-face-to-face-deals-onto-the-web, accessed August 17, 2021; “The Cost of a Sales Call,” 4D Sales, accessed February 3, 2016, available at: http://4dsales.com/the-cost-of-a-sales-call/, accessed August 17, 2021.
Recognizing that two families of technology have mandated the competitive approach of building customer value by building customer relationships, we can map any organization—large or small, public or private, for-profit or nonprofit—by the level of its capabilities in the arenas of interacting with customers and tailoring for them. A company would be rated high on the interactivity dimension if it knows the names of its individual customers and if it can send different messages to different customers and can remember the feedback from each one. A low rating would go to a company that doesn't know its customers' identities, or does but continues to send the same message the same way to everybody. On the tailoring dimension, a firm would rate highly if it mass-customizes in lot sizes of one; it would rate low if it sells the same thing pretty much the same way to everybody. Based on its rating in these two dimensions, a company can be pinpointed on the Enterprise Strategy Map (see Exhibit 1.2), which includes four quadrants:
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