Description
Every business on the planet is trying to maximize the value created by its customers
Learn how to do it, step by step, in this newly revised Fourth Edition of Managing Customer Experience and Relationships: A Strategic Framework. Written by Don Peppers and Martha Rogers, Ph.D., recognized for decades as two of the world's leading experts on customer experience issues, the book combines theory, case studies, and strategic analyses to guide a company on its own quest to position its customers at the very center of its business model, and to "treat different customers differently."
This latest edition adds new material including:
- How to manage the mass-customization principles that drive digital interactions
- How to understand and manage data-driven marketing analytics issues, without having to do the math
- How to implement and monitor customer success management, the new discipline that has arisen alongside software-as-a-service businesses
- How to deal with the increasing threat to privacy, autonomy, and competition posed by the big tech companies like Facebook, Amazon, and Google
- Teaching slide decks to accompany the book, author-written test banks for all chapters, a complete glossary for the field, and full indexing
Ideal not just for students, but for managers, executives, and other business leaders, Managing Customer Experience and Relationships should prove an indispensable resource for marketing, sales, or customer service professionals in both the B2C and B2B world.
Table of Contents
Foreword by Phil Kotler ix
Preface xiii
Acknowledgments xvii
About the Authors xix
PART I Technology’s Rainbow 1
CHAPTER 1 Evolution of Marketing and the Revolution of Customer Strategy 3
Roots of Customer Relationships and Experience 6
What Is a Relationship? Is That Different from Customer Experience? 20
CHAPTER 2 Treat Different Customers Differently: How Learning Relationships Lead to Better Experiences and Higher Profit 25
Focus on Relationship Equity 25
The Strategy: Treat Different Customers Differently (TDCD) 26
The Technology Revolution and the Customer Revolution 28
What Characterizes a Relationship? 31
Customer Loyalty: Is It Emotional? Or Behavioral? 34
Customer Retention and Enterprise Profitability 37
Why Do Companies Work at Being Customer-Centric? 45
CHAPTER 3 Better Customer Experiences for Better Shareholder Return 49
Frictionless: The Ideal Customer Experience May Be No Experience at All 49
Understanding Customer Experience through Customer Journey Mapping 62
CHAPTER 4 IDIC and Trustability: Building Blocks of Customer Relationships 69
IDIC: Four Implementation Tasks for Creating and Managing Customer Experiences and Relationships 69
How Does Trust Characterize a Learning Relationship? 78
Becoming More and More Trustable to Customers 80
Do Things Right and Do the Right Thing 85
Be Proactive 86
Relationships Require Information, but Information Comes Only with Trust 91
Behind Their Customers’ Backs 94
How Trustable Companies Operate 96
Recovering Lost Trust 97
Part I: Food for Thought 100
PART II Customer Experience and Relationships: Trust Is the Foundation and IDIC the Building Blocks 103
CHAPTER 5 IDIC Step 1: Identify Individual Customers 105
Individual Information Requires Customer Recognition 106
What Does Identify Mean? 116
Customer Data Revolution 120
CHAPTER 6 IDIC Step 2: Differentiate Customers by Value 129
Customer Value Is a Future-Oriented Variable 131
Different Customers Have Different Values 144
Final Thoughts on Value Differentiation 162
CHAPTER 7 IDIC Step 2, cont.: Differentiate Customers by Needs 165
Definitions 166
Differentiating Customers by Need: Some Examples 171
Understanding Customer Behaviors and Needs 176
The Difference Between Customer Behaviors and Needs 177
Why Doesn’t Every Company Already Differentiate Its Customers by Needs? 179
Categorizing Customers by Their Needs 181
Understanding Needs 183
Community Knowledge 186
Using Needs Differentiation to Build Customer Value 190
Final Thoughts on Needs Differentiation 191
CHAPTER 8 IDIC Step 3: Interact to Learn and Collaborate 195
Dialogue Requirements 197
Implicit and Explicit Bargains 198
Do Consumers Really Want One-to-One Marketing? 200
Ubiquitous Interactivity 201
Omnichannel: Myth versus Reality 202
Customer Interaction Redefines “Integrated Marketing” 205
Customer Dialogue: A Unique and Valuable Asset 206
Efficient and Effective Customer Interaction 211
Complaining Customers: Hidden Assets? 213
Empowering Customers to Defend the Brand 221
Listening to Customers 223
Age of Transparency 226
As Interactions Multiply, Trust Becomes More Important 227
Cultivating Customer Advocates 234
CHAPTER 9 IDIC Step 3, cont.: Interact/Privacy Considerations 237
Customer Loyalty: Customer Loyal to a Company, or a Company Loyal to a Customer? 248
Privacy Pledges Build Enterprise Trust 253
CHAPTER 10 IDIC Step 4: Customize to Build Learning Relationships 261
How Mass Customization Works 262
How Can Customization Be Profitable? Answer: Configuration 266
Technology Accelerates Mass Customization 273
Customization of Standardized Products and Services 277
Value Streams 282
Customer Success Management 284
Culture Rules 289
Technology’s Real Rainbow: Collaborative Learning Relationships 289
Part II: Food for Thought 290
PART III Making It Happen 297
CHAPTER 11 Measuring and Managing to Build Customer Value 299
Customer Equity 308
Customer Loyalty and Customer Equity 321
Return on Customer 325
Leading Indicators of LTV Change 339
Stats and the Single Customer 343
CHAPTER 12 Customer Analytics, Martech, Critical Thinking, Data Science, and the Customer-Strategy Enterprise 347
Customer-Specific
Data and Longitudinal Insight 349
Big Data 354
Likelihoods, Probabilities, and Reality 362
A Small Section on a Big Topic : Using Martech to Build Customer Value and for Marketing Tasks 379
An Analytical Fable 381
CHAPTER 13 Organizing and Managing the Profitable Customer-Strategy Enterprise 383
Who Owns the Customer Relationship? 383
What Is the Financial Case for Investing
in Customer Experience? 386
Understanding the Customer Perspective 387
Relationship Governance 395
Making It Happen 401
How Does Relationship Governance Affect
Customer Service Management? 410
CHAPTER 14 Leading to Build Customer Value 411
Reprise: Culture Rules 420
Leadership Behavior of Customer Relationship
Managers and Others Leading the Customer-Centric
Organization 431
Part III: Food for Thought 436
Glossary 439
Name Index 455
Term Index 000
