Managing Customer Relationships: A Strategic Framework [Hardcover]

Don Peppers (Author), Martha Rogers (Author)

Book Description

ISBN-10: 047148590X | ISBN-13: 978-0471485902 | Publication Date: April 19, 2004 | Edition: 1

In today’s competitive marketplace, customer relationship management is critical to a company’s profitability and long-term success. To become more customer focused, skilled managers, IT professionals and marketing executives must understand how to build profitable relationships with each customer and to make managerial decisions every day designed to increase the value of a company by making managerial decisions that will grow the value of the customer base. The goal is to build long-term relationships with customers and generate increased customer loyalty and higher margins. In Managing Customer Relationships, Don Peppers and Martha Rogers, credited with founding the customer-relationship revolution in 1993 when they invented the term "one-to-one marketing," provide the definitive overview of what it takes to keep customers coming back for years to come.

Presenting a comprehensive framework for customer relationship management, Managing Customer Relationships provides CEOs, CFOs, CIOs, CMOs, privacy officers , human resources managers, marketing executives, sales teams, distribution managers, professors, and students with a logical overview of the background, the methodology, and the particulars of managing customer relationships for competitive advantage. Here, renowned customer relationship management pioneers Peppers and Rogers incorporate many of the principles of individualized customer relationships that they are best known for, including a complete overview of the background and history of the subject, relationship theory, IDIC (Identify-Differentiate-Interact-Customize) methodology, metrics, data management, customer management, company organization, channel issues, and the store of the future.

One of the first books designed to develop an understanding of the pedagogy of managing customer relationships, with an emphasis on customer strategies and building customer value, Managing Customer Relationships features:

Pioneering theories and principles of individualized customer relationships

An overview of relationship theory

Contributions from such revolutionary leaders as Philip Kotler, Esther Dyson, Geoffrey Moore, and Seth Godin

Guidelines for identifying customers and differentiating them by value and need

Tips for using the tools of interactivity and customization to build learning relationships

Coverage of the importance of privacy and customer feedback

Advice for measuring the success of customer-based initiatives

The future and evolution of retailing

An appendix that examines the qualities needed in a firm’s customer relationship leaders, and that provides fundamental tools for embarking on a career in managing customer relationships or helping a company use customer value as the basis for executive decisions

The techniques in Managing Customer Relationships can help any company sharpen its competitive advantage.

Editorial Reviews

From the Inside Flap

In today’s competitive marketplace, managing customer relationships or customer relationship management (CRM) is critical to a company’s profitability and long-term success. To become more customer-focused, skilled managers, IT professionals, and marketing executives must understand how to build profitable relationships with each customer and how to make everyday managerial decisions that increase the value of a company by increasing the value of the customer base. The goal is to build long-term relationships with customers and generate increased customer loyalty and higher margins. In Managing Customer Relationships, Don Peppers and Martha Rogers, credited with founding the customer-relationship revolution in 1993 when they coined the term "one-to-one marketing," provide the definitive overview of what it takes to keep customers coming back.

Presenting a comprehensive framework for CRM, Managing Customer Relationships provides CEOs, CFOs, CIOs, CMOs, privacy officers, human resources managers, marketing executives, sales teams, distribution managers, professors, and students with a logical overview of the background, the methodology, and the particulars of managing customer relationships for competitive advantage. Peppers and Rogers incorporate many of the principles of individualized customer relationships that they are best known for, including a complete overview of the background and history of the subject, relationship theory, IDIC (Identify-Differentiate-Interact-Customize) methodology, metrics, data management, customer management, company organization, channel issues, and the "store of the future."

One of the first books designed to develop an understanding of the pedagogy of managing customer relationships, with an emphasis on customer strategies and building customer value, Managing Customer Relationships features:

• Pioneering theories and principles of individualized customer relationships
• An overview of relationship theory
• Contributions from such revolutionary leaders as Philip Kotler, Esther Dyson, Geoffrey Moore, and Seth Godin
• Guidelines for identifying customers and differentiating them by value and need
• Tips for using the tools of interactivity and customization to build learning relationships
• Coverage of the importance of privacy and customer feedback
• Advice for measuring the success of customer-based initiatives
• Insight into the future and evolution of retailing
• An appendix that examines essential qualities in a firm’s customer relationship leaders, and that provides fundamental tools for embarking on a career in managing customer relationships and helping a company use customer value as the basis for executive decisions

The techniques in Managing Customer Relationships can help any company sharpen its competitive advantage.

From the Back Cover

Praise for Managing Customer Relationships
A Strategic Framework

"Peppers and Rogers do a beautiful job of integrating actionable frameworks, the thinking of other leaders in the field, and best practices from leading-edge companies."
?Dr. Hugh J. Watson, C. Herman and Mary Virginia Terry Chair of Business Administration, Terry College of Business, University of Georgia

"Peppers and Rogers have been the vanguard for the developing field of customer relationship management, and in this book they bring their wealth of experience and knowledge into academic focus. This text successfully centers the development of the field and its theories and methodologies squarely within the broader context of enterprise competitive theory. It is a ?must-have? for educators of customer relationship management and anyone who considers customer-centric marketing the cornerstone of sound corporate strategy."
?Dr. Charlotte Mason
Associate Professor of Marketing, Kenan-Flagler Business School, University of North Carolina

"Don and Martha have done it again! The useful concepts and rich case studies revealed in Managing Customer Relationships remove any excuse for those of us responsible for actually delivering one-to-one customer results. This is the ultimate inside scoop!"
?Roy Barnes
Senior VP of Customer Strategy, Marriott Vacation Club International

"Every company that has customers has needed a reference guide like this for a long time. Peppers and Rogers are uniquely qualified to provide this essential tool for the field they helped to create."
?Jim Ryan
CEO, Carlson Marketing Group

"This is going to become the how-to book on developing a customer driven enterprise. The marketplace is so much in need of this roadmap!"
?Mike Henry, President and CEO, Equitec

See all Editorial Reviews

Product Details

• Hardcover: 528 pages
• Publisher: Wiley; 1 edition (April 19, 2004)
• Language: English
• ISBN-10: 047148590X
• ISBN-13: 978-0471485902
• Product Dimensions: 9.9 x 7.5 x 1.8 inches
• Shipping Weight: 2.4 pounds (View shipping rates and policies)
• Average Customer Review: 4.9 out of 5 stars  See all reviews (7 customer reviews)
• Amazon Best Sellers Rank: #324,833 in Books (See Top 100 in Books)

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Customer Reviews

Most Helpful Customer Reviews

24 of 25 people found the following review helpful:

5.0 out of 5 stars Taking One-to-One marketing to the CEO's agenda, July 28, 2004

By 

Peter Leerskov "The Strategist, www.lace.dk" (Denmark) - See all my reviews
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This review is from: Managing Customer Relationships: A Strategic Framework (Hardcover)

Having just finalised an e-business thesis on Online Personalization, I must say that this book is an impressive source on the strategic level for what is synonymously called CRM, One-to-One marketing, relationship marketing, etc.

What I like about Peppers & Rogers is that they don't pretend to be the only ones to have seen this shift in customer-focused organizations (although they were first-movers in US by coining the term One-to-One in 1993). Peppers & Rogers accept readily that many other people have interesting perspectives to add. Thus, this book includes many contributions from marketing wizards like Philip Kotler, Seth Godin, Bruce Kasanoff, and Patricia Seybold.

The book is the sixth from the authors. If you have read some of the previous publications, you'll already be familiar with their core concepts like the IDIC-model (Identify-Differentiate-Interact-Customize), as well as Learning Relationships and customer Lifetime Value.

I believe that Peppers & Rogers' most important contribution is to change a company's focus from customer acquisition to customer retention. That is: Stop spending all you money getting new customers and start spending more on keeping and growing existing customers. This is where the learning relationships come in. The basic idea of Managing Customer Relationships, the authors concisely describe in plain English:

The Learning Relationships work like this: If you're my customer and I get you to talk to me, and I remember what you tell me, then I get smarter and smarter about you. I know something about you my competitors don't know. So I can do things for you my competitors can't do, because they don't know you as well as I do. Before long, you can get something from me you can't get anywhere else, for any price. At the very least, you'd have to start all over somewhere else, but starting over is more costly than staying with me.

Being a Dane, I'm proud to see the reference made on page 172 that the relationship theory can be traced back to the Scandinavian School of Relationships Management (e.g. Gronroos and Gummeson). Back in the 1980's, both were required reading in Scandinavian business schools. They often researched service firms and B2B-networks and based on this knowledge, they emphasised the contents and types of the business relationships and the required strategies to make these relationships work. It wasn't until the 1990's that CRM-initiatives took off in the United States - and usually they have been very technology-driven. Today, we all accept that you need both the relationship mindset and the technology-enabler. So the two approaches may ultimately achieve the same goals.

Peter Leerskov,
MSc in International Business (Marketing & Management) and Graduate Diploma in E-business

9 of 9 people found the following review helpful:

5.0 out of 5 stars Highly Recommended!, August 5, 2004

By 

Rolf Dobelli "getAbstract" (Switzerland) - See all my reviews
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This review is from: Managing Customer Relationships: A Strategic Framework (Hardcover)

This very extensive text on customer relationship management leaves nothing unsaid or unexplained. Authors and editors Don Peppers and Martha Rogers tackle the subject with admirable organization, clarity and depth. They define every important term and do not lose the reader in marketing jargon - a rare virtue in a book about marketing. The text, including contributions from other well-known experts in the field, propounds a well-developed theory of customer relationship management (CRM) and sets out numerous examples to illustrate, explain and clarify the theory. Useful as a handbook, textbook or reference manual, the book covers - among many other core subjects - customer identification and differentiation, customer feedback, an analysis of retailing and basic tools for CRM. We highly recommend this book to service-oriented managers and executives. To form profitable relationships with your customers, first get friendly with Peppers and Rogers.

2 of 2 people found the following review helpful:

5.0 out of 5 stars The book that was missing, September 7, 2004

By 

J. A. Lopez "Choco" (Guatemala) - See all my reviews
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This review is from: Managing Customer Relationships: A Strategic Framework (Hardcover)

This book fills in the empty space of academic books in CRM. Most of the publications and articles I've read deal with research on the subject and companies selling their programs. In this book Peppers and Rogers compiled a comprehensive text with theory, research and contributions from other authors that are a valuable tool for the under and graduate level.