Managing Customer Experience and Relationships: A Strategic Framework

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

About the Author :
DON PEPPERS is the co-founder of CX Speakers, which offers workshops and consulting on customer experience, customer relationships, marketing technology, corporate culture change, and other issues. He is the co-author, with Martha Rogers, of The One to One Future and 7 other bestselling business books. MARTHA ROGERS, PHD, is an author, speaker, and consultant. She is the co-founder of CX Speakers, and the founder of Trustability Metrix, designed to help companies understand how they are trusted by customers, employees, and business peers.