Chapter 13 Review
AK47
mcr2e_chapter_13_slides.pptxManaging Customer Relationships: A Strategic Framework
Chapter 13
Organizing and Managing the Profitable
Customer-Strategy Enterprise: Part 1
Course Title Instructor
Managing Customer Relationships: A Strategic Framework, Second Edition
Don Peppers and Martha Rogers
1
Chapter 13 Preview
Managing Customer Relationships: A Strategic Framework, Second Edition
Don Peppers and Martha Rogers
Prerequisites for a Customer-Strategy Enterprise
Review: The Customer-Strategy Enterprise
Product-Centric vs. Customer-Centric
Characteristics of Relationship Leaders
Two Approaches to Delivering Customer Value
Competitive Advantage in Using Customer Information
Configuring the Relationship-Oriented Enterprise for Success
Key Elements of the Customer-Strategy Enterprise
Stages of Leadership Development
Product Management Organization vs. Customer Management Organization
2
Prerequisites for a Customer-Strategy Enterprise
Managing Customer Relationships: A Strategic Framework, Second Edition
Don Peppers and Martha Rogers
An enterprise must establish:
Who is responsible for the enterprise’s relationship with each customer, for keeping and growing each customer, and for building both short-term revenues and long-term equity of each customer
The level of authority customer managers have to change how the enterprise treats “their” customers individually
The criteria and metrics by which success will be measured, reported, and used for compensation
3
Review: The Customer-Strategy Enterprise
Managing Customer Relationships: A Strategic Framework, Second Edition
Don Peppers and Martha Rogers
Goal is to maximize the value of the customer base by:
Retaining profitable customers and growing them
Eliminating unprofitable customers or converting them into profitable relationships
Acquiring new customers selectively, based on likelihood of becoming high-value customers
Strategy to achieve this goal:
Develop Learning Relationships built on trust
Customize the mix of products, prices, services, and/or communications for each customer
4
Product-Centric vs. Customer-Centric Enterprise
Managing Customer Relationships: A Strategic Framework, Second Edition
Don Peppers and Martha Rogers
Challenge: Maintain alignment with customers while changing the process
Product/service
Technology
Process
Employees
Customer
Customers
People
Process
Technology
Products
5
Characteristics of Relationship Leaders (Day)
Managing Customer Relationships: A Strategic Framework, Second Edition
Don Peppers and Martha Rogers
Unusually tight relationships with best customers; trust based on shared understanding and mutual commitments
Broad offerings far beyond their core product; compete on scope rather than scale
Customers think they’re getting an offering tailored to their needs
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Two Approaches to Delivering Relational Value (Day)
Managing Customer Relationships: A Strategic Framework, Second Edition
Don Peppers and Martha Rogers
Comprehensive solution management
Firms selling complex systems to a small number of very valuable customers
Four criteria:
Each solution co-created with customers
Each solution tailored to each customer
Unusually intimate relationship between customer and supplier
Performance-based or risk-based contracts (suppliers accept some risk)
Customer relationship management
Firms serving mass markets with millions of customers
Customizes products and services for each customer, involving continual dialogue
7
Competitive Advantage in Using Customer Information (Day)
Managing Customer Relationships: A Strategic Framework, Second Edition
Don Peppers and Martha Rogers
Capturing customer information
Collating
Retrieving
Utilizing
Sharing
8
Configuring the Relationship-Oriented Enterprise for Success
Managing Customer Relationships: A Strategic Framework, Second Edition
Don Peppers and Martha Rogers
Consensus about goals and means for achieving a relationship advantage
Organization is designed around customers
Performance measures and incentives emphasize customer retention
Configuration is aligned with compelling customer value proposition
Capable of personalizing or mass-customizing communication, products, and services
Resource allocation prioritizes initiatives supporting overall strategic thrust
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Key Elements of Customer-Strategy Enterprise (Puleo)
Managing Customer Relationships: A Strategic Framework, Second Edition
Don Peppers and Martha Rogers
Strategy
Structure
People
Personnel approach
Mental model
Sales bias
Culture
Process
Rewards
10
Amanda Rooker (AR) - slide may not be necessary - content is largely duplicated in other places (except for focus on "people"), but might be helpful to compare Day's and Puleo's approaches closely, to see how they overlap and how they're different
Stages of Leadership Development
Transformations of Leadership
(Rooke and Torbert)
Levels of Consciousness in the Development of the Organization
(Barrett)
Managing Customer Relationships: A Strategic Framework, Second Edition
Don Peppers and Martha Rogers
Strategist: Generates organizational and personal change. Highly collaborative; weaves visions with pragmatic, timely initiatives; challenges existing assumptions.
Individualist /Pluralist: Operates in unconventional ways. Ignores rules he/she regards as irrelevant.
Achiever: Meets strategic goals. Promotes teamwork; juggles managerial duties and responds to market demands to achieve goals.
Expert: Rules by logic and expertise. Uses hard data to gain consensus and buy-in.
External Cohesion: Collaboration, environmental awareness, community involvement, employee fulfillment, coaching/mentoring
Internal Cohesion: Shared values, vision, commitment, integrity, trust, passion, creativity, openness, transparency
Transformation: Accountability, adaptability, empowerment, delegation, teamwork, innovation, goals orientation, personal growth
Self-Esteem: Systems, processes, quality, best practices, pride in performance
11
Product Management vs. Customer Management Organization
Managing Customer Relationships: A Strategic Framework, Second Edition
Don Peppers and Martha Rogers
12
Product Line
VP
Brand A
Product 1
Product 2
Brand B
Product 3
Product 4
Chief
Relationship
Officer
Portfolio A
Customer 1
Customer 2
Portfolio B
Customer 3
Customer 4
Product Managers Become Capabilities Managers
Managing Customer Relationships: A Strategic Framework, Second Edition
Don Peppers and Martha Rogers
13
Chief
Relationship
Officer
R&D,
Production and Distribution
Capability
Manager
Capability
Manager
Portfolio A
Customer 1
Customer 2
Portfolio B
Customer 3
Customer 4
