Chapter 14 Review
AK47
mcr2e_chapter_14_slides.pptxManaging Customer Relationships: A Strategic Framework
Chapter 14
Organizing and Managing the Profitable
Customer-Strategy Enterprise: Part 2
Course Title Instructor
Managing Customer Relationships: A Strategic Framework, Second Edition
Don Peppers and Martha Rogers
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Chapter 14 Preview
Managing Customer Relationships: A Strategic Framework, Second Edition
Don Peppers and Martha Rogers
Transition to Customer Management
Pilot Projects and Incremental Change
Picket Fence Strategy
Segment Management
Customer Portfolio Management
Transition across the Enterprise
Managing Employees
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Transition to Customer Management
Managing Customer Relationships: A Strategic Framework, Second Edition
Don Peppers and Martha Rogers
Revolutionary change with evolutionary implementation
Three tactics to implement transition
Pilot projects and incremental change
Picket fence strategy
Segment management
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Pilot Projects and Incremental Change
Managing Customer Relationships: A Strategic Framework, Second Edition
Don Peppers and Martha Rogers
Best for large and complex organizations, or for those not ready to solve customer governance problem
Examples:
Obtaining, linking, and cataloguing more customer identities using existing databases
Setting up prioritized service level for high long-term value customers
Streamlining customer interaction processes
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Picket Fence Strategy
Managing Customer Relationships: A Strategic Framework, Second Edition
Don Peppers and Martha Rogers
Best for companies that already differentiate individual customers by value
Strategy:
Link individual data over time
Calculate individual share of customer and lifetime value
Establish and maintain dialogue
Mass-customize to meet individually expressed needs
Allocate resources to this customer relative to this customer’s value
Find products for customers
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Segment Management
Managing Customer Relationships: A Strategic Framework, Second Edition
Don Peppers and Martha Rogers
Best for companies that have greater difficulty identifying and tracking customers individually
A function-specific change that gives segment managers increasing roles and capabilities regarding their segment
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Customer Portfolio Management
Managing Customer Relationships: A Strategic Framework, Second Edition
Don Peppers and Martha Rogers
Placing customer managers in charge of portfolios of separate and individually identifiable customers who have been differentiated by value and grouped by needs
The core structure of the customer management organization
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Transition across the Enterprise
Managing Customer Relationships: A Strategic Framework, Second Edition
Don Peppers and Martha Rogers
Sales
With SFA (Sales Force Automation), sales reps can easily share customer information with firms
Challenge: fewer sales reps have greater responsibilities, and their work becomes visible to all
Key policies during transition
Prioritize key information
Address ways salespeople can save time and earn higher commissions
Integrate customer information
Negotiate which information is for enterprise use and which is for salespeople only
Multidivision customers – apply knowledge-based selling across divisions
Compensating the sales force
Value-based commission derived from customer profitability, rather than product profitability
Retention commissions
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Transition across the Enterprise (cont.)
Managing Customer Relationships: A Strategic Framework, Second Edition
Don Peppers and Martha Rogers
The transition process for marketing
Customer analytics
Establishment of test cells and control groups
Campaign development
Offer specification
Customer management
Insight into short-term and long-term customer equity
The transition process for customer service
Treat different customers differently
Change the measurement of customer service
Balance self-assisted and agent-assisted
Know what is important to an individual customer
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Transition across the Enterprise (cont.)
Managing Customer Relationships: A Strategic Framework, Second Edition
Don Peppers and Martha Rogers
Finance
Measure and track Return on Customer and report to managers as well as shareholders
Develop customer-based compensation and reward systems
Provide financial support to implement new programs and technology
R&D department
Respond dynamically to real-time customer information
Information Technology/Information Services
Align technology with business strategy
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Transition across the Enterprise (cont.)
Managing Customer Relationships: A Strategic Framework, Second Edition
Don Peppers and Martha Rogers
Human resources
Redefine organization – map out transition plans
Evaluate company’s capability to implement CRM
Address key recruiting, training, and ongoing support issues
Create new career path opportunities
Demand and reward customer-value-building success
Actively manage and develop corporate culture, which includes:
What employees do when no one’s looking
How success is measured
What tasks are most important
How decisions are made
How friendly or cooperative employees are with each other
What privileges go with rank
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Managing Employees
Managing Customer Relationships: A Strategic Framework, Second Edition
Don Peppers and Martha Rogers
As more routine jobs are outsourced, firms have become streamlined and employees are responsible for high-concept roles and nonroutine decision making
Managing these employees well will provide competitive advantage – get, keep, and grow best employees
Command and control policies work less well – best way to inspire trust is to model it
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