Quản lý quan hệ khách hàng hay CRM là một phương pháp giúp các doanh nghiệp tiếp cận và giao tiếp với khách hàng một cách có hệ thống và hiệu quả, quản lý các thông tin của khách hàng như thông tin về tài khoản, nhu cầu, liên lạc và các vấn đề khác nhằm phục vụ khách hàng tốt hơn.
“Completely updated, this remains absolutely the best exposition of customer relationship management Can’t think of a better guide to increasing your performance and profits This book belongs on the desk of every company that is serious about CRM The wealth of information and insight is astonishing.” Professor Philip Kotler, S C Johnson Distinguished Professor of International Marketing, Kellogg School of Management, Northwestern University, USA “The expression ‘Customer Experience’ is reverberating around boardrooms and Directors are desperate for robust, proven processes to be embedded in their organisations Francis Buttle and Stan Maklan are brilliant researchers, teachers and experienced practitioners in the CRM/Customer Experience domain and I urge you to take time to read and implement this exciting, state-of-the-art book on this topic Absorb Apply Achieve.” Professor Malcolm McDonald, Author of 46 books; Professor at Cranfield, Henley, Warwick, Aston and Bradford Business Schools, UK Formerly Marketing and Sales Director of Canada Dry and Chairman of Brand Finance “This book is a comprehensive, managerially relevant, up-to-date, evidence-based account of CRM It provides great support for teaching and learners approaching the topics of CRM and customer experience at different stages of their careers Among others, a key strength of the book is its pragmatic approach to the application of CRM theory into practice Highly recommended for teaching and learning.” Dr Benedetta Crisafulli, Lecturer in Marketing, Birkbeck, University of London, UK “In this Fourth Edition Buttle and Maklan take what was already THE reference book for Customer Relationship Management to the next level, providing a highly contemporary and deeply pragmatic view of how to create value with CRM today and tomorrow.” Ross Dawson, futurist, keynote speaker, strategy advisor and author of four books including ‘Developing Knowledge-Based Client Relationships’ “The great thing about this book is that the authors keep it updated Students get that rare combination of a comprehensive guide to theory, the injection of practical experience and the latest thinking on strategy, technology and applications.” Merlin Stone, Professor of Marketing and Strategy, St Mary’s University, Twickenham, UK, and co-author ‘Customer Relationship Marketing: New Thinking, New Strategies, New Tools’ “A dynamic, strategic, practical and deeply relevant guide to creating and implementing a winning customer experience strategy. A must read.” Larry Hochman, European Business Speaker of the Year, Customer Experience expert and author of ‘The Relationship Revolution’ “At last, a serious reference manual for delivering what CRM always promised but generally failed to deliver It is not, however, for the faint hearted, but only those who are serious about creating a holistic and unified organizational environment to create and deliver value to customers, and to keep them coming back for more.” Jeremy Cox, Principal Analyst, Customer Engagement Practice, Ovum, and author of ‘Mid-Market CRM: Customer Relationship Excellence in Mid-Sized Enterprises’ “Every business is ripe for disruption, so customer obsession is an imperative Creating scaled systematic customer managed relationships and experiences is more critical than ever This book provides an excellent approach to truly centering businesses around the customer; strategy and execution for delivering sustainable CRM ecosystems; embracing new emerging ways to connect to customers alongside good person-toperson relationships.” Karen Ganschow, General Manager Customer Strategy and Marketing (Banking), and Adjunct Lecturer in CRM/CXM, Macquarie Graduate School of Management, Australia “This book is a complete guide to Customer Relationship Management Of course, it covers the basics of CRM, including Strategic CRM, Operational CRM and Analytical CRM, but this enriched Fourth Edition also explores cutting edge issues such as Artificial Intelligence, bots and Big Data and how these impact on customer experience This is a ‘must have’ book for anyone wanting to learn about CRM.” Aina Neva Fiati, CEO, iSystem Asia – Customer Strategy Excellence Center, Indonesia CUSTOMER RELATIONSHIP MANAGEMENT Customer Relationship Management, Fourth Edition continues to be the go-to CRM guide explaining with unrivalled clarity what CRM is, its uses, benefits and implementation Buttle and Maklan take a managerial perspective to track the role of CRM throughout the customer journey stages of acquisition, retention and development Theoretically sound and managerially relevant, the book is liberally illustrated with examples of technology applications that support marketing, sales and service teams as they interact with customers, but assumes no deep technical knowledge on the reader’s part The book is structured around three core types of CRM – strategic, operational and analytical – and throughout each chapter, case illustrations of CRM in practice and images of CRM software demystify the technicalities Ideal as a core textbook for advanced undergraduate and postgraduate students on CRM or related courses such as relationship marketing, digital marketing, customer experience management or key account management, the book is equally valuable to industry professionals, managers involved in CRM programs and those pursuing professional qualifications or accreditation in marketing, sales or service management NEW TO THIS EDITION: • • • • New and updated international case illustrations throughout New and updated screenshots from CRM applications Fully updated to reflect the evolving CRM landscape, including extended coverage of: – Big data and its influence on CRM – Artificial intelligence (AI) – Advances in CRM analytics – The relationships between CRM and customer experience management – The role of social media in customer management strategy – Real-time marketing – Chatbots and innovative customer self-service – Privacy and data security Updated lecturer support materials online Francis Buttle, BSc, MA, PhD, is founder and principal consultant of Francis Buttle & Associates, and Honorary Professor at Macquarie Graduate School of Management, Sydney, Australia Stan Maklan, BSc, MBA, PhD, is Professor of Marketing and Technology, Cranfield School of Management, UK and Co-Director of the Cranfield Centre for Strategic Marketing and Sales CUSTOMER RELATIONSHIP MANAGEMENT Concepts and Technologies Fourth Edition FRANCIS BUTTLE AND STAN MAKLAN Fourth edition published 2019 by Routledge Park Square, Milton Park, Abingdon, Oxon, OX14 4RN and by Routledge 52 Vanderbilt Avenue, New York, NY 10017 Routledge is an imprint of the Taylor & Francis Group, an informa business © 2019 Francis Buttle and Stan Maklan The right of Francis Buttle and Stan Maklan to be identified as authors of this work has been asserted by them in accordance with sections 77 and 78 of the Copyright, Designs and Patents Act 1988 All rights reserved No part of this book may be reprinted or reproduced or utilised in any form or by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying and recording, or in any information storage or retrieval system, without permission in writing from the publishers Trademark notice: Product or corporate names may be trademarks or registered trademarks, and are used only for identification and explanation without intent to infringe First edition published by Butterworth-Heinemann 2003 Third edition published by Routledge 2015 British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library Library of Congress Cataloging-in-Publication Data Names: Buttle, Francis, author | Maklan, Stan, author Title: Customer relationship management : concepts and technologies/ Francis Buttle and Stan Maklan Description: Fourth Edition | New York : Routledge, 2019 | Revised edition of the authors’ Customer relationship management, 2015 | Includes bibliographical references and index Identifiers: LCCN 2018053860 (print) | LCCN 2018055744 (ebook) | ISBN 9781351016551 (Ebook) | ISBN 9781138498266 (hardback : alk paper) | ISBN 9781138498259 (pbk : alk paper) | ISBN 9781351016551 (ebk) Subjects: LCSH: Customer relations—Management Classification: LCC HF5415.5 (ebook) | LCC HF5415.5 B875 2018 (print) | DDC 658.8/12—dc23 LC record available at https://lccn.loc.gov/2018053860 ISBN: 978-1-138-49826-6 (hbk) ISBN: 978-1-138-49825-9 (pbk) ISBN: 978-1-351-01655-1 (ebk) Typeset in Minion Pro and Futura Book by Apex CoVantage, LLC Visit the companion website: www.routledge.com/cw/buttle CONTENTS List of figures xiii List of tables xvi Prefacexviii Acknowledgementsxxiii Section A UNDERSTANDING CUSTOMER RELATIONSHIPS 1 Introduction to CRM Chapter objectives Introduction3 Three forms of CRM Strategic CRM Operational CRM Analytical (or analytic) CRM 13 Where does social CRM fit? 14 The changing face of CRM 15 Misunderstandings about CRM 16 Defining CRM 17 CRM constituencies 19 Commercial contexts of CRM 20 The not-for-profit context – the “third sector” 21 Models of CRM 22 Conclusion24 Notes and references Understanding relationships 25 27 Chapter objectives 27 What is a relationship? 27 Relationship quality 31 When companies want relationships with customers? 32 Customer life-time value 36 vii Contents When companies NOT want relationships with customers? 41 When customers want relationships with suppliers? 42 When customers NOT want relationships with suppliers? 44 Customer satisfaction, loyalty and business performance 45 Relationship management theories 53 Conclusion58 Notes and references Managing the customer journey: customer acquisition Chapter objectives 59 65 65 Introduction65 Customer journey: the basics 66 Customer acquisition 66 What is a new customer? 68 Portfolio purchasing 70 Prospecting72 Making the right offer 86 Key performance indicators of customer acquisition programs 87 Operational CRM tools that help customer acquisition 88 Conclusion91 Notes and references Managing the customer journey: customer retention and development Chapter objectives 92 94 94 Introduction94 What is customer retention? 95 Economics of customer retention 98 Which customers to retain? 99 Strategies for customer retention 99 Positive customer retention strategies 100 Context makes a difference 116 Key performance indicators of customer retention programs 117 The role of research in reducing churn 117 Strategies for customer development 119 Strategies for terminating customer relationships 121 Conclusion124 Notes and references Section B STRATEGIC CRM 129 Customer portfolio management 131 Chapter objectives viii 124 131 Contents What is a portfolio? 131 Who is the customer? 133 Basic disciplines for CPM 133 CPM in the business-to-business context 154 Additional customer portfolio management tools 160 Strategically significant customers 162 The seven core customer management strategies 163 Conclusion164 Notes and references Managing customer-experienced value Chapter objectives 165 167 167 Introduction167 Understanding value 168 When customers experience value? 170 Modeling customer-perceived value 172 Sources of customer value 173 Customization174 Value through the marketing mix 179 Conclusion201 Notes and references Managing customer experience Chapter objectives 202 206 206 Introduction206 What is customer experience? 207 The experience economy 207 Why the corporate interest in CX? 208 Service marketing 210 Total quality management 213 Customer experience concepts 214 Data sources for CX research 217 What distinguishes customer experience management from customer relationship management? 219 CRM’s influence on CX 219 How CRM software applications influence customer experience 221 Conclusion224 Notes and references 224 Section C OPERATIONAL CRM 227 Marketing automation 237 ix INDEX Note: Page numbers in bold type refer to tables Page numbers in italic type refer to figures and maps Page numbers followed by ‘n’ refer to notes ABC class service 123 Aberdeen Group 241 account: management 273, 278, 393 – 398; value 141 accountability principle 372 ACORN 137, 137 acquisition see customer acquisition active value 172 activity: links 54 – 55, 121; management 274, 275, 288, 300, 308 – 309, 316 activity-based costing (ABC) 37, 145 – 147, 147 actor bonds 54 adhocracy 408 Adidas 177 – 178 ADT money-back service guarantee case study 188 advertising 75 – 79; objectives 76 – 77; programmatic 79, 253 – 255 affective engagement 53, 101, 216 affective value 172, 181 affiliation data 91 affinity: grouping 361; marketing 91 agent management 309 Air Canada case study 102 airlines 42, 107, 110, 199; big data analytics 353; customer engagement 101; gamification 102; product-service systems 181; Satisfaction–Profit Chain 50 Amazon 10, 87 – 88, 174, 178, 202, 348, 371 American Airlines (AA) 107, 149, 387 American Customer Satisfaction Index (ACSI) 49 – 50, 49 American Express 103 American Heart Association (AHA) case study 336 analytical CRM: AXA Seguros e Inversiones (AXA) case study 14; customer acquisition 90 – 91; customer experience 221; customer journey 346 – 349; data configuration 343, 344; data review 413 – 414; and operational CRM 412; overview 13 – 14, 342 – 343; strategy and tactics 344 – 345; structured data 354 – 355; structured and unstructured data 322 – 324, 349 – 351, see also customerrelated databases and data analytical insight 356 – 362 Andersen, H., and Ritter, T 158, 159 Anglo-Australian school 56 Apple 6, 174, 221, 353 application program interfaces (API) 236 applications: flexibility of 222; invoicing 309; job management 307 – 308, 308 apps 314 Arm & Hammer 68 artificial intelligence (AI) 367 – 371 artificial neural networks (ANNs) 152 – 153, 363 – 364, 368 – 369, 368, 370; churn prediction case study 364 – 365 Asian (guanxi) school 58, 74 asset management 264 Athanasopoulou, P 31 attitudinal loyalty 46, 109 attractiveness 142, 160 – 161 Audi Group 103 augmented product 180 Australia and New Zealand Standard Industrial Classification (ANZSIC) 140 auto manufacturers 20, 50, 68; warranties case study 351 auto-dialers 248 automatic call distribution (ACD) 301 – 302 automatic routing 350 automation see marketing automation (MA); sales force automation (SFA); service automation 431 INDEX average handling time (AHT) 310 – 311 awards, patronage 111 awareness 29 AXA Seguros e Inversiones (AXA) case study 14 B&Q 194 back office processes 414 Bain & Co 48 baking soda applications 68 Balanced Scorecard 47 – 48 Ballantyne, D., Christopher, M and Payne, A 56 banded packs 80 banking industry: affinity marketing 91; branch/ internet costs 388; campaign management 414; and CRM 20; customer acquisition 90; customer development 120; customer experience 221; customer lifetime value (CLV) case study 36; customer portfolio management (CPM) 132; customer retention 97, 116; data warehousing 337; next best action (NBA) 348; personalized communication 201; physical evidence value 195; process value 191; Satisfaction–Profit Chain 50; strategic switching 70; touchpoints 215 Barnes, J 28 Basu, K., and Dick, A 47 Bayliss, T 181 Beam Inc 264 behavioral engagement 52, 101, 216 behavioral loyalty 46, 109 benchmark customers 162 benefits: competitors 135; of CRM 381, 404, 404; incremental 181; realization 385; segmentation 137 – 138; social 43; specialtreatment 43 benefits dependency network (BDN) 382 – 383, 383, 395, 403 432 Benetton 341 Bergdorf Goodman 83 Berger, P.D., and Nasr, N.I 40 Berry, M., and Linoff, G 364 best-in-class marketers 241 BICC 67 big data 13 – 15, 323 – 324, 349 big data analytics 351 – 354; British Airways (BA) case study 353; Carrefour case study 109 bilateral termination 29 bivariate models CPM 156 – 157 Black-Scholes model 382 blogs 74, 102, 196, 199, 217, 250, 251, 255, 296, 349, 352, 353 Body Shop 114 bonding 112 – 116 bonds 54, 112 – 113, 114 Bonobos case study 91 bonus packs 80 Boots 110 Booz Allen & Hamilton 411 Boston Consulting Group (BCG) matrix 161 – 162, 161 bots 313 – 314 boundary spanners 196 BP Deepwater Horizon oil spill (2010) 115 brand: managers 385; organization structure 385 – 386 branding 182 Branson, Richard 85, 85 Brinker, S 235 – 236, 241 British Airways (BA) 123, 353, 387 British Telecom (BT) 67 bundling 123, 132, 182 business: customer-centric 6 – 7; customer-oriented 7; identification of 135; market segmentation 138 – 141, 139; marketoriented 7; outcomes 419; performance 47 – 48; product-oriented 6 – 7 business case for CRM: agreement 404 – 405; logic of 379 – 383; performance evaluation 419; traditional 380 – 382 business-to-business (B2B): activity-based costing 145; company resistance 41 – 42; customer acquisition 73 – 76; customer attrition 67; customer resistance 44; customers 133; lead generation 73 – 76; prospecting 73 – 76; relationships 42 – 43; theories 54 – 55, see also customer portfolio management business-to-consumer (B2C): activity-based costing 145; company resistance 42; customer acquisition 76 – 86; customer attrition 67; customer resistance 44; customers 133; data mining 149; lead generation 76 – 86; prospecting 76 – 86; relationships 43 Buttle, F 22; and Groeger, L 81 buy-in 408 – 409, 409 buzz 81, see also word-ofmouth (WOM) influence CACI 137 call centers 25n17, 221, 248, 270, 296 – 297, 300 – 307; agent management 309 call for proposals 417 – 418 Cameron, K.S., and Quinn, R.E 408 campaign management 89 – 90, 412, 413; customer development 120; definition 242; email 246, 247, 265, 265; execution 243; marketing automation 8, 246 – 250; measurement 243; modelling 243; personalization 243; reporting 244; segmentation and targeting 243; workflow 243 campaigns, omni-channel 248 canvassing 76, 85 capital asset pricing model (CAPM) 380 capital equipment 12 car distribution, Satisfaction– Profit Chain 50 INDEX Carlzon, J 215 Carrefour case study 109 case: assignment applications 305; management 305 cash-back 80, 111, 111 categorical data 354 – 355 category management structure 385 – 386, 386 Caterpillar 116 causal sales forecasting 145 census data 328 CEOExpress portal 73, 74, 197, 198 Chakraborty, G 349 Chandler, A 383 change management needs 407 – 409 channel integration 296; customer development 120 channels: configuration 116; direct-to-customer (DTC) 20, 72; managers 386; silos 96; value from 200 chat window 315 CHEP 264 chi-square automatic interaction detection (CHAID) 153, 361 chocolate market 138, 139 Christopher, M., Payne, A and Ballantyne, D 56 Church and Dwight 68 churn prediction case study 364 – 365 churn rates 32 – 33; Eircom case study 33; reducing 117 – 118 citizenship, corporate 101 classification and regression trees (CART) 153, 361 classification schemes 360 click-to-open rate (CTOR) 246, 325 closed-loop marketing (CLM) 239 – 240, 240 cloud: mini 233, see also marketing cloud Cloud Security Alliance’s Cloud Computing Matrix (CSA CCM) 230 clubs, customer 110 – 111 clustering 371; hierarchical 365, 366; K-means 365, 366; techniques 153, 361, 365 co-ordinated contact pattern 389 Coca-Cola 162; service automation case study 303 cognitive advertising objectives 76 – 77 cognitive engagement 53, 101, 216 Cognos 353 cold calls 75 – 76, 85 collaboration 275 collection limitation principle 371 collection schemes 112 commitment 29 – 31 Commitment–Trust Theory 57 committed customers 71 Commonwealth Bank of Australia (CBA) 337; customer relationship case study 122 communication: customer 197 – 201, 300 – 301; direct-to-customer (DTC) 200; objectives 76 – 77; personalized 200, 201, 243 communications program 10 company websites 73 competing values model 408, 408 competitions 81, 330 competitors 116, 135, 180 compiled list data 328 complaints 12, 118, 190; management process 192, 192 – 194 Compustat 50 computer telephony integration (CTI) 301 concentration of buying power 390 conditional value 172 conferences 75 confidence benefits 43 configurators 10, 175, 272, 280 – 282; Jeep case study 281 Configure-Price-Quote (CPQ) 274, 276, 288 conformance to specification 183 consultants, management 19 consumer goods manufacturers 20 – 21 consumer market segmentation 135 – 138, 136 contact: management 10, 275; patterns 389; person-toperson 389 contact centers 25n17, 296 content: management 255; marketing 74 continuous data 354 – 355 contract management 276, 311 controlled contact pattern 389 conventional management structure 384 – 387 Conversion Model (Hofmeyr) 70 – 72 conversion rates 79 cooperatives 96 core product 180 corporate citizenship 101 corporate culture 116 cost-related KPIs 117 cost-to-serve 37, 122, 156 – 158, 157 – 158, 346 costing: activity-based (ABC) 37, 145 – 147, 147; general ledger 146, 147 costs: marketing 33 – 34; psychic 169; transaction costs 30, 44, 54, 55, 57, 98, 114, 168, 170, 173, 182, 220, 388, 390 coupons 80 CPQ (Configure-PriceQuote) 276 craft customization 176 credit: rating services 89; risk 151 – 152, 151 credit card companies 35 critical path analysis (CPA) 409 critical success factors (CSFs) 410 – 411 Crosby, P 183 cross promotions 81 cross-selling 119 – 121; USAA case study 120 Croteau, A.-M., and Li, P 411 culture: corporate 116; organizational 407 – 408 Cunningham, M 54 433 INDEX customer: attrition 67; clubs 110 – 111; delight 103 – 106, 105; demand 390; ethnography 217 – 218; expectations 102 – 106; insight 34 – 35; intimacy 174; loyalty 46 – 47, 47, 52 – 53; markets model 56, 57; new 37, 66 – 68, 69 – 72; organization structure 386; segmentation 135 – 138; surveys 144; tenure 33 – 35, 34, 98; value hierarchy 180 customer acquisition: Bonobos case study 91; business-to-business prospecting 72 – 76; business-to-consumer prospecting 76 – 86; campaign management 89 – 90; costs 145 – 146; CRM analytics support 90 – 91; event-based marketing 90; key performance indicators 87 – 88; lead management 88 – 89; new customers 68 – 69; offers 86 – 87; overview 66 – 68; plans 67 – 68; portfolio purchasing 70 – 72; prospecting 72 – 86; strategies for 346 customer communication, value from 196 – 201 customer communications management (CCM) 300 – 301 customer contact role 196 customer development 347; strategies for 119 – 121 customer engagement 52 – 53, 100 – 102, 216, 217, 241, 302; JetBlue case study 101 customer engagement centers (CEC) 296 customer experience (CX): concepts 214 – 217; corporate interest 208 – 210; and CRM 5, 219; CRM software 221 – 224; CRM’s influence 219 – 221; data sources 217 – 219; 434 definition 207; experience economy 207 – 208, 208; IKEA case study 213; Kiwi Experience case study 212; layered model 214, 214; management 5, 219; planned 211 – 213; service marketing 210 – 213; total quality management (TQM) 213 – 214 customer-experienced value 56; chain 22 – 23, 22; creation 167 – 168; definition 168, 170; emotional 172; extrinsic 172; from channels 200; from customer communication 197 – 201; from people 194; from physical evidence 196 – 197; from processes 191 – 194; from products 180 – 182; from service 182 – 190; functional 172; hedonic 172, 181; ladder 35; marketing mix 179, 179; other-oriented 172; reactive 172; retention 97; social 172; sources of 173 – 174, see also customer lifetime value (CLV); customerperceived value customer interaction, map 401, 401 customer journey 35, 35, 66, 67, 215; analytics throughout 346 – 349, see also customer acquisition; customer retention customer life cycle see customer journey customer lifetime value (CLV) 36 – 41, 162; banking industry case study 36; computing 38 – 41, 346; customer acquisition 91; definition 36; estimation 147 – 149 customer portfolio analysis (CPA) 163; Tesco case study 154 customer portfolio management (CPM): activity-based costing 145 – 147, 147; bivariate models 156 – 157; business markets 138 – 141; businessto-business 154 – 160; consumer markets 135 – 138; customer lifetime value 147 – 149; customer management strategies 163 – 164; data mining 149 – 154; dominant univariate model 154 – 156; growth-share matrix 161 – 162, 161; market segmentation 133 – 135; OilCo case study 159; overview 131 – 133; sales forecasting 142 – 145; strategically significant customers 162 – 163; SWOT 160; trivariate models 158 – 160 customer portfolio matrix 142, 143, 156, 157 customer referral scheme (CRS) 84, 87 customer referral value (CRV) 38 – 39 customer referrals 73, 83 – 84, 98 customer relationship management (CRM): architecture 223, 223; changing 15, 16; commercial contexts 20 – 21; constituencies 19; definition 3 – 5, 4, 17 – 18; education 402; future of 425 – 429; IT perspective 3 – 4; misunderstandings 16 – 17; models 22 – 24; strategic/managerial perspective 4 – 5; strategy development 399 – 405; types 5, 6; vision 402 customer relationship value (CRV) 40 customer retention: Air Canada case study 102; analytical CRM 346; bonding 112 – 116; candidates for 99; context 116 – 117; customer delight 103 – 106; customer INDEX development strategies 119 – 121; customer engagement 100 – 102; customer-perceived value 106 – 112; definition 95; economics 98 – 99; explanation 95 – 97; gamification 102; improving 32 – 33; JetBlue case study 101; key performance indicators 117; Korea Telecom case study 115; loyalty schemes case study 109; managing 97; overview 94 – 95; rates 32 – 33, 95 – 97, 148 – 149; role of research 117 – 118; Royal Bank of Scotland (RBS) case study 119; social bonds 112 – 113; strategies 99 – 100; structural bonds 113 – 114; termination 121 – 124 customer satisfaction 45 – 46, 100, 103 – 105; level 51, 51; Satisfaction–Profit Chain 45, 45, 49 – 53 customer self-service (CSS) 310, 312 – 313 customer service: costs 146; explanation 291 – 292; JetBlue case study 12; managers 309 – 312; standards 293 – 295 Customer Service Excellence (CSE) standard 293 – 294, 294 Customer Strategy Cube 399 – 400, 400 customer-centric businesses 6 – 7 customer-generated media (CGM) 199 customer-oriented businesses customer-perceived value: ADT money-back service guarantee case study 188; branding 182; customer intimacy 174; customer retention 106 – 112; customization 174 – 179; disintermediation 198; explanation 168 – 170; from channels 201 – 202; from customer communication 197 – 201; from people 194; from physical evidence 196 – 197; from processes 191 – 194; from products and services 180 – 182; from service 182 – 190; incremental benefits 181; interactivity 199; marketing mix 179, 179; modelling 172 – 173; Netflix case study 178; operational excellence 174; personalization 198; personalization case study 199; product innovation 180 – 181; product leadership 174; productservice bundling 182; service guarantees 187; service level agreements 187 – 189; service quality 183 – 186; service recovery programs 189 – 190; sources of 173 – 174; value creation 167 – 168; value-inexchange 170 – 171; valuein-experience 171 – 172; value-in-use 171; Wal*Mart case study 192 customer-related databases and data: analytical insight 356 – 362; big data analytics 351 – 354; corporate customer-related data 322; customer journey 346 – 349; data attributes 334 – 335; data integration 335 – 336; data marts 338 – 339; data warehousing 336 – 338; enhancing internal data 328 – 329; functions 324 – 325; information fields 326; information requirements 325 – 326; information sources 326 – 330; knowledge management 339 – 340; maintenance 333 – 335; market segmentation case study 329; overview 321 – 322; population 331 – 333; privacy issues 371 – 373; secondary and primary data 329 – 330; steps to develop 324, 324; strategy and tactics 344 – 345; structured data 354 – 356; structured and unstructured data 322 – 324, 349 – 351; technology and operating system 330 customization 174 – 179; craft customization 176; customer development 121; mass 176 – 177, 176 customized solutions 172, 174 Da Silva, R.V., and Rahimi, I.D 411 data: attributes 334 – 335; big 13 – 15, 323 – 324, 349; categorical 354 – 355; collection 329 – 330; creation 426; marts 338 – 339, 357; modeled 329; nominal 354 – 355; ordinal 354 – 355; ownership 428; protection 371 – 373; ratio 354 – 355; review 413 – 414; structured 322 – 324, 349 – 351, 354 – 356; transformation 337, 338; types 355 – 356; unstructured 322 – 324, 349 – 351, 351 – 354; validation 331; verification 331, see also big data analytics data integration 335 – 336; case study 336; marketing cloud 231 – 233 data management platform (DMP) 231 – 233 Data and Marketing Association (DMA) 246 data mining: banking industry 20; customer development 120; customer portfolio management (CPM) 149 – 154; definition 359; descriptive analytics 359; directed 150 – 153, 362; Marks & Spencer case study 364; procedures 362 – 367; statistical routines 265 – 266; 435 INDEX undirected 153 – 154, 362; warehoused data 349 data quality principle 371 data science 428 – 429 data warehousing 336 – 338, 358; US Xpress Enterprises case study 338 databases: hierarchical 322 – 323; marketing 16; network 327; relational 13, 323 – 324, 324, see also customer-related databases and data Davis, F 286; and Venkatesh, V 286 Dawkins, P.M., and Reichheld, F.F 98 – 99 de-duplication 332 decision trees 151 – 152, 152, 362 – 363 decomposition forecasting 145 deep learning (DL) 238, 367 – 371 Deep Mind 370 defection rates 96 – 97 Dell Computers 104 demand 390 descriptive analytics 359 descriptive application, marketing analytics 264 Dial Eco-Smart case study 245 dialogue 55 Dick, A., and Basu, K 47 Digital Analytics Association (DAA) 259 digital marketing 250 – 259 direct mail campaign management 245 – 246 direct-to-customer (DTC) channels 20, 72 direct-to-customer (DTC) communication 200 directed data mining 150 – 153, 362 directories 75 discount rates 148; and CLV 39, 39 discounted cash flow (DCF) analysis 380 – 381 discounts 80; new customer 37 discriminant analysis (DA) 363 436 disintermediation 198 Disney 18, 336 – 337 dissolution 29 distributive justice 190 Do Not Call register 85, 248 document management 264, 282 Dolby Laboratories 264 door openers 162 door-to-door sales 85 Dow Chemical 191 down-selling 120 Driver and Vehicle Licensing Agency (DVLA) case study 21 Dun & Bradstreet 89, 329, 335 Dunnhumby 19 Dwyer, R 29, 35, 57 Dyer, J 55, 57 dynamic capabilities 292n2 Dyno Nobel 144 easyJet 191 EC Data Protection Directive 372 economic development 207 economic value to the customer (EVC) 170 Economist Intelligence Unit (EUI) 238 education, learning 238, 367 – 371 efficient consumer response (ECR) 55 Eircom case study 33 Eismann 83 electronic data interchange (EDI) 34, 113 email 85 – 86, 200; campaign management 246, 247, 265, 265; marketing 75, 246, 326, 327 email response management systems (ERMS) 304 – 305 emotional engagement 53, 101, 216 emotional value 172 enabling product 180 engagement, social 53, 101, 216 engineer-to-order 177 enterprise portals 195 Enterprise Resource Planning (ERP) 201 – 202, 271, 343, 411 epistemic value 172 equity bonds 113 equity theory 190, 192 escalation 306 estimation 360 ethical concerns, customer retention 117 ethnography 217 – 218 event management 276; Keller and Heckman case study 277 event-based marketing (EBM) 9, 90, 120; customer development 120; marketing automation 247 – 248 exhibitions 75 expansion 29 expectations 102 – 106; ownership 116 – 117 expectations–disconfirmation model 45 – 46 Experian 259, 328 experience: economy 207 – 208, 208; mapping 218 – 219, see also customer experience (CX) explanatory application, marketing analytics 264 exploration 29 exploratory application, marketing analytics 264 exponential smoothing 145 EXQ 214 extrinsic value 172 Facebook 12, 14 – 15, 19, 180 – 181, 199, 250 – 251, 426 factor analysis 367, 367 family life cycle (FLC) 136 fashion industry 8, 84 field service 301, 311 – 313 Filtrex case study 257 financial bonds 113 first call resolution (FCR) 310 First Direct 120, 191, 412 – 413, 413 first time fix rate (FTFR) 311 fitness for purpose 183 five-process model of CRM 23 flexibility of applications 222 flowcharting 413 Ford, D 54 INDEX forecasting see sales forecasting Forrester Research 209 – 210, 209 – 210, 216, 246, 312 free gifts 112 free premiums 81, 112 free publicity 85 free trials 80 Freight Traders case study 285 frequency 78 – 79 frequent flier programs (FFP) 107, 110 Friends Reunited 180 – 181 front office processes 412 Frontier Bank 123 Frow, P., and Payne, A 23, 23 functional organization structure 384 functional quality 183, 292 functional silos 96 functional value 172 Gadde, L.-E 54 gamification case study 102 Gantt charts 409, 410 gap analysis 413 – 414 Gartner Inc 4, 244, 259 – 260, 301, 314, 351, 411; Hype Cycle 251, 252, 323, 378 GE 12 General Data Protection Regulation (GDPR) 373 general ledger costing 146, 147 General Motors 36 geo-demographic classification schemes 137, 137, 328 geographic bonds 114 geographic competitors 135 geographic organization structure 384 – 385 gifts, free 112 Gilmore, J., and Pine, J 207, 211 Giordano 174 global account management 389 – 394 globalization 390 goals 403; strategic 344, 345, 383, 403, 403 Google 10, 13, 79, 255 – 256, 318, 371, 427; Analytics 118, 258 – 259, 259 Googlebot 256 governance structures 405 – 407, 406 governments 21 – 22 graphical user interface (GUI) 288 Green Training USA 187 Groeger, L., and Buttle, F 81 Grönroos, C 55, 183 – 184, 184, 292 growth-share matrix 161 – 162, 161 GSK 174 guanxi 58, 74 Gümmesson, E 55 Gupta, S., and Lehmann, D 148 – 149 Häagen-Dazs 135 Hadoop 354 Håkansson, H 54 Hammersley, M 217 hardware 19, 270, 272 – 273 Harley Davidson 114 – 115 Harley Owners Group (HOG) 111 Harmoney case study 278 healthcare 196 Heartlanders 329 hedonic value 172, 181 Heide, J 57 Helgesen, O 50 help desks 296 – 297 heterogeneous services 211 hierarchical clustering 365, 366 hierarchical databases 322 – 323 high future lifetime value customers 162 high performance systems 222 – 223 high volume customers 162 Hofmeyr, J 70 – 71 Holbrook, M 172, 173, 201 Home Depot 181 Honda case study horizontal integration, marketing cloud 230, 233 horizontal processes 414 hospitals 196 hosted CRM 414 – 416; see also Software as a Service, SaaS hotel industry 138 Hunt, S.D 57; and Morgan, R.M 31, 57 hybrid CRM 229 Hype Cycle 251, 252, 323, 378 iBeacon 357 IBM 13, 19, 191, 251, 296, 351, 353, 426 – 427 Icee Company case study 299 identification of business 135 IDIC model 22 IHIP (Intangibility, Heterogeneity, Perishability and Inseparability) 210 – 211 IHS 103 IKEA 212; customer experience case study 213 implementation: CRM strategy 399 – 405; fivestep process 397 – 399, 398; needs specification 411 – 418; performance evaluation 419; project foundations 405 – 411; project implementation 418 – 419 inbound communications management (ICM) 301 incentive management 282 incremental benefits, customer perceived value 181 individual participation principle 372 Industrial Marketing and Purchasing (IMP) school 54 – 55 info-sphere 231 Information Security Management Systems 230 Information Technology Infrastructure Library (ITIL) 297 information technology (IT) 3, 4, 17, 18, 22, 25, 134, 167, 297 Information Technology Service Management (ITSM) 301 ING case study 348 innocent case study 82 437 INDEX innovation: product 174, 180 – 181; supply-side 427 – 428; technical 426 – 427 inseparable services 212 inspirations 162 insurance companies 35, 37, 86, 90, 95 intangible-dominant services 210 – 211 integrated marketing communication (IMC), customer development 121 integrated marketing management (IMM) 259 integration: horizontal 230, 233; intelligence 231 – 233; product 86 integrative quality 292 – 293 Intel 174 intelligence integration, marketing cloud 231 – 233 interaction 55 interactional justice 190 interactive episodes 28 interactive technologies 200 interactive voice response (IVR) 11, 215, 220, 249, 296, 301, 313, 428 interactivity 199 intermediaries 201 – 202 International Customer Service Institute 294 International Standard Industrial Classification (ISIC) 138, 140; codes 140, 140 International Standard for Service Excellence, The (TISSE) 294, 295 Internet of Things (IoT) 12 – 13, 353, 369, 426 interpersonal relationships, positive 112 interval data 354 – 355 intrinsic value 172 invoicing applications 309 Jap, S 57 Jeep case study 281 JetBlue 199; customer engagement case study 438 101; customer service case study 12 JICNARS 136 job management applications 311 – 312, 312 John Lewis Partnership 99 Juran, J.M 183 JUST EAT case study 254 just-in-time (JIT) 55, 113 justice 190 k-means clustering 365, 366 Kahneman, D., and Tversky, A 169, 202n5 Kano, Noriaki 105 – 106, 105 Kanthal 155 Kaspersky Lab 304 Keaveney, S 118 Keller and Heckman case study 277 Kellogg’s 112 key account management (KAM) 196, 389 – 394, 392 – 393 key performance indicators (KPIs) 47, 160, 257, 260, 310; cost-related 117; customer acquisition programs 87 – 88; customer retention programs 117 keyword marketing 255 – 256 Kids & Cul-de-Sacs 329 kiosks 313 Kiwi Experience case study 212 Klaus, P., and Maklan, S 214 knowledge base self-service 313 knowledge management (KM) 339 – 340 knowledge-based bonds 113 Korea Telecom case study 115 Kotler, P Kotter, J 407 – 408 Kraft 385, 386 Kumar, V., et al 39 Kwik Fit 103 Lanier, J 427 Lapierre, J 173 lead allocation 88 – 89 lead generation companies 76 lead management 10, 277, 278; customer acquisition 88 – 89; prospect scoring 346, 346 lead nurturing 89, 276 lead qualification 89 lead tracking 89 leadership 411; product 174 leading indicators 145 learning 238, 367 – 371 Lee, J., et al 39 legal bonds 113 Lehman Brothers 89 Lehmann, D., and Gupta, S 148 – 149 Lemke, F., et al 207 Lemon, K., and Verhoef, P 208 Levitt, T 135, 180 Lexus 84 LG 174 Li, P., and Croteau, A.-M 411 Likert scale 355, 367 LinkedIn 73, 102 Linoff, G., and Berry, M 364 Lodish, L., et al 79 logfile analysis 257 logistic regression 363 loss aversion 169, 202n5 lotteries 81 low prices 174 loyalty 46, 109; customer 46 – 47, 47, 52 – 53; management 260 – 261, 261; schemes 16, 102, 107 – 110, 108, 330 Lusch, R., and Vargo, S 56, 202n8 McCarthy, E 179 McDonald, M., and Woodburn, D 28 McDonald’s 69, 181; customer experience 219; physical evidence value 195; segmentation criteria 138 machine learning (ML) 238, 367 – 371 McKinsey 34 – 35, 122, 174 MailChimp 246 Maklan, S., and Klaus, P 214 management consultants 19 INDEX Managing Customers as Investments (Gupta and Lehmann) 149 mapping and driving directions 309 margin multiple 148, 148 market: identification 135 – 141; organization structure 386, 389 – 394 market segmentation 133 – 135; business markets 138 – 141; consumer markets 135 – 138; customer-related databases and data 329; marketing automation 243; PRIZM case study 329; Syngenta AG case study 141; Toshiba case study 140; value assessment 142 market-oriented businesses marketers, best-in-class 241 marketing: analytics 264 – 266; closed-loop 239 – 240, 240; costs 33 – 34; digital 250 – 259; email 75, 246, 326, 327; keyword 255 – 256; mix 179, 179; multichannel 245; one-toone 200; online 250 – 259; partner 262; pay-per-click (PPC) 261; relational 55, 425 – 428; social media 250 – 251; trigger 9, 247 – 248, see also eventbased marketing (EBM) marketing automation (MA) 8 – 10; asset management 264; benefits 239 – 241; campaign management 242 – 245; content management 255; definition 238; Dial Eco-Smart case study 245; digital marketing 250 – 259; direct mail campaign management 245 – 246; document management 268; email campaign management 246, 247, 265, 265; event-based marketing 247 – 248; explanation 237 – 239; Filtrex case study 257; functionality 242, 242; integrated marketing management 259; JUST EAT case study 254; keyword marketing 255 – 256; loyalty management 260 – 261, 261; market segmentation 243; marketing analytics 264 – 266; marketing optimization 248, 249; marketing performance management (MPM) 259 – 260; online marketing 250 – 259; partner marketing 262; product lifecycle management (PLM) 262 – 263, 263; programmatic advertising 253 – 255; search engine optimization (SEO) 256 – 257; social media marketing 250 – 251; software applications 241 – 266; Staples case study 239; telemarketing 248 – 250; trigger marketing 247 – 248; workflow development 266 marketing cloud 229, 415 – 416; core structure 230 – 231; data integration 231 – 233; explanation 230; horizontal integration 230, 233; industry-specific solutions 235; intelligence integration 231 – 233; open architecture 235 – 237; Oracle’s customer experience cloud 232 – 235, 233, 235 – 236; vertical integration 230 – 231, 233 Marketing Myopia (Levitt) 135 marketing optimization 248, 249; customer development 121 marketing performance management (MPM) 259 – 260 Marketing Science Institute (MSI) 83 Marks & Spencer case study 364 martec (marketing technology) 235 – 236, 241 mass customization 176 – 177, 176 master data management 335 match-to-order 176 matrix organization structure 386 – 387, 387 MBAs 180 MBNA 91 MCI 70 mean time to resolve (MTTR) 311 media see social media member-get-member (MGM) schemes 37, 84 merchandising 69, 83, 84 merge-purge 332, 333 META Group 221, 351 Meyer-Waarden, L 110 Microsoft Canada 262 Microsoft Dynamics 19, 229 – 230, 279 middleware 335 mini clouds 233 mobile coupons 80 modeled data 329 moments of truth 215 – 216 money 168 Morgan, R.M 57; and Hunt, S.D 31, 57 mother-and-baby club 70, 111, 240 moving averages forecasting 144 – 145, 144 Müller, M., and Piller, F 177 multi-channel campaign management (MCCM) 244, 244 multi-industry, Satisfaction– Profit Chain 50 multi-product bonds 114 multichannel marketing case study 245 multiple regression 363 MySpace 250 mystery shopping 217 439 INDEX Nasr, N.I., and Berger, P.D 40 national account management 389 – 394 NatWest Bank case study 132 Naudé, P 54 Nectar 107, 108, 261 needs specification 411 – 418 negative customer retention strategies 100 Nestlé 115; mother and baby club 111 net present value (NPV) 380 Net Promoter Score (NPS) 27, 48 – 49, 53, 58, 73, 119, 231, 260, 282 Netflix case study 178 NetSuite 416 network: databases 323; organizations 387 – 388 networking 74 neural networks 152 – 153, 363 – 364, 368 – 369, 368, 370; churn prediction case study 364 – 365 new customers: acquisition 66 – 68; discounts 37; newto-category 68 – 69; newto-company 69; portfolio purchasing 70 – 72; see also Artificial Neural Networks, or ANNs next best action (NBA) 221, 347 – 348; ING case study 348 next best offer (NBO) 10, 201, 252, 348 – 349 Nielsen 328 Nippon Conlux 162 nominal data 354 – 355 Nordic model of service quality 183, 292 Nordic school 55 – 56 Nordstrom 174 Normann, R 215 North American Industry Classification System (NAICS) 140 North American school of relationship marketing 57 – 58 not-for-profit sector 21 – 22 440 NS–SEC (National Statistics – Socio-Economic Classification) 136 Nypro 122 objectives 407 office equipment 96, 116 OilCo case study 159 omni-channel campaigns 244, 295, 428 on-premise CRM 229, 414 – 416 one-to-one marketing 200 online analytical processing (OLAP) 265, 311, 343, 349, 357 – 359; databases 325 online clothing companies 34 – 35 online marketing 250 – 259 online sources of leads 73 online transaction processing (OLTP) databases 325 open non-customers 71 openness principle 372 operating systems 330 operational CRM: customer experience 221; data review 413 – 414; overview 7 – 13, 343, 412 – 413; sales forecasting 144, see also marketing automation (MA); sales force automation (SFA); service automation operational excellence 174 opportunity management 10, 276, 279, 279 options, real 381 – 382, 414 Oracle: chat window 315; contact management 275, 275; customer experience cloud 232 – 235, 233, 234 – 235; customer service 299; inbound telephony 312; loyalty management 261; multichannel campaign management 244; pipeline management 280; Service Analytics 311; SFA 271; workflow development 284 order management 280 ordinal data 354 – 355 Organization for Economic Cooperation and Development (OECD) 371 – 372 organizational culture 407 – 408, see also competing values model organizational structure 383 – 387 other-oriented value 172 outcome-related KPIs 117 ownership expectations 116 – 117 page-tagging 257 Parasuraman, A., et al 184, 292 Pareto principle 147, 154, 155 participant observation 218 participation, individual 372 partner: marketing 262; selection 411 – 418 partner relationship management (PRM) 13 party plans 84 patronage awards 111 pay-per-click (PPC) marketing 257 Payne, A.: Ballantyne, D and Christopher, M 56; and Frow, P 23, 23 Payne and Frow CRM model 23, 23 Peck, H., et al 56 peer-to-peer self-service (P2PSS) 313 Peppers & Rogers Group 19, 22 Peppers, D., and Rogers, M 22, 200 perceived risk 42 – 43, 169 performance: evaluation 419, see also key performance indicators (KPIs) perishable services 211 person-to-person contacts 389 personal data stores (PDS) 428 personalized communication 200; marketing automation 243; Westpac case study 199 Petre, M., et al 207 physical evidence, value from 195 – 196 Piller, F., and Müller, M 177 INDEX Pine, J., and Gilmore, J 207, 211 pipeline management 280 – 281, 280 pitchers 86 point solutions 236, 238, 270 portals 73, 74, 197, 317 portfolios: customer portfolio matrix 142, 143, 156, 157; overview 131 – 133; purchasing 70 – 72, see also customer portfolio analysis (CPA); customer portfolio management (CPM) positive interpersonal relationships 112 postcode segmentation 137 PR (public relations) 75 prediction 364 – 365 predictive analytics 150, 232, 234, 238, 241, 245, 246, 252, 264, 323, 347, 348, 349, 359; Bonobos case study 91 predictive dialing 303 premiums, free 81, 112 price: increases 122 – 123; low 174 primary data collection 329 – 330 primary processes 412 priorities for action 402 priorities for improvement (PFIs) 104 privacy 371 – 373 PRIZM case study 329 procedural justice 190 process: bond 113 – 114; engineering 416 – 417; evaluation 414; horizontal 416; value from 191 – 192 process innovation 191; Wal*Mart case study 192 process-related KPIs 117 Procter and Gamble 385 product: competitors 135; encyclopedias 282; innovation 174, 180 – 181; integration 86; leadership 174; organization structure 385 – 386; placement 86; silos 95; value from 180 – 182; visualization 282 product configuration 10, 175, 272, 280 – 282; Jeep case study 281 product lifecycle management (PLM) 262 – 263, 263 product-oriented businesses 6 – 7 product-service bundling 182 product-service systems 13 production-oriented businesses profit: margins 37; per customer 40 profit-adjusted retention rate 96 program 401; team 405, 409, 413 program directors (PD) 405, 409 program evaluation and review technique (PERT) 409 programmatic advertising 79, 253 – 255 project 401; bonds 114; foundations 405 – 411; implementation 418 – 419; management needs 409 – 410; outcomes 419 promotion: cross 81; sales 80 – 81, 111 – 112 promotional activities 75 propensity modelling process 413 propensity to buy 40, 90, 150, 359 propensity-to-switch 141 proposals: assessment 418; call for 417 – 418; generation 282 prospect lists 75 prospecting 72; business-tobusiness 72 – 76; businessto-consumer 76 – 86 prototypes 419 psychic costs 169 public portals 195 publicity 75, 85 purchasing: portfolio 69 – 72; practices 116 purpose specification principle 371 PWC 388 qualitative sales forecasting 144 quality: functional 183, 292; integrative 292 – 293; model 105 – 106, 105; reputational 184, 292; of service 183 – 186, 292 – 293; technical 183, 292 Query By Example (QBE) 334 query-based reports 356 queuing and routing applications 303 – 304 Quinn, R.E., and Cameron, K.S 408 quotation management 280 Radicati Group 304 Rahimi, I.D., and Da Silva, R.V 411 RATER variables 184, 189 ratio data 354 – 355 raw customer retention rate 96 – 97 reach 78 – 79 reactive value 172 real options 381 – 382, 414 rebates 80, 111, 111 recency-frequency-monetary value (RFM) 46, 90, 138 recommend-a-friend (RAF) schemes 84, 87 referrals 38 – 39, 73, 83 – 84, 87, 98 regional account management 389 – 394 registrations 330 regression forecasting 145 Reichheld, F.F 100; and Dawkins, P.M 98 – 99; et al 48; and Sasser Jr, W.E 35, 37, 213 reintermediation 202 relational databases 13, 323 – 324, 324 relationship marketing (RM) 55, 425 – 428 relationships: business performance 47 – 48; change within 29; commitment 30 – 31; company resistance 41 – 42; customer loyalty 441 INDEX 46 – 47, 47, 52 – 53; customer resistance 44 – 45; customer satisfaction 45 – 46; with customers 32 – 35; definition 27 – 29; key account management (KAM) 389 – 394, 392 – 393; quality 31 – 32; with suppliers 42 – 44; termination 121 – 124; theories 53 – 58; trust 30 reports: query-based 356; standard 265, 356 – 357, 356 reputational quality 184, 292 request for proposals (RFP) 417 resellers, virtual 202 Resource Based View the firm, The 288n2 resources, definition 55 response rates 79 restaurants 104 retention see customer retention RightNow Technologies 221 risk 42 – 43, 169; management plans 411; social 169 Ritter, T., and Andersen, H 158, 159 Rochdale Pioneers 107 Roche case study 11 Rogers, M., and Peppers, D 22, 200 Rolls-Royce 12, 181 root cause analysis (RCA) 350 Royal Bank of Scotland (RBS) case study 119 Ryanair 199 Saatchi & Saatchi 174 sacrifices 168 Safe Harbor 372 – 373 Safeway 108 sales: analytics 283; doorto-door 85; management report 283, 282; promotion 80 – 81, 111 – 112; team estimates 144 sales force automation (SFA): adoption 285 – 286; benefits 285 – 286; definition 270; eco-system 271 – 273; Freight Traders case study 285; hardware and infrastructure 442 272 – 273; Keller and Heckman case study 277; motivations 286, 286; overview 10 – 11, 269 – 271; product configurator case study 281; reports 283, 283; sales performance 286 – 288; services 273; software functionality 273 – 284; solutions providers 271 – 272; vendors 271, 271 sales forecasting 142 – 145, 346; applications 10, 283; decomposition 145; moving averages 144 – 145, 144; regression 145; timeseries 144 sales-adjusted retention rate 96 – 97 sales-oriented businesses salesforce.com 230 – 232, 272 – 273, 283, 329; CRM cloud 235 – 236, 236 sampling 80 Samsung 84 SAP 339 SAS 186, 215, 252, 260, 349 Sasser Jr, W.E., and Reichheld, F.F 35, 37, 213 satisfaction see customer satisfaction Satisfaction–Profit Chain 45, 45, 49 – 53 scalability of systems 223 – 224 scenario testing 248 scheduling applications 309 SCHEMA model 23 – 24, 24 Schwab, C 80 scripting 306 – 307, 307 search engine optimization (SEO) 73, 256; Filtrex case study 257 search engines 73, 197 secondary data collection 329 – 330 secondary processes 414 security safeguards principle 372 self-checkout 313 self-liquidating premiums 112 self-oriented value 172 self-service 310, 312 – 313 selling: cross- 119 – 121; process stages 10; team 394; up- 14, 40, 119 – 121, 124, 163, 404 seminars 75 Sen, A., et al 338 sentiment analysis 350, 350 service: analytics 311; guarantees 187; inseparable 211; intangible-dominant 210 – 211; marketing 210 – 213; perishable 211; quality of 183 – 186, 292 – 293; recovery programs 189 – 190; role of 55; value from 182 – 190, see also customer service service automation 11 – 13; activity management 308 – 309; agent management 309; benefits 298 – 299; Coca-Cola case study 303; contract management 311; customer communications management 300 – 301; customer self-service 312 – 313; customer service 291 – 292; customer service standards 293 – 295; definition 295; email response management systems 304 – 305; escalation 306; explanation 295 – 298; functionality 300 – 301, 300; Icee Company case study 299; inbound communications management 301; interactive voice response (IVR) 11, 215, 220, 249, 296, 301, 313, 428; invoicing applications 309; job management applications 307 – 308, 308; knowledge base self-service 313; mapping and driving directions 309; predictive dialing 303; queuing and routing applications 303 – 304; scheduling applications 309; scripting 306 – 307, 307; service INDEX analytics 311; service history 299; service level management 311; service quality modelling 292 – 293; software applications 300 – 316; spare parts management 309; voice biometrics 302 – 303; web collaboration 316; workflow development 312 service center automation case study 303 service level agreements (SLA) 187 – 189, 189 service level management (SLM) 311 service quality 292 – 293; theories 183 – 186 service-dominant logic (SDL) 56, 202n8 servitization 13 SERVPERF 186 SERVQUAL model 184 – 186, 184, 185, 213 – 214, 292, 367, 367 Shapiro, B., et al 156, 157, 158 share of wallet (SOW) 48, 69, 141 Shell 108 Sheth, J 57; et al 172, 201 shopping, mystery 217 Shouldice Hospital 117 shows, trade 75 Siebel, Tom Siebel Systems Inc silos 95 – 96 Singapore Airlines 174 single view of the customer (SVOC) 233, 269, 335, 336 siren servers 427 – 428 situation analysis 399 – 401 Six-Markets Model 56, 57 Smith, A 170 SMS messages 85 Snehota, I 54 social benefits 43 social bonds 112 – 113 social CRM 14 – 15 social engagement 53, 101, 216 social grading 136 social media 12, 15, 19, 81 – 83, 196; analytics 251 – 252, 358; customer–company communication 197; marketing 250 – 251; prospecting 73 social risk 169 social value 172 software applications: customer experience 221 – 224; marketing automation 241 – 266; sales force automation 273 – 284; service automation 300 – 316 Software as a Service (SaaS) 15, 181, 229 – 230, 404, 415 solutions, customized 172, 174 Southwest Airlines 107, 199, 199 Spa’kle 114 spam 75, 246, 304 spare parts management 309 special-treatment benefits 43 Sprint Nexus 122 SPSS 353 SQM Group 310 Standard and Poor’s 50 standard reports 265, 356 – 357, 356 Staples case study 239 star schemas 357 – 358, 358 STARTS 334 – 335, 339 – 340 statistical procedures 349 steering committee 405 Stevens, S 355 strategic CRM 6 – 14, 18, 21, 23, 321, 324 – 325, 343, 412; customer experience 221; overview 343, 412, see also customer portfolio management (CPM) strategic goals 344, 345, 383, 403, 403 strategic switching 70 – 72 strategically significant customers 162 – 163 strategy analytics 344 – 345 stratified contact pattern 389 Strengths, Weaknesses, Opportunities and Threats (SWOT) 160 strip-mining 220 – 221 structural bonds 113 – 114 structured data 322 – 324; analytics for 349 – 351, 354 – 356 Structured Query Language (SQL) 334 Subaru Owners Club 111 subscriptions 330 SugarCRM 326, 326 Super Size Me (2004) 181 supermarkets 86 – 87, 90, 109, 118 supply chain management (SCM) 271 supply-side innovation 427 – 428 surveys, customer 144 Swatch the Club 111 SWOT (Strengths, Weaknesses, Opportunities and Threats) 160 synchronization 302 synergistic KAM 392 – 394, 393 Syngenta AG case study 141 systems integration 406 T-Mobile Austria case study 315 tactics for CRM 344 – 345 targeting 243 TCF (The Customer Framework) 23 team: program 405, 409, 413; sales 144; selling 394 technical quality 183, 292 technological bonds 113 technological innovation 426 – 427 technology: customization 418; essentials 354; information (IT) 17; interactive 200; requirements 414; revisions 418; solution vendors 20; wearable 426 Technology Acceptance Model (TAM) 286, 287 telecommunications 96; satisfaction-profit chain 50; strategic switching 70 telemarketing 76, 85, 248 – 250 tenure 33 – 35, 34, 98 termination 29, 121 – 124 terms of trade 146 territory management 283 443 INDEX Tesco 149; Clubcard 149; customer portfolio analysis (CPA) case study 154 text analytics 349 – 350; warranties case study 351 Text Miner 349 third sector 21 – 22 Mobile case study 218 3D printing 177, 427 3M 174, 412 timber industry case study 163 time-series forecasting 144 Toshiba case study 140 total cost of ownership (TCO) 100, 170, 415 total customer experience (TCE) 207 total quality management (TQM) 213 – 214 touchpoints 66, 214 – 215, 215 Toyota 174 trade: shows 75; terms of 146 Transaction Cost Economics 168 Treacey, M., and Wiersema, F 174 trend analysis 350 trials, free 80 trigger marketing 9, 247 – 248 Triplet of Relationship Marketing 55 trivariate models 158 – 160 trouble-ticket 301, 306 trust 29 – 31 Turnbull, P 54; and Zolkiewski, J 158, 158 Tversky, A., and Kahneman, D 169, 202n5 Twitter 12, 14 – 15, 19, 199, 251 – 252, 426 two-step clustering 367 unavailable non-customers 71 uncommitted customers 71 444 undirected data mining 153 – 154, 362 unilateral termination 29 United Nations Statistics Division 138 United States (US): Customer Experience Index (2018) 209 – 210, 209; Xpress Enterprises case study 342 universities 21 UNIX 330 unstructured data 322 – 324; analytics for 349 – 351; big data analytics 351 – 354 up-selling 119 – 121 US Bancorp 40 USAA case study 120 usability of applications 222 use limitation principle 371 utility companies 32 – 33 validation of data 331 value see customerexperienced value value-in-exchange 170 – 171 value-in-experience 171 – 172 value-in-use 56, 170, 171, 177, 201, 220 values-based bonds 114 Vargo, S., and Lusch, R 56, 202n8 variety of data 352 velocity of data 352 vendor managed inventory (VMI) 114, 168 vendor reduction programs 394 Venkatesh, V., and Davis, F 286 Verhoef, P., and Lemon, K 208 verification of data 331 vertical integration, marketing cloud 230 – 231, 233 vertical processes 412 Villanueva, J., et al 88 Virgin Atlantic 387 Virgin Group 85, 115 virtual assistants (VA) 314 virtual organizations 387 – 388 virtual reality (VR) 314 virtual resellers 202 visualization 359; tools 359 voice biometrics 302 – 303 volume: consumed 138; of data 352 vouchers 111 Wal*Mart: process innovation case study 192; productionoriented businesses warranties case study 351 Watson, R.T 337 wearable technology 426 web: analytics 256 – 259; collaboration 316; portals 197; self-service 313 webinars 75 weighted average cost of capital (WACC) 39, 148 – 149 Westpac case study 199 What Digital Camera 78 Who Owns the Future? (Lanier) 427 Wiersema, F 293; and Treacey, M 174 Williamson, O 168 Woodburn, D., and McDonald, M 28 word-of-mouth (WOM) influence 39, 81, 88, 98 workflow: development 270, 283 – 284, 312; functionality 243, 413 working capital costs 146 workshops 75 Xerox 191, 191 Young Digerati 329 YouTube 426 Zeithaml, V 172 Zolkiewski, J., and Turnbull, P 158, 158 zone of delusion 28 ... Cataloging-in-Publication Data Names: Buttle, Francis, author | Maklan, Stan, author Title: Customer relationship management : concepts and technologies/ Francis? ?Buttle? ?and Stan Maklan Description: Fourth... marketing, customer management, customer portfolio management, customer experience management, sales management, key account management, strategic management, customer value management and customer. .. at francis@ francisbuttle.com.au and stanmaklan@gmail.com or s .maklan@ cranfield ac.uk We look forward to hearing from you Francis Buttle, Sydney Stan Maklan, London xxiii Section A UNDERSTANDING