• Preface
  • Objectives of this Text
  • Highlights of this Book
  • Supplements to this Book
  • Organization of the Text
• Acknowledgments
• Contents
• About the Authors
• Abbreviations
• List of Figures
• List of Tables
• I: CRM: Conceptual Foundation
  • 1: Strategic CRM Today
    • 1.1 An Introduction to  Strategic CRM
    • 1.2 Why Managing Customers Is More Critical Than Ever
      • 1.2.1 Changes with Respect to Consumers
        • Demographic Changes and Increasing Consumer Diversity
          • Aging Populations in Developed Countries
          • Increasing Diversity in Ethnicity
          • Increasing Individualization
        • Behavioral Changes
          • Increased Use of Social Media
          • Increased Use of Apps
          • Use of Real Time Data
          • Need for Convenience and the Rise of Self-Service
          • Increased Demand for Experiences and Authenticity
          • Increased Health and Sustainability Consciousness
        • Consequences
      • 1.2.2 Changes with Respect to the Marketplace
        • Intensified Competition for Customers in Fragmented Markets
        • Difficult Differentiation
        • Consequences
      • 1.2.3 Changes with Respect to the Marketing Function
        • Media Dilution and Channel Multiplication
        • Decreasing Marketing Efficiency and Effectiveness
        • Consequences
      • 1.2.4 Implications
    • 1.3 The Benefits of the Customer Value Management Approach
    • 1.4 Evolution and Growth of CRM
      • 1.4.1 First Generation (Functional CRM)
      • 1.4.2 Second Generation (Customer-Facing Front-End Approach)
      • 1.4.3 Third Generation (Strategic Approach)
      • 1.4.4 Fourth Generation (Agile and Flexible Strategic CRM)
      • 1.4.5 Fifth Generation (Social CRM)
    • 1.5 CRM and the IT Revolution: The View from the Industry
    • References
  • 2: Concepts of Customer Value
    • 2.1 Value to the Customer
    • 2.2 Value to the Company
      • 2.2.1 From Value for Customers to Value from Customers: The Satisfaction-Loyalty-Profit Chain
        • The Level of Analysis
        • The Direct Link Between Customer Satisfaction and Profits
        • The Link Between Satisfaction and Retention
        • The Link Between Loyalty and Profits
        • What Does It All Mean?
      • 2.2.2 Extending the Concept of Customer Value
        • Customer Lifetime Value (CLV)
        • Customer Influencer Value (CIV)
        • Customer Referral Value (CRV)
        • Customer Knowledge Value (CKV)
    • References
• II: Strategic CRM
  • 3: Strategic CRM
    • 3.1 CRM Perspectives
    • 3.2 Elements of a CRM Strategy
      • 3.2.1 CRM Vision
      • 3.2.2 Culture of Customer Orientation
      • CRM at Work 3.1
        • Capital One: CRM Business Model
      • 3.2.3 Integration and Alignment of Organizational Processes
      • CRM at Work 3.2
        • Capital One: Interfunctional Management
      • 3.2.4 Data and Technology Support
      • CRM at Work 3.3
        • Customer Profiling at a German Telephone Company
      • 3.2.5 CRM Implementation
      • CRM at Work 3.4
        • Capital One: Testing New Products
    • 3.3 Steps in Developing a CRM Strategy
      • 3.3.1 Step 1: Gain Enterprise-Wide Commitment
      • 3.3.2 Step 2: Build a CRM Project Team
        • Management
        • IT/Technical Personnel
        • Sales, Marketing, and Services Groups
        • Financial Staff
        • External CRM Expert
      • 3.3.3 Step 3: Analyze Business Requirements
      • 3.3.4 Step 4: Define the CRM Strategy
        • Value Proposition
        • Customer Strategy
        • Business Case
        • Enterprise Transformation Plan
        • Management of Other Stakeholders
        • Minicase 3.1
          • CRM in the Fast-Moving-Consumer-Goods Industry
        • Minicase 3.2
          • CRM in B-to-B at Deutsche Post World Net
    • References
  • 4: Implementing the CRM Strategy
    • 4.1 Types of CRM Implementation Projects
      • 4.1.1 Operational CRM Projects
      • 4.1.2 Analytical CRM Projects
        • Capturing All Relevant Customer Information
        • Customer Data Transformation
        • CRM at Work 4.1
          • La Croissanterie, Paris, France: Enhancing Customer Interface Using Technology
        • Customer Knowledge Discovery
          • Analyzing the Data
          • Predicting the Future
          • Assessing Customer Value
      • 4.1.3 Application Projects Deploying Operational and Analytical Outputs
    • CRM at Work 4.2
      • Giant Eagle: Fuel for Thought
    • 4.2 CRM Implementation Effectiveness
      • 4.2.1 Costs Associated with a CRM Implementation
        • Organizational Requirements
        • Technology Needs
        • Database Needs
        • Human Resource Potential
        • Implementation Factors
      • 4.2.2 Financial Benefits from a CRM Implementation
      • 4.2.3 Computing the ROI of CRM Initiatives
    • 4.3 Why Do CRM Implementation Projects Fail?
      • 4.3.1 Resistance from Employees
      • 4.3.2 Poor Data Quality
      • 4.3.3 Low «Actionability» of the Information
    • 4.4 Case Study: CRM at Capital One (United Kingdom)
      • 4.4.1 Case Background
      • 4.4.2 Industry Background
        • An Overview of the UK Credit Card Market
        • Credit Card Revenues
        • Consumers
      • 4.4.3 Capital One Company Background
        • Business Model
        • Information-Based Strategy (IBS)
      • 4.4.4 CRM Practices at Capital One (UK)
        • Marketing & Analysis (M&A)
          • Segmentation Strategy
          • Retention Strategy
        • Operations
          • Operations Processing
          • Customer Relations
          • Sales
          • Collections
          • Co-operation Between M&A and Operations
        • Information Technology (IT)
          • Prospect Pool and Solicitation Manage ment
          • Account Acquisition and Management
          • Account Servicing and Call-Center Technologies
        • Human Resources (HR)
          • Associate Selection
          • Company Culture
      • 4.4.5 Future Challenges
        • Building a Deeper Understanding of Customer Needs
        • Managing Costs
        • Coordinating Channels
    • References
• III: Analytical CRM
  • 5: Customer Analytics Part I
    • 5.1 Traditional Marketing Metrics
      • 5.1.1 Market Share
        • Where Does the Information Come from?
        • Evaluation
      • 5.1.2 Sales Growth
        • Where Does the Information Come from?
        • Evaluation
    • 5.2 Customer Acquisition Metrics
      • 5.2.1 Acquisition Rate
        • Defining What Acquisition Is
        • Where Does the Information Come from?
        • Evaluation
      • 5.2.2 Acquisition Cost
        • Delineating Acquisition Spending
        • Where Does the Information Come from?
        • Evaluation
    • 5.3 Customer Activity Metrics
      • 5.3.1 Objective of Customer Activity Measurement
      • 5.3.2 Average Inter-Purchase Time
        • Where Does the Information Come from?
        • Evaluation
      • 5.3.3 Retention and Defection Rate
        • Where Does the Information Come from?
        • Evaluation
        • Is Retention Only about Buying?
        • How Is Retention Different from Loyalty?
        • Projecting Retention Rates
      • 5.3.4 Survival Rate
        • Where Does the Information Come from?
        • Evaluation
      • CRM at Work 5.1
        • Amazon: Acquisition and Retention
      • 5.3.5 Lifetime Duration
        • Limitations
        • Where Does the Information Come from?
        • Evaluation
          • Contractual Relationships
          • Noncontractual Relationships
          • One-Off Purchases
      • 5.3.6 P(Active)
        • Where Does the Information Come from?
        • Evaluation
      • 5.3.7 Comprehensive Example of Customer Activity Measures
    • 5.4 Popular Customer-Based Value Metrics
      • 5.4.1 Size of Wallet
        • Where Does the Information Come from?
        • Evaluation
      • 5.4.2 Share of Category Requirement
        • Individual Share of Category Requirement (iSCR)
        • Where Does the Information Come from?
        • Evaluation
      • 5.4.3 Share of Wallet
        • Individual Share of Wallet (iSW)
        • Aggregate Share of Wallet (aSW) (Brand or Firm Level)
        • Where Does the Information Come from?
        • Evaluation
        • When to Use SCR and When to Use SW
        • Share of Wallet and Size of Wallet Hold Important Pieces of Information
        • Difference of Share of Wallet to Market Share
      • 5.4.4 Transition Matrix
    • Minicase 5.1
      • Catalina is Changing Supermarket Shopper Measure ment
    • Appendix I Notation Key
    • References
  • 6: Customer Analytics Part II
    • 6.1 Strategic Customer-Based Value Metrics
      • 6.1.1 RFM Value
        • RFM Method
          • Recency Coding
          • Frequency Coding
          • Monetary Value Coding
        • Limitations
        • RFM Cell Sorting Technique
        • Breakeven Value (BE)
        • Order of Importance of R, F, and M
        • Relative Importance of R, F, and M
        • Evaluation
      • 6.1.2 Past Customer Value
        • Evaluation
      • 6.1.3 Lifetime Value Metrics
        • Basic LTV Model
        • LTV with Splitted Revenues and Costs
        • LTV Including Customer Retention Probabilities
        • LTV with Constant Retention Rate and Gross Contribution
        • How Long is Lifetime Duration?
        • Incorporating Externalities in the LTV
        • Measuring and Incorporating WOM
        • Alternative Ways to Account for Externalities
        • How to Spur Positive Referrals
        • Where Does the Information Come from?
        • Evaluation
      • 6.1.4 Customer Equity
        • Customer Equity Share (CES)
        • Where Does the Information Come from?
        • Evaluation
      • 6.1.5 Comprehensive Example
    • 6.2 Popular Customer Selection Strategies
      • CRM AT WORK 6.1
        • The Kroger Co
      • 6.2.1 Profiling
      • 6.2.2 Binary Classification Trees
        • Classification Tree Algorithm
          • Step 1
          • Step 2
          • Step 3
        • Evaluation
      • 6.2.3 Logistic Regression
        • Transformation Process
          • Step 1
          • Step 2
          • Step 3
          • Step 4
        • Interpretation of Coefficients
        • Evaluation
    • 6.3 Techniques to Evaluate Alternative Customer Selection Strategies
      • 6.3.1 Misclassification Rate
      • 6.3.2 LIFT Analysis
        • Lift Performance Illustration
        • Minicase 6.1
          • Differentiating Customer Service According to Customer Value at United Parcel Service (UPS)
    • Appendix I Notation Key
    • Appendix II Regression Scoring Models
    • Appendix III BEI Computations for RFM Cells
    • References
  • 7: Data Mining
    • 7.1 The Need for Data Mining
    • 7.2 The Business Value of Data Mining
    • 7.3 The Data Mining Process
      • 7.3.1 Involvement of Resources
      • 7.3.2 Data Manipulation
      • 7.3.3 Define Business Objectives
      • CRM at Work 7.1
        • Defining Business Objectives at Credite Est
      • 7.3.4 Get Raw Data
        • Step 1: Looking for Data Sources
        • Step 2: Loading the Data
        • Step 3: Checking Data Quality
        • CRM at Work 7.2
          • Gathering Raw Data at Credite Est
      • 7.3.5 Identify Relevant Predictive Variables
        • Step 1: Create Analytical Customer View: Flattening the Data
        • Step 2: Create Analytical Variables
        • Step 3: Select Predictive Variables
        • CRM at Work 7.3
          • Identifying Relevant Variables at Credite Est
      • 7.3.6 Gain Customer Insight
        • Step 1: Preparing Data Samples
        • Step 2: Predictive Modeling
        • Step 3: Select Model
        • CRM at Work 7.4
          • Gaining Customer Insight at ­Credite Est
      • 7.3.7 Act
        • Step 1: Deliver Results to Operational Systems
        • Step 2: Archive Results
        • Step 3: Learn
        • CRM at Work 7.5
          • Acting on the Information at Credite Est
        • CRM at Work 7.6
          • Yapi Kredi—Predictive Model-Based Cross-Selling Campain
        • The Challenge
        • Solution
          • Define Business Objectives
          • Get Raw Data
          • Identify Relevant Variables
          • Gain Customer Insight
          • Act
    • References
  • 8: Using Databases
    • 8.1 Types of Databases
      • 8.1.1 Categorization Based on the Information Included in the Databases
        • Customer Database
        • CRM at Work 8.1
          • No Ads, Please!
        • Prospect Database
        • Cluster Database
        • CRM at Work 8.2
          • American Express and Database Clustering
        • Enhancement Database
        • CRM at Work 8.3
          • County Drain’s Enhancement Database
      • 8.1.2 Categorization Based on the Nature of the Underlying Marketing Activities
        • Passive Marketing Database
        • Active Marketing Database
      • CRM at Work 8.4
        • Best Buy’s Athena Database
      • 8.1.3 Categorization Based on the Database Technology
        • Hierarchical Database
        • Inverted Database
        • Relational Database
    • 8.2 The Benefits of Marketing Databases
      • 8.2.1 The Ability to Carry Out Profitable Segmentation
      • 8.2.2 Retained Customers and Repeat Business
      • 8.2.3 The Ability to Spot Potentially Profitable Customers
    • 8.3 The Uses of Marketing Databases (Jackson & Wang, 1994)
      • 8.3.1 Uses that Directly Influence the Customer Relationship
      • 8.3.2 Uses that Directly Influence Other Business Operations
    • References
• IV: Operational CRM
  • 9: Software Tools and Dashboards
    • 9.1 CRM Implementation Options
      • 9.1.1 Developing Software In-House
        • Advantages
        • Disadvantages
      • 9.1.2 Buying Licensed CRM Software
        • Advantages
        • Disadvantages
      • 9.1.3 Outsourcing a Managed Service
        • Advantages
        • Disadvantages
        • The Decision Process for Implementation
    • 9.2 CRM Software and Applications
      • 9.2.1 Stage-Wise Implementation Versus an Enterprise Wide CRM Solution
      • 9.2.2 Relationships and Flows Between CRM Modules
    • References
  • 10: Loyalty Programs: Design and Effectiveness
    • 10.1 What Is Loyalty? Behavioral Versus Attitudinal Loyalty
    • A Case in Point
    • 10.2 What Is a Loyalty Program? Definition and Key Objectives
      • 10.2.1 Building True Loyalty
      • 10.2.2 Efficiency Profits
      • 10.2.3 Effectiveness Profits
        • Achieving Effectiveness Profits in a Grocery Store
      • 10.2.4 Value Alignment
    • 10.3 Loyalty Programs: Increasing in Popularity
      • 10.3.1 Examples of Loyalty Programs
    • CRM at Work 10.1
      • Frequent-Flyer Programs
    • 10.4 Problems with Loyalty Programs
    • CRM at Work 10.2
      • Example: ANZ Bank
    • 10.5 Design Characteristics of Loyalty Programs
      • 10.5.1 Reward Mechanism: Transaction-­Based Versus Engagement-Based
      • 10.5.2 Reward Structure
        • Hard Versus Soft Rewards
        • Product Proposition Support
        • Aspirational Value of Reward
        • Rate of Rewards
        • Tiering of Rewards
        • CRM at Work 10.3
          • Nordstorm’s Rewards Plus Program
        • Timing of Rewards
        • Rewards Based on Specific Criteria
      • 10.5.3 Participation Requirements
        • Voluntary or Automatic Enrollment
        • Open Versus Closed Loyalty Programs
        • Automatic or Manual Point Accumulation
      • 10.5.4 Payment Function
      • 10.5.5 Sponsorship
        • Single- Versus Multi-Firm LP
        • Within/Across Sectors
        • Ownership
      • 10.5.6 Cost and Revenues of LPs
    • CRM at Work 10.4
      • Tesco’s Green ClubCard Points: Sustainability in Loyalty Programs
    • 10.6 Drivers of Loyalty Program Effectiveness
      • 10.6.1 Loyalty Program Design Characteristics
      • 10.6.2 Customer Characteristics
      • 10.6.3 Firm Characteristics
      • 10.6.4 Achieving a Competitive Advantage
    • CRM at Work 10.5
      • Tesco: From Price Promotions to Marketing Efficiency
      • U.K. Supermarket Market Share in Percentages
    • 10.7 Empirical Evidence on Loyalty Program Effectiveness
    • 10.8 Loyalty Programs, Shackle or Reward: And to Whom?
    • 10.9 The Seven-Point Checklist for Successful LP Design and Implementation
    • Minicase 10.1
      • Loyalty Program Management at Starwood Hotels
    • Appendix 1: Key Studies of LPs with Notable Empirical Findings
    • References
  • 11: Campaign Management
    • CRM at Work 11.1
      • The «All Adidas» Global Marketing Campaign
      • Purpose
      • Brand Ambassadors
      • Channels
      • Desired Outcome
    • 11.1 Campaign Management
    • 11.2 Campaign Planning and Development
      • 11.2.1 Setting Objectives and Strategies
        • Who Do You Want to Target?
        • Where Should You Target?
        • How Do You Get to Them?
        • When Is the Best Time?
      • 11.2.2 Identifying Customer Segments
        • How Are Customer Segments Targeted?
      • 11.2.3 Developing the Communication Strategy
        • Which Communication Strategy?
          • CRM at Work 11.2
            • Barack Obama’s 2008 Presidential Campaign
            • Recruiting Support
      • 11.2.4 Developing the Offer
        • CRM at Work 11.3
          • Metropolitan Life Insurance Company (MetLife)
      • 11.2.5 Campaign Budget
        • Preset Budgeting
          • Advantages
          • Disadvantages
        • Budgeting for an Allowable Marketing Cost
          • Advantages
          • Disadvantages
        • Budgeting with the Competitive Parity Method
          • Advantages
          • Disadvantages
        • Budgeting with the Objective and Task Method
          • Advantages
          • Disadvantages
        • Budgeting with the Percentage of Sales Method
          • Advantages
          • Disadvantages
        • Budgeting with Key Performance Indicators
        • Budgeting with the Lifetime Value Method
          • Advantages
          • Disadvantages
      • 11.2.6 Testing
        • What Are the Benefits of Testing?
        • What Should You Test?
          • CRM at Work 11.4
            • Testing the Media Before the Roll-Out
        • Does Testing Predict the Future?
        • Testing in Different Media
        • How Reliable Are the Test Predictions?
        • What Are the Potential Problems in Testing?
    • 11.3 Campaign Execution
      • 11.3.1 Implementation and Coordination
        • Campaign Program
        • Campaign Schedule
        • Activity Schedule
      • 11.3.2 Monitoring and Fine-Tuning
      • 11.3.3 Problems to Take into Account
    • 11.4 Analysis and Control
      • 11.4.1 Measuring Campaign Results
      • 11.4.2 Response Analysis
      • 11.4.3 Profile Analysis
    • 11.5 Campaign Feedback
    • Minicase 11.1
      • Z4 Launch Campaign at BMW
    • References
  • 12: Impact of CRM on Marketing Channels
    • 12.1 CRM and Marketing Channels
      • 12.1.1 What Are Channels?
      • 12.1.2 The Role of Channels in Customer Relationships
      • 12.1.3 Managing Customer Relationships Through Indirect Channels
        • CRM and Indirect (Traditional) Offline Channels
          • Dilution of CRM Strategies
          • Indirect Control of CRM Through Channels
          • Eliciting Customer Information from All Channels for Central Processing
        • CRM and Indirect Online Channels
      • 12.1.4 Managing Customer Relationships Through Direct Channels
        • CRM and Direct Offline Channels
        • CRM and Direct Online Channels
      • 12.1.5 Multichannel Trends and CRM
        • Trend 1: The Proliferation of Direct Channels
        • Trend 2: Multichannel as the Norm
        • Trend 3: Multichannel Shoppers
        • Trend 4: Research Shoppers
        • Opportunities Due to Multichannel Trends
          • Widening Coverage of the  Consumer Population
          • Improved Availability of Customer Information for the Firm
          • Less Dependence on Channel Partners
        • Challenges Due to Multichannel Trends
          • Media Planning Is Increasingly Difficult
          • Channel Conflict and Differentiation
    • 12.2 CRM and Multichannel Design
      • 12.2.1 Attributes of Multichannel Designs
      • 12.2.2 Designing Optimal Multichannel Offers
        • Fit Multichannel Systems to the Business Strategy and Environmental Conditions
        • Maximize Positive and Minimize Negative Cross-Channel Effects
    • 12.3 CRM and Multichannel Management
      • 12.3.1 Managing Multichannel Systems: Integration Versus Separation
        • Integrate Channel Functions to Enhance Customer Loyalty and Long-Term Profits
        • Separate Channel Functions and Differentiate Prices to Increase Short-Term Profits
      • 12.3.2 Managing Multichannel Shoppers
        • Multichannel Shoppers Are More Loyal than Single-Channel Shoppers
        • Multichannel Shoppers Spend More Money Because They See Advertisements More Frequently than Single-Channel Shoppers
        • Multichannel Shoppers Purchase More Frequently than Single-Channel Shoppers Because Shopping Is Possible in Every Situation
        • Only Customers Who Typically Shop Frequently and Spend Much Money Actually Use Multiple Channels for Purchase (Customer Self-Selection)
        • Drivers of Multichannel Shopping
      • 12.3.3 Managing Research Shoppers
        • Minicase 12.1
          • Otto Versand
    • References
  • 13: CRM Issues in the Business-­To-­Business Context
    • CRM at Work 13.1
      • IBM: Identifying Customer-Contact Roles
    • 13.1 CRM and Sales Force Automation
      • 13.1.1 What Is SFA?
      • CRM at Work 13.2
        • InvisibleSolutions: Bridging the Gap between Business Apps and Productivity Tools
      • 13.1.2 SFA Benefits
      • 13.1.3 Conditions for Realizing Benefits
    • 13.2 CRM and Key Account Management
      • 13.2.1 What Is KAM?
      • 13.2.2 Implementation of the KAM Program
        • Step 1: Selection of Key Accounts
          • Selection criteria
          • Selection process
        • CRM at Work 13.3
          • FestoAG: Selecting Key Accounts
        • Step 2: Design Elements of the KAM Program
          • Activities
          • CRM at Work 13.4
            • 3M: Activities for Key Accounts
          • Actors
          • Resources
          • CRM at Work 13.5
            • Philips: Access to Various Kinds of Resources
          • Formalization
        • Step 3: Advancement of the KAM Program
          • Optimizing
          • Improvement
    • CRM at Work 13.6
      • Hilti: Best Practices
    • 13.3 CRM and the Shift from Goods to Services
      • CRM at Work 13.7
        • Oracle: Best Practice
      • 13.3.1 What Are Hybrid Offerings?
      • 13.3.2 Advantages and Disadvantages of the Shift to Hybrid Offerings
      • 13.3.3 Rules for Successful Shifts
      • PDS: Effective Solutions
        • Supplier Variables
        • Customer Variables
    • References
  • 14: Customer Privacy Concerns and Privacy Protective Responses
    • 14.1 Customer Privacy Concerns
      • 14.1.1 Customer Privacy
      • 14.1.2 Drivers of Customer Privacy Concerns
        • Internal Drivers of Customer Privacy Concerns
          • Collection
          • Control
          • Awareness
          • Errors
          • Improper Access
          • Unauthorized Secondary Use
        • CRM at Work 14.1
          • Privacy Concerns
          • Privacy Risks
          • Privacy Control
          • Effectiveness of Privacy Policy
        • External Drivers of Customer Privacy Concerns
          • Internet
          • Technology
          • Public Media
          • Government Regulation
    • 14.2 Regulations to Protect Customer Privacy
      • 14.2.1 United States: Customer Privacy Protection Based on Industry Self-regulation
        • Notice and Awareness
        • Choice and Consent
        • Access
        • Integrity and Security
        • Enforcement and Redress
      • 14.2.2 Germany: Customer Privacy Protection Based on Governmental Legislation
        • The German Constitution
        • Data Protection Law
        • The German Teleservices Data Privacy Act
        • Section 7 of the German Unfair Competition Act
      • 14.2.3 The General Data Protection Regulation (GDPR)
        • Rule Harmonization and One-Stop Shop
        • Expanded Territorial Reach
        • Data Protection Officers
        • Profiling
        • Privacy by Design and by Default
        • Consent
        • Right to Erasure
        • Fines
    • 14.3 Customer Privacy Protective Responses
      • 14.3.1 Information Provision
      • 14.3.2 Private Action
      • 14.3.3 Public Action
    • 14.4 Privacy Paradox
    • 14.5 Consequences of Privacy Protective Responses
      • 14.5.1 Loss of Trust and Brand Integrity
      • 14.5.2 Decreased Sales
      • 14.5.3 Decrease in Data Quality
      • 14.5.4 Increased Costs due to Privacy Protection
      • 14.5.5 Ethical Dilemma
    • 14.6 Implications for Companies
      • 14.6.1 Align Privacy with Strategy
      • 14.6.2 Look Beyond Rules to Values
      • 14.6.3 Anticipate Issues
      • 14.6.4 Create Accountability
      • 14.6.5 Do Not Conflate Security and Privacy
      • 14.6.6 Treat Privacy as a Social Responsibility
      • 14.6.7 Manage Your Data Supply Chain
      • 14.6.8 Rely on Technology When Appropriate
      • 14.6.9 Plan for Disaster Recovery
      • 14.6.10 Heed both Boomers and Millennials
      • CRM at Work 14.2
        • Problem
        • Solution
        • Best Practice
    • 14.7 Future Issues: Data as Currency
    • Appendix 1: Selected settlements in violation of FIP principles (Peltier et al., 2009)
    • Supplemental readings on customer privacy
    • References
  • 15: CRM in Social Media
    • 15.1 The Social Media Landscape
    • 15.2 How Do Word of Mouth on Social Media Impact Brands?
      • 15.2.1 Influence of WOM Conversations on Brands
      • 15.2.2 Implications for Marketers
    • 15.3 Measuring the Return of Investment of Social Media
      • 15.3.1 Measuring the Influence of a Social Media User
      • 15.3.2 What Drives the Influencers?
      • 15.3.3 Creating a Successful Social Media Campaign
        • Step 1: Monitor the Conversations
        • Step 2: Identify Influential Individuals Who Can Spread Messages
        • Step 3: Identify the Factors Shared by Influential Individuals
        • Step 4: Locate the Relevant Potential Influencers
        • Step 5: Recruit the Influencers for the Campaign
        • Step 6: Incentivize those Influencers to Spread Positive WOM
        • Step 7: Reap the Rewards from the Social Media Campaigns
      • 15.3.4 Social Media Performance at Hokey Pokey
      • 15.3.5 Implications for Developing Social Media Campaigns
    • 15.4 Impact of Social Media on Brand Sales in Entertainment
    • 15.5 Social Coupons
      • 15.5.1 What Happens When Social Coupons Are Launched?
      • 15.5.2 How to Ensure Profitability in Social Coupon Campaigns?
        • Customer Acquisition Does Not Always Lead to Profits
        • Deep Discounts Could Become Dearer to Businesses
        • Social Coupons Can Cannibalize Revenue from Existing Customers
    • References
• V: Advances in CRM Applications
  • 16: Applications of CRM in B2B and B2C Scenarios Part I
    • 16.1 Measuring Customer ­Profitability
      • 16.1.1 Computing CLV
      • 16.1.2 Drivers of CLV
    • 16.2 The Lifetime-Profitability Relationship in a Noncontractual Setting
      • 16.2.1 Background and Objective
      • 16.2.2 Conceptual Model
        • Customer Lifetime and Firm Profitability
          • Proposition 1: The Nature of the Lifetime-­Profitability Relationship Is Positive
          • Proposition 2: Profits Increase Over Time
          • Proposition 3: The Costs of Serving Longer-Life Customers Are Lower
          • Proposition 4: Longer-Life Customers Pay Higher Prices
      • 16.2.3 Research Methodology
        • Data
        • A Model for Measuring Customer Lifetime for Noncontractual Relationships
          • Establishment of Cut-off Threshold
          • Lifetime Estimation
        • Profit Calculation
        • Test of the Propositions
          • Proposition 1: The Nature of the Lifetime-­Profitability Relationship Is Positive
          • Proposition 2: Profits Increase Over Time
          • Proposition 3: The Costs of Serving Long-Life Customers Are Lower
          • Proposition 4: Longer-Life Customers Pay Higher Prices
      • 16.2.4 Empirical Findings
        • What Is the Nature of the Lifetime-­Profitability Relationship?
        • Do Profits Increase Over Time?
        • Are the Costs of Serving Long-Life Customers Lower?
        • Do Long-Life Customers Pay Higher Prices?
      • 16.2.5 Implications
    • 16.3 Model for Incorporating Customers’ Projected Profitability into Lifetime Duration Computation
      • 16.3.1 Background and Objectives
      • 16.3.2 A Dynamic Model of the Antecedents of Profitable Lifetime Duration
        • Exchange Characteristics
        • Customer Heterogeneity
        • Spatial Location of Consumer
        • Income
      • 16.3.3 Research Methodology
        • Database
      • 16.3.4 Determining Profitable Customer Lifetime Duration
        • Calculate Net Present Value (NPV) of Expected Contribution Margin (ECMiJ)
          • Decision of Relationship Termination
          • Calculation of Finite Lifetime Estimate
      • 16.3.5 Analysis
        • Variable Operationalization
      • 16.3.6 Results
        • Effects of Exchange Variables
          • Purchase Amount
          • Cross Buying
          • Focus of Buying
          • Average Interpurchase Time
          • Returns
          • Loyalty Instrument
          • Mailings
          • Product Category
        • Effects of Observed Heterogeneity
          • Spatial Location of Customer
          • Income and Age
      • 16.3.7 Technical Appendix: Estimation of P(Alive)
    • 16.4 Model for Identifying the True Value of a Lost Customer
      • 16.4.1 Conceptual Background
      • 16.4.2 Modeling the Effects of Disadoption on the Value of a Lost Customer
      • 16.4.3 The Key Determinants of the Value of a Customer
    • References
  • 17: Applications of CRM in B2B and B2C Scenarios Part II
    • 17.1 Optimal Resource Allocation Across Marketing and Communication Strategies
    • 17.2 Purchase Sequences Analysis: Delivering the Right Message to the Right Customer at the Right Time
    • 17.3 The Link Between Acquisition, Retention, and Profitability: Balancing Acquisition and Retention Resources to ­Maximize Customer ­Profitability
    • 17.4 Preventing Customer Churn
    • 17.5 Customer Brand Value
      • 17.5.1 What Is Customer Brand Value?
      • 17.5.2 Linking Customer Brand Value to Customer Lifetime Value
      • 17.5.3 What Are the Managerial Benefits of Linking Customer Brand Value to Customer Lifetime Value?
        • Monitor the Overall Performance of Customer Brand Value
        • Manage Brand at the Segment Level
        • Manage Brand at the Individual Level
    • 17.6 Customer Referral Value
      • 17.6.1 What Is Customer Referral Value?
      • 17.6.2 How Can Compute Customer Referral Value Be Computed?
        • Step 1: Purchase
        • Step 2: Future Value
        • Step 3: Number of Referrals
        • Step 4: Timing of Customer Referrals
      • 17.6.3 How Can Customer Referral Value Be Linked to Customer Lifetime Value?
      • 17.6.4 What Are the Managerial Benefits of Linking Customer Referral Value and Customer Lifetime Value?
      • 17.6.5 What Should the Focus Be on: Customer Referral Value or Customer Lifetime Value?
    • References
  • 18: Future of CRM
    • 18.1 Social CRM
      • 18.1.1 Popular Social Media Channels
        • Blogs
        • E-Mail
        • Social Networking Platforms
        • Podcasts and Internet Radio
        • Mobile Applications
        • Viral Videos
        • Social Coupons
      • 18.1.2 Consumer-to-Consumer Interaction: A New Marketing Portal
        • Listening as a First Step
        • Mutual Purpose and Transparency
      • 18.1.3 Social CRM Strategies: How to Do It?
        • Social Strategies: Not Social Tools
        • Implementation: Task-Specific
      • 18.1.4 Sentiment Analysis
      • 18.1.5 A Final Word on Social CRM
    • 18.2 Global CRM (GCRM)
      • 18.2.1 Informational Technology Needs
      • 18.2.2 Global Diffusion
        • Regional and National Heterogeneity
        • Applying It as a Firm
    • 18.3 Database CRM
      • 18.3.1 Introduction
      • 18.3.2 Cloud Computing
      • 18.3.3 Privacy Issues and Concerns
        • International Perspectives: Did You Know?
    • References
• Index

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