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Customer Relationship Management Concept, Strategy, and Tools
Kumar, V
Cataloging brief
Customer Relationship Management Concept, Strategy, and Tools
Author :
Kumar, V
Publisher :
Springer
Pub. Year :
2018
Subjects :
Customer Relations -- Management Business & Economics -- Customer Relations
Call Number :
HF 5415 .5 .K859 2018
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Preface
(7)
Objectives of this Text
(7)
Highlights of this Book
(8)
Supplements to this Book
(8)
Organization of the Text
(9)
Acknowledgments
(10)
Contents
(11)
About the Authors
(18)
Abbreviations
(19)
List of Figures
(21)
List of Tables
(24)
I: CRM: Conceptual Foundation
(26)
1: Strategic CRM Today
(27)
1.1 An Introduction to Strategic CRM
(28)
1.2 Why Managing Customers Is More Critical Than Ever
(29)
1.2.1 Changes with Respect to Consumers
(30)
Demographic Changes and Increasing Consumer Diversity
(30)
Aging Populations in Developed Countries
(30)
Increasing Diversity in Ethnicity
(30)
Increasing Individualization
(31)
Behavioral Changes
(31)
Increased Use of Social Media
(31)
Increased Use of Apps
(31)
Use of Real Time Data
(32)
Need for Convenience and the Rise of Self-Service
(32)
Increased Demand for Experiences and Authenticity
(32)
Increased Health and Sustainability Consciousness
(32)
Consequences
(33)
1.2.2 Changes with Respect to the Marketplace
(33)
Intensified Competition for Customers in Fragmented Markets
(33)
Difficult Differentiation
(33)
Consequences
(34)
1.2.3 Changes with Respect to the Marketing Function
(34)
Media Dilution and Channel Multiplication
(34)
Decreasing Marketing Efficiency and Effectiveness
(34)
Consequences
(35)
1.2.4 Implications
(35)
1.3 The Benefits of the Customer Value Management Approach
(35)
1.4 Evolution and Growth of CRM
(36)
1.4.1 First Generation (Functional CRM)
(36)
1.4.2 Second Generation (Customer-Facing Front-End Approach)
(37)
1.4.3 Third Generation (Strategic Approach)
(37)
1.4.4 Fourth Generation (Agile and Flexible Strategic CRM)
(38)
1.4.5 Fifth Generation (Social CRM)
(38)
1.5 CRM and the IT Revolution: The View from the Industry
(38)
References
(40)
2: Concepts of Customer Value
(41)
2.1 Value to the Customer
(42)
2.2 Value to the Company
(44)
2.2.1 From Value for Customers to Value from Customers: The Satisfaction-Loyalty-Profit Chain
(44)
The Level of Analysis
(44)
The Direct Link Between Customer Satisfaction and Profits
(45)
The Link Between Satisfaction and Retention
(45)
The Link Between Loyalty and Profits
(46)
What Does It All Mean?
(48)
2.2.2 Extending the Concept of Customer Value
(49)
Customer Lifetime Value (CLV)
(49)
Customer Influencer Value (CIV)
(49)
Customer Referral Value (CRV)
(50)
Customer Knowledge Value (CKV)
(50)
References
(53)
II: Strategic CRM
(54)
3: Strategic CRM
(55)
3.1 CRM Perspectives
(56)
3.2 Elements of a CRM Strategy
(58)
3.2.1 CRM Vision
(58)
3.2.2 Culture of Customer Orientation
(58)
CRM at Work 3.1
(59)
Capital One: CRM Business Model
(59)
3.2.3 Integration and Alignment of Organizational Processes
(59)
CRM at Work 3.2
(60)
Capital One: Interfunctional Management
(60)
3.2.4 Data and Technology Support
(60)
CRM at Work 3.3
(61)
Customer Profiling at a German Telephone Company
(61)
3.2.5 CRM Implementation
(61)
CRM at Work 3.4
(62)
Capital One: Testing New Products
(62)
3.3 Steps in Developing a CRM Strategy
(62)
3.3.1 Step 1: Gain Enterprise-Wide Commitment
(62)
3.3.2 Step 2: Build a CRM Project Team
(63)
Management
(63)
IT/Technical Personnel
(63)
Sales, Marketing, and Services Groups
(63)
Financial Staff
(63)
External CRM Expert
(64)
3.3.3 Step 3: Analyze Business Requirements
(64)
3.3.4 Step 4: Define the CRM Strategy
(65)
Value Proposition
(65)
Customer Strategy
(65)
Business Case
(66)
Enterprise Transformation Plan
(66)
Management of Other Stakeholders
(66)
Minicase 3.1
(67)
CRM in the Fast-Moving-Consumer-Goods Industry
(67)
Minicase 3.2
(68)
CRM in B-to-B at Deutsche Post World Net
(68)
References
(69)
4: Implementing the CRM Strategy
(71)
4.1 Types of CRM Implementation Projects
(72)
4.1.1 Operational CRM Projects
(72)
4.1.2 Analytical CRM Projects
(72)
Capturing All Relevant Customer Information
(73)
Customer Data Transformation
(74)
CRM at Work 4.1
(74)
La Croissanterie, Paris, France: Enhancing Customer Interface Using Technology
(74)
Customer Knowledge Discovery
(74)
Analyzing the Data
(74)
Predicting the Future
(75)
Assessing Customer Value
(75)
4.1.3 Application Projects Deploying Operational and Analytical Outputs
(75)
CRM at Work 4.2
(75)
Giant Eagle: Fuel for Thought
(75)
4.2 CRM Implementation Effectiveness
(75)
4.2.1 Costs Associated with a CRM Implementation
(76)
Organizational Requirements
(76)
Technology Needs
(76)
Database Needs
(77)
Human Resource Potential
(77)
Implementation Factors
(77)
4.2.2 Financial Benefits from a CRM Implementation
(77)
4.2.3 Computing the ROI of CRM Initiatives
(78)
4.3 Why Do CRM Implementation Projects Fail?
(79)
4.3.1 Resistance from Employees
(79)
4.3.2 Poor Data Quality
(80)
4.3.3 Low «Actionability» of the Information
(81)
4.4 Case Study: CRM at Capital One (United Kingdom)
(82)
4.4.1 Case Background
(82)
4.4.2 Industry Background
(83)
An Overview of the UK Credit Card Market
(83)
Credit Card Revenues
(84)
Consumers
(84)
4.4.3 Capital One Company Background
(85)
Business Model
(85)
Information-Based Strategy (IBS)
(85)
4.4.4 CRM Practices at Capital One (UK)
(86)
Marketing & Analysis (M&A)
(86)
Segmentation Strategy
(87)
Retention Strategy
(87)
Operations
(88)
Operations Processing
(88)
Customer Relations
(89)
Sales
(89)
Collections
(90)
Co-operation Between M&A and Operations
(90)
Information Technology (IT)
(91)
Prospect Pool and Solicitation Manage ment
(91)
Account Acquisition and Management
(91)
Account Servicing and Call-Center Technologies
(92)
Human Resources (HR)
(92)
Associate Selection
(92)
Company Culture
(93)
4.4.5 Future Challenges
(94)
Building a Deeper Understanding of Customer Needs
(94)
Managing Costs
(95)
Coordinating Channels
(95)
References
(97)
III: Analytical CRM
(99)
5: Customer Analytics Part I
(100)
5.1 Traditional Marketing Metrics
(102)
5.1.1 Market Share
(102)
Where Does the Information Come from?
(102)
Evaluation
(102)
5.1.2 Sales Growth
(102)
Where Does the Information Come from?
(102)
Evaluation
(102)
5.2 Customer Acquisition Metrics
(102)
5.2.1 Acquisition Rate
(103)
Defining What Acquisition Is
(103)
Where Does the Information Come from?
(103)
Evaluation
(103)
5.2.2 Acquisition Cost
(103)
Delineating Acquisition Spending
(104)
Where Does the Information Come from?
(104)
Evaluation
(104)
5.3 Customer Activity Metrics
(104)
5.3.1 Objective of Customer Activity Measurement
(104)
5.3.2 Average Inter-Purchase Time
(105)
Where Does the Information Come from?
(105)
Evaluation
(105)
5.3.3 Retention and Defection Rate
(105)
Where Does the Information Come from?
(106)
Evaluation
(106)
Is Retention Only about Buying?
(107)
How Is Retention Different from Loyalty?
(107)
Projecting Retention Rates
(107)
5.3.4 Survival Rate
(108)
Where Does the Information Come from?
(109)
Evaluation
(109)
CRM at Work 5.1
(109)
Amazon: Acquisition and Retention
(109)
5.3.5 Lifetime Duration
(109)
Limitations
(110)
Where Does the Information Come from?
(110)
Evaluation
(110)
Contractual Relationships
(110)
Noncontractual Relationships
(111)
One-Off Purchases
(111)
5.3.6 P(Active)
(111)
Where Does the Information Come from?
(111)
Evaluation
(111)
5.3.7 Comprehensive Example of Customer Activity Measures
(112)
5.4 Popular Customer-Based Value Metrics
(113)
5.4.1 Size of Wallet
(113)
Where Does the Information Come from?
(113)
Evaluation
(113)
5.4.2 Share of Category Requirement
(113)
Individual Share of Category Requirement (iSCR)
(114)
Where Does the Information Come from?
(115)
Evaluation
(115)
5.4.3 Share of Wallet
(115)
Individual Share of Wallet (iSW)
(115)
Aggregate Share of Wallet (aSW) (Brand or Firm Level)
(115)
Where Does the Information Come from?
(116)
Evaluation
(116)
When to Use SCR and When to Use SW
(116)
Share of Wallet and Size of Wallet Hold Important Pieces of Information
(116)
Difference of Share of Wallet to Market Share
(116)
5.4.4 Transition Matrix
(117)
Minicase 5.1
(118)
Catalina is Changing Supermarket Shopper Measure ment
(118)
Appendix I Notation Key
(120)
References
(120)
6: Customer Analytics Part II
(121)
6.1 Strategic Customer-Based Value Metrics
(122)
6.1.1 RFM Value
(122)
RFM Method
(123)
Recency Coding
(123)
Frequency Coding
(123)
Monetary Value Coding
(124)
Limitations
(125)
RFM Cell Sorting Technique
(125)
Breakeven Value (BE)
(125)
Order of Importance of R, F, and M
(128)
Relative Importance of R, F, and M
(129)
Evaluation
(131)
6.1.2 Past Customer Value
(131)
Evaluation
(131)
6.1.3 Lifetime Value Metrics
(132)
Basic LTV Model
(133)
LTV with Splitted Revenues and Costs
(133)
LTV Including Customer Retention Probabilities
(133)
LTV with Constant Retention Rate and Gross Contribution
(134)
How Long is Lifetime Duration?
(134)
Incorporating Externalities in the LTV
(134)
Measuring and Incorporating WOM
(134)
Alternative Ways to Account for Externalities
(135)
How to Spur Positive Referrals
(135)
Where Does the Information Come from?
(135)
Evaluation
(135)
6.1.4 Customer Equity
(136)
Customer Equity Share (CES)
(136)
Where Does the Information Come from?
(136)
Evaluation
(136)
6.1.5 Comprehensive Example
(136)
6.2 Popular Customer Selection Strategies
(138)
CRM AT WORK 6.1
(138)
The Kroger Co
(138)
6.2.1 Profiling
(138)
6.2.2 Binary Classification Trees
(139)
Classification Tree Algorithm
(140)
Step 1
(140)
Step 2
(140)
Step 3
(140)
Evaluation
(141)
6.2.3 Logistic Regression
(141)
Transformation Process
(143)
Step 1
(143)
Step 2
(143)
Step 3
(143)
Step 4
(144)
Interpretation of Coefficients
(144)
Evaluation
(145)
6.3 Techniques to Evaluate Alternative Customer Selection Strategies
(145)
6.3.1 Misclassification Rate
(145)
6.3.2 LIFT Analysis
(145)
Lift Performance Illustration
(147)
Minicase 6.1
(149)
Differentiating Customer Service According to Customer Value at United Parcel Service (UPS)
(149)
Appendix I Notation Key
(152)
Appendix II Regression Scoring Models
(152)
Appendix III BEI Computations for RFM Cells
(153)
References
(154)
7: Data Mining
(155)
7.1 The Need for Data Mining
(156)
7.2 The Business Value of Data Mining
(156)
7.3 The Data Mining Process
(157)
7.3.1 Involvement of Resources
(158)
7.3.2 Data Manipulation
(158)
7.3.3 Define Business Objectives
(160)
CRM at Work 7.1
(162)
Defining Business Objectives at Credite Est
(162)
7.3.4 Get Raw Data
(163)
Step 1: Looking for Data Sources
(163)
Step 2: Loading the Data
(164)
Step 3: Checking Data Quality
(164)
CRM at Work 7.2
(165)
Gathering Raw Data at Credite Est
(165)
7.3.5 Identify Relevant Predictive Variables
(165)
Step 1: Create Analytical Customer View: Flattening the Data
(165)
Step 2: Create Analytical Variables
(166)
Step 3: Select Predictive Variables
(167)
CRM at Work 7.3
(167)
Identifying Relevant Variables at Credite Est
(167)
7.3.6 Gain Customer Insight
(168)
Step 1: Preparing Data Samples
(168)
Step 2: Predictive Modeling
(169)
Step 3: Select Model
(169)
CRM at Work 7.4
(169)
Gaining Customer Insight at Credite Est
(169)
7.3.7 Act
(169)
Step 1: Deliver Results to Operational Systems
(170)
Step 2: Archive Results
(170)
Step 3: Learn
(171)
CRM at Work 7.5
(171)
Acting on the Information at Credite Est
(171)
CRM at Work 7.6
(172)
Yapi Kredi—Predictive Model-Based Cross-Selling Campain
(172)
The Challenge
(172)
Solution
(172)
Define Business Objectives
(172)
Get Raw Data
(173)
Identify Relevant Variables
(173)
Gain Customer Insight
(173)
Act
(173)
References
(175)
8: Using Databases
(176)
8.1 Types of Databases
(177)
8.1.1 Categorization Based on the Information Included in the Databases
(177)
Customer Database
(178)
CRM at Work 8.1
(178)
No Ads, Please!
(178)
Prospect Database
(179)
Cluster Database
(179)
CRM at Work 8.2
(180)
American Express and Database Clustering
(180)
Enhancement Database
(180)
CRM at Work 8.3
(180)
County Drain’s Enhancement Database
(180)
8.1.2 Categorization Based on the Nature of the Underlying Marketing Activities
(181)
Passive Marketing Database
(181)
Active Marketing Database
(181)
CRM at Work 8.4
(181)
Best Buy’s Athena Database
(181)
8.1.3 Categorization Based on the Database Technology
(182)
Hierarchical Database
(182)
Inverted Database
(183)
Relational Database
(183)
8.2 The Benefits of Marketing Databases
(183)
8.2.1 The Ability to Carry Out Profitable Segmentation
(183)
8.2.2 Retained Customers and Repeat Business
(183)
8.2.3 The Ability to Spot Potentially Profitable Customers
(183)
8.3 The Uses of Marketing Databases (Jackson & Wang, 1994)
(183)
8.3.1 Uses that Directly Influence the Customer Relationship
(183)
8.3.2 Uses that Directly Influence Other Business Operations
(184)
References
(186)
IV: Operational CRM
(187)
9: Software Tools and Dashboards
(188)
9.1 CRM Implementation Options
(189)
9.1.1 Developing Software In-House
(189)
Advantages
(189)
Disadvantages
(190)
9.1.2 Buying Licensed CRM Software
(190)
Advantages
(190)
Disadvantages
(190)
9.1.3 Outsourcing a Managed Service
(190)
Advantages
(191)
Disadvantages
(191)
The Decision Process for Implementation
(191)
9.2 CRM Software and Applications
(192)
9.2.1 Stage-Wise Implementation Versus an Enterprise Wide CRM Solution
(192)
9.2.2 Relationships and Flows Between CRM Modules
(192)
References
(195)
10: Loyalty Programs: Design and Effectiveness
(196)
10.1 What Is Loyalty? Behavioral Versus Attitudinal Loyalty
(198)
A Case in Point
(199)
10.2 What Is a Loyalty Program? Definition and Key Objectives
(199)
10.2.1 Building True Loyalty
(199)
10.2.2 Efficiency Profits
(200)
10.2.3 Effectiveness Profits
(200)
Achieving Effectiveness Profits in a Grocery Store
(200)
10.2.4 Value Alignment
(201)
10.3 Loyalty Programs: Increasing in Popularity
(201)
10.3.1 Examples of Loyalty Programs
(204)
CRM at Work 10.1
(204)
Frequent-Flyer Programs
(204)
10.4 Problems with Loyalty Programs
(205)
CRM at Work 10.2
(205)
Example: ANZ Bank
(205)
10.5 Design Characteristics of Loyalty Programs
(206)
10.5.1 Reward Mechanism: Transaction-Based Versus Engagement-Based
(206)
10.5.2 Reward Structure
(206)
Hard Versus Soft Rewards
(206)
Product Proposition Support
(207)
Aspirational Value of Reward
(207)
Rate of Rewards
(207)
Tiering of Rewards
(207)
CRM at Work 10.3
(208)
Nordstorm’s Rewards Plus Program
(208)
Timing of Rewards
(208)
Rewards Based on Specific Criteria
(208)
10.5.3 Participation Requirements
(208)
Voluntary or Automatic Enrollment
(208)
Open Versus Closed Loyalty Programs
(209)
Automatic or Manual Point Accumulation
(209)
10.5.4 Payment Function
(209)
10.5.5 Sponsorship
(209)
Single- Versus Multi-Firm LP
(209)
Within/Across Sectors
(209)
Ownership
(210)
10.5.6 Cost and Revenues of LPs
(210)
CRM at Work 10.4
(210)
Tesco’s Green ClubCard Points: Sustainability in Loyalty Programs
(210)
10.6 Drivers of Loyalty Program Effectiveness
(210)
10.6.1 Loyalty Program Design Characteristics
(211)
10.6.2 Customer Characteristics
(211)
10.6.3 Firm Characteristics
(211)
10.6.4 Achieving a Competitive Advantage
(212)
CRM at Work 10.5
(213)
Tesco: From Price Promotions to Marketing Efficiency
(213)
U.K. Supermarket Market Share in Percentages
(213)
10.7 Empirical Evidence on Loyalty Program Effectiveness
(214)
10.8 Loyalty Programs, Shackle or Reward: And to Whom?
(214)
10.9 The Seven-Point Checklist for Successful LP Design and Implementation
(214)
Minicase 10.1
(215)
Loyalty Program Management at Starwood Hotels
(215)
Appendix 1: Key Studies of LPs with Notable Empirical Findings
(218)
References
(221)
11: Campaign Management
(223)
CRM at Work 11.1
(224)
The «All Adidas» Global Marketing Campaign
(224)
Purpose
(224)
Brand Ambassadors
(224)
Channels
(224)
Desired Outcome
(224)
11.1 Campaign Management
(225)
11.2 Campaign Planning and Development
(226)
11.2.1 Setting Objectives and Strategies
(226)
Who Do You Want to Target?
(226)
Where Should You Target?
(226)
How Do You Get to Them?
(227)
When Is the Best Time?
(227)
11.2.2 Identifying Customer Segments
(227)
How Are Customer Segments Targeted?
(228)
11.2.3 Developing the Communication Strategy
(228)
Which Communication Strategy?
(229)
CRM at Work 11.2
(230)
Barack Obama’s 2008 Presidential Campaign
(230)
Recruiting Support
(230)
11.2.4 Developing the Offer
(230)
CRM at Work 11.3
(231)
Metropolitan Life Insurance Company (MetLife)
(231)
11.2.5 Campaign Budget
(235)
Preset Budgeting
(236)
Advantages
(236)
Disadvantages
(236)
Budgeting for an Allowable Marketing Cost
(237)
Advantages
(237)
Disadvantages
(237)
Budgeting with the Competitive Parity Method
(237)
Advantages
(237)
Disadvantages
(237)
Budgeting with the Objective and Task Method
(237)
Advantages
(237)
Disadvantages
(237)
Budgeting with the Percentage of Sales Method
(237)
Advantages
(238)
Disadvantages
(238)
Budgeting with Key Performance Indicators
(238)
Budgeting with the Lifetime Value Method
(239)
Advantages
(239)
Disadvantages
(239)
11.2.6 Testing
(240)
What Are the Benefits of Testing?
(240)
What Should You Test?
(240)
CRM at Work 11.4
(240)
Testing the Media Before the Roll-Out
(240)
Does Testing Predict the Future?
(242)
Testing in Different Media
(242)
How Reliable Are the Test Predictions?
(244)
What Are the Potential Problems in Testing?
(244)
11.3 Campaign Execution
(244)
11.3.1 Implementation and Coordination
(244)
Campaign Program
(244)
Campaign Schedule
(245)
Activity Schedule
(245)
11.3.2 Monitoring and Fine-Tuning
(245)
11.3.3 Problems to Take into Account
(245)
11.4 Analysis and Control
(246)
11.4.1 Measuring Campaign Results
(247)
11.4.2 Response Analysis
(248)
11.4.3 Profile Analysis
(248)
11.5 Campaign Feedback
(248)
Minicase 11.1
(249)
Z4 Launch Campaign at BMW
(249)
References
(251)
12: Impact of CRM on Marketing Channels
(252)
12.1 CRM and Marketing Channels
(254)
12.1.1 What Are Channels?
(254)
12.1.2 The Role of Channels in Customer Relationships
(255)
12.1.3 Managing Customer Relationships Through Indirect Channels
(256)
CRM and Indirect (Traditional) Offline Channels
(256)
Dilution of CRM Strategies
(257)
Indirect Control of CRM Through Channels
(257)
Eliciting Customer Information from All Channels for Central Processing
(257)
CRM and Indirect Online Channels
(257)
12.1.4 Managing Customer Relationships Through Direct Channels
(257)
CRM and Direct Offline Channels
(258)
CRM and Direct Online Channels
(258)
12.1.5 Multichannel Trends and CRM
(260)
Trend 1: The Proliferation of Direct Channels
(260)
Trend 2: Multichannel as the Norm
(260)
Trend 3: Multichannel Shoppers
(260)
Trend 4: Research Shoppers
(263)
Opportunities Due to Multichannel Trends
(263)
Widening Coverage of the Consumer Population
(263)
Improved Availability of Customer Information for the Firm
(263)
Less Dependence on Channel Partners
(264)
Challenges Due to Multichannel Trends
(264)
Media Planning Is Increasingly Difficult
(264)
Channel Conflict and Differentiation
(264)
12.2 CRM and Multichannel Design
(265)
12.2.1 Attributes of Multichannel Designs
(265)
12.2.2 Designing Optimal Multichannel Offers
(267)
Fit Multichannel Systems to the Business Strategy and Environmental Conditions
(267)
Maximize Positive and Minimize Negative Cross-Channel Effects
(268)
12.3 CRM and Multichannel Management
(269)
12.3.1 Managing Multichannel Systems: Integration Versus Separation
(269)
Integrate Channel Functions to Enhance Customer Loyalty and Long-Term Profits
(270)
Separate Channel Functions and Differentiate Prices to Increase Short-Term Profits
(271)
12.3.2 Managing Multichannel Shoppers
(271)
Multichannel Shoppers Are More Loyal than Single-Channel Shoppers
(272)
Multichannel Shoppers Spend More Money Because They See Advertisements More Frequently than Single-Channel Shoppers
(272)
Multichannel Shoppers Purchase More Frequently than Single-Channel Shoppers Because Shopping Is Possible in Every Situation
(272)
Only Customers Who Typically Shop Frequently and Spend Much Money Actually Use Multiple Channels for Purchase (Customer Self-Selection)
(272)
Drivers of Multichannel Shopping
(273)
12.3.3 Managing Research Shoppers
(274)
Minicase 12.1
(275)
Otto Versand
(275)
References
(278)
13: CRM Issues in the Business-To-Business Context
(280)
CRM at Work 13.1
(281)
IBM: Identifying Customer-Contact Roles
(281)
13.1 CRM and Sales Force Automation
(282)
13.1.1 What Is SFA?
(283)
CRM at Work 13.2
(283)
InvisibleSolutions: Bridging the Gap between Business Apps and Productivity Tools
(283)
13.1.2 SFA Benefits
(283)
13.1.3 Conditions for Realizing Benefits
(283)
13.2 CRM and Key Account Management
(285)
13.2.1 What Is KAM?
(285)
13.2.2 Implementation of the KAM Program
(286)
Step 1: Selection of Key Accounts
(286)
Selection criteria
(286)
Selection process
(287)
CRM at Work 13.3
(288)
FestoAG: Selecting Key Accounts
(288)
Step 2: Design Elements of the KAM Program
(288)
Activities
(288)
CRM at Work 13.4
(288)
3M: Activities for Key Accounts
(288)
Actors
(288)
Resources
(289)
CRM at Work 13.5
(290)
Philips: Access to Various Kinds of Resources
(290)
Formalization
(290)
Step 3: Advancement of the KAM Program
(290)
Optimizing
(290)
Improvement
(290)
CRM at Work 13.6
(291)
Hilti: Best Practices
(291)
13.3 CRM and the Shift from Goods to Services
(291)
CRM at Work 13.7
(291)
Oracle: Best Practice
(291)
13.3.1 What Are Hybrid Offerings?
(292)
13.3.2 Advantages and Disadvantages of the Shift to Hybrid Offerings
(293)
13.3.3 Rules for Successful Shifts
(294)
PDS: Effective Solutions
(295)
Supplier Variables
(295)
Customer Variables
(295)
References
(297)
14: Customer Privacy Concerns and Privacy Protective Responses
(299)
14.1 Customer Privacy Concerns
(301)
14.1.1 Customer Privacy
(301)
14.1.2 Drivers of Customer Privacy Concerns
(302)
Internal Drivers of Customer Privacy Concerns
(303)
Collection
(303)
Control
(303)
Awareness
(303)
Errors
(303)
Improper Access
(303)
Unauthorized Secondary Use
(303)
CRM at Work 14.1
(303)
Privacy Concerns
(303)
Privacy Risks
(303)
Privacy Control
(303)
Effectiveness of Privacy Policy
(304)
External Drivers of Customer Privacy Concerns
(304)
Internet
(304)
Technology
(305)
Public Media
(306)
Government Regulation
(307)
14.2 Regulations to Protect Customer Privacy
(308)
14.2.1 United States: Customer Privacy Protection Based on Industry Self-regulation
(309)
Notice and Awareness
(309)
Choice and Consent
(309)
Access
(309)
Integrity and Security
(309)
Enforcement and Redress
(309)
14.2.2 Germany: Customer Privacy Protection Based on Governmental Legislation
(310)
The German Constitution
(310)
Data Protection Law
(310)
The German Teleservices Data Privacy Act
(310)
Section 7 of the German Unfair Competition Act
(310)
14.2.3 The General Data Protection Regulation (GDPR)
(311)
Rule Harmonization and One-Stop Shop
(311)
Expanded Territorial Reach
(312)
Data Protection Officers
(312)
Profiling
(312)
Privacy by Design and by Default
(312)
Consent
(312)
Right to Erasure
(312)
Fines
(312)
14.3 Customer Privacy Protective Responses
(313)
14.3.1 Information Provision
(313)
14.3.2 Private Action
(314)
14.3.3 Public Action
(314)
14.4 Privacy Paradox
(314)
14.5 Consequences of Privacy Protective Responses
(315)
14.5.1 Loss of Trust and Brand Integrity
(315)
14.5.2 Decreased Sales
(315)
14.5.3 Decrease in Data Quality
(315)
14.5.4 Increased Costs due to Privacy Protection
(315)
14.5.5 Ethical Dilemma
(315)
14.6 Implications for Companies
(315)
14.6.1 Align Privacy with Strategy
(316)
14.6.2 Look Beyond Rules to Values
(316)
14.6.3 Anticipate Issues
(316)
14.6.4 Create Accountability
(316)
14.6.5 Do Not Conflate Security and Privacy
(316)
14.6.6 Treat Privacy as a Social Responsibility
(316)
14.6.7 Manage Your Data Supply Chain
(316)
14.6.8 Rely on Technology When Appropriate
(316)
14.6.9 Plan for Disaster Recovery
(316)
14.6.10 Heed both Boomers and Millennials
(316)
CRM at Work 14.2
(317)
Problem
(317)
Solution
(317)
Best Practice
(317)
14.7 Future Issues: Data as Currency
(317)
Appendix 1: Selected settlements in violation of FIP principles (Peltier et al., 2009)
(320)
Supplemental readings on customer privacy
(321)
References
(321)
15: CRM in Social Media
(324)
15.1 The Social Media Landscape
(325)
15.2 How Do Word of Mouth on Social Media Impact Brands?
(326)
15.2.1 Influence of WOM Conversations on Brands
(327)
15.2.2 Implications for Marketers
(328)
15.3 Measuring the Return of Investment of Social Media
(328)
15.3.1 Measuring the Influence of a Social Media User
(328)
15.3.2 What Drives the Influencers?
(329)
15.3.3 Creating a Successful Social Media Campaign
(329)
Step 1: Monitor the Conversations
(329)
Step 2: Identify Influential Individuals Who Can Spread Messages
(329)
Step 3: Identify the Factors Shared by Influential Individuals
(329)
Step 4: Locate the Relevant Potential Influencers
(330)
Step 5: Recruit the Influencers for the Campaign
(330)
Step 6: Incentivize those Influencers to Spread Positive WOM
(330)
Step 7: Reap the Rewards from the Social Media Campaigns
(330)
15.3.4 Social Media Performance at Hokey Pokey
(330)
15.3.5 Implications for Developing Social Media Campaigns
(331)
15.4 Impact of Social Media on Brand Sales in Entertainment
(332)
15.5 Social Coupons
(333)
15.5.1 What Happens When Social Coupons Are Launched?
(334)
15.5.2 How to Ensure Profitability in Social Coupon Campaigns?
(335)
Customer Acquisition Does Not Always Lead to Profits
(335)
Deep Discounts Could Become Dearer to Businesses
(336)
Social Coupons Can Cannibalize Revenue from Existing Customers
(336)
References
(338)
V: Advances in CRM Applications
(340)
16: Applications of CRM in B2B and B2C Scenarios Part I
(341)
16.1 Measuring Customer Profitability
(343)
16.1.1 Computing CLV
(343)
16.1.2 Drivers of CLV
(344)
16.2 The Lifetime-Profitability Relationship in a Noncontractual Setting
(346)
16.2.1 Background and Objective
(346)
16.2.2 Conceptual Model
(347)
Customer Lifetime and Firm Profitability
(348)
Proposition 1: The Nature of the Lifetime-Profitability Relationship Is Positive
(348)
Proposition 2: Profits Increase Over Time
(349)
Proposition 3: The Costs of Serving Longer-Life Customers Are Lower
(350)
Proposition 4: Longer-Life Customers Pay Higher Prices
(350)
16.2.3 Research Methodology
(350)
Data
(350)
A Model for Measuring Customer Lifetime for Noncontractual Relationships
(350)
Establishment of Cut-off Threshold
(351)
Lifetime Estimation
(351)
Profit Calculation
(352)
Test of the Propositions
(352)
Proposition 1: The Nature of the Lifetime-Profitability Relationship Is Positive
(352)
Proposition 2: Profits Increase Over Time
(353)
Proposition 3: The Costs of Serving Long-Life Customers Are Lower
(353)
Proposition 4: Longer-Life Customers Pay Higher Prices
(353)
16.2.4 Empirical Findings
(353)
What Is the Nature of the Lifetime-Profitability Relationship?
(353)
Do Profits Increase Over Time?
(356)
Are the Costs of Serving Long-Life Customers Lower?
(357)
Do Long-Life Customers Pay Higher Prices?
(357)
16.2.5 Implications
(358)
16.3 Model for Incorporating Customers’ Projected Profitability into Lifetime Duration Computation
(358)
16.3.1 Background and Objectives
(358)
16.3.2 A Dynamic Model of the Antecedents of Profitable Lifetime Duration
(358)
Exchange Characteristics
(360)
Customer Heterogeneity
(360)
Spatial Location of Consumer
(360)
Income
(360)
16.3.3 Research Methodology
(360)
Database
(360)
16.3.4 Determining Profitable Customer Lifetime Duration
(361)
Calculate Net Present Value (NPV) of Expected Contribution Margin (ECMiJ)
(361)
Decision of Relationship Termination
(361)
Calculation of Finite Lifetime Estimate
(362)
16.3.5 Analysis
(362)
Variable Operationalization
(362)
16.3.6 Results
(364)
Effects of Exchange Variables
(364)
Purchase Amount
(364)
Cross Buying
(364)
Focus of Buying
(364)
Average Interpurchase Time
(364)
Returns
(364)
Loyalty Instrument
(367)
Mailings
(368)
Product Category
(368)
Effects of Observed Heterogeneity
(368)
Spatial Location of Customer
(368)
Income and Age
(368)
16.3.7 Technical Appendix: Estimation of P(Alive)
(368)
16.4 Model for Identifying the True Value of a Lost Customer
(370)
16.4.1 Conceptual Background
(370)
16.4.2 Modeling the Effects of Disadoption on the Value of a Lost Customer
(371)
16.4.3 The Key Determinants of the Value of a Customer
(371)
References
(373)
17: Applications of CRM in B2B and B2C Scenarios Part II
(375)
17.1 Optimal Resource Allocation Across Marketing and Communication Strategies
(377)
17.2 Purchase Sequences Analysis: Delivering the Right Message to the Right Customer at the Right Time
(379)
17.3 The Link Between Acquisition, Retention, and Profitability: Balancing Acquisition and Retention Resources to Maximize Customer Profitability
(381)
17.4 Preventing Customer Churn
(383)
17.5 Customer Brand Value
(385)
17.5.1 What Is Customer Brand Value?
(385)
17.5.2 Linking Customer Brand Value to Customer Lifetime Value
(386)
17.5.3 What Are the Managerial Benefits of Linking Customer Brand Value to Customer Lifetime Value?
(386)
Monitor the Overall Performance of Customer Brand Value
(386)
Manage Brand at the Segment Level
(386)
Manage Brand at the Individual Level
(386)
17.6 Customer Referral Value
(387)
17.6.1 What Is Customer Referral Value?
(387)
17.6.2 How Can Compute Customer Referral Value Be Computed?
(388)
Step 1: Purchase
(388)
Step 2: Future Value
(388)
Step 3: Number of Referrals
(388)
Step 4: Timing of Customer Referrals
(389)
17.6.3 How Can Customer Referral Value Be Linked to Customer Lifetime Value?
(389)
17.6.4 What Are the Managerial Benefits of Linking Customer Referral Value and Customer Lifetime Value?
(390)
17.6.5 What Should the Focus Be on: Customer Referral Value or Customer Lifetime Value?
(394)
References
(396)
18: Future of CRM
(397)
18.1 Social CRM
(399)
18.1.1 Popular Social Media Channels
(399)
Blogs
(399)
E-Mail
(400)
Social Networking Platforms
(401)
Podcasts and Internet Radio
(401)
Mobile Applications
(402)
Viral Videos
(402)
Social Coupons
(403)
18.1.2 Consumer-to-Consumer Interaction: A New Marketing Portal
(404)
Listening as a First Step
(404)
Mutual Purpose and Transparency
(406)
18.1.3 Social CRM Strategies: How to Do It?
(407)
Social Strategies: Not Social Tools
(407)
Implementation: Task-Specific
(407)
18.1.4 Sentiment Analysis
(408)
18.1.5 A Final Word on Social CRM
(409)
18.2 Global CRM (GCRM)
(409)
18.2.1 Informational Technology Needs
(410)
18.2.2 Global Diffusion
(410)
Regional and National Heterogeneity
(410)
Applying It as a Firm
(410)
18.3 Database CRM
(411)
18.3.1 Introduction
(411)
18.3.2 Cloud Computing
(412)
18.3.3 Privacy Issues and Concerns
(413)
International Perspectives: Did You Know?
(414)
References
(414)
Index
(418)
