Managing Customers For Profit

Leading marketing expert V. Kumar shows how to use Customer Lifetime Value (CLV) to target customers with higher profit potential...manage and reward existing customers based on their profitability...and invest in high-profit customers to prevent attrition and ensure future profitability. Kumar introduces customer-centric approaches to allocating marketing resources for maximum effectiveness...pitching the right products to the right customers at the right time...determining when a customer is likely to leave, and whether to intervene...managing multichannel shopping...even calculating a customer's referral value.

This book is a response to a need in the market place in the fast-growing field of customer profitability analysis and the profitable management of customer relationships. It combines innovative approaches to calculating the value of customers, with the management strategies necessary to make and keep customers profitable. It includes easy-to-follow instructions on how to calculate customer profitability, including worked examples (non-technical) and discusses strategies and their applications for organizations to manage customers profitably. Based on cases and feedback from the KAM Club and other research, there will be many business-to-business as well as business-to-consumer examples. The book assumes some level of numeracy in its readership. The contents include: Assessing product costs, costs to serve and how these can be estimated, and how to deal with customer-specific overhead costs. It discusses the uses and limitations of the use of customer profitability analysis, and illustrates how to calculate customer lifetime value using two methods, one with actual numbers and one which estimates relative customer lifetime value. Provides an innovative approach to calculating the lifetime value of a customer by taking risk into account. Demonstrates how to recognise and value the relationship benefits of customers, such as word of mouth. Brings into discussion the idea that how customers are managed, links to their profitability. Describes how financial portfolio analysis and theory apply to marketing and how, their application to marketing relates to the optimisation of marketing spend.

A company exists to make profit, and everything it does is a step towards that goal. Many firms are trying to get closer to their customers, but few realise how crucial this is to corporate value. Indeed, the long-term value of a company is perhaps best described as the sum of future profits from customers, discounted to a present value. Tackling two hot topics in business - CRM and corporate value - and based on a study undertaken by the Customer Management Leadership Group, John Murphy's new book links customer management directly to company profitability for the first time. By implementing its Customer Management Integration Framework, a company can see cash flows for each customer relationship, and use that information to effectively manage key customers for higher and more resilient levels of profitability.

Today the hottest new area of marketing is Customer Relationship Management (CRM) -- the discipline of identifying, attracting, and retaining a company¹s most valuable customers. Drawing upon more than ten years of testing, tryout, and implementation in hundreds of companies, CRM expert Jay Curry, and his Internet-expert son, Adam Curry, have written a clear, step-by-step guide to profiting from this exploding movement, with strategies that are aimed at the small and medium-sized business owners who need them most. Jay Curry explains how CRM can help managers boost profits by implementing a customer-focused strategy. Using easy-to-understand graphics, he introduces the customer pyramid -- segmented as "Top," "Big," "Medium," and "Small" -- to help the reader visualize, analyze, and improve customer profitability. Success comes to those who follow this three-step Customer Marketing Strategy: (1) get new customers into your pyramid; (2) move customers higher into your pyramid; (3) keep the customers in the pyramid. Combining practical how-to directives with vital CRM reference information, the book includes a case study, "InterTech," that allows readers to see customer-focused strategy in action. The final third of this practical, easy-to-read book is devoted to the Internet. Here Adam Curry introduces the "Permission Pyramid" and the "e-Customer Marketing Pyramid" to explain the nature of "virtual customer relationships" and how to use them to create, keep, and upgrade customers. This section includes mini-cases and tips to help managers use the Internet to complement current marketing and sales activities and ends with guidelines to test out the new paradigms of e-commerce. Throughout The Customer Marketing Method, the emphasis is always on practical steps to "make it happen." It is essential and timely reading for owners of small and medium-sized businesses as well as managers of small business units within larger firms.

This volume documents the results of global research on customer management (CM) funded by QCi, IBM and OgilvyOne. It is based on the diagnostic tool developed by QCi, the Customer Management Assessment Tool (CMAT), which is recognized as the global CRM scorecard and benchmark "best practice" standard for assessing how well organizations manage their customers. Drawing on the results of research using CMAT in over 300 leading companies around the world and across a wide variety of sectors, the authors present their findings. The detailed cases illustrate the gains to be made from managing customers well and include: BP; Barclaycard; BskyB; Hyundai; Mobil; Prudential; Smithkline Beecham; John Lewis; NatWest Bank; and Rolls Royce. The accompanying free CD-ROM contains a mini version of CMAT.

Every business on the planet is trying to maximize the value created by its customers Learn how to do it, step by step, in this newly revised Fourth Edition of Managing Customer Experience and Relationships: A Strategic Framework. Written by Don Peppers and Martha Rogers, Ph.D., recognized for decades as two of the world’s leading experts on customer experience issues, the book combines theory, case studies, and strategic analyses to guide a company on its own quest to position its customers at the very center of its business model, and to “treat different customers differently.” This latest edition adds new material including: How to manage the mass-customization principles that drive digital interactions How to understand and manage data-driven marketing analytics issues, without having to do the math How to implement and monitor customer success management, the new discipline that has arisen alongside software-as-a-service businesses How to deal with the increasing threat to privacy, autonomy, and competition posed by the big tech companies like Facebook, Amazon, and Google Teaching slide decks to accompany the book, author-written test banks for all chapters, a complete glossary for the field, and full indexing Ideal not just for students, but for managers, executives, and other business leaders, Managing Customer Experience and Relationships should prove an indispensable resource for marketing, sales, or customer service professionals in both the B2C and B2B world.

The success of any organization depends on high-quality customer service. But for companies that strategically align customer service with their overall corporate strategy, it can transcend typical good business to become a profitable word-of-mouth machine that will transform the bottom line. The Author draws on over thirty years of research for companies such as 3M, American Express, Chik-Fil-A, USAA, Coca-Cola, FedEx, GE, Cisco Systems, Neiman Marcus, and Toyota. Filled with proven strategies and eye-opening case studies, this book challenges many aspects of conventional wisdom using hard data and reveals how any organization can earn more loyalty, win more customers...and improve their financial bottom line.