Customer Management Scorecard
Managing CRM for Profit
1st Edition
Published on 14. November 2002
Book
Hardback
384 pages
978-0-7494-3895-1 (ISBN)
Description
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.
More details
Language
English
Place of publication
London
United Kingdom
Target group
College/higher education
Professional and scholarly
Product notice
Cloth over boards
Dimensions
Height: 254 mm
Width: 196 mm
Thickness: 31 mm
Weight
1136 gr
ISBN-13
978-0-7494-3895-1 (9780749438951)
Copyright in bibliographic data and cover images is held by Nielsen Book Services Limited or by the publishers or by their respective licensors: all rights reserved.
Schweitzer Classification
Persons
Professor Merlin Stone is one of the UK's top specialists in changing organisational capability to meet the needs of customers and stakeholders. His experience covers many sectors, and he also trains, coaches and mentors senior managers. He is Research Director and Director responsible for the Customer, Citizen and Stakeholder Management Practice at WCL, specialists in change management and customer/stakeholder management.
Merlin Stone is author or co-author of many articles and thirty books on transforming marketing, sales and customer service capabilities, including Customer Relationship Marketing, Consumer Insight, Marketing Revolution and Business Solutions on Demand. The UK's Chartered Institute of Marketing listed him in 2003 as one of the world's top 50 marketing thinkers, while NOP World nominated him in 2004 as one of 100 most influential individuals for their input and influence on the development and growth of e-commerce and the internet in the UK over the previous 10 years. He is an Fellow of the Chartered Institute of Marketing and an Honorary Life Fellow of the UK's Institute of Direct Marketing. He is also on the editorial advisory boards of several academic journals and writes for several trade publications.
Merlin Stone has a first class honours degree and doctorate in economics from Sussex University, UK. In parallel to his business career, he has also pursued a full academic career. He has held senior academic posts at various universities. He is now a part-time professor at Bristol Business School and a visiting professor at several others.
Neil Woodcock has worked on customer management projects with multi-national companies in Europe, the Far East, South Africa and the USA, specializing in the use of data to plan, implement and analyse strategies and activities. He has co-authored several books, including Up Close and Personal? and Customer Relationship Marketing (both Kogan Page) and is on the editorial board of the Journal of Customer Relationship Management and the Journal of Database Marketing. Bryan Foss is an independent non-executive director (NED), board level adviser, mentor and Visiting Professor. The majority of his work is in board governance and risk management (including operational, systems and data risks), also Business-to-Business marketing and sales, including international Key Account and partner management, SMB marketing and through-the-value-chain distribution management to employees and consumers. Bryan has a combination of commercial, regulatory, academic and professional roles, he is also an active board mentor for a very wide variety of organisations and individuals.
Merlin Stone is author or co-author of many articles and thirty books on transforming marketing, sales and customer service capabilities, including Customer Relationship Marketing, Consumer Insight, Marketing Revolution and Business Solutions on Demand. The UK's Chartered Institute of Marketing listed him in 2003 as one of the world's top 50 marketing thinkers, while NOP World nominated him in 2004 as one of 100 most influential individuals for their input and influence on the development and growth of e-commerce and the internet in the UK over the previous 10 years. He is an Fellow of the Chartered Institute of Marketing and an Honorary Life Fellow of the UK's Institute of Direct Marketing. He is also on the editorial advisory boards of several academic journals and writes for several trade publications.
Merlin Stone has a first class honours degree and doctorate in economics from Sussex University, UK. In parallel to his business career, he has also pursued a full academic career. He has held senior academic posts at various universities. He is now a part-time professor at Bristol Business School and a visiting professor at several others.
Neil Woodcock has worked on customer management projects with multi-national companies in Europe, the Far East, South Africa and the USA, specializing in the use of data to plan, implement and analyse strategies and activities. He has co-authored several books, including Up Close and Personal? and Customer Relationship Marketing (both Kogan Page) and is on the editorial board of the Journal of Customer Relationship Management and the Journal of Database Marketing. Bryan Foss is an independent non-executive director (NED), board level adviser, mentor and Visiting Professor. The majority of his work is in board governance and risk management (including operational, systems and data risks), also Business-to-Business marketing and sales, including international Key Account and partner management, SMB marketing and through-the-value-chain distribution management to employees and consumers. Bryan has a combination of commercial, regulatory, academic and professional roles, he is also an active board mentor for a very wide variety of organisations and individuals.
Content
Chapter 1. What is CMAT? - Neil Woodcock, Michael Starkey and Merlin Stone, The scope of a CMAT assessment, How a CMAT assessment is carried out, The benefits of CMAT assessments; Chapter 2. Overall analysis - Neil Woodcock, Michael Starkey and Merlin Stone, Customer management performance is disappointing, Why the scores have declined , Why companies are performing so poorly, despite the investment, It's not all doom and gloom; Chapter 3. Customer management around the world - Michael Starkey, Neil Woodcock, Merlin Stone and Sarah Boussofiane, North America, Canada, Germany, Switzerland, Austria, United Kingdom, Developing Asia Pacific, Japan, Importance of these findings; Chapter 4. Where companies can create and destroy value - Neil Woodcock, Michael Starkey and Merlin Stone, Introducing the customer management value chain, Focusing on customer value; Chapter 5. Analysis and planning - Neil Woodcock, Michael Starkey and Merlin Stone, Characteristics of the highest-performing companies, Examples of best practices; Chapter 6. Proposition - Neil Woodcock, Michael Starkey and Merlin Stone, Characteristics of the highest-performing companies, Examples of best practices; Chapter 7. Customer management activity - Neil Woodcock, Michael Starkey and Merlin Stone, Where value is being created (extracted from highest-performing companies), Best practice examples; Chapter 8. People and organization - Neil Woodcock, Michael Starkey and Merlin Stone, Characteristics of the highest-performing companies, Best practice examples; Chapter 9. Information and technology - Neil Woodcock, Michael Starkey and Merlin Stone - Characteristics of the highest-performing companies, Best practices;Chapter 10. Process management - Neil Woodcock, Michael Starkey and Merlin Stone, Characteristics of high-performing companies, Best practices; Chapter 11. Measurement - Neil Woodcock, Michael Starkey and Merlin Stone, Characteristics of highest-performing companies, Best practices; Chapter 12. The customer experience - Neil Woodcock, Michael Starkey and Merlin Stone, Characteristics of highest-performing companies, Best practices; Chapter 13. The role of customer information management and usage in best practice customer management - Dave Irwin, Clarke Caywood and Iain Henderson, Introduction, Methodology and findings, General findings, Information management and usage findings, Best practices, Conclusions; Chapter 14. The Dutch insurance industry CMAT study - Hans Neerken and Roland Bushoff, Introduction , General results, Direct insurers score best, Analysis and planning, Proposition, People and organization, Information and technology, Processes, Customer management activities, Measurement, Customer experience, Conclusions; Chapter 15. Trends in customer management - Neil Woodcock, Michael Starkey and Merlin Stone, Customer management spend is increasing, Trends in customer contact channels and media. (Part contents).
List of figures
List of tables
List of contributors
Introduction
Neil Woodcock, Merlin Stone and Bryan Foss
Part 1. The Scorecard Results And Conclusions
Chapter 1. What is CMAT?
Neil Woodcock, Michael Starkey and Merlin Stone
The scope of a CMAT assessment; How a CMAT assessment is carried out; The benefits of CMAT assessments
Chapter 2. Overall analysis
Neil Woodcock, Michael Starkey and Merlin Stone
Customer management performance is disappointing; Why the scores have declined; Why companies are performing so poorly, despite the investment; It's not all doom and gloom
Chapter 3. Customer management around the world
Michael Starkey, Neil Woodcock, Merlin Stone and Sarah Boussofiane
North America; Canada; Germany; Switzerland; Austria; United Kingdom; Developing Asia Pacific; Japan; Importance of these findings
Chapter 4. Where companies can create and destroy value
Neil Woodcock, Michael Starkey and Merlin Stone
introducing the customer management value chain; Focusing on customer value
Chapter 5. Analysis and planning
Neil Woodcock, Michael Starkey and Merlin Stone
Characteristics of the highest-performing companies; Examples of best practices
Chapter 6. Proposition
Neil Woodcock, Michael Starkey and Merlin Stone
Characteristics of the highest-performing companies; Examples of best practices
Chapter 7. Customer management activity
Neil Woodcock, Michael Starkey and Merlin Stone
Where value is being created (extracted from highest-performing companies); Best practice examples
Chapter 8. People and organization
Neil Woodcock, Michael Starkey and Merlin Stone
Characteristics of the highest-performing companies; Best practice examples
Chapter 9. Information and technology
Neil Woodcock, Michael Starkey and Merlin Stone
Characteristics of the highest-performing companies; Best practices
Chapter 10. Process management
Neil Woodcock, Michael Starkey and Merlin Stone
Characteristics of high-performing companies; Best practices
Chapter 11. Measurement
Neil Woodcock, Michael Starkey and Merlin Stone
Characteristics of highest-performing companies; Best practices
Chapter 12. The customer experience
Neil Woodcock, Michael Starkey and Merlin Stone
Characteristics of highest-performing companies; Best practices
Chapter 13. The role of customer information management and usage in best practice customer management
Dave Irwin, Clarke Caywood and Iain Henderson
Introduction; Methodology and findings; General findings; Information management and usage findings; Best practices; Conclusions
Chapter 14. The Dutch insurance industry CMAT study
Hans Neerken and Roland Bushoff
Introduction; General results; Direct insurers score best; Analysis and planning; Proposition; People and organization; information and technology; Processes; Customer management activities; Measurement; Customer experience; Conclusions
Chapter 15. Trends in customer management
Neil Woodcock, Michael Starkey and Merlin Stone
Customer management spend is increasing; Trends in customer contact channels and media
Chapter 16. The business case for customer management
Neil Woodcock, Michael Starkey and Merlin Stone
The correlation between customer management and business performance is clear; Identifying the main benefits; Benefits as a percentage of turnover; The size of the investment: the 4:1 rule; The organization's maturity and competence in CM management; Summary base data used in QCi research
Chapter 17. Guidelines for successful CRM implementation
Neil Woodcock, Michael Starkey and Merlin Stone
CM projects are far more likely to fail than succeed; Project implementation tips
Part 2. Measurement, Systems and Data
Chapter 18. Return on investment in e-CRM
Mark Cerasale, Merlin Stone and Julie Abbott
Introduction; E-CRM is CRM enabled by Internet technologies; Back to basics for an e-CRM metric; Learning from the mistakes of the past; Determining the ROI on e-CRM is challenging; The change required is greatest on people, organization and processes; Publishing information; Interaction; Transaction; Integration; E-CRM for cost reduction; E-CRM for increased revenues; E-CRM for improving cash-flow management; E-CRM for improvements in the customer experience; The costs of e-CRM are in technology, process, people and organization; Conclusions
Chapter 19. UK data warehousing and business intelligence implementation: general and retail
Merlin Stone, Julie Abbott and Tony Dobbs
Introduction; The current status; The research results; The case study; Conclusions
Chapter 20. Using advanced data analytics to improve customer management
David Selby and Julie Abbott
Introduction; Treating the customer as an investment; Single-entity View; Implementing ECA; Conclusion
Chapter 21. Applying IT in customer management
Bryan Foss, Thorsten Gorchs, Juergen Uhl, Divya Verma, James Richie and Merlin Stone
Introduction; The basics of systems selection; Recent changes; Implementation; Building an integrated IT capability for customer management; Future technology trends; Conclusions
Chapter 22. CRM's Achilles heel: understanding the customer
Raymond Pettit
Introduction; What happened to the CRM 'vision'?; Where marketing and research fit in; The 'solutions' playing field: what's going on; The 'closed loop' breakdown; Customer experience management solutions: CRM looks in the mirror; Analytical and market research integration; E-research and business; Cultural and organizational change: a reality in organizations; Conclusion and outlook
Part 3. The Sectoral View
Chapter 23. Managing public sector customers
Merlin Stone, Alison Bond, Roger Clarkson, Peter Hayes, Peter Lavers, Clare Traynor, David Williams and Neil Woodcock
Introduction; The challenge; Special issues affecting public sector customer management; Inter-sector differences; Understanding the customer; Translating experience between sectors; Delivering best value local customer service to the UK citizen; Measuring customer management performance; Case study 1: public sector CMAT; Case study 2: the cost of customer management; Case study 3: service to the elderly
Chapter 24. CRM strategy and implementation in telecommunications
Rob Mattison, Len Tiu Wright, Julie Abbott, Andy Brown, Dave Cox, Mike Faulkner and Merlin Stone
Part 1: context and methodology; The vision; The forces; Part 2: case studies; Company W; Company X; Company Y; Company Z; Building the CRM strategy; Paperless complaint resolution; Telecom Italia; Overall conclusion
Chapter 25. Business-to-business CRM
Genevieve Findlay, Mark Cerasale and Merlin Stone
[a]Introduction; B2B market context; Effective account management, possibly global in scale; Customers: the final link in the supply chain; Measurement and CRM metrics in B2B; Conclusions
PART 4. CHANNELS AND MEDIA
Chapter 26. Multi-channel customer management
Matt Hobbs, Mahnaz Khaleeli and Merlin Stone
Changing times, changing channels; Definition of multi-channel customer management; Why multi-channel customer management is important now; The benefits; The challenges; Seven factors driving change; Determining channel functionality; Customer experience must be the start point; Overcoming technology complexity; Organizational issues; Measurement; The economics of multi-channel integration; Recommendations; Checklist
Chapter 27. Permission-based e-mail
Teresa Waring and Antoine Martinez
Introduction; Ethical issues and the Internet; Permission-based e-mail marketing; Research methodology; Results; Conclusion
Chapter 28. The data lessons of e-mail in CRM
Jane McCarthy and Merlin Stone
Chapter 29. Measuring and improving the usability of new media
Vanessa Donnelly, Emma Reeves and Lada Gorlenko
Introduction; Improving usability; Why people do not buy from Web sites; The solution; The benefits; What to do about it; Case study: putting citizens first, establishing usable e-government
PART 5. IMPLEMENTATION AND THE FUTURE
Chapter 30. Customer and employee loyalty
Colin M Livingstone and Julie Abbott
Happy employees, happy customers, high profits?
Chapter 31. Declining UK customer service standards
Alison Bond and Merlin Stone
Methodology; Customer service: business fashion or worthwhile investment?; Benchmarking best practice customer service; UK companies are sitting on a customer service time bomb; The effects of poor service; Conclusion
Chapter 32. Governance and executive sponsorship in CRM programmes
Peter Floyd and Bryan Foss
Introduction; Programme governance; The historic view of organizations and change; The process and style of change; The challenge of change; The rise of people, or stakeholder, power; A range of roles and types of leadership; The executive sponsor role: director, scriptwriter and producer; Executive sponsorship in the initial phase; Achieving commitment via 'symbolic action': the part-time acting role; Conclusions and implications for management
Chapter 33. Managing customers: challenges for the future
Merlin Stone and Bryan Foss
Branding in an era of CRM; Building loyalty and relationships into products; CRM: just like the corner shop?; A single vision of CRM, a single customer view?; Segmentation, not stereotyping; Competing for share of wallet; Managing branch customers: the local view of CRM; Know your bad customer: a new set of requirements; Retailing: to R or not to R; The magic of customer knowledge: dare we outsource it?; Understanding the customer - instantly!; The new call centre challenge; E-marketing and multi-channel marketing: seamless or seamy?; Service: the most common contact of all; The unifying theme: know where you are and measure what you achieve
Index
List of tables
List of contributors
Introduction
Neil Woodcock, Merlin Stone and Bryan Foss
Part 1. The Scorecard Results And Conclusions
Chapter 1. What is CMAT?
Neil Woodcock, Michael Starkey and Merlin Stone
The scope of a CMAT assessment; How a CMAT assessment is carried out; The benefits of CMAT assessments
Chapter 2. Overall analysis
Neil Woodcock, Michael Starkey and Merlin Stone
Customer management performance is disappointing; Why the scores have declined; Why companies are performing so poorly, despite the investment; It's not all doom and gloom
Chapter 3. Customer management around the world
Michael Starkey, Neil Woodcock, Merlin Stone and Sarah Boussofiane
North America; Canada; Germany; Switzerland; Austria; United Kingdom; Developing Asia Pacific; Japan; Importance of these findings
Chapter 4. Where companies can create and destroy value
Neil Woodcock, Michael Starkey and Merlin Stone
introducing the customer management value chain; Focusing on customer value
Chapter 5. Analysis and planning
Neil Woodcock, Michael Starkey and Merlin Stone
Characteristics of the highest-performing companies; Examples of best practices
Chapter 6. Proposition
Neil Woodcock, Michael Starkey and Merlin Stone
Characteristics of the highest-performing companies; Examples of best practices
Chapter 7. Customer management activity
Neil Woodcock, Michael Starkey and Merlin Stone
Where value is being created (extracted from highest-performing companies); Best practice examples
Chapter 8. People and organization
Neil Woodcock, Michael Starkey and Merlin Stone
Characteristics of the highest-performing companies; Best practice examples
Chapter 9. Information and technology
Neil Woodcock, Michael Starkey and Merlin Stone
Characteristics of the highest-performing companies; Best practices
Chapter 10. Process management
Neil Woodcock, Michael Starkey and Merlin Stone
Characteristics of high-performing companies; Best practices
Chapter 11. Measurement
Neil Woodcock, Michael Starkey and Merlin Stone
Characteristics of highest-performing companies; Best practices
Chapter 12. The customer experience
Neil Woodcock, Michael Starkey and Merlin Stone
Characteristics of highest-performing companies; Best practices
Chapter 13. The role of customer information management and usage in best practice customer management
Dave Irwin, Clarke Caywood and Iain Henderson
Introduction; Methodology and findings; General findings; Information management and usage findings; Best practices; Conclusions
Chapter 14. The Dutch insurance industry CMAT study
Hans Neerken and Roland Bushoff
Introduction; General results; Direct insurers score best; Analysis and planning; Proposition; People and organization; information and technology; Processes; Customer management activities; Measurement; Customer experience; Conclusions
Chapter 15. Trends in customer management
Neil Woodcock, Michael Starkey and Merlin Stone
Customer management spend is increasing; Trends in customer contact channels and media
Chapter 16. The business case for customer management
Neil Woodcock, Michael Starkey and Merlin Stone
The correlation between customer management and business performance is clear; Identifying the main benefits; Benefits as a percentage of turnover; The size of the investment: the 4:1 rule; The organization's maturity and competence in CM management; Summary base data used in QCi research
Chapter 17. Guidelines for successful CRM implementation
Neil Woodcock, Michael Starkey and Merlin Stone
CM projects are far more likely to fail than succeed; Project implementation tips
Part 2. Measurement, Systems and Data
Chapter 18. Return on investment in e-CRM
Mark Cerasale, Merlin Stone and Julie Abbott
Introduction; E-CRM is CRM enabled by Internet technologies; Back to basics for an e-CRM metric; Learning from the mistakes of the past; Determining the ROI on e-CRM is challenging; The change required is greatest on people, organization and processes; Publishing information; Interaction; Transaction; Integration; E-CRM for cost reduction; E-CRM for increased revenues; E-CRM for improving cash-flow management; E-CRM for improvements in the customer experience; The costs of e-CRM are in technology, process, people and organization; Conclusions
Chapter 19. UK data warehousing and business intelligence implementation: general and retail
Merlin Stone, Julie Abbott and Tony Dobbs
Introduction; The current status; The research results; The case study; Conclusions
Chapter 20. Using advanced data analytics to improve customer management
David Selby and Julie Abbott
Introduction; Treating the customer as an investment; Single-entity View; Implementing ECA; Conclusion
Chapter 21. Applying IT in customer management
Bryan Foss, Thorsten Gorchs, Juergen Uhl, Divya Verma, James Richie and Merlin Stone
Introduction; The basics of systems selection; Recent changes; Implementation; Building an integrated IT capability for customer management; Future technology trends; Conclusions
Chapter 22. CRM's Achilles heel: understanding the customer
Raymond Pettit
Introduction; What happened to the CRM 'vision'?; Where marketing and research fit in; The 'solutions' playing field: what's going on; The 'closed loop' breakdown; Customer experience management solutions: CRM looks in the mirror; Analytical and market research integration; E-research and business; Cultural and organizational change: a reality in organizations; Conclusion and outlook
Part 3. The Sectoral View
Chapter 23. Managing public sector customers
Merlin Stone, Alison Bond, Roger Clarkson, Peter Hayes, Peter Lavers, Clare Traynor, David Williams and Neil Woodcock
Introduction; The challenge; Special issues affecting public sector customer management; Inter-sector differences; Understanding the customer; Translating experience between sectors; Delivering best value local customer service to the UK citizen; Measuring customer management performance; Case study 1: public sector CMAT; Case study 2: the cost of customer management; Case study 3: service to the elderly
Chapter 24. CRM strategy and implementation in telecommunications
Rob Mattison, Len Tiu Wright, Julie Abbott, Andy Brown, Dave Cox, Mike Faulkner and Merlin Stone
Part 1: context and methodology; The vision; The forces; Part 2: case studies; Company W; Company X; Company Y; Company Z; Building the CRM strategy; Paperless complaint resolution; Telecom Italia; Overall conclusion
Chapter 25. Business-to-business CRM
Genevieve Findlay, Mark Cerasale and Merlin Stone
[a]Introduction; B2B market context; Effective account management, possibly global in scale; Customers: the final link in the supply chain; Measurement and CRM metrics in B2B; Conclusions
PART 4. CHANNELS AND MEDIA
Chapter 26. Multi-channel customer management
Matt Hobbs, Mahnaz Khaleeli and Merlin Stone
Changing times, changing channels; Definition of multi-channel customer management; Why multi-channel customer management is important now; The benefits; The challenges; Seven factors driving change; Determining channel functionality; Customer experience must be the start point; Overcoming technology complexity; Organizational issues; Measurement; The economics of multi-channel integration; Recommendations; Checklist
Chapter 27. Permission-based e-mail
Teresa Waring and Antoine Martinez
Introduction; Ethical issues and the Internet; Permission-based e-mail marketing; Research methodology; Results; Conclusion
Chapter 28. The data lessons of e-mail in CRM
Jane McCarthy and Merlin Stone
Chapter 29. Measuring and improving the usability of new media
Vanessa Donnelly, Emma Reeves and Lada Gorlenko
Introduction; Improving usability; Why people do not buy from Web sites; The solution; The benefits; What to do about it; Case study: putting citizens first, establishing usable e-government
PART 5. IMPLEMENTATION AND THE FUTURE
Chapter 30. Customer and employee loyalty
Colin M Livingstone and Julie Abbott
Happy employees, happy customers, high profits?
Chapter 31. Declining UK customer service standards
Alison Bond and Merlin Stone
Methodology; Customer service: business fashion or worthwhile investment?; Benchmarking best practice customer service; UK companies are sitting on a customer service time bomb; The effects of poor service; Conclusion
Chapter 32. Governance and executive sponsorship in CRM programmes
Peter Floyd and Bryan Foss
Introduction; Programme governance; The historic view of organizations and change; The process and style of change; The challenge of change; The rise of people, or stakeholder, power; A range of roles and types of leadership; The executive sponsor role: director, scriptwriter and producer; Executive sponsorship in the initial phase; Achieving commitment via 'symbolic action': the part-time acting role; Conclusions and implications for management
Chapter 33. Managing customers: challenges for the future
Merlin Stone and Bryan Foss
Branding in an era of CRM; Building loyalty and relationships into products; CRM: just like the corner shop?; A single vision of CRM, a single customer view?; Segmentation, not stereotyping; Competing for share of wallet; Managing branch customers: the local view of CRM; Know your bad customer: a new set of requirements; Retailing: to R or not to R; The magic of customer knowledge: dare we outsource it?; Understanding the customer - instantly!; The new call centre challenge; E-marketing and multi-channel marketing: seamless or seamy?; Service: the most common contact of all; The unifying theme: know where you are and measure what you achieve
Index