The Customer Management Scorecard

"A step by step guide to defining, planning, implementing and reaping the benefits of customer management while avoiding the many pitfalls" - Customer Relationship Management The most comprehensive, up-to-the-minute insight into how today's organizations are managing their customers Only 17% of companies can determine the worth of individual customers with any accuracy, combining sales margin, sale and marketing cost, management cost, logistics and service. In 37% of companies key sales and service staff have no consistent understanding of the benefits of their proposition versus the competition Only 35% of companies say "thanks" By revealing what leading-edge companies are doing well and doing badly, where customer management strategy is adding value and where it's damaging the bottom-line - this report enables you to focus your own customer management efforts more clearly and re-appraise where to make investments in people, processes and technology. This ground-breaking report, sponsored by the Royal Mail and IBM, draws together the findings of over £0.5 million worth of detailed research into actual customer management practice, revealing the reality of how today's organizations are managing their customers. The Customer Management Scorecard presents you with a unique opportunity to get the inside stories on what's really happening in the customer management arena. Use this report to benchmark your own performance against best practice, identify your weaknesses, build on your strengths and prioritise customer management improvements. Unique research makes this the most thorough, up-to-date analysis of customer management practice ever publishedThe data, analysis, guidance and advice you'll find in The Customer Management Scorecard are based on research carried out by leading customer management consultancy, QCi, into how today's organizations are managing their customers. QCi has developed Cmat© (Customer Management Assessment Tool), an assessment process for analysing how companies manage their customer management processes. The fascinating results of Cmat© assessments in 51 Ftse250 and multinational corporations are presented in this report. How does your company's customer management rate against the best and the worst in the field?The important lessons you'll learn here aren't taken from a textbook. They're based on real-life, corporate experience. Benchmark your customer management performance against examples of poor, good and best practice. Find out how companies perform in Cmat© assessments in all the critical areas, including analysis and planning customer proposition development and management day to day customer management activity process identification, design and management, measuring the effectiveness of campaigns, channels and individuals customer experience assessment and much, much more. A comprehensive customer management resource kitThe Customer Management Scorecard provides practical tools to help you get ahead in implementing the important lessons you'll learn, including: 35 real-life examples and case studies of good and best customer management practice The essential programme manager's checklist - everything you need to see you through the key stages of planning and team selection, financials and business case, managing change and reviewing and maintaining performance 10 key approaches for analysing customer worth and behaviour In-depth coverage of how the Customer Review process (CRp) developed by QI International (now known as PDI) works in action Checklist of measures for assessing commitment rather than mere satisfaction Self-assessment tool to help you measure the likelihood of project success/failure. A step-by-step plan for Cvm-based transformation - Building the Customer Value Management process into a company's business management system ensures that the company keeps refocusing on today's and tomorrow's customers' needs Also available as single or multi-user Cd-romChoose PDF for delivery on Cd-rom and you can print, copy and paste sections into your own management reports, search by topic or organization and more. Order the multi-user version and you can load onto your corporate intranet and share with the whole management team. SHOW LESS READ MORE >

Chapter 1: Introduction
Chapter 2: Relationship Marketing, Customer Relationship Management or Customer Management
Introduction
What is Relationship Marketing (RM)?
What CRM is Not
Relationship Marketing (RM) and Customer Relationship Management (CRM)
But Not Every Customer Wants a Relationship
Customer Management (CM)
Contrasting the Traditional Marketing Audit with the QCi Customer Management Assessment Tool (CMAT)
The Marketing Audit
The QCi Customer Management Assessment Tool (CMAT)
Similarities and Differences between the Marketing Audit and CMAT
The QCi Customer Management Model
Analysis and Planning
The Proposition
Customer Life Cycle (Customer Management Activities)
Processes
People and Organization
Measuring the Effect
Customer Experience
Information and Technology
Models of Customer Management
Classic Marketing Models
One-to-one
Transparent Marketing
Customer Relationship Marketing (CRM) through a Few Segmented Offers
Personalized Communication and Targeting of a Standard Offer
Top Vanilla
Spot-sell within Managed Roster
Spot-sell Managed by Agent
Pure Spot-sell
Conclusion
Chapter 3: Linking Customer Management with Business Performance
Introduction
Part 1: Why Customer Management is Important
Why Customers Switch
The Link between Customer Satisfaction and Loyalty
Going Beyond Satisfaction to Delighting Customers
Employee Loyalty
Customer Lifetime Value
Customer Value Management
Managing Profitable Customers – Managing out the Least Profitable Customers
Part 2: Business Performance Improvement, Quality Approaches and Assessments that have Helped Shape CMAT Thinking
The PIMS Database
Process Standards and Business Improvement: ISO 9000
The ‘Systems’ Approach and Quality Tools: Deming
Business Performance Measurement: the Balanced Scorecard
The Deming Prize
Malcolm Baldrige National Quality Award (MBNQA)
Comparing the MBNQA and the Deming Prize
The EFQM Excellence Model
Part 3: Customer Management and Business Performance
Do Companies that Manage Well Achieve Better Business Performance?
The Model Used for Customer Management Performance
The Model Used to Define ‘Business Performance’
The Companies Assessed
Analysis Results – a Positive Correlation
What are the Areas which Appear to have most Impact on Business Performance?
The American Customer Satisfaction Index (ACSI)
Other Measurement Programmes and Initiatives
The London Business School ‘Marketing Metrics’ Research
The Catalogue of Performance Measures
The Marketing Science Institute (MSI) Research
Priorities 2000–2002
Marketing Value Added Club
Confederation of British Industry (CBI): Benchmarking with PROBE
Conclusion
Chapter 4: How Companies Actually Perform in Customer Management – the CMAT™ Results
Introduction
Customer Relationship Management – What is Really Happening
The Validity of the Assessment
CM Practice in Reality is Surprisingly Poor
Highlights and Conclusions
Much Isolated Good Practice but No One Company Manages Customers Very Well
Senior Managers Often Do Not Know What Goes On
CM Systems Unlikely to Live Up to Expectations
Focus on Process and Technology, not People and the Organization
Bad News is not Welcomed in the Worst Performing Companies
Profit Improvement can be Achieved Quickly
Customer Value, Behaviours and Cost-to-serve are Rarely Understood
Companies Rarely Look Beyond Customer Satisfaction
Detailed Review of Performance Against the CMAT Model
How Well is the Analysis and Planning of CM Conducted?
Overall Planning
Retention Planning
Acquisition Planning
Penetration Planning
Understanding Competitors
How Well are Customer Propositions Developed and Managed?
Developing the Proposition
Communicating the Proposition
Day-to-day Customer Management Activity
Targeting
Enquiry Management
Welcoming
Getting to Know/Health Check
Customer Development
Managing Dissatisfaction
Winback
Processes
Process Management
People and Organization
Creating the Organization
Managing your People
Managing Suppliers
Information and Technology
Managing Data
Managing Systems
Measuring the Effect
Overall Measures
Effectiveness of Campaigns
Effectiveness of Channels
Effectiveness of Individuals
Customer Experience
Understanding Satisfaction
The CRp Process
Experiencing as Customers
Using Benchmarks
Conclusion
Chapter 5: The Future of CRM
Introduction
A Sense of Perspective
Part 1: Trends and Insights
Buyer Behaviour and Loyalty is Changing
Observations and Evidence
Implications
The Consumer is in Charge – Like it or Not
Traditional Marketing Models are Dissolving Rapidly into the Transparent Model
From Prescriptive to Transparent Marketing
Do Customers want Relationships?
Is the Early Model of Relationship Marketing Wrong?
Transparent Marketing
How Transparent Marketing allows Customers to Manage Suppliers as they Wish
The Contrast between Transparent and Prescriptive
Marketing
The Business Landscape is Changing
Corporate Context Evolving
Increasing Product Commoditization
Competitive Context Evolving
E-confidence is Growing Fast
Access to E-business Channel is Phenomenal
Increasing Concern over Security
The Opportunity in B2B or B2C
Emerging Patterns of Use – and Service
E-business Provides many Challenges and Opportunities
Forcing Enterprises to Reconsider Core Competencies
Improving Efficiency throughout the Value Chain
Involving the Customer
Opening up New Markets
Improving Service
Making it Easy to Pay
Just When You Thought it was Safe to Go Out... Along Comes the Wireless Revolution
The Web is still Doing Pretty Well
The Current Situation: Web/Wireless
Different Wireless Devices
Emerging Countries and Companies – Catching up or Leap-frogging?
Part 2: How Companies May Have to Adapt
Impact on Models of Business
The Rise of the Infomediary
The E-broker
The Manufacturer
Auctioning
Making Each Model Work
Implications of Web and Wireless Technology on Customer Management
Collapse of Privileged Service
Advancing Expectations
Competing in Time – Accelerated Version
The Collapse of Distance
Value Chain Implications
Services being Offered or Planned
By Sector
Impact on Models of Customer Management
Emerging Trends in Planning and Measurement Approaches
Differences from the Common Planning Process
Top-down, Bottom-up Planning
Impact on Technical Architectures
Plan the Systems Architecture
The Main Components of the Architecture
Conclusion
Need to be Honest about CRM Capabilities
Future Proofing your E-CRM Capability
Main Messages
Chapter 6: Managing CRM Programmes to Avoid Failure
Introduction
Your Project is Likely to Fail – an Overview of the Reasons for Project Failure
Know Where you are Going – and Where you are Coming From Making a Start
The Stages in Developing a Customer Management Programme
Manage the Programme, not Just the Project
The Essential Programme Manager’s Checklist
Project Planning and Team Selection
Project Financials and Business Case
Managing Change
Reviewing and Maintaining Performance
Conclusion
Appendix 1: QCi’s CMAT™ Model
Appendix 2: Example Projects and Project Definitions
References
Index

What you'll learn from this report

KEY LESSONS FROM CORPORATE EXPERIENCE
The Customer Management Scorecard draws on the real-life experience of leading organizations to reveal:
How to develop an integrated approach to customer management
Cherry picking and focusing only on specific elements of customer management is not an option. Successful customer management is not just about IT solutions, or how you communicate with your customers. CRM must be a holistic approach that is embedded at every level of your company, which means completely rethinking your approach to planning, marketing, sales, service, IT and financial control. This report provides models, concepts and examples to help your organization do this.
Managing your CRM programme - how to avoid the pitfalls
Project success rate is very poor, but understanding the root causes of project failure is an important first step to devising policies for future success. By reviewing some recent project failures and identifying the key failure factors The Customer Management Scorecard sets out a more direct, trouble-free route to successful customer management.
Why customer lifecycle thinking is critical and how to embed it in your company
Customer lifecycle thinking is a prerequisite for practising excellent CM. Yet this concept is neither well known nor well understood in most organizations. It's essential that you know which lifecycle stage each customer is at and what proportion of the customer base is at each lifecycle stage. The QCi Customer Management Model described in this report enables you to understand customer behaviours and attitudes so you can develop a clear, customer-centred proposition and proactively manage each of the customer lifecycle stages in an integrated, systematic way.
How and where customer management impacts on business performance
There is a commitment to customer management in boardrooms around the world. But when margin pressures increase the focus often shifts away from key customer management measures to short time financial measures. So is CRM little more than just costly hype? The Customer Management Scorecard contains conclusive evidence that it is. Companies that manage their customers well using sensible, observable, well-implemented business practices are very likely to be good business performers. While companies that don't are likely to be less successful. This report reveals which areas of customer management have most impact on business performance and explores key issues including why customers switch, the link between customer satisfaction and loyalty, the impact of employee loyalty and much, much more.
How to select and develop the right customer management approach
There's no one-size-fits-all approach for customer management. It's essential that you develop an approach that's appropriate for your market. This report presents the alternatives by defining and analysing the strengths and weaknesses of a range of approaches, including classic marketing approaches (retailing, sales force automation, account management), one to one, transparent marketing, CRM though segmented offers, personalised communication and targeting, top vanilla, spot-sell within managed roster, spot-sell managed by agent and pure spot-sell.