CRM Handbook, The: A Business Guide to Customer Relationship Management

Description

• Copyright 2002
• Dimensions: 7-3/8" x 9-1/4"
• Pages: 336
• Edition: 1st

• Book
• ISBN-10: 0-201-73062-6
• ISBN-13: 978-0-201-73062-3

Praise for The CRM Handbook

“Want to avoid being one of the estimated 70 percent of companies who have tried implementing standalone CRM systems and failed? Confused by what your IT suppliers are telling you about ‘CRM’? Then you need to read this book! Jill provides acomprehensive, practical, and easy to understand view of CRM and shows you how to successfully implement an enterprise customer-focused solution.”

         –Kevin Bubeck
             Director, North America Information Strategy, Coca-Cola

“CRM could be viewed as the ERP of the 2000s. As such, there will be multiple winners and losers as the marketplace places some large and strategic bets on this technology. In any case, Jill Dyché has captured the importance of the concepts and value derived through CRM solutions. Those needs will evolve, of course, but companies will always need the basics that have been discussed.”

         –Brian Berliner
             Co-founder & EVP, Product Development, Acies Networks

“The CRM Handbook provides information for the business person who is trying to understand CRM and how it can effect his/her business. It goes beyond the hype of the acronym and dives into the real issues that a company needs to consider before implementing a CRM solution.”

         –Joy Blake Scott
             Director, Marketing and Communications, Fastwater, LLP

“I haven’t read anything that has such a practical approach. I view the book as having multiple benefits. It gives a good definition of CRM functionality but also gives detailed guidance of how to approach CRM in your organization.”

         –Francine Frazer
             Principal Consultant, Net Perceptions

“Even better than defining CRM, Jill took on all of the hyperlanguage around CRM and clearly differentiated the various incarnations of CRM. It’s also usefulto know what can go wrong and the potential affects of such missteps. Too few authors level with readers about pitfalls!”

         –Linda McHugh
             Director, Professional Services, Cygent Inc.

“The guides based on the business tools that Jill uses with her own clients are fabulous.”

         –Robin Neidorf
             President, Electric Muse/Clio’s, Pen Research & Interpretation, Inc.

“The language is easy to read and easy to understand. Terms were well explained so that someone with no prior CRM experience could easily understand the text.”

         –Marcia Robinson
             President, e-Business Strategies

“An excellent study into what defines today’s best practices in the CRM industry.”

         –Gareth Herschel
             Senior Research Analyst, Gartner Research

“Jill writes very well. Her writing communicates subjects and topics in a very easy to understand way. At times, I felt like I was listening to her speak or discussing a subject. She is a good communicator! Jill did a very good job of covering all subject areas on the different topics of CRM. I am most impressed with Jill on pointing out all the possible mistakes and creating ‘lessons learned’ advice which most authors frequently omit.”

         –Mary Chan
             Information Management Consultant, Kagiso Inc.

“Jill Dyché's The CRM Handbook is a good read for CRM novices and seasoned practitioners alike. Dyché's well-written, pragmatic approach to understanding CRM's evolution and purpose is a map to a successful CRM program. Dyché uncovers the truth behind the CRM software vendor hype, highlights some common roadblocks to CRM project development, and describes how to delineate and prioritize CRM initiatives.”

         –Don Peppers
             Partner, Peppers and Rogers Group

To compete in today's competitive marketplace, customer focus is no longer simply nice to have–it's a fundamental mandate. This book is a manager's best friend, providing both a primer and a how-to guide to defining and implementing Customer Relationship Management. It shows you:

• The various roles CRM plays in business, and why it's more important than ever
• The range of CRM applications and uses, from sales force automation to campaign management to e-CRM and beyond
• The context of some of the popular CRM buzzwords
• The differences between CRM and business intelligence, and why they're symbiotic
• Why the customer-relationship failure rate is so high, and how to avoid becoming another CRM statistic
• Case studies of visionary companies who've done CRM the right way

“We read this book at a time when we were relooking at our customer information strategy. One of the first things I had to do was ban the term ‘CRM’ from the project because of the vendor and industry hype and the confusion it created within the team. Jill’s book provides a strategic look at the topic from both a business and IT perspective. The insights she provides allowed me to focus on the strategic issues planning an enterprise-wide, customer-focused solution. And yes we are once again using the term ‘CRM’.”

         –Kevin Bubeck
             Director, North America Information Strategy, Coca-Cola

“Jill is one of the few people who has been at the forefront of every stage of CRM development, from the early days of data warehousing, through business re-engineering, to sales force automation and e-CRM. This makes her uniquely qualified to write about how it should all come together. The reader will be rewarded with advice drawn from real-world experience–both successes and failures. I shudder to think at the dollars that have been wasted over the years on CRM projects and how much will be wasted in the future by executives who won't read The CRM Handbook.”

        –Brian Hoover
             President, TouchScape™ Corporation

“The CRM Handbook provides an outstanding roadmap for putting human contact–relevant, accurate, informed human contact–back at the heart of the business-customer relationship. That's the challenge and the sole goal of Customer Relationship Management.”

         –Charles D. Morgan             
             CEO and Company Leader
             Axiom Corporation

“Jill Dyché has produced a wide-screen, comprehensive picture of CRM that also focuses on key issues that matter to CRM users. This book is written for those who are time-constrained and quick on the uptake–everyone from the CEO to the marketers and technologists who will evaluate, implement, and benefit from CRM initiatives.”

         –Peter Heffring
             President, CRM Division, NCR Teradata

“Jill has masterfully compiled scenarios, resources, references, definitions, and insightful recommendations about how to remain customer-focused across the enterprise functions. The book can be used as an educational tool, reference guide, and resource for short-listing technologies to evaluate.”

         –John Earle
             President, Chant Inc.



Sample Content

Online Sample Chapters

Choosing Your CRM Tool the Right Way

CRM: Optimizing the Customer Experience

Different Strokes: Why Business Intelligence is Not CRM

Managing Your CRM Project

Downloadable Sample Chapter

Click below for Sample Chapter related to this title:
dychech9.pdf

Table of Contents

Acknowledgments.


About the Author.


Introduction.

I. DEFINING CRM.

1. Hello, Goodbye: The New Spin on Customer Loyalty.

The Cost of Acquiring Customers.

From Customer Acquisition to Customer Loyalty.

. . . to Optimizing the Customer Experience.

How the Internet Changed the Rules.

What's In a Name?

CRM and Business Intelligence.

The Manager's Bottom Line.

2. CRM in Marketing.

From Product to Customer: A Marketing Retrospective.

Target Marketing.

Relationship Marketing and One-to-One.

Campaign Management.

CRM Marketing Initiatives.

Cross-Selling and Up-Selling.

Customer Retention.

Behavior Prediction.

Customer Profitability and Value Modeling.

Channel Optimization.

Personalization.

Event-Based Marketing.

Customer Privacy--One-to-One's Saboteur?

A Marketing Automation Checklist for Success.

CASE STUDY: Eddie Bauer.

What They Did.

The Challenges.

Good Advice.

The Golden Nugget.

The Manager's Bottom Line.

3. CRM and Customer Service.

The Call Center and Customer Care.

The Contact Center Gets Automated.

Call Routing.

Contact Center Sales Support.

Web-based Self-Service.

Customer Satisfaction Measurement.

Call-Scripting.

Cyberagents.

Workforce Management.

A Customer Service Checklist for Success.

CASE STUDY: Juniper Bank.

What They Did.

The Challenges.

Good Advice.

The Golden Nugget.

The Manager's Bottom Line.

4. Sales Force Automation.

Sales Force Automation: The Cradle of CRM.

Today's SFA.

Sales Process/Activity Management.

Sales and Territory Management.

Contact Management.

Lead Management.

Configuration Support.

Knowledge Management.

SFA and Mobile CRM.

From Client/Server to the Web.

SFA Goes Mobile.

Field Force Automation.

An SFA Checklist for Success.

CASE STUDY: Hewlett Packard.

What They Did.

The Challenges.

Good Advice.

The Golden Nugget.

The Manager's Bottom Line.

5. CRM in e-Business.

eCRM Evolving.

Multichannel CRM.

CRM in B2B.

Enterprise Resource Planning.

Supply Chain Management.

Supplier Relationship Management.

Partner Relationship Management.

An e-Business Checklist for Success.

The Manager's Bottom Line.

6. Analytical CRM.

The Case for Integrated Data.

A Single Version of the Customer Truth.

CRM and the Data Warehouse.

Enterprise CRM Comes Home to Roost.

The Major Types of Data Analysis.

OLAP.

Where Theory Meets Practice: Data Mining in CRM.

Clickstream Analysis.

Personalization and Collaborative Filtering.

An Analysis Checklist for Success.

CASE STUDY: Union Bank of Norway.

What They Did.

The Challenges.

Good Advice.

The Golden Nugget.

The Manager's Bottom Line.

II. DELIVERING CRM.

7. Planning Your CRM Program.

Defining CRM Success.

From Operational to Enterprise: An Implementation Scenario.

Determining CRM Complexity.

Preparing the CRM Business Plan.

Defining CRM Requirements.

Cost-Justifying CRM.

Understanding Business Processes.

BPR Redux: Modeling Customer Interactions.

Analyzing Your Business Processes.

CASE STUDY: Verizon.

What They Did.

The Challenges.

Good Advice.

The Golden Nugget.

A CRM Readiness Checklist for Success.

The Manager's Bottom Line.

8. Choosing Your CRM Tool.

Maintaining a Customer Focus: Requirements-Driven Product Selection.

Defining CRM Functionality.

Narrowing Down the Technology Choices.

Defining Technical Requirements.

Talking to CRM Vendors.

Negotiating Price.

Checking References.

Other Development Approaches.

Homegrown CRM.

Using an ASP.

A CRM Tool Selection Checklist for Success.

CASE STUDY: Harrah's Entertainment.

What They Did.

The Challenges.

Good Advice.

The Golden Nugget.

The Manager's Bottom Line.

9. Managing Your CRM Project.

A Pre-Implementation Checklist.

The CRM Development Team.

CRM Implementation.

Scoping and Prioritizing CRM Projects.

A CRM Implementation Roadmap.

Business Planning.

Architecture and Design.

Technology Selection.

Development.

Delivery.

Measurement.

Putting the Projects Together.

A CRM Implementation Checklist . . . for Failure.

The Manager's Bottom Line.

10. Your CRM Future.

Making the Pitch: Selling CRM Internally.

CRM Roadblocks.

The Four Ps.

Process.

Perception.

Privacy.

Politics.

Other CRM Saboteurs.

Lack of CRM Integration.

Poor Organizational Planning.

Demanding Customers.

Customer Service That's Really Bad.

Looking Toward the Future.

The Customer as SME.

The Rise of Intermediaries.

Digital and Broadband Revolutionize Advertising.

The Threat and Promise of Customer Communities.

CRM Goes Global.

The Coming CRM Backlash?

The Manager's Bottom Line.

Further Reading.
Glossary.

Preface

On one of those preternaturally warm spring afternoons, when many of their colleagues had forsaken them for the beach, around 500 conference attendees packed themselves into a hall at the Los Angeles Convention Center to hear about Customer Relationship Management. A group of high-profile experts was assembling to deliver a heralded panel discussion on the current and future state of the CRM market. Attendance swelled to standing room only.

On the panel were executives from both established and emerging CRM vendors. One panelist headed a company that sold an Internet storefront product. Another ran a sales-force automation company. A third represented a major database vendor. There was a call center system vice president and, to his left, a chief privacy officer. At the end of the line sat a renegade technology analyst.

As they began talking, it became clear that each of the panelists had a different perspective on CRM. The president of the database company talked at length about connecting databases to applications, after the privacy officer had finished weighing in on the risks of opt-in marketing. The call center executive discussed new advances in live chat. The analyst inveighed against CRM vendors who didn't offer sufficient analytics, making a few of his co-panelists shift in their chairs.

In fact, the discussion topics were so far removed from one another that the panelists might as well have been speaking different languages. As the moderator quickly learned, integrating the discussion in any meaningful way was a more significant undertaking than a mere hour would allow. As with the CRM marketplace, there was no holistic message--just different conversations. Shuffling out of the

auditorium, none of the attendees left with a clear CRM vision they could take back to work and begin promoting.

Nevertheless, we all have our eyes on the CRM ball. Aberdeen Group's "Customer Relationship Management: Year 2000 Edition" report predicts the CRM market will grow from $8 billion in 1999 to more than $24 billion by 2003. Such pronouncements--and there are many--represent sufficient ammunition for many companies to target CRM before thoroughly scoping it.

The problem is the noise. Companies worldwide are declaring themselves "customer-focused" and forking over millions of dollars on CRM-related technologies. Over-hyped vendor products clash with varied interpretations of CRM objectives, leading many companies to simply automate ineffective marketing and customer support processes. And because many of these processes rely on sporadically gathered data and shoddy business practices ("I can't help you; you'll have to talk to our billing department--and they're closed"), these firms were no closer to building solid customer relationships than prior to adopting CRM.

Likewise, customers have more choices than ever before, and a vendor's arch competitor is often--as the current sound bite goes--just a mouse-click away. Without customers, products don't sell and revenues don't materialize. And without establishing customer loyalty, a profitable customer can be as fleeting as a dot-com Web site. Suddenly, customers matter.

Thus, banks have succeeded in automating their marketing processes and calculating customer value. Communications companies are busy trying to reduce churn. Retailers and e-tailers alike are launching customer loyalty programs with alarming speed. And everyone has an Internet strategy for stimulating purchases. The only thing many of these forward-thinking companies have in common is their struggle to separate the truth from the hype.

This book seeks to mitigate the spin rampant in the CRM marketplace, first by defining CRM and its various components and then by providing a guide to successful delivery of a CRM program. It will serve both as a resource, defining and illustrating key CRM concepts, and as a field guide, directing you in the best approaches for adopting and implementing your own CRM solution. In the latter role, the Handbook points out mistakes as well as successes, allowing you to learn from those who fell too early for the hype ("We're your one-stop CRM shop!"). In the former role, it will help clear the clutter and provide straightforward explanations of the various types of CRM, as well as how they can work together.

And, like a good CRM initiative, the book revolves around the customer's experience. After all, no matter how informative the material or how knowledgeable the source, the message should always be geared toward the right audience. CRM conference panel organizers, take note!

How to Read This Book

This book is written for a wide range of readers, from executives to practitioners. Part 1 is geared toward executives, project managers, and businesspeople interested in understanding the components of CRM and their definitions, as well as how those components are being used. Part 2 is for project managers, consultants, business analysts, and technical practitioners who need practical tips on CRM planning and implementation.

Readers with specific areas of interest can skip to individual chapters. Table I-1 briefly explains each chapter and its audience focus.

Table I-1: The Handbook's Chapters and Their Intended Audiences

Part 1. Defining CRM	Part 1 explains types of CRM--offering real-life examples of how businesses are using them--and explains how they fit together.
Chapter	Description	Intended Audience
Chapter 1: Hello, Goodbye. The New Spin on Customer Loyalty	Introduces CRM's value proposition from a business perspective and explains why companies are rushing to jump on the CRM bandwagon.	Any reader needing an introduction to CRM and its role in business strategy should read this chapter.
Chapter 2: CRM in Marketing	Explores marketing's recent history and transition from product focus to customer focus to the latest craze: improving the customer's experience.	For executives in charge of planning and funding customer loyalty, acquisition, and retention programs and for marketing staff, including product, segment, and campaign managers. Sales management might consider starting here prior to reading Chapter 4.
Chapter 3: CRM and Customer Service	Covers why customer service is the locus of most CRM programs and how new customer service strategies and technologies promise to enhance customer loyalty--not to mention a company's revenues.	Customer support staff members at all levels will enjoy comparing their company contact center environments with the best practices outlined in this chapter. Also of interest to marketing staff looking at other customer touchpoints.
Chapter 4: Sales Force Automation	The birthplace of CRM, SFA includes a variety of tactical and strategic functions. This chapter goes from managing customer leads and accounts to sharing customer knowledge via wireless media.	Sales managers and sales reps alike can use this chapter as a benchmark for how they're managing their customer contacts and leads. Also valuable for field service personnel.
Chapter 5: CRM in e-Business	Given the challenges e-business presents, this chapter discusses where the customer fits in the supply chain for both B2B and B2C relationships.	Managers and developers responsible for delivering e-business, particularly eCRM, as well as users and developers of ERP and supply chain management systems.
Chapter 6: Analytical CRM	Analytical CRM leverages the data gathered from cross-functional customer touchpoints to help companies make strategic decisions. This chapter covers the risks and rewards of analyzing and acting on new customer knowledge.	For business people for whom decision support is a critical job function, as well as data analysts using sophisticated predictive techniques. Also helpful for marketing managers who rely on data analysis for launching new programs.
Part 2. Delivering CRM	Part 2 describes the key components of a CRM program and offers examples and checklists for ensuring they are performed thoroughly and in the right sequence to mitigate risk and ensure successful CRM delivery.
Chapter 7: Planning Your CRM Program	Explains how to evaluate your company against CRM critical success factors. This chapter also describes how to gauge the complexity of your CRM initiative and how that complexity determines a range of planning and development activities, including requirements gathering and ROI calculation.	For business analysts and consultants who will be gathering and documenting CRM requirements, as well as project managers who will be charged with translating them into a working CRM system. Also helpful for CRM sponsors and end users who must understand the tasks and resources necessary in CRM planning.
Chapter 8: Choosing Your CRM Tool	Discusses CRM technology software features and explains requirements-driven technology selection. This chapter contains checklists and interview questions for both CRM software vendors and application services providers (ASPs).	For IT executives and project managers charged with leading CRM technology selection efforts, as well as stakeholders who need to understand CRM technology-selection best practices. The vendor evaluation questions might help vendors better prepare for prospect and client presentations.
Chapter 9: Managing Your CRM Project	Describes how to delineate, prioritize, and staff CRM projects and highlights some common roadblocks to successful development. Discusses establishing success metrics and measuring against them, and includes a CRM Implementation Roadmap.	Technical staff, CRM development team members, and project managers will be interested in the roles integral to CRM projects, as will CRM stakeholders who want to learn more about where to begin.
Chapter 10: Your CRM Future	This chapter introduces some of the main roadblocks known to sabotage CRM programs. It also covers some controversial CRM trends.	Business sponsors and project managers interested in ensuring the success of their CRM programs, as well as business users who want a preview of CRM features on the horizon.
Further Reading	A compendium of books, magazines, journals and Web sites to aid readers in their CRM research.
Glossary	Definitions for the CRM-related terms used throughout the book, as well as coverage of some current business and technology buzzwords.

Toward the end of the content chapters, you'll find a "Checklist for Success," describing the best practices involved in achieving the objectives discussed in that chapter. (If you're underway with CRM, use this checklist as a tool to perform gap analysis against your current project.) In addition, because CRM is inherently a business management initiative, each chapter concludes with a section titled "The Manager's Bottom Line," summarizing the discussion for managers and executives who might be sponsoring CRM in their companies.

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Index

Abandoned shopping cart, defined, 287

Activity management, 82, 83

Adaptive personalization, 38, 140

Advertising, effect of technology on, 273

Affinity analysis, defined, 287

All First Bank, Web site of, 61

Alsop, Stewart, 7

Amazon.com

collaborative filtering by, 140-141

Analytical CRM, 13-14

business processes in, 144

case study of, 145-148

checklist for, 142-145

clickstream analysis in, 135-139

data analysis in, 129, 132-135

and data integration, 128-132

and data mining, 133-135

defined, 129, 287

differentiated from operational CRM, 129-130

indications for, 128-129

integration with operational CRM, 131

personalizing and collaborative filtering, 139-142

viewpoint of, 130-131, 148

Application services providers (ASPs)

advantages of, 218

choosing, 221-223, 257

and CRM, 219-221

defined, 287

desirable characteristics of, 224

established companies as, 219

evaluating expertise of, 221-222

evaluating functionality of, 222-223, 225-226

evaluating references of, 223

evaluating support by, 223

overreliance on, 269

reasons for not using, 224

reasons for using, 219-221

types of, 219

Association analysis, 134

AT&T, 4

Attrition, defined, 287

Automated workflow, defined, 287

Automatic call distribution, defined, 288

Automation, 31, 49

checklist for, 44-45

field force, 93-96

interactive voice response systems, 57

sales force, 77-102

speech recognition, 57

Availability issues, in CRM system, 208-209

B2B, defined, 288

B2C, defined, 288

Back-office CRM, 13

defined, 288

Barlow, Janelle, 75

Behavior prediction, 33-34

Bell Atlantic, 186

Bloomingdale's, website of, 105

Bluelight.com, 142

Bluetooth, 91

Boots, customer segmentation by, 23

Brick-and-mortar business, defined, 288

Broadband technologies, and advertising, 273

Burger King, 3

Business intelligence, 14

defined, 15, 288

distinguished from CRM, 15-16, 17

Business plan, CRM

components of, 167

cost justification, 172-180

defining requirements in, 167, 169-172

and implementation, 246-247

importance of, 166

mapping business requirements, 171, 172

perceptions of, 258

Business process reengineering (BPR), 180-183

defined, 288

Business processes, 180

analysis of, 184-185

case study of, 186-190

design and documentation of, 184-185

improvement of, 185, 257, 263-264

integration of, 251-252

redefinition of, 252

reengineering of, 180-183

Business sponsor

for CRM project, 238, 268, 269

defined, 288

Business Week, 53

Business-to-business (B2B), CRM in, 106-107

Call center automation, defined, 288

Call centers, 53

CRM and, 160

defined, 288

example of process of, 54-55

operators in, 53-54

processes for, 69

technologies for, 54

Call routing, 55-57

defined, 288

precision call distribution, 56

Call scripting, 63-65

defined, 288

Campaign management

automation of, 31

closed-loop, 28, 29, 289

CRM and, 30-31

defined, 288

linear, 27-28

software for, 28-30

Cannon, Chris, 43

cCRM (collaborative CRM), 12

Chambers, John, 11

Channel, defined, 288-289

Channel optimization, 35, 36

defined, 289

ChannelWave, 115

Charles Schwab, CRM in, 5

Cherry pickers, 139

Chief information officer (CIO), role in CRM project, 240

Chief privacy officer, role in CRM project, 240

Churn, defined, 289

Clearinghouse sites, 272

Clickstream, defined, 289

Clickstream analysis, 135

aims of, 135-137, 138-139

example of, 137

tactics in, 137-138

Closed-loop campaign management, 28, 29

defined, 289

Cluetrain Manifesto, The (Levine, et al.), 107, 118, 274

CNET Networks, 72

Colgate, ERP at, 108-109

Collaborative commerce (c-commerce), 112

defined, 289

Collaborative CRM, defined, 289

Collaborative filtering

custom content in, 141

described, 140

example of, 140-141

issues in, 141-142

Communication

Internet and, 10

Competitive value, 34

Complexity

metrics of, 164

and system development, 164-166

CompUSA, customer service at, 65

Computer telephony integration (CTI), defined, 289

Configuration support, 86-87

defined, 289

Configurator, defined, 289

Connectability, 207

Consultants, for CRM project, 268, 269

Contact centers, 55

assessing success of, 56

automation of, 55-56

call routing in, 55-57

call scripting in, 63-65

defined, 289

information sharing in, 70-71

interactive voice response systems, 57

personnel for, 70, 71

requirements for, 69

sales support from, 57-59

technologies for, 68-69

workforce management at, 66-67

Contact management, defined, 290

Control group, defined, 290

Cookie, defined, 290

Cross-functional, defined, 290

Cross-selling, 31-32

from contact center, 58

defined, 290

Custom content, 141

Customer interaction center (CIC), defined, 290

Customer loyalty

classic methods of building, 3

CRM and, 6-7

customer differentiation and, 181-183

Internet and, 11

new methods of building, 8-10

studies of, 32

Customer relationship management (CRM)

analytical, 119-149

architecture and design of, 248, 250-251

ASPs in 218-224

as asset, 166

and automated marketing, 44-45, 49

birth of, 25-27

books about, 281-283

and bottom line, 49-50

and business change, 153

in business-to-consumer space, 18

business plan for, 166-180

business process reengineering and, 180-184, 257, 263-264

business requirements for, 167-172

as business strategy, 18

case study of, 45-49

caveats about, 277-278

characteristics of, 16

characteristics of successful projects, 156

checklist for tool selection, 225-226

complexity of systems, 164-166, 258

consultants for, 268, 269

cost justification for, 172-180, 196

cross-selling in, 31-32

and customer service, 51-75

data requirements for, 250-251

and data warehousing, 127-128

defined, 4, 290

delineating projects, 244

delivery of, 251-252

development of, 251-252

development team for, 237-242

distinguished from business intelligence, 15-16, 17

and e-commerce, 103-118

end-to-end infrastructure for, 149

enterprise application integration and, 250

expectations about, 276

failures of, 5-6, 256-258

and fulfillment of unspoken needs, 9-10

future of, 271-279

getting approval for, 167, 168-169, 257-259

global, 274-275

goal of, 7, 16, 50

homegrown systems of, 217-218

implementation of program, 242-248, 250-256

incremental development of, 245-246, 251-252

integrated, 148, 149

integration into corporate structure, 267

integration of projects, 255-256, 268

Internet and, 10

magazines and journals about, 283-284

in marketing, 19-50

measurement of, 253-255

misrepresentations of, 16

mobile, 12, 89-93

multichannel, 105-106

need for data integration, 119-127

obstacles to, 263-271

operational vs. analytical, 12-14

organizational changes resulting from, 197

origins of, 25-27

outsourcing of, 219-221

partner relationship management, 12, 114-116

perceptions of, 264

personnel issues in, 241, 268-269

pitfalls of, 49

planning a program, 153-198, 268-269

political issues regarding, 266-267

potential backlash against, 275-277

pre-implementation checklist for, 233-237

prioritization of, 243-244

process integration in, 251-252

project management for, 241-242

promotion of, 167, 168-169, 257-259, 261-263

readiness for, 190-196

references on, 281-286

requirements of program, 242-243

requirements-driven development of, 246

sales force automation, 77-102

sample business objectives in, 5

scope of project, 164-166, 243, 244-245

software suites for, 131

success defined in, 155-166, 245-246

supplier relationship management, 12, 112-114

supply chain management, 6, 109-111

tool choice case study, 226-230

tools for, 199-231

types of, 12-14

and up-selling, 31

Web sites about, 284-286

Customer Revolution, The (Seybold), 197

Customer satisfaction, 7

CEOs' view of, 275-276

measurement of, 62-63

promoting, 8-10

unspoken needs and, 9-10

viral marketing and, 7

Customer service, 51-52

automation of, 55-62

call center and, 52-55

case study of, 71-75

checklist for, 67-71

customer intelligence in, 63-65

measuring success for, 69-70

pitfalls of, 270-271

public perceptions of, 52-53

service recovery, 70

technologies for, 68-69

Customer service representative (CSR), defined, 290

Customers

behavior of, 33-34

communities of, 274

costs of acquiring, 4-6

differentiation of, 181-183

emotions of, 75

information gathering about, 122

information processing about, 123-127

input into strategic planning, 271-272

new ways of interacting with, 3, 128-132

as obstacle to CRM, 269-270

perceptions of, 264

privacy of, 41-43, 264-266

profitability of, 34-35

retention of, 32-33

segmentation of, 21-24

Customers.com (Seybold), 197

Customization, defined, 290

Cyberagents, 65

defined, 290

Dallas Morning News, 60

Data

as asset, 144

dirty, 143

requirements for CRM, 250-251

Data analysis, 129

aims of, 143

and dirty data, 143

as tool, 143-144

types of, 132-135

Data integration, 142-143

analytical CRM and, 128-132

importance of, 119-122, 257

Data mart, defined, 291

Data mining, 42

algorithms for, 133, 134

clickstream analysis, 135-139

defined, 291

personalizing and collaborative filtering, 139-142

tools for, 133

types of, 133-135

uses of, 134

Data warehouses, 14

function of, 15

defined, 291

Data warehousing, 124-125

CRM and, 127-128, 267

importance of, 143

strengths of, 126

Database developer, for CRM project, 239

Databases

management of, 123-124

proliferation of, 126-127

sources of data, 124-125

Decision support (DSS), defined, 291

Decision support analysis, 16

Dell, Michael, 272

Dell Computer, 53

just-in-time methods at, 110

Deregulation, and competition, 3

Digital technologies, and advertising, 273

Direct marketing, 21

defined, 291

Director of data warehousing, role in CRM project, 240

Director of e-business, role in CRM project, 240

Disney Club, 41

DoubleClick, 265

downside.com, 7

drugstore.com, 106

Dynamic pricing, 33, 141-142

e-Business: Roadmap for Success (Kalakota/Robinson), 108-109

e-commerce, 103-104

advantages of, 107

business to business, 106-107

business processes in, 117

customer relations, 104-106, 117-118

enterprise resource planning, 108-109

multichannel support, 116-117

partner relationship management, 114-116, 117

service improvements in, 116

supplier relationship management, 111-114

supply chain management, 109-110

Websites and, 105-107

e-marketplace, defined, 291

e-tailer, defined, 292

E*Trade, 273

Early adopters, customer segment, 23

Easy Access Sales Environment (EASE), 178

eCRM (electronic CRM), 12, 60

aims of, 117-118

checklist for, 116-117

defined, 291

enterprise resource planning, 108-109

multichannel CRM, 105-106

partner relationship management, 114-116

supplier relationship management, 111-114

supply chain management, 109-110

ECRM (enterprise CRM), 12

defined, 291

Eddie Bauer, 45-46

CRM in, 46-47

marketing savvy of, 48-49

EDS, as application services provider, 219

Egler, Harry, 46, 47, 49

Electronic Privacy Information Center, 266

Emotional Value: Creating Strong Bonds with Your Customers (Barlow/Maul), 75

Enterprise application integration (EAI), 248

defined, 291

importance of, 250

Enterprise portal, defined, 291

Enterprise resource planning, 108-109

defined, 291-292

Enterprise resource planning (ERP), 6

success of, 108-109

E.piphany, 129

ERM (enterprise CRM), 12

Eshoo, Anna, 42, 43

Eve.com, 105

Event-based marketing

defined, 40, 292

goals of, 40

techniques of, 40-41

Exchange, defined, 292

Experience Economy, The (Pine/Gilmore), 9

External data, defined, 292

Extranets, 110-111

defined, 292

FedEx, Web-based self-service on, 59

Field force automation (FFA), 93, 163

field service enlistment, 93-95

wireless technology in, 93-96

Field service management, 93

defined, 292

Firmographics, defined, 22

Forbes, 53

Frequently Asked Questions (FAQs), defined, 292

Front-end developer, for CRM project, 239

Front-office CRM, 13

defined, 292

Functionality requirements, of CRM system, 203-205, 208, 210-211, 215

Garden.com, 105

Gilmore, James, 9, 10

Global CRM, 274-275

Godin, Seth, 26

Gramm-Leach-Bliley Act, 42

Handheld device technology, 90

and CRM, 91-92

Hard Rock Café, 10

Harley-Davidson, 9

Harrah's Entertainment, 226

business strategy of, 227

CRM by, 227-229

success of, 230

Total Gold program of, 227-228

Total Rewards program of, 226-227

Winners Information Network of, 227, 230

Hewlett Packard

business partnership with Oracle, 99

CRM at, 98-101

future directions at, 101-102

Homegrown CRM, 217-218

Householding, 236

defined, 292

Implementation

architecture and design, 248-251

and business planning, 246-247

checklist for, 256-258

delivery, 252-253

development in, 251-252

importance of strategy to, 256

integration, 255-256

measurement of, 253-255, 256-257

mistakes in, 248-250, 256-258

personnel for, 237-241

preparation checklist for, 234-237

prioritization, 243-244

project management office (PMO), 241-242

requirements-driven, 246

rigor of, 246

roadmap for, 245-248, 250-256

scoping, 243, 244-245

staff expectations of, 256

technology selection for, 251

user involvement in, 246

Implementation project manager, for CRM project, 239

Incremental development, 241-242, 245-246

defined, 292

Inferential personalization, defined, 292-293

Infographics, defined, 22

Information technology, and permission marketing, 26-27

Integration

of CRM projects, 255-256, 268

hardware and software, 207

Interactive voice response (IVR), 57

defined, 293

Internet

and partner relationship management, 114

and supplier relationship management, 112-113

and supply chain management, 111

Internet commerce

features of, 10-11

See also Web

Iterative development, defined, 293

J. Crew, website of, 105

Java, 91

Juniper Bank

customer service at, 73, 74

infrastructure of, 73-74

mission of, 72-73

success of, 74-75

Junkbusters, 266

Just-in-time model, 110

Kalakota, Ravi, 108

Kmart, 142

Knowledge management, 87-88

defined, 293

Kozmo, 104

Laggards, customer segment, 23

Land's End

customer service of, 60

personalization by, 141

Lead developer, for CRM project, 239

Lead management, 85-86

defined, 293

Leonard, Beth, 186-190

Levi Strauss, websites of, 105

Life event marketing, 41

Life stage marketing, 41

defined, 293

Lifetime value (LTV) modeling, 34

defined, 293

Linear campaign management, 27-28

List generation

defined, 293

software for, 28-29

Load balancing, 293

loyalty card, 11

Manes, Anne Thomas, 92

Market-based analysis, defined, 293

Marketing

automation of, 31, 44-45, 49

case study of, 45-49

channel optimization, 35, 36

classic techniques of, 3

CRM and, 160-161, 163

direct, 21

event-based, 40-41

issues in, 44

life event, 41

management of campaigns, 27-31

permission, 26, 294

personalization, 35-39

product-centric view of, 3, 19-21

refinement of, 24-25

relationship, 10, 295

successful tactics of, 49-50

target, 21-25, 297

viral, 7, 297

Marketing service bureau, defined, 293-294

Mass marketing, defined, 294

MatchLogic, 265

Maul, Dianna, 75

MCI, 4

McKenna, Regis, 25

mCRM (mobile CRM), 12

defined, 294

and sales force automation, 89-93

Web and, 89

Metadata, defined, 294

MicroStrategy, eCRM product of, 131

Mortgage.com, 110

Motivational research, 19

MSN.com, web shops at, 272

Multichannel CRM, 105-106

defined, 294

Multimodal, defined, 294

MyPalm, 91

MySimon.com, 272

New York Times, 52

Next sequential purchase, 33

NikeTown, 10

No Logo, 278

OLAP (online analytical processing), 132-133

defined, 294

One to One Future, The (Peppers/Rogers), 25

One-to-one, 25-26

Opdal, Kari, 146, 147

Operational CRM, 13

defined, 294

Opportunity management, 85

Oracle

as application services provider, 219

Oracle Sales Online, 99, 100

Oshita, Yancy, 156

Overly, Mike, 98, 99, 100, 101

Palm, products of, 91

PeopleSoft, 108

Peppers, Don, 25

Performance requirements, assessing, 207, 208

Permission marketing, 26

defined, 294

Personalization, 35-36, 42

adaptive, 38, 140

aims of, 139

benefits of, 139-140

in business-to-consumer space, 38-39

defined, 294

inferential, 292-293

referential, 295

rules-based, 140, 295

techniques of, 36-38, 140

Personalization Consortium, 266

Petco, website of, 106

Pine, B. Joseph, 9, 10

Pipeline management, 85

planetfeedback.com, 7

Point solution, defined, 295

Porter, Michael, 109

Potential value, of customers, 34

Pottery Barn, 71

Pragmatists, customer segment, 23

Prasad, Jay, 156

Precision call distribution, 56

Predictive modeling, 133

Price elasticity modeling, 33

Prime Response software, 30

Prioritization, of project, 243-244

Privacy, 41-42

and backlash against database marketing, 276

businesses related to, 265-266

consumer watchdogs related to, 266

and customer relations, 265

customer requirements for, 43

industry groups related to, 266

Internet issues, 42

perceptions about, 264

regulatory efforts, 42-43, 264

Privacy officer, role in CRM project, 240

privacy.org, 266

Private portal, 295

PRM (partner relationship management), 12, 114

defined, 294

functions of, 114-116

importance of, 114

Process integration, 251-252

Product affinity analysis, 33

Product marketing, 3, 19

aim of, 20

process of, 20

Profitability, of customers, 34-35

Project management office (PMO), 241-242

Project manager, for CRM project, 239, 268, 269

Promotion of CRM, 257-259

dos and don'ts of, 261-262

obstacles to, 263

Proof-of-concept testing, 209, 215-216

defined, 295

Propensity-to-buy analysis, 23-24, 33

Psychographics, defined, 22

Pure play, defined, 295

Readiness for CRM, 190

evaluation metrics for, 191-196

Referential personalization, defined, 295

Reichheld, Frederick, 32

Relationship marketing, 10

defined, 295

Relationship Marketing: Successful Strategies for the Age of the Customer (McKenna), 25

Reporting, of CRM system, 208

Requirements-driven technology selection

advantages of, 202

methods of, 202-203

functionality and, 203-205, 208, 210-211, 215

information gathering in, 205-206

technical requirements and, 206-209

Responsible Electronic Communications Alliance, 266

Retention, defined, 295

Return on investment (ROI), 178-180

defined, 295

Return on relationship (ROR), 179-180

defined, 295

Robinson, Marcia, 108

Rogers, Don, 25

Rules repository, 16

defined, 295

Rules-based personalization, 140

defined, 295

Saks Incorporated, contact centers of, 56

Sales and territory management, 83-84

Sales force automation (SFA)

activity management, 82, 83

advantages of, 80

case study of, 98-102

checklist for, 96-98

communicating value of, 96-97

configuration support, 86-87

contact management, 84-85

CRM in, 161-163

defined, 295-296

FFA, 93-96

handheld devices and, 90-91

importance of, 77-79, 102

incentives to use, 97-98

knowledge management, 87-88

lead management, 85-86

and mobile CRM, 89-93

origins of, 79-81

processes in, 97

sales process management, 82, 83

sales and territory management, 83-84

training for, 97, 98

Web and, 89

Sales process management, 82, 83

SAP, 108

Satre, Phil, 230

SBC Communications, success of CRM for, 178

Scalability, provided by ASPs, 220

Scoping, of project, 243, 244-245

Screen pop, defined, 296

Scripting, call, 63-65

defined, 296

Security requirements, 207

segment manager, 238

Segmentation, defined, 296

Self-service, defined, 296

Sephora.com, 105

Sequential analysis, 134

Service recovery, 70, 278

Service-level agreements (SLAs), 220

defined, 296

Seybold, Patricia, 197

Shelby Act, 43

Siebel, Tom, 272

Siebel Systems, 52

Configurator product of, 87

Skeptics, customer segment, 23

Skunkworks CRM, defined, 296

Southwest Airlines, customer service of, 60

Speech recognition, automated, 57

Speed, provided by ASPs, 220

Sprint PCS, 7

SRM (supplier relationship management), 12, 111

collaborative commerce, 112

defined, 296, 297

Internet in, 112-113

supplier point of view, 114

Steering committee

for CRM project, 238

defined, 296

Sticky, defined, 296

Subject matter experts (SMEs), for CRM project, 239

Success

complexity and, 164-166

factors of, 157-158, 159

implementation scenario for, 160-164

metrics of, 155-160, 245-246, 253-255, 256-257

Suite, defined, 296

Supply chain management (SCM), 6

defined, 297

example of, 110

need for, 109-110

successes of, 110-111

Surveys, customer satisfaction, 62

automated, 62-63

Sweeney, Latanya, 42

Target marketing, 21-25

defined, 297

Technology selection, 199-200, 251

and ASPs, 218-226

assuring functionality, 210-213, 215

assuring implementation support, 213-214

bottom-up approach to, 201-202

case study of, 226-230

examples of, 200-201

importance of, 231

pricing, 209, 215-216

rationales for, 200, 201

requirements-driven, 202-217

testing for, 209, 215-216

vendor contacts, 209, 210-214

vendor references, 214, 216-217

Teradata CRM, 37-38

Tiffany, website of, 105

Touchpoint, defined, 297

TouchScape, 60

Toysmart.com, 264

Travelocity, privacy goofup at, 264

Travelproblems.com, 272

Trouble ticket, defined, 297

Tyson, Monica, 229, 230

Underhill, Paco, 6

Union Bank of Norway, 144

analytic CRM by, 145-146

automation by, 145

customer loyalty to, 146

data warehousing by, 146, 147

success of, 146, 147-148

United Airlines, contact centers of, 57

Up-selling, 31

defined, 297

Usability, of CRM system, 208

Vague, Richard, 72

Variable insertion, 37

Verizon

CRM design at, 186-187

data warehousing at, 187

difficulties implementing CRM at, 188

reason for CRM at, 189

success of CRM at, 189-190

Vertical silos, 100

defined, 297

Vice president of strategic planning, role in CRM project, 240

Viral marketing, 7

defined, 297

Virgin Atlantic Airways, 8, 9

Wallace, Regina, 72, 73, 74

Wallet share, 34

WAP protocol, 91

Waterfall development, defined, 297-298

Web

clearinghouse sites on, 272

clickstream analysis, 38-39, 135-139

communication through, 10, 89

cross-selling through, 58

and customer loyalty, 11

and e-commerce, 105-107

FAQs on, 59-60, 61

personalization in, 35-37, 140-142

privacy issues, 42, 264

and sales force automation, 89

self-service on, 59-62

sites dealing with CRM, 284-286

Web hosting services, 219

Webvan, 104

Why We Buy (Underhill), 6

Wireless technology, 90

and field force automation, 93-96

for information retrieval, 91

infrastructure for, 97

for messaging, 90-91

modern, 95-96

protocols for, 91-92

Workforce management

at contact centers, 66-67

defined, 298

Xchange software, 30

XML (extensible markup language), 91

Yahoo, Web shops at, 272

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