Customer Relationship Management: Concepts and Technologies

427 Pages·2015·5.68 MB·English

by  Francis Buttle

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‘This is absolutely the best exposition of CRM. I can’t think of a better guide to increasing
your performance and profits. This book belongs on the desk of every company that is
serious about CRM. The wealth of information and insight is astounding.’
Professor Philip Kotler, S.C. Johnson & Son Distinguished
Professor of International Marketing, Kellogg School of
Management, Northwestern University, USA
‘Francis Buttle and Stan Maklan’s third edition of Customer Relationship Managementis
a comprehensive, soup-to-nuts compendium of information and guidance that ought to be
a desk reference for every CRM professional in business today, whether you sell products
or services, to consumers or businesses.’
Don Peppers, Founding Partner, Peppers & Rogers Group
‘This lucid and content-packed book reads and informs like a charm. Francis Buttle and
Stan Maklan’s refreshing treatment of CRM as a core business strategy is destined to
become a classic. Highly recommended.’
Fred Wiersema, Customer Strategist, Chair of the
B2B Leadership Board, and top-selling author
of The Discipline of Market Leaders
‘This book is crisp, practical and stimulating. It combines Francis Buttle and Stan Maklan’s
considerable insights with practical examples and provides a step-by-step pragmatic
approach to the application of CRM in business. Their coverage of CRM technology is an
enhancing feature of the book. All senior management would benefit from reading it,
particularly those who realize that profitable customers are their company’s greatest asset
and require foolproof guidance to retain them. Well-grounded academically, this book is
equally beneficial for management students. Overall, it sets out a comprehensive reference/
guide to business success.’
Professor John A. Murphy, United Utilities Professor of
Customer Management, Manchester Business School, UK
‘A reference work to understand the ever-changing field of CRM. Especially demystifying
what CRM is, what it is not, and offering a very comprehensive view on how to approach
it and unlock its true value.’
Greg Lecointe, Director CX Applications Business
Group, Oracle Corporation
‘A great tour of the CRM landscape that covers the vastness between Operational and
Strategic CRM while providing a robust overview of customer-related data and data
mining. A definite reference for managers looking to take customer-centred strategies to
the next level.’
Ian Di Tullio, Director Loyalty and Relationship Marketing
Air Canada
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CUSTOMER RELATIONSHIP
MANAGEMENT
Customer Relationship Management: Concepts and Technologies, third edition, is a much-
anticipated update of a bestselling textbook, including substantial revisions to bring its
coverage up to date with the very latest in CRM practice. The book introduces the concept
of CRM, explains its benefits, how and why it is used, the technologies that are deployed, and
how to implement it, providing you with a guide to every aspect of CRM in your business
or your studies.
Both theoretically sound and managerially relevant, the book draws on academic and
independent research from a wide range of disciplines including information systems,
marketing, human resources, project management, finance, strategy and more. Buttle and
Maklan, clearly and without jargon, explain how CRM can be used throughout the customer
lifecycle stages of customer acquisition, retention and development. The book is illustrated
liberally with screenshots from CRM software applications and case illustrations of CRM in
practice.
New to this edition:
• Updated instructor support materials online.
• Full colour interior.
• Brand new international case illustrations from many industry settings.
• Substantial revisions throughout, including new content on:
– social media and social CRM
– big data and unstructured data
– recent advances in analytical CRM including next best action solutions
– marketing, sales and service automation
– customer self-service technologies
– making the business case and realizing the benefits of investment in CRM.
Ideal as a core textbook for students on CRM or related courses such as relationship
marketing, database marketing or key account management, the book is also essential to
industry professionals, managers involved in CRM programmes and those pursuing
professional qualifications or accreditation in marketing, sales or service management.
Francis Buttle, BSc, MA, PhD, is founder and principal consultant of Francis Buttle &
Associates, and Honorary Adjunct Professor at Macquarie Graduate School of Management,
Sydney, Australia.
Stan Maklan, BSc, MBA, PhD, is a Reader in Strategic Marketing, Cranfield School of
Management, UK.
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CUSTOMER
RELATIONSHIP
MANAGEMENT
Concepts and technologies
Third edition
FRANCIS BUTTLE AND
STAN MAKLAN
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First published 2003
by Butterworth-Heinemann, an imprint of Elsevier
Second edition 2009
Authored by Francis Buttle
Third edition published 2015
by Routledge
2 Park Square, Milton Park, Abingdon, Oxon OX14 4RN
and by Routledge
711 Third Avenue, New York, NY 10017
Routledge is an imprint of the Taylor & Francis Group, an informa business
© 2015 Francis Buttle and Stan Maklan
The right of Francis Buttle and Stan Maklan to be identified as author of
this work has been asserted by them in accordance with sections 77 and
78 of the Copyright, Designs and Patents Act 1988.
All rights reserved. No part of this book may be reprinted or reproduced
or utilized in any form or by any electronic, mechanical, or other means,
now known or hereafter invented, including photocopying and recording,
or in any information storage or retrieval system, without permission in
writing from the publishers.
Every effort has been made to contact copyright holders for their
permission to reprint material in this book. The publishers would be
grateful to hear from any copyright holder who is not here acknowledged
and will undertake to rectify any errors or omissions in future editions of
this book.
Trademark notice: Product or corporate names may be trademarks or
registered trademarks, and are used only for identification and
explanation without intent to infringe.
British Library Cataloguing in Publication Data
A catalogue record for this book is available from the British Library
Library of Congress Cataloging in Publication Data
Buttle, Francis.
Customer relationship management: concepts and technologies/
Francis Buttle and Stan Maklan. – Third edition.
pages cm
Includes bibliographical references and index.
1. Customer relations – Management. I. Maklan, Stan. II. Title.
HF5415.5.B875 2015
658.8′12–dc23
2014028109
ISBN: 978-1-138-78982-1 (hbk)
ISBN: 978-1-138-78983-8 (pbk)
ISBN: 978-1-315-76459-7 (ebk)
Typeset in Minion Pro and Futura Book
by Florence Production Ltd, Stoodleigh, Devon, UK
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Francis:I dedicate this book to the memory of my brother Nick who died
far too young from multiple myeloma, and to newborn Caitlin Rose who
has an entire life ahead of her. One life ends and another begins.
Stan: I dedicate this book to my family and the support that they provide to
enable such endeavours. My wife Anne’s tireless support for which I need
to say thank you more often and my daughter Alice whom I hope to inspire
to achieve her goals, provide great motivation. I also dedicate this book to
my mother, who passed away during the writing of this book, for all that
she did for me and for what I have become.
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CONTENTS
List of figures xiv
List of tables xvii
About the authors xix
Preface and acknowledgements xxi
Part I UNDERSTANDING CUSTOMER RELATIONSHIPS 1
1 Introduction to CRM 3
Chapter objectives 3
Introduction 3
Strategic CRM 5
Operational CRM 7
Analytical CRM 11
Where does social CRM fit? 13
Misunderstandings about CRM 13
Defining CRM 15
CRM constituencies 16
Commercial contexts of CRM 18
The not-for-profit context – the ‘third sector’ 18
Models of CRM 20
Summary 22
Notes and references 23
2 Understanding relationships 24
Chapter objectives 24
What is a relationship? 24
Relationship quality 28
Why companies want relationships with customers 28
Customer lifetime value 32
When might companies not want relationships with customers? 37
Why customers want relationships with suppliers 39
ix