ng Customer Experience and Relationships (A Strategic Framework) (4th Edition)

ki.com/download/managing-customer-experience-and-relationships-a-strategic-fra

This Book is Available on YakiBooki.com

ng Customer Experience and Relationships (A Strategic Framework) (4th Edition)

ki.com/download/managing-customer-experience-and-relationships-a-strategic-fra

This Book is Available on YakiBooki.com

ng Customer Experience and Relationships (A Strategic Framework) (4th Edition)

Managing Customer
ki.com/download/managing-customer-experience-and-relationships-a-strategic-fra
Experience and Relationships

This Book is Available on YakiBooki.com

ng Customer Experience and Relationships (A Strategic Framework) (4th Edition)

ki.com/download/managing-customer-experience-and-relationships-a-strategic-fra

This Book is Available on YakiBooki.com

ng Customer Experience and Relationships (A Strategic Framework) (4th Edition)

Managing Customer
ki.com/download/managing-customer-experience-and-relationships-a-strategic-fra

Experience and
Relationships
A Strategic Framework

FOURTH EDITION

Don Peppers
Martha Rogers

This Book is Available on YakiBooki.com

ng Customer Experience and Relationships (A Strategic Framework) (4th Edition)
Copyright © 2022 by Don Peppers and Martha Rogers, Ph.D. All rights reserved.

Published by John Wiley & Sons, Inc., Hoboken, New Jersey.

Published simultaneously in Canada.

No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any
ki.com/download/managing-customer-experience-and-relationships-a-strategic-fra
form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise,
except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without
either the prior written permission of the Publisher, or authorization through payment of the
appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers,
MA 01923, (978) 750-8400, fax (978) 750-4470, or on the web at www.copyright.com. Requests to
the Publisher for permission should be addressed to the Permissions Department, John Wiley &
Sons, Inc., 111 River Street, Hoboken, NJ 07030, (201) 748-6011, fax (201) 748-6008, or online at
http://www.wiley.com/go/permission.

Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best
efforts in preparing this book, they make no representations or warranties with respect to the
accuracy or completeness of the contents of this book and specifically disclaim any implied
warranties of merchantability or fitness for a particular purpose. No warranty may be created or
extended by sales representatives or written sales materials. The advice and strategies contained
herein may not be suitable for your situation. You should consult with a professional where
appropriate. Further, readers should be aware that websites listed in this work may have changed
or disappeared between when this work was written and when it is read. Neither the publisher nor
authors shall be liable for any loss of profit or any other commercial damages, including but not
limited to special, incidental, consequential, or other damages.

For general information on our other products and services or for technical support, please contact
our Customer Care Department within the United States at (800) 762-2974, outside the United
States at (317) 572-3993 or fax (317) 572-4002.

Wiley also publishes its books in a variety of electronic formats. Some content that appears in print
may not be available in electronic formats. For more information about Wiley products, visit our
web site at www.wiley.com.

Library of Congress Cataloging-in-Publication Data is Available:

ISBN 9781119815334 (Hardback)

ISBN 9781119815358 (ePDF)
ISBN 9781119815341 (ePub)

Cover Design: Wiley

Cover Image: © Den Rise/Shutterstock

This Book is Available on YakiBooki.com

ng Customer Experience and Relationships (A Strategic Framework) (4th Edition)

Contents
ki.com/download/managing-customer-experience-and-relationships-a-strategic-fra

Foreword by Philip Kotler ix

Preface xiii
Acknowledgments xvii
About the Authors xix

PART I Technology’s Rainbow 1

CHAPTER 1 Evolution of Marketing and the Revolution

of Customer Strategy 3
Roots of Customer Relationships and Experience 6
Initial Assessment: Where Is a Firm on the Customer
Strategy Map? 14
Comparing Market-Share and Share-of-Customer Strategies 16
What Is a Relationship? Is That Different from Customer
Experience? 20
Learning Relationships: The Crux of Building Customer
Value 22

CHAPTER 2 Treat Different Customers Differently:

How Learning Relationships Lead
to Better Experiences and Higher Profit 25
Focus on Relationship Equity 25
The Strategy: Treat Different Customers Differently (TDCD) 26
The Technology Revolution and the Customer Revolution 28
What Characterizes a Relationship? 31
Customer Loyalty: Is It Emotional? Or Behavioral? 34
Customer Retention and Enterprise Profitability 37

CHAPTER 3 Better Customer Experiences for Better

Shareholder Return 49
Frictionless: The Ideal Customer Experience May
Be No Experience at All 49
Product Competence 56

v
This Book is Available on YakiBooki.com
 vi Contents
ng Customer Experience and Relationships (A Strategic Framework) (4th Edition)
Customer Experience Duality 58
Customer Competence 59
Understanding Customer Experience through
Customer Journey Mapping 62

ki.com/download/managing-customer-experience-and-relationships-a-strategic-fra
CHAPTER 4 IDIC and Trustability: Building Blocks
of Customer Relationships 69
IDIC: Four Implementation Tasks for Creating and Managing
Customer Experiences and Relationships 69
How Does Trust Characterize a Learning Relationship? 78
Do Things Right, Do the Right Thing, and Be Proactive 85
Relationships Require Information, but Information
Comes Only with Trust 91
Behind Their Customers’ Backs 94
How Trustable Companies Operate 96
Recovering Lost Trust 97
PART I: FOOD FOR THOUGHT 101

PART II Customer Experience and Relationships:

Trust Is the Foundation and IDIC the Building Blocks 105

CHAPTER 5 IDIC Step 1: Identify Individual Customers 107

Individual Information Requires Customer Recognition 108
The Real Objective of Loyalty Programs 113
What Does Identify Mean? 118
Four Ways to Integrate the Online and Contact-Center
Experience 119
Customer Data Revolution 122
Cookies and Privacy 125

CHAPTER 6 IDIC Step 2: Differentiate Customers by Value 131

Customer Value Is a Future-Oriented Variable 133
Customer Lifetime Value 135
Recognizing the Hidden Potential Value in Customers 141
Different Customers Have Different Values 146
Customer Value Categories 149
Customer Referral Value 152

CHAPTER 7 IDIC Step 2: Differentiate Customers

by Needs 167
Differentiating Customers by Need: Definitions
and Examples 168
Understanding Customer Behaviors and Needs 178
Why Doesn’t Every Company Already Differentiate Its
Customers by Needs? 181

This Book is Available on YakiBooki.com

 Contents vii
ng Customer Experience and Relationships (A Strategic Framework) (4th Edition)
Categorizing Customers by Their Needs 183
Community Knowledge 188
Using Needs Differentiation to Build Customer Value 192

CHAPTER 8 IDIC Step 3: Interact to Learn and Collaborate 197

ki.com/download/managing-customer-experience-and-relationships-a-strategic-fra
Dialogue Requirements 199
Implicit and Explicit Bargains 200
Do Consumers Really Want One-to-One Marketing? 202
Customer Dialogue: A Unique and Valuable Asset 208
Efficient and Effective Customer Interaction 213
Complaining Customers: Hidden Assets? 215
Empowering Customers to Defend the Brand 223
Age of Transparency 228

CHAPTER 9 IDIC Step 3: Interact/Privacy Considerations 239

Protect Privacy and Earn Customer Trust to Encourage
Interaction 242
General Data Protection Regulation 244
Customer Loyalty: Is A Customer Loyal to a Company,
or a Company Loyal to a Customer? 250
Privacy Pledges Build Enterprise Trust 255
The Web That Might Have Been 256

CHAPTER 10 IDIC Step 4: Customize to Build Learning

Relationships 263
How Mass Customization Works 264
How Can Customization Be Profitable? Answer:
Configuration 268
Technology Accelerates Mass Customization 275
Customization of Standardized Products and Services 279
Value Streams 284
Customer Success Management 286
Culture Rules 291
Technology’s Real Rainbow: Collaborative Learning
Relationships 291
PART II: FOOD FOR THOUGHT 293

PART III Making It Happen 301

CHAPTER 11 Measuring and Managing to Build Customer Value 303

Customer Equity 312
Customer Loyalty and Customer Equity 325
Return on Customer 329
Leading Indicators of LTV Change 343
Stats and the Single Customer 347

This Book is Available on YakiBooki.com

 viii Contents
ng Customer Experience and Relationships (A Strategic Framework) (4th Edition)
CHAPTER 12 Customer Analytics, Martech, Critical
Thinking, Data Science, and
the Customer-Strategy Enterprise 351
Customer-Specific Data and Longitudinal Insight 353
ki.com/download/managing-customer-experience-and-relationships-a-strategic-fra
Big Data 358
Likelihoods, Probabilities, and Reality 366
A/B Testing: Some Guidelines for Non-Statisticians 371
Conditional Reasoning and Bayesian Analysis 374
A Small Section on a Big Topic: Using Martech to Build
Customer Value and for Marketing Tasks 383
An Analytical Fable 385

CHAPTER 13 Organizing and Managing the Profitable

Customer-Strategy Enterprise 387
Who Owns the Customer Relationship? 387
What Is the Financial Case for Investing
in Customer Experience? 390
Relationship Governance 399
Making It Happen 405
How Does Relationship Governance Affect Customer
Service Management? 414

CHAPTER 14 Leading to Build Customer Value 415

How Marketers Work with the Finance Department 416
Human Resources: Managing Employees
in the Customer-Strategy Enterprise 417
Keeping and Growing Customers is Aligned with
Keeping and Growing Employees 429
Leadership Behavior of Customer Relationship
Managers and Others Leading the Customer-Centric
Organization 435
Futureproofing the Customer-Centric Organization 439
PART III: FOOD FOR THOUGHT 441

Glossary 445

Name Index 461

Term Index 469

This Book is Available on YakiBooki.com