Managing Customer Experience and Relationships. Don Peppers

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Managing Customer Experience and Relationships - Don  Peppers


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to identify meaningful segments and niches and address the individual customers within the targeted groups. They are becoming aware, however, that many customers are uncomfortable about their loss of privacy and the increase in solicitations by mail, phone, and email. Ultimately, companies will have to move from an “invasive” approach to prospects and customers to a “permissions” approach. On the flip side, customers—now in contact with millions of other customers—have never been more informed or empowered.

      Despite being introduced in enterprises large and small over two decades ago, the full potential of CRM is only beginning to be realized. Of course, every company must offer great products and services. But now, rather than pursue all types of customers at great expense only to lose many of them, the objective is to focus only on those particular customers with current and long-term potential in order to preserve and increase their value to the company.

      In this fourth edition of their widely used textbook, Peppers and Rogers offer a careful context as well as modern thinking on how to grow the value of a company by growing the value of the customer base, how to increase profits by using modern technology and behaving ethically, and how to look ahead to what will be coming next.

      Philip Kotler

      S. C. Johnson Distinguished Professor of International Marketing,

      Kellogg School of Management, Northwestern University (Emeritus)

       Philip Kotler is widely known as the father of modern marketing. His textbook Marketing Management, coauthored with Kevin Keller, has become the foundational text for marketing courses around the globe. First published in 1976 by Prentice Hall, it is now in its 16th edition. In addition to his many books and university honors, Dr. Kotler has established the annual international World Marketing Summit, now in electronic format to reach audiences worldwide.

      1 1 Juliette Powell, 33 Million People in the Room (Upper Saddle River, NJ: Financial Times Press, 2009), pp. 8–9.

      The One to One Future: Building Relationships One Customer at a Time was our very first book, and we sent it to the publisher in February 1993 (“paper manuscript only, please; no electronic files allowed”). During the three previous years it took us to write the book, we often referred to it as a work of “business science fiction,” in which we were trying to imagine how businesses would compete once interactive technologies became ubiquitously available. And while we thought the future we were describing was technologically inevitable, we also judged that it was still 10 or 20 years away and would most likely arrive when fiber-optic cables were finally connected to individual homes and offices.

      On p. 5 of our book, we said that in the 1:1 future:

      products will be increasingly tailored to individual tastes, electronic media will be inexpensively addressed to individual consumers, and many products ordered over the phone will be delivered to the home in eight hours or less. In the 1:1 future businesses will focus less on short-term profits derived from quarterly or annual transaction volumes, and more on the kind of profits that can be realized from long-term customer retention and lifetime values.

      We went on to describe some of the social implications of truly ubiquitous, always-on interactivity, suggesting that our vision of the 1:1 future:

      holds immense implications for individual privacy, social cohesiveness, and the alienation and fractionalization that could come from the breakdown of mass media. It will change forever how we seek our information, education, and entertainment, and how we pursue our happiness. In addition to the “haves” and “have nots,” new class distinctions will be created between the “theres” and “there nots.” Some people will have jobs that require them to be there—somewhere—while others will be able to work mostly from their homes, without having to be anywhere.

      So we kept thinking about all this, and we wrote more books, and we began conducting workshops and giving presentations to businesses, associations, and conferences around the world. We formed a consulting company, Peppers & Rogers Group, all the better to help companies come to grips with the powers and limitations of this new type of marketing. Over the years we have consulted for, spoken with, and advised literally hundreds of companies in more than 60 countries around the world, from Algeria, Argentina, and Bulgaria, to Turkey, the United Kingdom, and Vietnam. We know what works and what doesn't, and we also know what works in some cultures but not so much in others. Moreover, when someone—anyone—comes up with a promising new idea in this discipline, we rapidly hear about it. And then we speak about this new idea, and we write about it.

      We created the IDIC framework (identify-differentiate-interact-customize) in the mid-1990s as a part of our consulting methodology. We tested it and refined it during our consulting work for many different companies before it first appeared in print in our 1999 book The One to One Fieldbook: The Complete Toolkit for Implementing a 1to1 Marketing Program, which we wrote with the leader of Peppers & Rogers Group's consulting practice, Bob Dorf. The Fieldbook included checklists, questionnaires, exercises, and self-help tools to guide businesses looking to gain more of the advantages offered by the internet, mobile phones, customer databases, and mass-customization technologies. By 2004 this IDIC framework had clearly shown its merits, so we used it as an organizing principle for the first edition of this textbook, and it remains a highly useful organizing principle today.


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