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HANDBOOK OF CRM:
Achieving Excellence in Customer Management
TLFeBOOK
To Penelope and Christopher
HANDBOOK OF CRM:
Achieving Excellence in Customer Management
Adrian Payne
AMSTERDAM ? BOSTON ? HEIDELBERG ? LONDON ? NEW YORK ? OXFORD PARIS ? SAN DIEGO ? SAN FRANCISCO ? SINGAPORE ? SYDNEY ? TOKYO
Butterworth-Heinemann is an imprint of Elsevier
Butterworth-Heinemann is an imprint of Elsevier Linacre House, Jordan Hill, Oxford OX2 8DP 30 Corporate Drive, Suite 400 Burlington, MA 01803
First published 2005
Copyright ? 2005, Adrian Payne. All rights reserved.
The right of Adrian Payne to be identified as the author of this work has been asserted in accordance with the Copyright, Designs and Patents Act 1988.
No part of this publication may be reproduced in any material form (including photocopying or storing in any medium by electronic means and whether or not transiently or incidentally to some other use of this publication) without the written permission of the copyright holder except in accordance with the provisions of the Copyright, Designs and Patents Act 1988 or under the terms of a licence issued by the Copyright Licensing Agency Ltd, 90 Tottenham Court Road, London, England W1T 4LP. Applications for the copyright holder's written permission to reproduce any part of this publication should be addressed to the publisher.
Permissions may be sought directly from Elsevier's Science and Technology Rights Department in Oxford, UK: phone: (44) (0) 1865 843830; fax: (44) (0) 1865 853333; e-mail: permissions@elsevier.co.uk. You may also complete your request on-line via the Elsevier homepage (), by selecting `Customer Support' and then `Obtaining Permissions'.
British Library Cataloguing in Publication Data A catalogue record for this book is available from the British Library
Library of Congress Control Number: 2005922524 A catalogue record for this book is available from the Library of Congress
ISBN-13: 978-07506-6437-0 ISBN-10: 07506-6437-1
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Contents
Preface
xiii
About the Author
xvii
Acknowledgements
xix
Introduction
1
1 A strategic framework for CRM
4
The origins of CRM
6
The key principles of relationship marketing
9
An emphasis on retention of profitable customers
9
An emphasis on multiple markets
9
An emphasis on a cross-functional
approach to marketing
10
The rise of CRM
11
Marketing on the basis of relationships
11
Viewing customers as business assets
12
Organizing in terms of processes
12
From reactive to proactive use of information
13
Deploying IT to maximize the value of information
14
Balancing the value trade-off
15
Developing `one-to-one' marketing
16
The role of CRM
17
Varying definitions of CRM
18
The CRM continuum ? three perspectives of CRM
18
Use of CRM and its terminology
20
A definition of CRM
22
Types of CRM
23
The size and nature of the CRM market
24
Sector growth within the CRM market
25
CRM and software vendors
25
Five key cross-functional CRM processes
29
The need for a CRM strategic framework
30
Process 1: the strategy development process
32
Process 2: the value creation process
32
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