{"product_id":"converting-customer-value-isbn-9780470016343","title":"Converting Customer Value","description":"A company exists to make profit, and everything it does is a step towards that goal. Many firms are trying to get closer to their customers, but few realise how crucial this is to corporate value. Indeed, the long-term value of a company is perhaps best described as the sum of future profits from customers, discounted to a present value. Tackling two hot topics in business - CRM and corporate value - and based on a study undertaken by the Customer Management Leadership Group, John Murphy's new book links customer management directly to company profitability for the first time. By implementing its Customer Management Integration Framework, a company can see cash flows for each customer relationship, and use that information to effectively manage key customers for higher and more resilient levels of profitability. \u003cp\u003eAcknowledgments xiii\u003c\/p\u003e \u003cp\u003eIntroduction xv\u003c\/p\u003e \u003cp\u003e\u003cb\u003e1. The Customer Profit Conundrum 1\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eCommon misperceptions about customer profitability 2\u003c\/p\u003e \u003cp\u003eAn overview of customer profitability analysis 6\u003c\/p\u003e \u003cp\u003eHow to measure profit 6\u003c\/p\u003e \u003cp\u003eThe nature of customer costs 8\u003c\/p\u003e \u003cp\u003eCustomer profitability analysis (CPA) and activity-based costing (ABC) 11\u003c\/p\u003e \u003cp\u003eA step-by-step approach to measuring customer profitability 16\u003c\/p\u003e \u003cp\u003eGetting started with customer profitability analysis 24\u003c\/p\u003e \u003cp\u003eCommon barriers to customer profitability analysis 27\u003c\/p\u003e \u003cp\u003eRunning a CPA project 28\u003c\/p\u003e \u003cp\u003eThe results of CPA 30\u003c\/p\u003e \u003cp\u003eWhy do companies have unprofitable customers? 32\u003c\/p\u003e \u003cp\u003eImproving customer profitability 34\u003c\/p\u003e \u003cp\u003eThe customer response 37\u003c\/p\u003e \u003cp\u003eManagement barriers to making changes as a result of CPA 37\u003c\/p\u003e \u003cp\u003eConclusion 38\u003c\/p\u003e \u003cp\u003e\u003cb\u003e2. Segmentation 43\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eSegmentation incorporating profitability 47\u003c\/p\u003e \u003cp\u003eStep 1: Completion of customer profitability analysis 47\u003c\/p\u003e \u003cp\u003eStep 2: Macro segmentation 48\u003c\/p\u003e \u003cp\u003eStep 3: Verification\/Reality check 50\u003c\/p\u003e \u003cp\u003eStep 4: Micro segmentation 57\u003c\/p\u003e \u003cp\u003eStep 5: Investigate if strategies and operations are aligned 59\u003c\/p\u003e \u003cp\u003eStep 6: Align operations and implement tactics 65\u003c\/p\u003e \u003cp\u003eConclusion 68\u003c\/p\u003e \u003cp\u003e\u003cb\u003e3. Customer Focus 73\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eSegmenting business markets 75\u003c\/p\u003e \u003cp\u003eSegmenting international markets 76\u003c\/p\u003e \u003cp\u003eEach customer wants to be treated as an individual 77\u003c\/p\u003e \u003cp\u003eChoosing customers 77\u003c\/p\u003e \u003cp\u003eManaging the total customer experience 79\u003c\/p\u003e \u003cp\u003eLeading the customer experience 80\u003c\/p\u003e \u003cp\u003eManaging the impact of delays 81\u003c\/p\u003e \u003cp\u003eEmployees connect to the customer 83\u003c\/p\u003e \u003cp\u003eCustomer retention 84\u003c\/p\u003e \u003cp\u003eWhat if customers charged the organisation for their time? 84\u003c\/p\u003e \u003cp\u003eData collection 87\u003c\/p\u003e \u003cp\u003eAction plan 90\u003c\/p\u003e \u003cp\u003eListening to customers 92\u003c\/p\u003e \u003cp\u003eComplaint management: customer satisfaction 93\u003c\/p\u003e \u003cp\u003eMeasures influence behaviour toward (or away from) the DCP 96\u003c\/p\u003e \u003cp\u003eThe ladder of loyalty 97\u003c\/p\u003e \u003cp\u003eRecognise and reward loyal customers 97\u003c\/p\u003e \u003cp\u003eGauging customer loyalty 98\u003c\/p\u003e \u003cp\u003eMicro-marketing is the ultimate in customer service provision 99\u003c\/p\u003e \u003cp\u003eMonitoring performance 100\u003c\/p\u003e \u003cp\u003eWhy it is vital to build trust 103\u003c\/p\u003e \u003cp\u003eSummary 103\u003c\/p\u003e \u003cp\u003e\u003cb\u003e4. Processes and Systems 109\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eProcess reviews\/Process improvement 112\u003c\/p\u003e \u003cp\u003eCustomer requirements 115\u003c\/p\u003e \u003cp\u003eIdentification of key processes 115\u003c\/p\u003e \u003cp\u003eProcess review 118\u003c\/p\u003e \u003cp\u003eBusiness process re-engineering 122\u003c\/p\u003e \u003cp\u003eQuality in the service industries 123\u003c\/p\u003e \u003cp\u003eManagement’s understanding of customers’ expectations 128\u003c\/p\u003e \u003cp\u003eComplaints 129\u003c\/p\u003e \u003cp\u003eCompliments 134\u003c\/p\u003e \u003cp\u003eSummary 137\u003c\/p\u003e \u003cp\u003e\u003cb\u003e5. Employee Involvement 141\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eRetention of customers 144\u003c\/p\u003e \u003cp\u003eUnderstanding key concepts 146\u003c\/p\u003e \u003cp\u003eControlling the continuum 147\u003c\/p\u003e \u003cp\u003eRecruitment 150\u003c\/p\u003e \u003cp\u003eEmployee audits 154\u003c\/p\u003e \u003cp\u003eTools for the job 156\u003c\/p\u003e \u003cp\u003eThe team approach 161\u003c\/p\u003e \u003cp\u003eInvolve employees in setting performance and service standards 165\u003c\/p\u003e \u003cp\u003eListen to employees 167\u003c\/p\u003e \u003cp\u003eEmployee motivation 169\u003c\/p\u003e \u003cp\u003ePerformance indicators 171\u003c\/p\u003e \u003cp\u003eReward and recognition – linked to customer retention 175\u003c\/p\u003e \u003cp\u003eWhat makes a great employer? 179\u003c\/p\u003e \u003cp\u003eEmployee retention 181\u003c\/p\u003e \u003cp\u003eThe value of performing exit interviews 182\u003c\/p\u003e \u003cp\u003eSummary 184\u003c\/p\u003e \u003cp\u003e\u003cb\u003e6. Training and Development 187\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eEmployees are assets 189\u003c\/p\u003e \u003cp\u003eThere is always a payback 190\u003c\/p\u003e \u003cp\u003eTeam establishment 192\u003c\/p\u003e \u003cp\u003eIdentification of training needs 195\u003c\/p\u003e \u003cp\u003eCompetence-based training 196\u003c\/p\u003e \u003cp\u003eService quality training 199\u003c\/p\u003e \u003cp\u003eTeamwork training 201\u003c\/p\u003e \u003cp\u003eCoaching 203\u003c\/p\u003e \u003cp\u003eJust-in-time training 206\u003c\/p\u003e \u003cp\u003eFormal recognition 207\u003c\/p\u003e \u003cp\u003eHow is the person at the top affected? 208\u003c\/p\u003e \u003cp\u003eManagers as trainers 209\u003c\/p\u003e \u003cp\u003eTraining customers 209\u003c\/p\u003e \u003cp\u003eSummary 210\u003c\/p\u003e \u003cp\u003e\u003cb\u003e7. Measurement 213\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eBenchmarking 216\u003c\/p\u003e \u003cp\u003eAlways measure customer reaction 216\u003c\/p\u003e \u003cp\u003eMeasurement tool creation 218\u003c\/p\u003e \u003cp\u003eAll measurements must be followed by actions for improvements 219\u003c\/p\u003e \u003cp\u003ePriorities for success 221\u003c\/p\u003e \u003cp\u003eHow is total measurement relevant to business success? 222\u003c\/p\u003e \u003cp\u003eTracking net promoters 224\u003c\/p\u003e \u003cp\u003eMeasurement of people 225\u003c\/p\u003e \u003cp\u003eLeadership 227\u003c\/p\u003e \u003cp\u003eWhat to measure? 228\u003c\/p\u003e \u003cp\u003eMeasurement of performance 231\u003c\/p\u003e \u003cp\u003eWhat are the thresholds within which customers decide if an organisation is getting things done right? 235\u003c\/p\u003e \u003cp\u003eManagers are judge and jury 237\u003c\/p\u003e \u003cp\u003eWho needs to know what? 239\u003c\/p\u003e \u003cp\u003eMeasurement and response to change 240\u003c\/p\u003e \u003cp\u003eProduction processes 241\u003c\/p\u003e \u003cp\u003eSummary 248\u003c\/p\u003e \u003cp\u003e\u003cb\u003e8. Continuous Improvement 251\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eAdvantages of continuous improvement 253\u003c\/p\u003e \u003cp\u003eTeamwork takes the strain 253\u003c\/p\u003e \u003cp\u003eProblems become opportunities 254\u003c\/p\u003e \u003cp\u003eImprovement means shared information and ideas 256\u003c\/p\u003e \u003cp\u003eRewards come from hard work 256\u003c\/p\u003e \u003cp\u003eHow does one start a service quality initiative and then keep it going forward? 257\u003c\/p\u003e \u003cp\u003eKeep outside suppliers of goods and services up to scratch 260\u003c\/p\u003e \u003cp\u003eShopping in the global marketplace 261\u003c\/p\u003e \u003cp\u003eEthical distortion of customer segments 262\u003c\/p\u003e \u003cp\u003eBenchmarks 264\u003c\/p\u003e \u003cp\u003eField leaders and their recipe for success 269\u003c\/p\u003e \u003cp\u003eHow does one measure continuous improvement? 270\u003c\/p\u003e \u003cp\u003eNothing succeeds like success 274\u003c\/p\u003e \u003cp\u003eCost-effective captivity 275\u003c\/p\u003e \u003cp\u003eSummary 276\u003c\/p\u003e \u003cp\u003e\u003cb\u003e9. Communications 279\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eCommunication can be a response, or it can call for a response 283\u003c\/p\u003e \u003cp\u003eManagement has an ongoing role 288\u003c\/p\u003e \u003cp\u003eLeadership is the key 290\u003c\/p\u003e \u003cp\u003ePoor communication is both damaging and unfair to employees 290\u003c\/p\u003e \u003cp\u003eWhat are communications? 291\u003c\/p\u003e \u003cp\u003eBody language also sends messages 292\u003c\/p\u003e \u003cp\u003eIs every communication necessary? 293\u003c\/p\u003e \u003cp\u003eMake it easy for two-way communications 294\u003c\/p\u003e \u003cp\u003eTo the rest of the world, we are foreigners 295\u003c\/p\u003e \u003cp\u003eEffective internal communication 296\u003c\/p\u003e \u003cp\u003eMonitor the effectiveness of communication 297\u003c\/p\u003e \u003cp\u003eTeam briefings 297\u003c\/p\u003e \u003cp\u003eKeep it simple 301\u003c\/p\u003e \u003cp\u003eKeep the door open to doubters 302\u003c\/p\u003e \u003cp\u003eSummary 303\u003c\/p\u003e \u003cp\u003e\u003cb\u003e10. Culture 307\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eWhat exactly do we mean by corporate culture? 307\u003c\/p\u003e \u003cp\u003eBeginning to develop a culture 309\u003c\/p\u003e \u003cp\u003eThink Christmas pudding 312\u003c\/p\u003e \u003cp\u003eHussey’s easier approach to fundamental change 319\u003c\/p\u003e \u003cp\u003eRule books 319\u003c\/p\u003e \u003cp\u003eGrowing and sustaining a customer-focused culture 321\u003c\/p\u003e \u003cp\u003eTrust 325\u003c\/p\u003e \u003cp\u003eThe decline in customer satisfaction 329\u003c\/p\u003e \u003cp\u003eSummary 337\u003c\/p\u003e \u003cp\u003eCycle of success 340\u003c\/p\u003e \u003cp\u003eCase Study 1: Alfred McAlpine Business Services Limited 341\u003c\/p\u003e \u003cp\u003eCase Study 2: Centrica 351\u003c\/p\u003e \u003cp\u003eCase Study 3: Eversheds 355\u003c\/p\u003e \u003cp\u003eCase Study 4: National Blood Service 359\u003c\/p\u003e \u003cp\u003eCase Study 5: Shell 367\u003c\/p\u003e \u003cp\u003eBibliography 373\u003c\/p\u003e \u003cp\u003eIndex 381\u003c\/p\u003e \u003cp\u003e\"…reminds marketers of the vital link between customer relationships and profitability ... shows how companies can effectively implement the changes needed.\" (The Marketer, March 2006)\u003c\/p\u003e \u003cp\u003e\"...a worthy read...\" (\u003ci\u003eQuality world\u003c\/i\u003e, May 2006)\u003c\/p\u003e \u003cp\u003e\u003cb\u003eProfessor John A Murphy\u003c\/b\u003e, Alfred McAlpine Professor of Customer Management, Manchester Business School, Head of Development, Faculty of Humanities, combines the roles of academic and international consultant specialising in service quality management and customer retention. He has held a series of senior management positions both in Ireland and the UK.\u003cbr\u003eAt Manchester Business School, he has established a unique cohort of PhD scholarship students in conjunction with leading UK companies. This is the largest doctoral research group in this specialist area in Europe. He is a regular contributor to programmes at the Executive Development Centre. He also chairs and co-directs the Customer Management Leadership Group.\u003cbr\u003eProfessor Murphy holds five professional fellowships and is a member of the International Academy for Quality, whose members are chosen from the most active protagonists of quality in the world.\u003cbr\u003eHe is the author of four books, the most recent of which, \u003ci\u003eThe Lifebelt: The Definitive Guide to Managing Customer Retention\u003c\/i\u003e, was published in 2001.\u003c\/p\u003e \u003cp\u003e\u003cb\u003eDr Jamie Burton\u003c\/b\u003e is a lecturer in Marketing at Manchester Business School and Director of Research for the Customer Management Leadership Group. He won the Yorkshire Water doctoral research scholarship, which allowed him to study for his PhD. He has published research in the areas of customer behaviour, satisfaction and loyalty. Dr Burton is also a regular contributor to the BBC GMR breakfast show business news.\u003c\/p\u003e \u003cp\u003e\u003cb\u003eRobin Gleaves and Jan Kitshoff\u003c\/b\u003e met whilst at Manchester Business School and founded their consultancy in order to develop and implement their thinking in the field of customer profitability. They were involved in a benchmarking project for the CMLG on this issue and this is where the relationship with John and Jamie began.\u003c\/p\u003e  \u003cp\u003eThis book is founded on a groundbreaking approach called the Customer Management Integration Framework. Developed from a customer profitability benchmarking study conducted by the authors across leading companies, the approach makes explicit links between customer and corporate value for the first time. A business without customers is nothing, argue the authors. And if you plan to stay for the long term you had better start converting the value of yours into hard currency – fast. \u003c\/p\u003e\u003cp\u003eBuilding on the success of John Murphy's previous book \u003ci\u003eThe Lifebelt\u003c\/i\u003e and drawing on new thinking from the Customer Management Leadership Group, \u003ci\u003eConverting Customer Value\u003c\/i\u003e presents a model for developing top customers and exploiting them for ideas, publicity and profitability in exchange for special care and attention. It discusses the opportunities for bringing less profitable customers into the top group, and also offers some unconventional advice on what to do with the remainder. \u003c\/p\u003e\u003cp\u003eA final section is devoted to detailed case studies of customer-centric change initiatives at Alfred McAlpine Business Services, Centrica, Eversheds, the National Blood Service and Shell.\u003c\/p\u003e","brand":"Wiley","offers":[{"title":"Default Title","offer_id":47988989984997,"sku":"NP9780470016343","price":75.0,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9780470016343.jpg?v=1761782337","url":"https:\/\/k12savings.com\/products\/converting-customer-value-isbn-9780470016343","provider":"K12savings","version":"1.0","type":"link"}