Strategic Customer Management Relationshipmarketingandcustomerrelationshipmanagement(CRM)canbejointlyutilised toprovideaclearroadmaptoexcellenceincustomermanagement;thisisthefirsttextbookto demonstratehowthiscanbedone.Writtenbytwoacclaimedexpertsinthefield,thebook shows how a holistic approach to managing relationships with customers and other key stakeholders leadsto increased shareholder value. Taking a practical, step-by-step approach, theauthorsexplaintheprinciplesofrelationshipmarketing,applythemtothedevelopment of a CRM strategy and discuss key implementation issues. The book’s up-to-date coverage includes the latest developments in digital marketing and the use of social media. Topical examples and case studies from around the world connect theory with best global practice, makingthisanidealtextforbothstudentsandpractitionerskeentokeepabreastofchangesin thisfast-movingfield. Dr Adrian Payne is a Professor of Marketing in the Australian School of Business at the UniversityofNewSouthWales. DrPennieFrowisAssociateProfessorofMarketingandDirectoroftheMasterofMarketing ProgrammeattheUniversityofSydneyBusinessSchool,Australia. VisittheCompanionWebsiteatwww.cambridge.org/payneandfrow tofindvaluablelearning materials,including: Forlecturers (cid:1) Instructor’sManual,includingrecommendedHarvardBusinessSchoolcasestudies (cid:1) FullsetofPowerPointslidesthatcanbeadaptedforyourcourse (cid:1) Abankofmultiplechoicequestionstoteststudentlearning ForStudents (cid:1) Linkstousefulsitesontheweb (cid:1) Samplechapter ‘Adrian Payne and Pennie Frow have written the best guide to understanding customer relationshipmanagementstrategy.Theyhaveprovidedanexcellentframeworkandillustrate itwitharichsetofcasesthatbothstudentsandmanagerswouldprofitfromreading.’ Philip Kotler, S. C. Johnson & Son Distinguished Professor of International Marketing, KelloggSchoolofManagement,NorthwesternUniversity ‘RelationshipMarketingandCRMhaveuntilnowbeentreatedastwoseparateprocesses,even though all the evidence points to the fact that most CRM systems fail because of a lack of understanding of customer needs. Adrian Payne and Pennie Frow have brought the two domains together under a title which makes sense – Strategic Customer Management – whichfromtheverybeginningshouldhavebeenthewholepurposeofCRM.’ Malcolm McDonald, Emeritus Professor, Cranfield School of Management, Cranfield University,andChairman,BrandFinancePLC ‘Strategic Customer Management is the most comprehensive treatise on Customer Centric Marketing. It provides insightful understanding of how to create value for customers and also for the company. I congratulate Adrian Payne and Pennie Frow for an outstanding contributiontobothmarketingdisciplineandpractice.’ Jagdish N. Sheth, Charles H. Kellstadt Chair of Marketing, Goizueta Business School, EmoryUniversity ‘This book is a comprehensive guide to building shareholder value through long-lasting relationshipswithallkindsofcustomers.’ James Heskett, Baker Foundation Professor Emeritus, Harvard Business School, and authorofTheCultureCycle ‘Strategic Customer Management takes a thorough, relational approach to the customer. By integratingrelationshipmarketingwithCRMandaddingaserviceperspectiveonbusiness,it goesfarbeyondconventionalmarketingbooks.Itprovidesacomprehensiveapproachtohow afirmcanunderstandandmanagecustomersinthecontemporarycompetitiveenvironment, wheretraditionalmarketingmodelsareincreasinglylesseffective.’ ChristianGrönroos,ProfessorofServiceandRelationshipMarketing,HankenSchoolof Economics,Finland ‘AsPeterDruckersays,“Thereisonlyonedefinitionofbusinesspurpose:tocreateacustomer.” IfyouagreewithDrucker,anddesireacompetitiveadvantage,considerthestrategicfunda- mentals and execution techniques outlined in Strategic Customer Management: Integrating RelationshipMarketingandCRM’. JimGuyette,PresidentandCEORolls-Royce,NorthAmerica Strategic Customer Management Integrating Relationship Marketing and CRM Adrian Payne Pennie Frow CAMBRIDGE UNIVERSITY PRESS Cambridge,NewYork,Melbourne,Madrid,CapeTown, Singapore,SãoPaulo,Delhi,MexicoCity CambridgeUniversityPress TheEdinburghBuilding,CambridgeCB28RU,UK PublishedintheUnitedStatesofAmericabyCambridgeUniversityPress,NewYork www.cambridge.org Informationonthistitle:www.cambridge.org/9781107649224 ©AdrianPayneandPennieFrow2013 Thispublicationisincopyright.Subjecttostatutoryexception andtotheprovisionsofrelevantcollectivelicensingagreements, noreproductionofanypartmaytakeplacewithoutthewritten permissionofCambridgeUniversityPress. Firstpublished2013 PrintedandboundintheUnitedKingdombytheMPGBooksGroup AcataloguerecordforthispublicationisavailablefromtheBritishLibrary LibraryofCongressCataloging-in-PublicationData Payne,Adrian. Strategiccustomermanagement:integratingrelationshipmarketingandCRM/ AdrianPayne,PennieFrow. pages cm Includesbibliographicalreferencesandindex. ISBN978-1-107-01496-1–ISBN978-1-107-64922-4(pbk.) 1. Customerrelations–Management. I. Frow,Pennie. II. Title. HF5415.5.P395 2013 658.8012–dc23 2012036778 ISBN978-1-107-01496-1Hardback ISBN978-1-107-64922-4Paperback Additionalresourcesforthispublicationatwww.cambridge.org/payneandfrow CambridgeUniversityPresshasnoresponsibilityforthepersistenceor accuracyofURLsforexternalorthird-partyInternetwebsitesreferredto inthispublication,anddoesnotguaranteethatanycontentonsuch websitesis,orwillremain,accurateorappropriate. , To Christopher , ,