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CRM Handbook, The: A Business Guide to Customer Relationship Management

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CRM Handbook, The: A Business Guide to Customer Relationship Management

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  • Copyright 2002
  • Dimensions: 7-3/8x9-1/4
  • Pages: 336
  • Edition: 1st
  • Book
  • ISBN-10: 0-201-73062-6
  • ISBN-13: 978-0-201-73062-3

Praise for The CRM Handbook

“Want to avoid being one of the estimated 70 percent of companies who have tried implementing standalone CRM systems and failed? Confused by what your IT suppliers are telling you about ‘CRM’? Then you need to read this book! Jill provides acomprehensive, practical, and easy to understand view of CRM and shows you how to successfully implement an enterprise customer-focused solution.”

         –Kevin Bubeck
             Director, North America Information Strategy, Coca-Cola

“CRM could be viewed as the ERP of the 2000s. As such, there will be multiple winners and losers as the marketplace places some large and strategic bets on this technology. In any case, Jill Dyché has captured the importance of the concepts and value derived through CRM solutions. Those needs will evolve, of course, but companies will always need the basics that have been discussed.”

         –Brian Berliner
             Co-founder & EVP, Product Development, Acies Networks

“The CRM Handbook provides information for the business person who is trying to understand CRM and how it can effect his/her business. It goes beyond the hype of the acronym and dives into the real issues that a company needs to consider before implementing a CRM solution.”

         –Joy Blake Scott
             Director, Marketing and Communications, Fastwater, LLP

“I haven’t read anything that has such a practical approach. I view the book as having multiple benefits. It gives a good definition of CRM functionality but also gives detailed guidance of how to approach CRM in your organization.”

         –Francine Frazer
             Principal Consultant, Net Perceptions

“Even better than defining CRM, Jill took on all of the hyperlanguage around CRM and clearly differentiated the various incarnations of CRM. It’s also usefulto know what can go wrong and the potential affects of such missteps. Too few authors level with readers about pitfalls!”

         –Linda McHugh
             Director, Professional Services, Cygent Inc.

“The guides based on the business tools that Jill uses with her own clients are fabulous.”

         –Robin Neidorf
             President, Electric Muse/Clio’s, Pen Research & Interpretation, Inc.

“The language is easy to read and easy to understand. Terms were well explained so that someone with no prior CRM experience could easily understand the text.”

         –Marcia Robinson
             President, e-Business Strategies

“An excellent study into what defines today’s best practices in the CRM industry.”

         –Gareth Herschel
             Senior Research Analyst, Gartner Research

“Jill writes very well. Her writing communicates subjects and topics in a very easy to understand way. At times, I felt like I was listening to her speak or discussing a subject. She is a good communicator! Jill did a very good job of covering all subject areas on the different topics of CRM. I am most impressed with Jill on pointing out all the possible mistakes and creating ‘lessons learned’ advice which most authors frequently omit.”

         –Mary Chan
             Information Management Consultant, Kagiso Inc.

“Jill Dyché's The CRM Handbook is a good read for CRM novices and seasoned practitioners alike. Dyché's well-written, pragmatic approach to understanding CRM's evolution and purpose is a map to a successful CRM program. Dyché uncovers the truth behind the CRM software vendor hype, highlights some common roadblocks to CRM project development, and describes how to delineate and prioritize CRM initiatives.”

         –Don Peppers
             Partner, Peppers and Rogers Group

To compete in today's competitive marketplace, customer focus is no longer simply nice to have–it's a fundamental mandate. This book is a manager's best friend, providing both a primer and a how-to guide to defining and implementing Customer Relationship Management. It shows you:

  • The various roles CRM plays in business, and why it's more important than ever
  • The range of CRM applications and uses, from sales force automation to campaign management to e-CRM and beyond
  • The context of some of the popular CRM buzzwords
  • The differences between CRM and business intelligence, and why they're symbiotic
  • Why the customer-relationship failure rate is so high, and how to avoid becoming another CRM statistic
  • Case studies of visionary companies who've done CRM the right way

“We read this book at a time when we were relooking at our customer information strategy. One of the first things I had to do was ban the term ‘CRM’ from the project because of the vendor and industry hype and the confusion it created within the team. Jill’s book provides a strategic look at the topic from both a business and IT perspective. The insights she provides allowed me to focus on the strategic issues planning an enterprise-wide, customer-focused solution. And yes we are once again using the term ‘CRM’.”

         –Kevin Bubeck
             Director, North America Information Strategy, Coca-Cola

“Jill is one of the few people who has been at the forefront of every stage of CRM development, from the early days of data warehousing, through business re-engineering, to sales force automation and e-CRM. This makes her uniquely qualified to write about how it should all come together. The reader will be rewarded with advice drawn from real-world experience–both successes and failures. I shudder to think at the dollars that have been wasted over the years on CRM projects and how much will be wasted in the future by executives who won't read The CRM Handbook.”

        –Brian Hoover
             President, TouchScape™ Corporation

“The CRM Handbook provides an outstanding roadmap for putting human contact–relevant, accurate, informed human contact–back at the heart of the business-customer relationship. That's the challenge and the sole goal of Customer Relationship Management.”

         –Charles D. Morgan             
             CEO and Company Leader
             Axiom Corporation

“Jill Dyché has produced a wide-screen, comprehensive picture of CRM that also focuses on key issues that matter to CRM users. This book is written for those who are time-constrained and quick on the uptake–everyone from the CEO to the marketers and technologists who will evaluate, implement, and benefit from CRM initiatives.”

         –Peter Heffring
             President, CRM Division, NCR Teradata

“Jill has masterfully compiled scenarios, resources, references, definitions, and insightful recommendations about how to remain customer-focused across the enterprise functions. The book can be used as an educational tool, reference guide, and resource for short-listing technologies to evaluate.”

         –John Earle
             President, Chant Inc.

Sample Content

Online Sample Chapters

Choosing Your CRM Tool the Right Way

CRM: Optimizing the Customer Experience

Different Strokes: Why Business Intelligence is Not CRM

Managing Your CRM Project

Downloadable Sample Chapter

Click below for Sample Chapter related to this title:

Table of Contents


About the Author.



1. Hello, Goodbye: The New Spin on Customer Loyalty.

The Cost of Acquiring Customers.

From Customer Acquisition to Customer Loyalty.

. . . to Optimizing the Customer Experience.

How the Internet Changed the Rules.

What's In a Name?

CRM and Business Intelligence.

The Manager's Bottom Line.

2. CRM in Marketing.

From Product to Customer: A Marketing Retrospective.

Target Marketing.

Relationship Marketing and One-to-One.

Campaign Management.

CRM Marketing Initiatives.

Cross-Selling and Up-Selling.

Customer Retention.

Behavior Prediction.

Customer Profitability and Value Modeling.

Channel Optimization.


Event-Based Marketing.

Customer Privacy--One-to-One's Saboteur?

A Marketing Automation Checklist for Success.

CASE STUDY: Eddie Bauer.

What They Did.

The Challenges.

Good Advice.

The Golden Nugget.

The Manager's Bottom Line.

3. CRM and Customer Service.

The Call Center and Customer Care.

The Contact Center Gets Automated.

Call Routing.

Contact Center Sales Support.

Web-based Self-Service.

Customer Satisfaction Measurement.



Workforce Management.

A Customer Service Checklist for Success.

CASE STUDY: Juniper Bank.

What They Did.

The Challenges.

Good Advice.

The Golden Nugget.

The Manager's Bottom Line.

4. Sales Force Automation.

Sales Force Automation: The Cradle of CRM.

Today's SFA.

Sales Process/Activity Management.

Sales and Territory Management.

Contact Management.

Lead Management.

Configuration Support.

Knowledge Management.

SFA and Mobile CRM.

From Client/Server to the Web.

SFA Goes Mobile.

Field Force Automation.

An SFA Checklist for Success.

CASE STUDY: Hewlett Packard.

What They Did.

The Challenges.

Good Advice.

The Golden Nugget.

The Manager's Bottom Line.

5. CRM in e-Business.

eCRM Evolving.

Multichannel CRM.

CRM in B2B.

Enterprise Resource Planning.

Supply Chain Management.

Supplier Relationship Management.

Partner Relationship Management.

An e-Business Checklist for Success.

The Manager's Bottom Line.

6. Analytical CRM.

The Case for Integrated Data.

A Single Version of the Customer Truth.

CRM and the Data Warehouse.

Enterprise CRM Comes Home to Roost.

The Major Types of Data Analysis.


Where Theory Meets Practice: Data Mining in CRM.

Clickstream Analysis.

Personalization and Collaborative Filtering.

An Analysis Checklist for Success.

CASE STUDY: Union Bank of Norway.

What They Did.

The Challenges.

Good Advice.

The Golden Nugget.

The Manager's Bottom Line.


7. Planning Your CRM Program.

Defining CRM Success.

From Operational to Enterprise: An Implementation Scenario.

Determining CRM Complexity.

Preparing the CRM Business Plan.

Defining CRM Requirements.

Cost-Justifying CRM.

Understanding Business Processes.

BPR Redux: Modeling Customer Interactions.

Analyzing Your Business Processes.

CASE STUDY: Verizon.

What They Did.

The Challenges.

Good Advice.

The Golden Nugget.

A CRM Readiness Checklist for Success.

The Manager's Bottom Line.

8. Choosing Your CRM Tool.

Maintaining a Customer Focus: Requirements-Driven Product Selection.

Defining CRM Functionality.

Narrowing Down the Technology Choices.

Defining Technical Requirements.

Talking to CRM Vendors.

Negotiating Price.

Checking References.

Other Development Approaches.

Homegrown CRM.

Using an ASP.

A CRM Tool Selection Checklist for Success.

CASE STUDY: Harrah's Entertainment.

What They Did.

The Challenges.

Good Advice.

The Golden Nugget.

The Manager's Bottom Line.

9. Managing Your CRM Project.

A Pre-Implementation Checklist.

The CRM Development Team.

CRM Implementation.

Scoping and Prioritizing CRM Projects.

A CRM Implementation Roadmap.

Business Planning.

Architecture and Design.

Technology Selection.




Putting the Projects Together.

A CRM Implementation Checklist . . . for Failure.

The Manager's Bottom Line.

10. Your CRM Future.

Making the Pitch: Selling CRM Internally.

CRM Roadblocks.

The Four Ps.





Other CRM Saboteurs.

Lack of CRM Integration.

Poor Organizational Planning.

Demanding Customers.

Customer Service That's Really Bad.

Looking Toward the Future.

The Customer as SME.

The Rise of Intermediaries.

Digital and Broadband Revolutionize Advertising.

The Threat and Promise of Customer Communities.

CRM Goes Global.

The Coming CRM Backlash?

The Manager's Bottom Line.

Further Reading.


On one of those preternaturally warm spring afternoons, when many of their colleagues had forsaken them for the beach, around 500 conference attendees packed themselves into a hall at the Los Angeles Convention Center to hear about Customer Relationship Management. A group of high-profile experts was assembling to deliver a heralded panel discussion on the current and future state of the CRM market. Attendance swelled to standing room only.

On the panel were executives from both established and emerging CRM vendors. One panelist headed a company that sold an Internet storefront product. Another ran a sales-force automation company. A third represented a major database vendor. There was a call center system vice president and, to his left, a chief privacy officer. At the end of the line sat a renegade technology analyst.

As they began talking, it became clear that each of the panelists had a different perspective on CRM. The president of the database company talked at length about connecting databases to applications, after the privacy officer had finished weighing in on the risks of opt-in marketing. The call center executive discussed new advances in live chat. The analyst inveighed against CRM vendors who didn't offer sufficient analytics, making a few of his co-panelists shift in their chairs.

In fact, the discussion topics were so far removed from one another that the panelists might as well have been speaking different languages. As the moderator quickly learned, integrating the discussion in any meaningful way was a more significant undertaking than a mere hour would allow. As with the CRM marketplace, there was no holistic message--just different conversations. Shuffling out of the

auditorium, none of the attendees left with a clear CRM vision they could take back to work and begin promoting.

Nevertheless, we all have our eyes on the CRM ball. Aberdeen Group's "Customer Relationship Management: Year 2000 Edition" report predicts the CRM market will grow from $8 billion in 1999 to more than $24 billion by 2003. Such pronouncements--and there are many--represent sufficient ammunition for many companies to target CRM before thoroughly scoping it.

The problem is the noise. Companies worldwide are declaring themselves "customer-focused" and forking over millions of dollars on CRM-related technologies. Over-hyped vendor products clash with varied interpretations of CRM objectives, leading many companies to simply automate ineffective marketing and customer support processes. And because many of these processes rely on sporadically gathered data and shoddy business practices ("I can't help you; you'll have to talk to our billing department--and they're closed"), these firms were no closer to building solid customer relationships than prior to adopting CRM.

Likewise, customers have more choices than ever before, and a vendor's arch competitor is often--as the current sound bite goes--just a mouse-click away. Without customers, products don't sell and revenues don't materialize. And without establishing customer loyalty, a profitable customer can be as fleeting as a dot-com Web site. Suddenly, customers matter.

Thus, banks have succeeded in automating their marketing processes and calculating customer value. Communications companies are busy trying to reduce churn. Retailers and e-tailers alike are launching customer loyalty programs with alarming speed. And everyone has an Internet strategy for stimulating purchases. The only thing many of these forward-thinking companies have in common is their struggle to separate the truth from the hype.

This book seeks to mitigate the spin rampant in the CRM marketplace, first by defining CRM and its various components and then by providing a guide to successful delivery of a CRM program. It will serve both as a resource, defining and illustrating key CRM concepts, and as a field guide, directing you in the best approaches for adopting and implementing your own CRM solution. In the latter role, the Handbook points out mistakes as well as successes, allowing you to learn from those who fell too early for the hype ("We're your one-stop CRM shop!"). In the former role, it will help clear the clutter and provide straightforward explanations of the various types of CRM, as well as how they can work together.

And, like a good CRM initiative, the book revolves around the customer's experience. After all, no matter how informative the material or how knowledgeable the source, the message should always be geared toward the right audience. CRM conference panel organizers, take note!

How to Read This Book

This book is written for a wide range of readers, from executives to practitioners. Part 1 is geared toward executives, project managers, and businesspeople interested in understanding the components of CRM and their definitions, as well as how those components are being used. Part 2 is for project managers, consultants, business analysts, and technical practitioners who need practical tips on CRM planning and implementation.

Readers with specific areas of interest can skip to individual chapters. Table I-1 briefly explains each chapter and its audience focus.

Table I-1: The Handbook's Chapters and Their Intended Audiences
Part 1. Defining CRM Part 1 explains types of CRM--offering real-life examples of how businesses are using them--and explains how they fit together.
Chapter Description Intended Audience
Chapter 1: Hello, Goodbye. The New Spin on Customer Loyalty Introduces CRM's value proposition from a business perspective and explains why companies are rushing to jump on the CRM bandwagon. Any reader needing an introduction to CRM and its role in business strategy should read this chapter.
Chapter 2: CRM in Marketing Explores marketing's recent history and transition from product focus to customer focus to the latest craze: improving the customer's experience. For executives in charge of planning and funding customer loyalty, acquisition, and retention programs and for marketing staff, including product, segment, and campaign managers. Sales management might consider starting here prior to reading Chapter 4.
Chapter 3: CRM and Customer Service Covers why customer service is the locus of most CRM programs and how new customer service strategies and technologies promise to enhance customer loyalty--not to mention a company's revenues. Customer support staff members at all levels will enjoy comparing their company contact center environments with the best practices outlined in this chapter. Also of interest to marketing staff looking at other customer touchpoints.
Chapter 4: Sales Force Automation The birthplace of CRM, SFA includes a variety of tactical and strategic functions. This chapter goes from managing customer leads and accounts to sharing customer knowledge via wireless media. Sales managers and sales reps alike can use this chapter as a benchmark for how they're managing their customer contacts and leads. Also valuable for field service personnel.
Chapter 5: CRM in e-Business Given the challenges e-business presents, this chapter discusses where the customer fits in the supply chain for both B2B and B2C relationships. Managers and developers responsible for delivering e-business, particularly eCRM, as well as users and developers of ERP and supply chain management systems.
Chapter 6: Analytical CRM Analytical CRM leverages the data gathered from cross-functional customer touchpoints to help companies make strategic decisions. This chapter covers the risks and rewards of analyzing and acting on new customer knowledge. For business people for whom decision support is a critical job function, as well as data analysts using sophisticated predictive techniques. Also helpful for marketing managers who rely on data analysis for launching new programs.
Part 2. Delivering CRM Part 2 describes the key components of a CRM program and offers examples and checklists for ensuring they are performed thoroughly and in the right sequence to mitigate risk and ensure successful CRM delivery.
Chapter 7: Planning Your CRM Program Explains how to evaluate your company against CRM critical success factors. This chapter also describes how to gauge the complexity of your CRM initiative and how that complexity determines a range of planning and development activities, including requirements gathering and ROI calculation. For business analysts and consultants who will be gathering and documenting CRM requirements, as well as project managers who will be charged with translating them into a working CRM system. Also helpful for CRM sponsors and end users who must understand the tasks and resources necessary in CRM planning.
Chapter 8: Choosing Your CRM Tool Discusses CRM technology software features and explains requirements-driven technology selection. This chapter contains checklists and interview questions for both CRM software vendors and application services providers (ASPs). For IT executives and project managers charged with leading CRM technology selection efforts, as well as stakeholders who need to understand CRM technology-selection best practices. The vendor evaluation questions might help vendors better prepare for prospect and client presentations.
Chapter 9: Managing Your CRM Project Describes how to delineate, prioritize, and staff CRM projects and highlights some common roadblocks to successful development. Discusses establishing success metrics and measuring against them, and includes a CRM Implementation Roadmap. Technical staff, CRM development team members, and project managers will be interested in the roles integral to CRM projects, as will CRM stakeholders who want to learn more about where to begin.
Chapter 10: Your CRM Future This chapter introduces some of the main roadblocks known to sabotage CRM programs. It also covers some controversial CRM trends. Business sponsors and project managers interested in ensuring the success of their CRM programs, as well as business users who want a preview of CRM features on the horizon.
Further Reading A compendium of books, magazines, journals and Web sites to aid readers in their CRM research.
Glossary Definitions for the CRM-related terms used throughout the book, as well as coverage of some current business and technology buzzwords.

Toward the end of the content chapters, you'll find a "Checklist for Success," describing the best practices involved in achieving the objectives discussed in that chapter. (If you're underway with CRM, use this checklist as a tool to perform gap analysis against your current project.) In addition, because CRM is inherently a business management initiative, each chapter concludes with a section titled "The Manager's Bottom Line," summarizing the discussion for managers and executives who might be sponsoring CRM in their companies.



Abandoned shopping cart, defined, 287
Activity management, 82, 83
Adaptive personalization, 38, 140
Advertising, effect of technology on, 273
Affinity analysis, defined, 287
All First Bank, Web site of, 61
Alsop, Stewart, 7
collaborative filtering by, 140-141
Analytical CRM, 13-14
business processes in, 144
case study of, 145-148
checklist for, 142-145
clickstream analysis in, 135-139
data analysis in, 129, 132-135
and data integration, 128-132
and data mining, 133-135
defined, 129, 287
differentiated from operational CRM, 129-130
indications for, 128-129
integration with operational CRM, 131
personalizing and collaborative filtering, 139-142
viewpoint of, 130-131, 148
Application services providers (ASPs)
advantages of, 218
choosing, 221-223, 257
and CRM, 219-221
defined, 287
desirable characteristics of, 224
established companies as, 219
evaluating expertise of, 221-222
evaluating functionality of, 222-223, 225-226
evaluating references of, 223
evaluating support by, 223
overreliance on, 269
reasons for not using, 224
reasons for using, 219-221
types of, 219
Association analysis, 134
AT&T, 4
Attrition, defined, 287
Automated workflow, defined, 287
Automatic call distribution, defined, 288
Automation, 31, 49
checklist for, 44-45
field force, 93-96
interactive voice response systems, 57
sales force, 77-102
speech recognition, 57
Availability issues, in CRM system, 208-209
B2B, defined, 288
B2C, defined, 288
Back-office CRM, 13
defined, 288
Barlow, Janelle, 75
Behavior prediction, 33-34
Bell Atlantic, 186
Bloomingdale's, website of, 105
Bluelight.com, 142
Bluetooth, 91
Boots, customer segmentation by, 23
Brick-and-mortar business, defined, 288
Broadband technologies, and advertising, 273
Burger King, 3
Business intelligence, 14
defined, 15, 288
distinguished from CRM, 15-16, 17
Business plan, CRM
components of, 167
cost justification, 172-180
defining requirements in, 167, 169-172
and implementation, 246-247
importance of, 166
mapping business requirements, 171, 172
perceptions of, 258
Business process reengineering (BPR), 180-183
defined, 288
Business processes, 180
analysis of, 184-185
case study of, 186-190
design and documentation of, 184-185
improvement of, 185, 257, 263-264
integration of, 251-252
redefinition of, 252
reengineering of, 180-183
Business sponsor
for CRM project, 238, 268, 269
defined, 288
Business Week, 53
Business-to-business (B2B), CRM in, 106-107
Call center automation, defined, 288
Call centers, 53
CRM and, 160
defined, 288
example of process of, 54-55
operators in, 53-54
processes for, 69
technologies for, 54
Call routing, 55-57
defined, 288
precision call distribution, 56
Call scripting, 63-65
defined, 288
Campaign management
automation of, 31
closed-loop, 28, 29, 289
CRM and, 30-31
defined, 288
linear, 27-28
software for, 28-30
Cannon, Chris, 43
cCRM (collaborative CRM), 12
Chambers, John, 11
Channel, defined, 288-289
Channel optimization, 35, 36
defined, 289
ChannelWave, 115
Charles Schwab, CRM in, 5
Cherry pickers, 139
Chief information officer (CIO), role in CRM project, 240
Chief privacy officer, role in CRM project, 240
Churn, defined, 289
Clearinghouse sites, 272
Clickstream, defined, 289
Clickstream analysis, 135
aims of, 135-137, 138-139
example of, 137
tactics in, 137-138
Closed-loop campaign management, 28, 29
defined, 289
Cluetrain Manifesto, The (Levine, et al.), 107, 118, 274
CNET Networks, 72
Colgate, ERP at, 108-109
Collaborative commerce (c-commerce), 112
defined, 289
Collaborative CRM, defined, 289
Collaborative filtering
custom content in, 141
described, 140
example of, 140-141
issues in, 141-142
Internet and, 10
Competitive value, 34
metrics of, 164
and system development, 164-166
CompUSA, customer service at, 65
Computer telephony integration (CTI), defined, 289
Configuration support, 86-87
defined, 289
Configurator, defined, 289
Connectability, 207
Consultants, for CRM project, 268, 269
Contact centers, 55
assessing success of, 56
automation of, 55-56
call routing in, 55-57
call scripting in, 63-65
defined, 289
information sharing in, 70-71
interactive voice response systems, 57
personnel for, 70, 71
requirements for, 69
sales support from, 57-59
technologies for, 68-69
workforce management at, 66-67
Contact management, defined, 290
Control group, defined, 290
Cookie, defined, 290
Cross-functional, defined, 290
Cross-selling, 31-32
from contact center, 58
defined, 290
Custom content, 141
Customer interaction center (CIC), defined, 290
Customer loyalty
classic methods of building, 3
CRM and, 6-7
customer differentiation and, 181-183
Internet and, 11
new methods of building, 8-10
studies of, 32
Customer relationship management (CRM)
analytical, 119-149
architecture and design of, 248, 250-251
ASPs in 218-224
as asset, 166
and automated marketing, 44-45, 49
birth of, 25-27
books about, 281-283
and bottom line, 49-50
and business change, 153
in business-to-consumer space, 18
business plan for, 166-180
business process reengineering and, 180-184, 257, 263-264
business requirements for, 167-172
as business strategy, 18
case study of, 45-49
caveats about, 277-278
characteristics of, 16
characteristics of successful projects, 156
checklist for tool selection, 225-226
complexity of systems, 164-166, 258
consultants for, 268, 269
cost justification for, 172-180, 196
cross-selling in, 31-32
and customer service, 51-75
data requirements for, 250-251
and data warehousing, 127-128
defined, 4, 290
delineating projects, 244
delivery of, 251-252
development of, 251-252
development team for, 237-242
distinguished from business intelligence, 15-16, 17
and e-commerce, 103-118
end-to-end infrastructure for, 149
enterprise application integration and, 250
expectations about, 276
failures of, 5-6, 256-258
and fulfillment of unspoken needs, 9-10
future of, 271-279
getting approval for, 167, 168-169, 257-259
global, 274-275
goal of, 7, 16, 50
homegrown systems of, 217-218
implementation of program, 242-248, 250-256
incremental development of, 245-246, 251-252
integrated, 148, 149
integration into corporate structure, 267
integration of projects, 255-256, 268
Internet and, 10
magazines and journals about, 283-284
in marketing, 19-50
measurement of, 253-255
misrepresentations of, 16
mobile, 12, 89-93
multichannel, 105-106
need for data integration, 119-127
obstacles to, 263-271
operational vs. analytical, 12-14
organizational changes resulting from, 197
origins of, 25-27
outsourcing of, 219-221
partner relationship management, 12, 114-116
perceptions of, 264
personnel issues in, 241, 268-269
pitfalls of, 49
planning a program, 153-198, 268-269
political issues regarding, 266-267
potential backlash against, 275-277
pre-implementation checklist for, 233-237
prioritization of, 243-244
process integration in, 251-252
project management for, 241-242
promotion of, 167, 168-169, 257-259, 261-263
readiness for, 190-196
references on, 281-286
requirements of program, 242-243
requirements-driven development of, 246
sales force automation, 77-102
sample business objectives in, 5
scope of project, 164-166, 243, 244-245
software suites for, 131
success defined in, 155-166, 245-246
supplier relationship management, 12, 112-114
supply chain management, 6, 109-111
tool choice case study, 226-230
tools for, 199-231
types of, 12-14
and up-selling, 31
Web sites about, 284-286
Customer Revolution, The (Seybold), 197
Customer satisfaction, 7
CEOs' view of, 275-276
measurement of, 62-63
promoting, 8-10
unspoken needs and, 9-10
viral marketing and, 7
Customer service, 51-52
automation of, 55-62
call center and, 52-55
case study of, 71-75
checklist for, 67-71
customer intelligence in, 63-65
measuring success for, 69-70
pitfalls of, 270-271
public perceptions of, 52-53
service recovery, 70
technologies for, 68-69
Customer service representative (CSR), defined, 290
behavior of, 33-34
communities of, 274
costs of acquiring, 4-6
differentiation of, 181-183
emotions of, 75
information gathering about, 122
information processing about, 123-127
input into strategic planning, 271-272
new ways of interacting with, 3, 128-132
as obstacle to CRM, 269-270
perceptions of, 264
privacy of, 41-43, 264-266
profitability of, 34-35
retention of, 32-33
segmentation of, 21-24
Customers.com (Seybold), 197
Customization, defined, 290
Cyberagents, 65
defined, 290
Dallas Morning News, 60
as asset, 144
dirty, 143
requirements for CRM, 250-251
Data analysis, 129
aims of, 143
and dirty data, 143
as tool, 143-144
types of, 132-135
Data integration, 142-143
analytical CRM and, 128-132
importance of, 119-122, 257
Data mart, defined, 291
Data mining, 42
algorithms for, 133, 134
clickstream analysis, 135-139
defined, 291
personalizing and collaborative filtering, 139-142
tools for, 133
types of, 133-135
uses of, 134
Data warehouses, 14
function of, 15
defined, 291
Data warehousing, 124-125
CRM and, 127-128, 267
importance of, 143
strengths of, 126
Database developer, for CRM project, 239
management of, 123-124
proliferation of, 126-127
sources of data, 124-125
Decision support (DSS), defined, 291
Decision support analysis, 16
Dell, Michael, 272
Dell Computer, 53
just-in-time methods at, 110
Deregulation, and competition, 3
Digital technologies, and advertising, 273
Direct marketing, 21
defined, 291
Director of data warehousing, role in CRM project, 240
Director of e-business, role in CRM project, 240
Disney Club, 41
DoubleClick, 265
downside.com, 7
drugstore.com, 106
Dynamic pricing, 33, 141-142
e-Business: Roadmap for Success (Kalakota/Robinson), 108-109
e-commerce, 103-104
advantages of, 107
business to business, 106-107
business processes in, 117
customer relations, 104-106, 117-118
enterprise resource planning, 108-109
multichannel support, 116-117
partner relationship management, 114-116, 117
service improvements in, 116
supplier relationship management, 111-114
supply chain management, 109-110
Websites and, 105-107
e-marketplace, defined, 291
e-tailer, defined, 292
E*Trade, 273
Early adopters, customer segment, 23
Easy Access Sales Environment (EASE), 178
eCRM (electronic CRM), 12, 60
aims of, 117-118
checklist for, 116-117
defined, 291
enterprise resource planning, 108-109
multichannel CRM, 105-106
partner relationship management, 114-116
supplier relationship management, 111-114
supply chain management, 109-110
ECRM (enterprise CRM), 12
defined, 291
Eddie Bauer, 45-46
CRM in, 46-47
marketing savvy of, 48-49
EDS, as application services provider, 219
Egler, Harry, 46, 47, 49
Electronic Privacy Information Center, 266
Emotional Value: Creating Strong Bonds with Your Customers (Barlow/Maul), 75
Enterprise application integration (EAI), 248
defined, 291
importance of, 250
Enterprise portal, defined, 291
Enterprise resource planning, 108-109
defined, 291-292
Enterprise resource planning (ERP), 6
success of, 108-109
E.piphany, 129
ERM (enterprise CRM), 12
Eshoo, Anna, 42, 43
Eve.com, 105
Event-based marketing
defined, 40, 292
goals of, 40
techniques of, 40-41
Exchange, defined, 292
Experience Economy, The (Pine/Gilmore), 9
External data, defined, 292
Extranets, 110-111
defined, 292
FedEx, Web-based self-service on, 59
Field force automation (FFA), 93, 163
field service enlistment, 93-95
wireless technology in, 93-96
Field service management, 93
defined, 292
Firmographics, defined, 22
Forbes, 53
Frequently Asked Questions (FAQs), defined, 292
Front-end developer, for CRM project, 239
Front-office CRM, 13
defined, 292
Functionality requirements, of CRM system, 203-205, 208, 210-211, 215
Garden.com, 105
Gilmore, James, 9, 10
Global CRM, 274-275
Godin, Seth, 26
Gramm-Leach-Bliley Act, 42
Handheld device technology, 90
and CRM, 91-92
Hard Rock Café, 10
Harley-Davidson, 9
Harrah's Entertainment, 226
business strategy of, 227
CRM by, 227-229
success of, 230
Total Gold program of, 227-228
Total Rewards program of, 226-227
Winners Information Network of, 227, 230
Hewlett Packard
business partnership with Oracle, 99
CRM at, 98-101
future directions at, 101-102
Homegrown CRM, 217-218
Householding, 236
defined, 292
architecture and design, 248-251
and business planning, 246-247
checklist for, 256-258
delivery, 252-253
development in, 251-252
importance of strategy to, 256
integration, 255-256
measurement of, 253-255, 256-257
mistakes in, 248-250, 256-258
personnel for, 237-241
preparation checklist for, 234-237
prioritization, 243-244
project management office (PMO), 241-242
requirements-driven, 246
rigor of, 246
roadmap for, 245-248, 250-256
scoping, 243, 244-245
staff expectations of, 256
technology selection for, 251
user involvement in, 246
Implementation project manager, for CRM project, 239
Incremental development, 241-242, 245-246
defined, 292
Inferential personalization, defined, 292-293
Infographics, defined, 22
Information technology, and permission marketing, 26-27
of CRM projects, 255-256, 268
hardware and software, 207
Interactive voice response (IVR), 57
defined, 293
and partner relationship management, 114
and supplier relationship management, 112-113
and supply chain management, 111
Internet commerce
features of, 10-11
See also Web
Iterative development, defined, 293
J. Crew, website of, 105
Java, 91
Juniper Bank
customer service at, 73, 74
infrastructure of, 73-74
mission of, 72-73
success of, 74-75
Junkbusters, 266
Just-in-time model, 110
Kalakota, Ravi, 108
Kmart, 142
Knowledge management, 87-88
defined, 293
Kozmo, 104
Laggards, customer segment, 23
Land's End
customer service of, 60
personalization by, 141
Lead developer, for CRM project, 239
Lead management, 85-86
defined, 293
Leonard, Beth, 186-190
Levi Strauss, websites of, 105
Life event marketing, 41
Life stage marketing, 41
defined, 293
Lifetime value (LTV) modeling, 34
defined, 293
Linear campaign management, 27-28
List generation
defined, 293
software for, 28-29
Load balancing, 293
loyalty card, 11
Manes, Anne Thomas, 92
Market-based analysis, defined, 293
automation of, 31, 44-45, 49
case study of, 45-49
channel optimization, 35, 36
classic techniques of, 3
CRM and, 160-161, 163
direct, 21
event-based, 40-41
issues in, 44
life event, 41
management of campaigns, 27-31
permission, 26, 294
personalization, 35-39
product-centric view of, 3, 19-21
refinement of, 24-25
relationship, 10, 295
successful tactics of, 49-50
target, 21-25, 297
viral, 7, 297
Marketing service bureau, defined, 293-294
Mass marketing, defined, 294
MatchLogic, 265
Maul, Dianna, 75
MCI, 4
McKenna, Regis, 25
mCRM (mobile CRM), 12
defined, 294
and sales force automation, 89-93
Web and, 89
Metadata, defined, 294
MicroStrategy, eCRM product of, 131
Mortgage.com, 110
Motivational research, 19
MSN.com, web shops at, 272
Multichannel CRM, 105-106
defined, 294
Multimodal, defined, 294
MyPalm, 91
MySimon.com, 272
New York Times, 52
Next sequential purchase, 33
NikeTown, 10
No Logo, 278
OLAP (online analytical processing), 132-133
defined, 294
One to One Future, The (Peppers/Rogers), 25
One-to-one, 25-26
Opdal, Kari, 146, 147
Operational CRM, 13
defined, 294
Opportunity management, 85
as application services provider, 219
Oracle Sales Online, 99, 100
Oshita, Yancy, 156
Overly, Mike, 98, 99, 100, 101
Palm, products of, 91
PeopleSoft, 108
Peppers, Don, 25
Performance requirements, assessing, 207, 208
Permission marketing, 26
defined, 294
Personalization, 35-36, 42
adaptive, 38, 140
aims of, 139
benefits of, 139-140
in business-to-consumer space, 38-39
defined, 294
inferential, 292-293
referential, 295
rules-based, 140, 295
techniques of, 36-38, 140
Personalization Consortium, 266
Petco, website of, 106
Pine, B. Joseph, 9, 10
Pipeline management, 85
planetfeedback.com, 7
Point solution, defined, 295
Porter, Michael, 109
Potential value, of customers, 34
Pottery Barn, 71
Pragmatists, customer segment, 23
Prasad, Jay, 156
Precision call distribution, 56
Predictive modeling, 133
Price elasticity modeling, 33
Prime Response software, 30
Prioritization, of project, 243-244
Privacy, 41-42
and backlash against database marketing, 276
businesses related to, 265-266
consumer watchdogs related to, 266
and customer relations, 265
customer requirements for, 43
industry groups related to, 266
Internet issues, 42
perceptions about, 264
regulatory efforts, 42-43, 264
Privacy officer, role in CRM project, 240
privacy.org, 266
Private portal, 295
PRM (partner relationship management), 12, 114
defined, 294
functions of, 114-116
importance of, 114
Process integration, 251-252
Product affinity analysis, 33
Product marketing, 3, 19
aim of, 20
process of, 20
Profitability, of customers, 34-35
Project management office (PMO), 241-242
Project manager, for CRM project, 239, 268, 269
Promotion of CRM, 257-259
dos and don'ts of, 261-262
obstacles to, 263
Proof-of-concept testing, 209, 215-216
defined, 295
Propensity-to-buy analysis, 23-24, 33
Psychographics, defined, 22
Pure play, defined, 295
Readiness for CRM, 190
evaluation metrics for, 191-196
Referential personalization, defined, 295
Reichheld, Frederick, 32
Relationship marketing, 10
defined, 295
Relationship Marketing: Successful Strategies for the Age of the Customer (McKenna), 25
Reporting, of CRM system, 208
Requirements-driven technology selection
advantages of, 202
methods of, 202-203
functionality and, 203-205, 208, 210-211, 215
information gathering in, 205-206
technical requirements and, 206-209
Responsible Electronic Communications Alliance, 266
Retention, defined, 295
Return on investment (ROI), 178-180
defined, 295
Return on relationship (ROR), 179-180
defined, 295
Robinson, Marcia, 108
Rogers, Don, 25
Rules repository, 16
defined, 295
Rules-based personalization, 140
defined, 295
Saks Incorporated, contact centers of, 56
Sales and territory management, 83-84
Sales force automation (SFA)
activity management, 82, 83
advantages of, 80
case study of, 98-102
checklist for, 96-98
communicating value of, 96-97
configuration support, 86-87
contact management, 84-85
CRM in, 161-163
defined, 295-296
FFA, 93-96
handheld devices and, 90-91
importance of, 77-79, 102
incentives to use, 97-98
knowledge management, 87-88
lead management, 85-86
and mobile CRM, 89-93
origins of, 79-81
processes in, 97
sales process management, 82, 83
sales and territory management, 83-84
training for, 97, 98
Web and, 89
Sales process management, 82, 83
SAP, 108
Satre, Phil, 230
SBC Communications, success of CRM for, 178
Scalability, provided by ASPs, 220
Scoping, of project, 243, 244-245
Screen pop, defined, 296
Scripting, call, 63-65
defined, 296
Security requirements, 207
segment manager, 238
Segmentation, defined, 296
Self-service, defined, 296
Sephora.com, 105
Sequential analysis, 134
Service recovery, 70, 278
Service-level agreements (SLAs), 220
defined, 296
Seybold, Patricia, 197
Shelby Act, 43
Siebel, Tom, 272
Siebel Systems, 52
Configurator product of, 87
Skeptics, customer segment, 23
Skunkworks CRM, defined, 296
Southwest Airlines, customer service of, 60
Speech recognition, automated, 57
Speed, provided by ASPs, 220
Sprint PCS, 7
SRM (supplier relationship management), 12, 111
collaborative commerce, 112
defined, 296, 297
Internet in, 112-113
supplier point of view, 114
Steering committee
for CRM project, 238
defined, 296
Sticky, defined, 296
Subject matter experts (SMEs), for CRM project, 239
complexity and, 164-166
factors of, 157-158, 159
implementation scenario for, 160-164
metrics of, 155-160, 245-246, 253-255, 256-257
Suite, defined, 296
Supply chain management (SCM), 6
defined, 297
example of, 110
need for, 109-110
successes of, 110-111
Surveys, customer satisfaction, 62
automated, 62-63
Sweeney, Latanya, 42
Target marketing, 21-25
defined, 297
Technology selection, 199-200, 251
and ASPs, 218-226
assuring functionality, 210-213, 215
assuring implementation support, 213-214
bottom-up approach to, 201-202
case study of, 226-230
examples of, 200-201
importance of, 231
pricing, 209, 215-216
rationales for, 200, 201
requirements-driven, 202-217
testing for, 209, 215-216
vendor contacts, 209, 210-214
vendor references, 214, 216-217
Teradata CRM, 37-38
Tiffany, website of, 105
Touchpoint, defined, 297
TouchScape, 60
Toysmart.com, 264
Travelocity, privacy goofup at, 264
Travelproblems.com, 272
Trouble ticket, defined, 297
Tyson, Monica, 229, 230
Underhill, Paco, 6
Union Bank of Norway, 144
analytic CRM by, 145-146
automation by, 145
customer loyalty to, 146
data warehousing by, 146, 147
success of, 146, 147-148
United Airlines, contact centers of, 57
Up-selling, 31
defined, 297
Usability, of CRM system, 208
Vague, Richard, 72
Variable insertion, 37
CRM design at, 186-187
data warehousing at, 187
difficulties implementing CRM at, 188
reason for CRM at, 189
success of CRM at, 189-190
Vertical silos, 100
defined, 297
Vice president of strategic planning, role in CRM project, 240
Viral marketing, 7
defined, 297
Virgin Atlantic Airways, 8, 9
Wallace, Regina, 72, 73, 74
Wallet share, 34
WAP protocol, 91
Waterfall development, defined, 297-298
clearinghouse sites on, 272
clickstream analysis, 38-39, 135-139
communication through, 10, 89
cross-selling through, 58
and customer loyalty, 11
and e-commerce, 105-107
FAQs on, 59-60, 61
personalization in, 35-37, 140-142
privacy issues, 42, 264
and sales force automation, 89
self-service on, 59-62
sites dealing with CRM, 284-286
Web hosting services, 219
Webvan, 104
Why We Buy (Underhill), 6
Wireless technology, 90
and field force automation, 93-96
for information retrieval, 91
infrastructure for, 97
for messaging, 90-91
modern, 95-96
protocols for, 91-92
Workforce management
at contact centers, 66-67
defined, 298
Xchange software, 30
XML (extensible markup language), 91
Yahoo, Web shops at, 272


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