Product Description

There are at least eighty books available on customer relationship management (CRM), including three by Frederick Newell. Why does the world need one more? Because the old theories don't work anymore! Companies have spent millions developing CRM systems to target specific customers for specific product offerings. This approach has left customers feeling stalked and targeted like hunted prey. How do companies reach customers and find out what they want? How can companies make their customers' lives easier and less stressful? By turning CRM on its head and transitioning to the new CMR. Newell explains how great companies have shifted from the outdated, sales-oriented Customer Relationship Management to the bold solution of Customer Management of Relationships (CMR). Because it forces companies to think of customers as individuals, CMR helps to build long-term relationships, create customer loyalty, and bring in profits over time instead of speedy, high-pressure, one-time sales. This book shows by lesson and example why the current CRM has failed, what needs to change, and how to make it work through new thinking and new technology. By moving beyond CRM to CMR, companies can satisfy and sell to today's customer.

Product Details

• Amazon Sales Rank: #365787 in Books
• Published on: 2003-03-01
• Original language: English
• Number of items: 1
• Binding: Hardcover
• 256 pages

Philip Kotler, SC Johnson & Son Distinguished Professor of International Marketing, Northwestern University Kellogg School of Management
"Fred Newell raises relationship marketing to a new level, beyond database marketing, loyalty programs, targeted advertising, and customer relationship marketing."

Jack Trout, President, Trout & Partners Ltd.
"In this competitive world, hanging onto customers is critical. This book's a commonsense approach to helping you do just that."

Jonathan Copulsky, Lead Partner, Customer and Channel Strategy Practice, Deloitte Consulting
"The book is filled with practical tips and is an ideal solution for business executives intent on avoiding ‘CRM backlash.’"

Customer Reviews

A MUST READ, but cruise past the technology implementation stuff
CRM is getting too much hype -- largely from the "consultants" that are making a fortune from it. On the flip side, I feel I've made some of my own fortunes by flipping the system around and ENABLING THE CUSTOMER TO DRIVE THE RELATIONSHIP. The author refers to this as CMR (Customer MANAGED Relationships). He gives great examples, but some of the details and technology explanations are basic and really don't belong in this book. If he had stayed with a higher-level discussion of the philosophy and psychology of CRM's shortcomings, I would have given it 5 STARS. There are far better resources available about the SPECIFIC "how to" of CORRECTLY implementing customer interaction systems.

If you are interested in this topic, you should also look into PERMISSION MARKETING by Seth Godin, as that EXCELLENT work (should be rated SIX STARS!) gives another similar perspective on solving the customer bombardment / interruption marketing problem that has arisen.

Cost-efficiency isn't enough: Improve external effectiveness
Newell focuses on an important issue by trying to explain: "Why CRM doesn't Work". He reports that only 25 to 30 percent of companies implementing CRM initiatives feel that they are getting the return they expected.

He also manages to put forward many of the real causes for CRM projects failures. Most prominently that CRM projects are more concerned about internal efficiency in handling customers (automation of sales force, marketing, and customer service) than the real needs of the customer. So at the end of the day, the firm might have saved some dollars in internal processes and manpower, but the customers are probably treated even worse than before.

This quote from the book illustrates the point:
"Marketing automation is fine, but it's not about the customer. Most marketing automation is about costs and speed. Selling efficiency is not about the customer, it's just about leveraging your resources. Value maximization, in terms of figuring out which of your customer segments are going to deliver the most top or bottom line, that's not about the customer. So a lot of the benefits that are claimed for CRM are really benefits that accrue to the enterprise, but have nothing to do with the customer"

That's why Newell calls for a change. Instead of CRM, we should put the customer in charge instead and call it CMR. That is Customer-Managed Relationships. It's a good and a valid point.

Newell summarizes the journey from CRM to CMR like this:
* From the company is in control ... to the customer is in control
* From make business better for the company ... to make business better for the customer
* From track customers by transaction ... to understand customer's unique needs
* From treat customers as segments ... to treat customers as individuals
* From force customers to do what you believe they'll want ... to let customers tell you what they care about
* From customers feel stalked ... to customers feel empowered
* From organized around products and services ... to organized around customers

The reason why I rate the book somewhat low is that it is poorly structured with endless anecdotes scattered all over the book.

If you're interested in CRM, then take a look at the new bible: "Managing Customer Relationships: A Strategic Framework" by Don Peppers, Martha Rogers. It is highly recommended ;-)


Peter Leerskov,
MSc in International Business (Marketing & Management) and Graduate Diploma in E-business

Insightful!
Customer Management of Relationships (CMR) is not a tactic or gimmick - it's a new way of looking at your business. Author Frederick Newell promises that CMR will put your customers where they should be: at the forefront of your company's efforts. Newell, an international marketing consultant and leading Customer Relationship Management (CRM) authority, explains that a strong relationship with customers is essential to success. Although his book is unnecessarily repetitive at times and poorly organized, he provides excellent advice for companies already on the road to improving their customer interactions. Valuable testimony from experts accompanies numerous case studies. Whether you took a ride on the CRM train, or not, if you want better customer relationships for your business, we think this book may be your ticket.