Customer behaviour differs significantly according to market. This means that there is no one-size-fits-all approach to choosing metrics for customer relationship management. Measuring and Valuing Customer Relationships explains why it is vital for organizations to understand the particular issues relating to their own market, and shows how to develop metrics specifically suited to their own circumstances. This groundbreaking report puts forward unique Drivers of Customer Performance model for developing potentially profitable customer relationship management programmes.

Based on the findings of a recent cross-industry survey amongst marketing directors and senior management, Measuring and Valuing Customer Relationships gives a thorough analysis of the measurable aspects of customer relationships, examining the challenges involved and potential solutions. Measuring and Valuing Customer Relationships gives marketing management the ammunition they now need to re-assert their position within their organizations, by justifying customer-facing investments and arguing their case coherently to senior management.

Drawing on the views and experience of today's best thinkers in a series of Expert Interviews, Measuring and Valuing Customer Relationships is also illustrated heavily throughout with case studies from companies who have tried and tested all the various measurement tools. The result is a truly comprehensive treatment of customer relationship management, full of essential and original insights. This report is the first to set the corporate agenda for the critical shift towards a more customer-focused outlook.

Chapter One: Introduction
This chapter provides an overview of the topics, which will be covered within this report. It offers a definition of relationship marketing and management and looks at why it is important to measure the marketing function. The Chapter examines the ways in which customer relationships can be measured and managed.

Chapter Two: Strategic Measures
This Chapter examines customer measurements frameworks and their relationship with strategic performance measurement frameworks, and in particular, the balanced scorecard. The chapter looks at the challenges involved in implementing a performance measurement framework.

The case study from Boehringer-Ingelheim illustrates how by taking a highly analytical approach to customer relationship management, and the integration of internal and external information, coupled with synergistic working between sales and marketing, has ensured that it is a genuinely knowledge-driven organization.

Chapter Three: Measuring and Managing Customer Behaviour
This chapter examines the ways in which customer behaviour objectives can be determined, the varieties of targets measures that are available, and the factors that should be considered in setting objectives that will stretch the organization but are nonetheless achievable.

Disneyland Paris is proving to be a success by focusing on the differences between the customer relationships available in Europe and those in the US. By using all the tools at its disposal, it adjusts the marketing proposition to appeal to different market segments, without sacrificing its unified brand image, thereby minimizing the extent to which customers are expected to change their habits to suit the product.

Chapter Four: Measuring Customer Satisfaction that Drives Sales
This chapter examines the ways in which the measurement of satisfaction enables managers to track down the factors which are having the most important effects on customer behaviour, and looks at the actions they should take as a consequence.

Chapter Five: Segmenting by Involvement and Emotional Response
The range of factors selected for measurement in satisfaction research often reflects the specific range of interests of the sponsoring unit. A wider range of experiences often influences satisfaction and research ought to encompass the full range. This chapter shows that by segmenting the customer base by involvement will pay significant dividends, since it reveals which groups are capable of having their purchase behaviour influenced and which are effectively lost to marketing.

The case study on Barclaycard shows how its strategy of providing added value involved complimentary services, and increased its market share in a competitive market. Its current challenge is to present its added-value proposition in terms that customers relate to in order to increase retention.

Chapter Six: Building and Measuring the Brand Relationship
Brand equity is the commonest term used by marketers to describe whatever is in the minds of consumers, customers and infuencers which affects the business performance of the brand. This chapter examines the ways in which the measurement of brand equity enables managers to track down the factors, which are having the most important effects on customer behaviour and looks at the actions they should take as a result.

BT's 'It's Good to Talk' campaign caused a dramatic uplift on sales in a mature market - some £297 million. Recognizing underlying negative attitudes towards use of the phone, BT produced a campaign aimed at creating a shift in attitude towards the phone. Subsequently, ten per cent more people agreed that 'it's fun to chat on the phone', and there was a steep fall in perceptions that BT's call charges were too high.

Chapter Seven: Financial Measures for the New Customer Relationship Manager
This chapter considers the measures that are relevant for marketing departments to justify their activities to finance. It covers the setting of advertising and sales promotions budgets, and examines new methodologies such as activity-based costing (ABC), assessing customer profitability and brand valuation.

Chapter Eight: Implementing Customer Relationship Management
This Chapter considers which tools should be used to implement the Drivers of Customer Performance Model and how competing methods should be assessed. A framework should be established which aligns with financial requirements.

The case study on Bass Brewers shows how the organization developed an unusually thorough understanding of its customers' and consumers' behaviour and needs, using a variety of information-gathering approaches. A state-of-the-art computer system helps to collate, analyze and disseminate customer information and is thought to constitute the largest sales and marketing system in Europe.