Michael D. Johnson - Böcker

How to create value with all the customers in a portfolio, from the stronger relationships that increase profit margins to the weaker relationships that increase scale. Which would you rather have: a smaller, watertight bucket of loyal customers or a larger, leaky bucket of both loyal and not-so-loyal customers? In Customer Portfolio Management, Fred Selnes and Michael Johnson argue that for most companies and organizations the larger leaky bucket is more valuable. While loyal customers are generally more profitable, the weaker, or leaky, relationships in a portfolio provide scale economies and a source of future loyal customers. The basic principle behind customer portfolio management (CPM), they explain, is to view a company s market strategies as long-term investments in the strength of relationships over an entire portfolio of current and future customers. This book helps business leaders understand when and how much to focus on acquiring customers, how to defend and leverage those relationships, and how to convert some of these relationships into stronger, more profitable ones. The authors present an implementable framework for CPM that involves: (1) segmenting customers into strangers, acquaintances, friends and partners; (2) understanding the lifetime value, or revenues and costs over time, across relationship segments; and (3) determining when and how much to invest in customer acquisition, relationship defense, relationship leverage, and relationship conversion. Case studies and examples that include Amazon, Apple, IKEA, and dozens of other companies are used along the way to illustrate effective portfolio management principles and growth strategies.

Competing in a Service Economy is a hands-on guide to creating services, with illustrative examples from service-oriented companies including Disney, Ericsson, IKEA, National Association of Convenience Stores, Ritz Carlton, Scandinavian Airline Systems, Sterling Pulp Chemicals, and Telia Mobile. This practical resource for executives, general managers, and managers in marketing, operations, and human resources reveals how to gain a competitive advantage by creating and implementing a strategic plan that will ultimately improve their organization's services. Written by the authors of the best-selling book Improving Customer Satisfaction, Loyalty, and Profit, this important new book will help business professionals to think and plan strategically to dramatically improve services, service development, and service innovation within their organizations.

A Book in the University of Michigan Business School Series It's a simple equation: no customers equals no profits. So how can a company ensure that its customers enjoy a consistently satisfying experience? In this book, two experts from the University of Michigan Business School lay out a five-stage process that links all of the key measures of customer satisfaction with marketing strategy and product development to guarantee excellent customer service. Johnson and Gustafsson show managers how to break down the organizational barriers that defy great customer service and instead tie together their customer value chain to create a cohesive customer measurement and management system. So, if like most companies, yours has only a fleeting understanding of its relationship with its customers, this book offers the organizational know-how to make and keep them happy.

The intensely competitive global automotive industry is in the midst of both a quality evolution and management transfonnation. In an evolutionary fashion, industry attention has progressed from a focus on internal quality, to external perceptions of customer satisfaction, to subsequent customer retention and profitability. More transfonnational is the change in the way automotive companies operate and manage themselves. An industry once dominated at a product level by engineering and a management level by fmance is becoming a cross functional, customer oriented industry. Understanding the links from quality to satisfaction to retention has become a key to financial and organizational success as the automotive industry enters the new millennium. We are fortunate, in this regard, to have assembled a diverse group of both academic and automotive industry contributors to offer a variety of insights into these links. After describing the ongoing changes in the automotive industry in more detail, this introductory chapter describes a framework for linking quality, satisfaction, and retention. The framework is used to introduce each of the individual chapters and highlight its contribution. Although our primary emphasis is on the automotive industry, the implications of the research and lessons learned extend far beyond. If anything, the automotive industry is a prototypical competitive, global industry that faces a myriad of business issues. These include, among others, issues pertaining to product development, service development, process improvement, product quality, service quality, supplier relationships, internal customer satisfaction, external customer satisfaction, retailing, promotion, pricing, franchising, and technology management.