Chapter 2. The Case for Customer Relationship Management

Now that we have defined what a customer is, you are in a good position to identify which of Treacy and Wiersema's three value disciplines is the primary focus of your company. You are also better prepared to understand what approach to building customer loyalty will work best for you. Successful companies know that none of the value disciplines can be ignored, but that they must choose one of these as their primary focus. Companies relate to customers by providing either:

• The best products, or

• The best cost, or

• The best total solution.

These value disciplines (the ways in which a company delivers value to its customers) haven't changed. Most companies still have the same types of customers they've always had. What is different is what it takes to successfully manage relationships with those customers. Marketplace demands and customer expectations have changed, setting the bar for success at a higher level. Companies need to manage their interactions with customers in a way that delivers consistent and positive experiences. Sadly, most companies have intellectual, organizational, and cultural obstacles that make it more difficult for them to manage relationships effectively.