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Grace Priyanka Sanwal MBA-FM E-CRM vs M-CRM

E-CRM The eCRM or electronic customer relationship marketing concept is derived from e-commerce. It also uses net environment i.e., intranet, extranet and internet. Electronic CRMconcerns all forms of managing relationships with customers making use of information technology (IT). Electronic customer relationship management (e-CRM) involves the integration of Web channels into the overall enterprise CRM strategy with the goal of driving consistency within all channels relative to sales, customer service and support (CSS) and marketing initiatives. It can support a seamless customer experience and maximize customer satisfaction, customer loyalty and revenue E-CRM is enterprises using IT to integrate internal organization resources and external marketing strategies to understand and fulfill their customers needs. Comparing with traditional CRM, the integrated information for eCRM intraorganizational collaboration can be more efficient to communicate with customers.

As the Internet is becoming more and more important in business life, many companies consider it as an opportunity to reduce customer-service costs, tighten customer relationships and most important, further personalize marketing messages and enable mass customization.[9] ECRM is being adopted by companies because it increases customer loyalty and customer retention by improving customer satisfaction, one of the objectives of eCRM. E-loyalty results in long-term profits for online retailers because they incur less costs of recruiting new customers, plus they have an increase in customer retention.[10] Together with the creation of sales force automation (SFA), where electronic methods were used to gather data and analyze customer information, the trend of the upcoming Internet can be seen as the foundation of what we know as eCRM today. As we implement eCRM process, there are three steps life cycle:[11] 1. Data collection: About customers preference information for actively (answer knowledge) and passively (surfing record) ways via website, email, questionnaire. 2. Data aggregation: Filter and analysis for firms specific needs to fulfill their customers. 3. Customer interaction: According to customers need, company provide the proper feedback them. eCRM can be defined as activities to manage customer relationships by using the Internet, web browsers or other electronic touch points. The challenge hereby is to offercommunication and information on the right topic, in the right amount, and at the right time that fits the customers specific needs

Differences between CRM and eCRM


Major differences between CRM and eCRM:[8] Customer contacts CRM Contact with customer made through the retail store, phone, and fax.

eCRM All of the traditional methods are used in addition to Internet, email, wireless, and PDA technologies. System interface CRM Implements the use of ERP systems, emphasis is on the back-end.

eCRM Geared more toward front end, which interacts with the back-end through use of ERP systems, data warehouses, and data marts. System overhead (client computers) CRM The client must download various applications to view the web-enabled applications. They would have to be rewritten for different platform. eCRM Does not have these requirements because the client uses the browser.

Customization and personalization of information CRM Views differ based on the audience, and personalized views are not available. Individual personalization requires program changes. eCRM Personalized individual views based on purchase history and preferences. Individual has ability to customize view.

System focus CRM System (created for internal use) designed based on job function and products. Web applications designed for a single department or business unit. eCRM System (created for external use) designed based on customer needs. Web application designed for enterprise-wide use. System maintenance and modification CRM More time involved in implementation and maintenance is more expensive because the system exists at different locations and on various servers. eCRM Reduction in time and cost. Implementation and maintenance can take place at one location and on one server.

M-CRM or Mobile CRM


One subset of Electronic CRM is Mobile CRM (mCRM). This is defined as "services that aim at nurturing customer relationships, acquiring or maintaining customers, support marketing, sales or services processes, and use wireless networks as the medium of delivery to the customers. However, since communications is the central aspect of customer relations activities, many opt for the following definition of mCRM: "communication, either one-way or interactive, which is related to sales, marketing and customer service activities conducted through mobile medium for the purpose of building and maintaining customer relationships between a company and its customer(s).[29] eCRM allows customers to access company services from more and more places, since the Internet access points are increasing by the day. mCRM however, takes this one step further and allows customers or managers to access the systems for instance from a mobile phone or PDA with internet access, resulting in high flexibility. Since mCRM is not able to provide a complete range of customer relationship activities it should be integrated in the complete CRM system.[30] There are three main reasons that mobile CRM is becoming so popular. The first is that the devices consumers use are improving in multiple ways that allow for this advancement. Displays are larger and clearer and access times on networks are improving overall. Secondly, the users are also becoming more sophisticated. The technology to them is nothing new so it is easy to adapt. Lastly, the software being developed for these applications has become worthwhile and useful to end users.[31] There are four basic steps that a company should follow to implement a mobile CRM system. By following these and also keeping the IT department, the end users and management in agreement, the outcome can be beneficial for all.

Step 1 - Needs analysis phase: This is the point to take your times and understand all the technical needs and desires for each of the users and stakeholders. It also has to be kept in mind that the mobile CRM system must be able to grow and change with the business. Step 2 Mobile design phase: This is the next critical phase that will show all the technical concerns that need to be addressed. A few main things to consider are screen size, device storage and security. Step 3 Mobile application testing phase: This step is mostly to ensure that the users and stakeholders all approve of the new system. Step 4 Rollout phase: This is when the new system is implemented but also when training on the final product is done with all users.[32] Advantages of mobile CRM 1. The mobile channel creates a more personal direct connection with customers.

2. It is continuously active and allows necessary individuals to take action quickly using the information. 3. Typically it is an opt-in only channel which allows for high and quality responsiveness. 4. Overall it supports loyalty between the customer and company, which improves and strengthens relationships.

Benefits of mCRM over eCRM on every factor of the Framework: Customer Loyalty: Customers who have a high level of commitment to the brand will also show a high level of loyalty. Companies are looking for ways to provide unique customer benefits and be better than their competitors. In such cases to provide special benefits to the customer, companies are trying to keep the customer updated on their membership details and any other benefits that they need to be aware of. This can be very well achieved through mCRM by sending the customer an SMS (Short Message Service). And the web link to the members login page can be a part of the message as well. With the latest Internet technology on the mobile, the user could just click on the link and access his customized page to get a detailed view of his membership status. The usability factor is very crucial in such situations, and most of the customers are not willing to spend a lot of time or effort in accessing their membership details and most of the times they do not tend to follow up on it. With the mobile interface it becomes much easier to access the details in terms of mobility, even when the customer is travelling etc. For example: The customers of emirates airlines, who are part of the Skywards Membership program. These are the people who are frequent flyers and would like to keep track of their membership details frequently, maybe

when they need to access the details before buying a flight ticket, what could be more convenient than being able to access the data on the mobile phone and even make enquiries, changes to the membership plan etc. With the help of Location Based Service the customer can be more benefitted from these special membership programs, by letting the customer know by SMS about any deals or vouchers that he could use or avail of when he is in a particular region. With such great unique customer service, the customer Loyalty to the Brand is enhanced to a much higher level. With the amount of competition in the Business Market now, providing great customer service and enhancing the loyalty of the customer to the brand is very crucial to be successful in this competitive business environment. The mobile medium allows access to the customer anytime and anyplace, it is not restrictive as compared to the other channels within CRM because customers tend to carry their mobile with them all the time. And on the mobile it becomes easier to identify an individual customer on the database, as no two customers can have the same telephone number. It is much easier to differentiate the customers and identify the type of membership they are enrolled in. Based on their mobile numbers, it will also be possible to know the region a customer belongs to, which can be helpful in situations where the loyalty programs differ based on regions.

Through mCRM a customer feels a one-to-one relationship with the organisation and this is crucial in enhancing the loyalty of the customer towards the brand. Customers always prefer interacting with a real person than having to interact with a pre-programmed machine. Therefore mCRM has the capability in building strong customer loyalty towards the brand.

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