SRI SHARAD INSTITUTE OF INDIAN MANAGEMENT RESEARCH PHASE-II, 7th INSTITUTIONAL AREA VASANT KUNJ, NEW DELHI WWW.SRISIIM.

ORG

E-CRM AND CASE STUDIES

SUBMITTED TO: Prof. N.VENKATESH

SUBMITTED BY: Iqbal Ali (20110107) Rahul Tuli (20110114)

DECLARATION
We Iqbal Ali and Rahul Tuli, student of PGDM (2011-13) hereby declare that we have completed this project E-CRM AND CASE STUDIES. The information submitted is true to the best of our knowledge. IQBAL ALI (20110107) RAHUL TULI (20110114)

2|Page

What is eCRM?

onsider the following progression for a moment, and let's see where eCRM can lead: 1. eCRM provides Access 2. Access creates Information 3. Information enables Measurement 4. Measurement is an imperative for Process Improvement 5. Process Improvement leads to Growth in Revenues & Profit Therefore, eCRM, well implemented, leads to Growth in Revenues & Profits, a bold assertion? This paper offers a definition of eCRM and explains why this

progression valid.

is

Everywhere you look these days you see everybody.com and e-

CRM Evolution
Growth Strategy

Cost Reduction Strategy

BPR

ERP

SFA

CRM

eCRM

Business Led

IT Led

Marketing Led

1980s

1990s

2000s

everything. CRM (Customer Relationship Management) has been undergoing evolution towards the Web for some years but only relatively recently have we seen the term eCRM. So what is eCRM? Is it old CRM with some Internet access bolted on? Or is it more fundamental than that? To properly understand
3|Page

eCRM it is useful to look at the evolution of CRM and to review its original objectives. As can be seen in Figure 1, CRM evolved out of the SFA (Sales Force Automation) systems from the early 90s. Prior to this, companies were not treating Sales & Marketing as priorities for IT investment. Areas such as Accounting, Office Automation and ERP were the money-spinners and it was difficult to find a seriously funded project for Sales & Marketing system. Today it is very different, CRM is considered as very important in most organisations and for many it has become a major element of their ongoing IT investment. Of course, investment in any IT system has to ultimately contribute to increasing profitability. There is a close correlation between growth in revenues & profits and the benefits gained from wellimplemented CRM, these benefits are:

Retaining existing customers Selling more to existing customers Finding and winning new customers Figure 1 Evolution CRM

CRM is now well understood as todays technology solution to improving these 3 areas of business by: Increasing efficiency Improving marketing and sales decision making Enabling process measurement leading to process improvement

Figure 2 Integrated Database Over the past 10 or so years CRM has evolved out of ostensibly separate sales automation, marketing databases, customer service systems into an integrated system serving all front office/customer facing functions

4|Page

across the enterprise (see Figure 2).

marketing, sales and service decisions.

Figure 3 Enterprise CRM

Supporting the Front Office Many organisations today see CRM as the accepted tool to support these disciplines. Just as an organisation would not consider running their finances without an accounting system, many now would not consider running sales marketing and customer service without a CRM system. For example in marketing, CRM enables you to know your customers better, understand their value (LTV) and use the information to make better

Trying to make marketing decisions today without a system is a bit like navigating at sea using the stars. Internal to the organisation managers can monitor activity, measure performance and improve processes to reduce waste and increase effectiveness. Todays enterprise CRM system will look similar to Figure 3. Prospects and customers will communicate with the enterprise via a mix of channels, which may vary depending upon where they are in the buying cycle. For example, when responding to direct

5|Page

marketing, contact may be by bingocard or telephone. When making a purchase decision it may be field sales or a telephone-ordering centre. Post-sales contact may be via a support help-desk. All front-office functions (customer touch points) will share a central CRM database. Integration between the CRM database and the socalled back-office systems e.g. accounts, manufacturing, distribution, ERP etc may be real time or batch interface depending upon need. The benefits of multiple contact channels are obvious customers have choice - they will use whichever contact channel in most convenient to them. The information captured during all customer contact and transactions is held on a database in a structure and easily accessible way. Whats more, it can be made available to anyone in the organisation. Core data need only be keyed in once front office and back office systems share the same core

records, although each will have additional information specific to their processes.

Conventional CRM
What is being described here is what we will call conventional CRM. In conventional CRM the prospect or customer contact will be with a member of your internal staff. Staff will access a central relational (SQL) database sitting on a LAN using specially configured CRM applications on PCs running Windows. Users may be office based, or field based. Field people may have laptops typically using dial-up or email remote database synchronisation. There is however a major limitation in the conventional system one of limited access. Lets look at this issue specifically. When embarking on any project there are always budget constraints. As with any investment, CRM systems should be deployed to meet priority items first. For example, a
6|Page

typical roll out may be managed in phases. Phase 1 may include most of the sales team plus a bit of marketing; phase 2 may bring on board the rest of marketing and customer service; phase 3 may include remote field sales users who were not part of phase 1, plus an interface to accounts; phase 4. I'm sure you get the picture. Key issues dictate the rollout A number of issues of course will dictate the rate of a rollout and who is or is not included. For example, a key issue is changemanagement, i.e. not wanting to do too much, to too many, too quickly. Another common issue of course is cost. How are we going to afford the new kit and the licences for all these extra users, particularly those who dont need to use it everyday, the occasional users - it would be nice to have them included. What about our business partners? We would like to include our external

telemarketing company it would be great if we could send them list to call and have them enter results and set follow-up actions for our sales team, using the same CRM system. What about the reseller channel; the dealers why cant they use the same system? We could really keep track of all those leads we send them and get feedback without the continual chasing. Lets not forget our customers we could give them partial access to the CRM system they could look up product details, request information, log support calls, check delivery progress etc. This would be more convenient for them and lower cost for us. After all, the idea of tracking every contact and transaction with prospects and customers was the original idea behind Database Marketing - the pre-cursor to, and philosophy behind CRM. Unfortunately due to limited access by the wider population this level of contract
7|Page

tracking could never be achieved until now Enter eCRM.

What eCRMs all about

Put simply, eCRM means CRMdatabase access via the Web. It means Intranet access for internal users, extranet access for business partners and customers and of course, Internet access for the market at large. As well as this wider accessibility, eCRM enables new marketing opportunities. Web marketing, Web self service, automated response to email requests, remote data warehouse access, integrated marketing channels, etc lets look at some of the advantages For example, the Web offers an additional marketing channel. For marketers the Web is quite different to other channels in an important way everything can be captured and tracked, because by definition every request, response, contact, transaction is carried out on the system potentially nothing is lost.

Another important difference is that Web marketing can be focused more on the needs of the buyer. You can build a Web environment based on the way the customers prefer to do business indeed if you dont they will pass you by! A further example is the ability to offer self-service. Prospects and customers can access product details, prices, delivery, they can place an order; they can book onto a seminar or training course. They can request information, access a bulletin board, log a support call, access a selfsupport database, and check progress of an action previously logged.

Plan to do eCRM right

The Web is offering the customer an additional way of contacting the enterprise and doing business. Customers will choose which contact channel is most effective for them - eCRM means greater efficiency, you dont waste their time and they dont waste yours. But,
8|Page

and its a big but, the system is capturing far more information about the customer than ever before. Do it right and you can become the easiest company to do business with which brings us back to the original objectives of CRM customer acquisition, customer retention, customer development. From a marketingmeasurement point of view, all this is very exciting indeed. Consider some of the leading Database Marketing literature of the late 1980s (e.g. Rapp and Collins; Shaw and Stone; Moriarty and Schwartz). Their premise was that marketing Campaign Management was all about capturing every point of dialogue with the market, prospects and customers to enable accurate measurement of marketing effectiveness and to use this to plan future campaigns and events, continuously improving their effectiveness doing more of what worked and avoiding what didnt.

This vision has never really been realised because much of the information in more traditional direct marketing campaigns is lost along the process. Studying a campaign for guidance Contrast the following extract from a Web campaign with a traditional direct mail event. First, we advertise our Web site through focused media and direct mail. Every web-hit is captured and is attributed to the advertising event. Multiple choices are offered to the respondent e.g. request information; book onto an event; self qualify; contact a salesman; purchase product etc all is captured and tracked by the database. More than that we can respond from the system and automatically acknowledge the response, we can fulfil very rapidly most probably directly from the system.

9|Page

We can route the enquiry to where ever and who ever is best to deal with it based on self qualification data captured at each subsequent stage down the process each player in enterprise will have access to the complete picture so far. We have captured everything; therefore we can measure the process. eCRM is limited only by the creativity of the marketer.

Do we move to eCRM now?

You may be asking yourself at this point Should I be replacing my current conventional CRM system with eCRM? or if you are considering CRM for the first time, you may be thinking,
10 | P a g e

Should I not bother with CRM but jump straight to eCRM? Wait! Lets look at the pros and cons of both before answering these questions. Putting the access issue to one side for a moment, conventional CRM systems offer very powerful capability particularly to your intensive users. These people, who are largely officebased, will need the power of Windows and direct database access on the LAN Browser access would not be the environment of choice for these users. As an existing CRM user, your company will have invested in a client server infrastructure there is no business reason to re-equip and re-train these people. If you are a first time CRM purchaser you need to tread carefully when considering the socalled new Webarchitected products these are in their infancy and many of the new entrant companies have little core competence in CRM.

You may be shown an attractive frontend but whats behind it? Is there a well-developed CRM database structure? Is the entire CRM process functionality integrated end to end? What if you want to change datastructure, screens, navigation and userprocesses to match your business? With most of these Webarchitected products you probably wont be able to without getting into serious customisation! Which approach to adopt? A total Web solution may not be the best solution for many organisations, the optimum solution is likely to be a mix of conventional and Web capability - the best of both worlds. The most effective approach to Customer Management relies on more than one technology. Look for pedigree Leading CRM solutions such as CRMsoft from Chapelfield Systems offer both ClientServer CRM and Web-CRM integrated in a single system. CRMsoft system has evolved from over 12
11 | P a g e

years of CRM pedigree. The system is steeped in sales, marketing and customer service functionality. Indeed, over 1000 standard business processes are available and this library expands continuously. The system offers one of the most powerful CRM functionality sets on the market today as well as ultimate configurability the system is so open, an authorised-user can change the data structure, screens and processes without touching the source-code. This is all very well for a conventional CRM system, but what about eCRM? Figure 4 - CRMsoft Architectu re Chapelfield Systems has developed a Web-publisher, which can deploy all existing client-server configurations to run in Web pages accessible by any Web Browser. There is no special Web development needed; this means the use of common processes between all user communities whether they are

Windows ClientServer users or Webbrowser users. Security and accessrights for different user communities is controlled by a sophisticated rightsmanagement system. CSL calls the approach configure once deploy anywhere. Figure 4 describes the integrated CRMsoft clientserver and eCRM architecture. Conclusion In conclusion, eCRM takes conventional CRM to new heights. Combining the technologies of conventional and Web CRM opens Customer Relationship Management to all participants in the process, inside and outside the enterprise. Users can access the CRM system via PCs or Laptops using Windows or via the Web using a Browser.

12 | P a g e

As we move towards WAP (Wireless Application Protocol) devices, costeffective access will increase still further.

eCRM takes us one step further towards harnessing the true database marketing philosophy.

e-CRM Features and Functions

CRM versus eCRM--there has been a lot of debate surrounding the differences, or lack of differences, between what is called CRM and what is called eCRM. Is eCRM just webenabled CRM? Is it merely symptomatic of companies hoping to strengthen their proposition or valuation? Or is eCRM fundamentally different? Clearly the Internet and e-business are responsible for the e in eCRM. There are significant differences in the skills one needs and the things one can do with eCRM as opposed to CRM but the fundamental principles are very similar. Web Services The combination of all Web services that are available to users. Allows companies to provide self-service CRM to customers, suppliers, and partners. e-Sales E-Sales applications are web-based applications that support unassisted B2B and B2C selling via the Internet. These applications enable organizations to rapidly establish an online selling channel. e-Service E-Service applications deliver valuable customer information that empowers customer service organizations to proactively track, organize, and analyze all interactions with new and existing customers on an ongoing basis. Companies will be able to identify additional products and services that may be a good cross-sell or up-sell opportunity, assign status and escalations based on the customer's needs, and most importantly determine which customers are most profitable.

13 | P a g e

e-Marketing E-marketing modules allow organizations to deliver highly personalized Web offers and dynamic Web surveys that are fully synchronized with marketing efforts in traditional channels. e-Catalog E-Catalogs enable companies to create hierarchical product catalogs and publish them to the Web. e-Collaboration E-Collaboration modules reduce call volume and improve service profitability by offering users the assistance they need at precisely the moment they need it--while on the Web site.

e-Personalization E-Personalization provides customers with access to relevant information based on their profiles. e-Recommandation Customers are guided through a questionnaire to the most suitable choice of products or services. Content Management Content management applications are considered to be part of personalization service tools. In fact, any customization or recommendation to the user is based on suggestive content with regards to products and services best matching a customer's expectations. e-Profiling Profiling or tracking is the collection and the processing of users' raw data, in order to build a user profile.

14 | P a g e

eCRM Case Studies

La Tasca

An eCRM System For The Countrys Favourite Tapas Bar and Restaurant Brand
15 | P a g e

La Tasca Holdings is a newly formed organisation that operates over 70 Tapas bars and restaurants across the UK. Behind latasca.co.uk is a sophisticated eCRM system that allows staff to manage customer enquiries/reservations, manage content, create and deploy vouchers, events, and to create and send email campaigns to targeted audiences. Alongside each activity is the ability for central staff to view performance reports and easily track customer behaviour. La Tasca have re-launched their brand; centred on delivering an outstanding customer experience through a contemporary interpretation of its Spanish heritage and tradition. By welcoming customers throughout the day whether for a shot of coffee, Tapas at the bar, Lunch, Dinner or Party, the restaurants replicate the authenticity of traditional Spanish Tapas but within a contemporary context. Through this approach the brand has a developed a unique positioning; generating standout on the high street, increased revenue and improved loyalty from customers. Aardvark Media has undertaken all the digital activities for the brand, supporting the re-launch re-styling the online customer experience, improving the online conversion funnels, brand communication landing pages and extending the reach to customers via mobile optimization.

Novus Leisure

16 | P a g e

An eCRM System For A Leading Retail Leisure Operator Novus Leisure Limited operates premium bars in high footfall venues in major urban markets, with a substantial food offer and corporate business. The company has a pre-eminent position in the West End of London and the City of London markets. Its Tiger Tiger brand has a strong presence in prime regional sites. Novus operate over 50 premium bars, restaurants and nightclubs in the heart of Londons vibrant West End and the City, with famous venues including Balls Brothers, Lewis and Clarke, LVPO, Strawberry Moons, Grace, Jewel Bar and Zoo. Across the UK they operate the Tiger Tiger chain, winner in the 2009 Publican awards for Retail concept of the year along with the eponymous Mansion House in the heart of Glasgows West End. An eCRM System For A Leading Pub Company The Stonegate Pub Company is a newly formed organisation that operates over 560 pubs across the UK from high street pubs to traditional country inns, and from local community pubs and student pubs to late night bars and venues. The company currently support the eponymous Slug & Lettuce, the UKs leading high street bar brand. Behind the website is a sophisticated eCRM system that allows Stonegate staff to manage customer enquiries/reservations, manage content, create and deploy vouchers, events, and to create and send email campaigns to targeted audiences. Alongside each activity is the ability for central staff to view performance reports and easily track customer behaviour. The reservation process is at the heart of the customer conversion funnel and throughout the site are appropriate calls to action and
17 | P a g e

guide points to drive traffic towards the enquiry form. Prior to the mgt's involvement two of the brands had used a well known offthe-shelf reservations system. Thanks to the improvements we introduced we accelerated the growth of customer enquiries but without Stonegate incurring additional per cover fees and offering the customer a better integrated experience. To entice the burgeoning value consumer, looking for vouchers and special offers, we have integrated landing pages, competitions and a voucher mechanism to encourage new and existing customers to make reservations. These promotions are supported by special offers at the point of reservation, allowing Stonegate to up-sell customers with preordered items. Behind the scenes the staff at individual bars simply login to manage their customer requests, download reports and view their performance. Central staff, dependant upon their role, can view tailored reports across the estate. For the first time the Board at Stonegate are able to obtain immediate business performance reports across the group, allowing them to make better planning and organisational judgements. The administration area is comprehensive, allowing staff to easily manage online reservations, review reports for performance, manage content, vouchers and reservation offers. There is also a comprehensive integrated email-marketing suite, allowing administrators to create stunning email campaigns via a WYSIWIG editor. Stonegate are able to track customer behaviour from email campaigns, including the number of enquiries or reservations generated, vouchers downloaded and pages viewed. To make life easy for the marketing staff the system provides a heat-map of customer behaviour so that they can make better judgement calls for future campaigns. The search engine friendly sites meet W3C accessibility standards and have been
18 | P a g e

optimised to increase their position on search engine results.

19 | P a g e