Chapter 5

E-CRM

Chapter 5 – E-CRM 1
Learning Objective

To understand the concept of e-CRM

To understand the benefits of e-CRM
To understand the strategy for e-CRM deployment

Chapter 5 – E-CRM 2
Introduction to e-CRM

• An increasing number of companies are considering

implementing e-CRM systems to satisfy the growing
expectation of customer service.

• E-CRM systems have unique characteristics that

support customer business interactions that are
linked to internal business processes and systems
across different areas for operational and analytical
purposes.

Chapter 5 – E-CRM 3
Introduction to e-CRM

• The internet is a channel that will continue to increase

in customer relationship management and utilisation
for all companies both now and in future

Chapter 5 – E-CRM 4
e-CRM

• Involves integration of web channels into overall

enterprise CRM Strategy

• Simply means CRM database accessed via web

• An extension of traditional CRM and is defined

primarily by the platform afforded by the internet

Chapter 5 – E-CRM 5
Types of E-CRM

• Reactive Service – Allows customer to contact the

company when he has a problem

• Proactive Service – which allows the company to

initiate contact with the customer in order to establish
communication and provide solutions to the problem

Chapter 5 – E-CRM 6
E-CRM operated at three distinct levels

• Foundational Services – Fundamental services

such as ensuring effective and responsiveness of
websites

• Customer centred services – Includes tracking of

orders, customisation and configuration of products
and the security integrity of the site

• Value added-services – go beyond the normal king

of services and provide specialised options such as
online auctions
Chapter 5 – E-CRM 7
Aspects that an enterprise should consider
before commencing the e-CRM program
• Clear vision and definite strategies for developing
customer relationships

• Enterprise-wide consensus

• Goals must be measurable

• Establish top executive support

Chapter 5 – E-CRM 8
Clarity of Vision and definite strategies

• Vague visions are usually accompanied by non-

actionable strategies

• Enterprise must have clear idea of what kind of

relationship it desires to build with the customer

• This step must precede any investment in e-CRM

programs and infrastructure

Chapter 5 – E-CRM 9
Enterprise wide consensus

• Successful planning and execution of any e-CRM

project is predicated largely on the alignment of such
project with overall organisational goals

• Next steps is to build consensus within the various

departments in the enterprise

• If this is not achieved, the project will experience

shortfall in many areas leading to probable failure

Chapter 5 – E-CRM 10
Goals must be measurable

• It is difficult to evaluate the returns on the CRM

Project

• The organisation thus should set carefully the goals

which are aimed at creating a successful e-CRM
implementation program

Chapter 5 – E-CRM 11
Establish top executive support

• It is crucial that all staff understand the importance of

the project to the company’s overall business
objectives

• This will be established by the support showed by the

top executives of the enterprise

Chapter 5 – E-CRM 12
Difference between CRM and e-CRM

• E-CRM helps organisations to operate efficiently and

effectively over traditional CRM

• E-CRM expands the traditional CRM techniques

Chapter 5 – E-CRM 13
Key benefits of E-CRM

• Dynamic content

• Good coverage

• Fostering relationship with customers

• Provision of personalised services

Chapter 5 – E-CRM 14
Key benefits of E-CRM

• Quality of service and delivery

• Transaction and processing speed

• Convenience

Chapter 5 – E-CRM 15
Barriers to e-CRM
• Customers Concerns related to privacy, lack of
human touch

• Strategic aspects

• Insecurity of the internet

• Regulatory concerns

Chapter 5 – E-CRM 16
Implementation strategies of e-CRM
• Developing customer focussed business strategies

• Re-tooling business functions

• Work process re-engineering

• Technology choice

• Training and implementation

Chapter 5 – E-CRM 17
Difficulties commonly encountered during
implementation
• Mismatch between a company and the vendor’s
software

• Poor understanding of the company’s business

processes

• Lack of vendor financial stability

• Rejection by end users

• Bad scoping
Chapter 5 – E-CRM 18
Future trends in multi-channel approaches
in e-CRM
• Multi-channel retailers that utilise an e-CRM approach
stand to benefit multiple arenas by providing targeted
customer service as well as gaining operational and
competitive advantages

• The current trend for marketing is to include multi-

channel communications across many platforms all
for the same message

Chapter 5 – E-CRM 19
Summary
• 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 and
• Marketing initiatives

• It can support a seamless customer experience and

maximise the customer satisfaction, customer loyalty
and revenue

Chapter 5 – E-CRM 20