eCRM

Chapter 2

What is eCRM?
y Enables customers to access information and services about

the products that are less expensive and more convenient than the traditional ways of helping customers evaluate and purchase products. y eCRM customers use self-service tools on web rather than company's employees , hence customers become active players in the purchase and service process. y Customer is empowered to manage and control the process via the Web.

Using eCRM
y companies can increase their revenues and reduce their costs

and as a result can improve profitability and customer satisfaction. y companies get more knowledge about the customer as customers become more active

Loopholes in traditional CRM packages

y Traditional CRM offerings are channel centric , not customer

centric. y Contemporary customers facing traditional systems y Customer centric metrics do not exist in traditional CRM offerings y Customer facing systems create new islands of nonintegrated information.

These loopholes lead to eCRM

Why eCRM?
y To optimize the value of interactive relationships y To enable the business to extend its personalized reach y To coordinate marketing initiatives across all customer

channels. y To leverage customer information for effective e marketing and e business. y For consistent measurement, assessment and actionable customer strategies.

Key eCRM features

y Driven by data warehouse y Focused on consistent metrics to assess customer actions

across channels y Built to accommodate the new market dynamics that place the customer in control y Structured to identify a customers profitability or profit potential. y Leads to better allocation of investments based on customers profitability.

Six Es in eCRM
y Electronic channels: eCRM thrives on new electronic channels y y

y y

such as the web and personalized e-messaging Enterprise: It is an enterprise wide project that helps to touch and shape a customers experience through electronic means Empowerment: eCRM strategies must be structured to empower consumers to decide when and how to communicate with the company through which channel, at what frequency. Economics: An eCRM strategy ideally should concentrate on customer economics-directing efforts at individuals likely to provide the greatest returns Evaluation: eCRM strategies must evaluate customer interactions along various customer touch point channels External Information:Customer given information can be employed to understand customer needs.

Stages in Evolution of eCRM

Architecture of eCRM

eCRM Components
A company evolving to eCRM should: y Define its business objectives y eCRM assessment :Assess its current position with
respect to the environment and determine its current level of sophistication along the eCRM continuum :
y Devise a numerical measure to know how company fares in the

eyes of customers as compared to competitors. y Devise capability Index for cross-company comparison y Company can now devise strategy to quickly fix the problem areas y It is a diagnostic stage.

eCRM Components
y eCRM strategy alignment : Define new business
processes and align its existing strategy and existing processes in line with the new realities.
y To identify, measure and align the gaps between customer

expectations and internal capabilities of the organization. y Consensus should be built between stakeholders on certain key issues

eCRM Components
y eCRM architecture :Define a technical architecture and
the criteria associated with this architecture. It consists of the following tools:
y Customer analytic software:to pedict , measure and interpret

y y y y

customer behaviour, can be used by all departments of the organization Data mining software:to identify customers behaviour patterns Campaign management software:to plan and execute targeted campaigns based on timed events and customer behaviour Business simulation: along with campaign management,providing offers prior to campaign execution,helps to foresee results Real time decision engine: to coordinate and synchronize communications across varied customer touch points,to provide appropriate offers in real time.

Dimensions of eCRM
y Acquisition-getting new customers y Expansion- expanding the value of each customer by getting

referrals and other services-feedback, advertise

y Retention- retaining already existing customers,

customization

Differences between CRM and eCRM

Customer contacts y CRM- contact with customer made through the retail store, phone, and fax. y eCRM- all of the traditional methods are used in addition to Internet, email, wireless, and PDA technologies System Interface y CRM- implements the use of ERP systems, emphasis is on the back-end y eCRM- geared more toward front end, which interacts with the back-end through use of ERP systems, data warehouses

Differences between CRM and eCRM

System overhead (client computers)
y CRM- the client must download various applications to view the

web-enabled applications. They would have to be rewritten for different platform. y eCRM- doesn't have these requirements because the client uses the browser

Customization and Personalization of Information

y CRM- views differ based on the audience, and personalized views

are not available. Individual personalization requires program changes y eCRM- Personalized individual views based on purchase history and preferences. Individual has ability to customize view.

Differences between CRM and eCRM

System Focus
y CRM- System (created for internal use) designed based on job

function and products. Web applications designed for a single department or business unit y eCRM- System (created for external use) designed based on customer needs. Web application designed for enterprise-wide use.

System Maintenance and Modification

y CRM- More time involved in implementation and maintenance is

more expensive because the system exists at different locations and on various servers y eCRM- Reduction in time and cost. Implementation and maintenance can take place at one location and on one server

Different levels of eCRM

y Foundational Services: minimum necessary services for

maintaining web site, order processing y Customer centered services: order tracking, product configuration, customization, security provisions y Value added services: online auction, training, online communities, feedback

Key applications of eCRM

y Information Integration application
y An incomplete view of customers reduces their loyalty and

trust y Consolidating customer data from various sources y To keep up with every customers interaction
y Customer analysis application:
y to predict , measure and interpret customer behaviour y Predictive models to identify customers most likely to perform

an activity y On line analytical processing, data mining and statistics

Key applications of eCRM

y Campaign management application
y y y y

Targeted campaigns Response to timed events Use of diverse communication channels Integrating multichannel communication

y Real time decision application

y To coordinate and synchronize communication across varied

dissimilar customers y To promote information exchange between company and every customer
y Personalized messaging application
y Enables personalized products and services offerings to large no. of

customers based on data present and constantly updated data

Benefits of eCRM
y Retaining existing customers y Selling more to existing customers y Finding and winning new customers: interactions leading to

stronger relationships y Increasing efficiency y Improving marketing and sales decision making y Enables 24/7 customer interaction y personalization

Goals of eCRM
y Reduce:
y cost of marketing

y Improve:
y Accuracy and relevance of recommendations y Customer satisfaction

y Increase:
y y y y y y

Conversion rate: turn browsers to buyers Customer retention and frequency Order size Customer response Competitiveness Profitability

mCRM
y Mobile CRM is the 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) y Mobile CRM allows customers or managers to access the systems from a mobile phone or PDA with internet access, resulting in higher flexibility y Must be integrated in the CRM system as it can not provide complete range of customer relationship activities

Why mCRM is becoming popular?

y Improved devices consumers use- larger displays ,improved

access times on networks y Sophisticated users more used to technology advancements y Better software developed that help in proper integration of information into existing CRM technologies.

Implementing mCRM system

y Needs analysis phase: understanding technical needs and

desires for each of the users and stakeholders. y Mobile design phase: technical concerns -screen size, device storage and security. y Mobile application testing phase: ensure that the users and stakeholders all approve of the new system. y Rollout phase: new system is implemented , users trained for the usage

Advantages of mobile CRM:

y creates a more personal direct connection with customers. y continuously active , allows individuals to take action quickly

using the information. y an opt-in channel which allows for high and quality responsiveness. y Enhances loyalty between the customer and company, which improves and strengthens relationships.

Further study:

Components of eCRM Differences between CRM and eCRM

THANKS