What is E-CRM? eCRM This concept is derived from E-commerce. It also uses net environment i.e., intranet, extranet and internet. Electronic CRM concerns all forms of managing relationships with customers making use of Information Technology (IT). eCRM 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
From Relationship Marketing to CustomerRelationship Marketing The concept of relationship marketing was first coined by Leonard Berry [in 1983. He considered it to consist of attracting, maintaining and enhancing customer relationships within organizations. In the years that followed, companies were engaging more and more in a meaningful dialogue with individual customers. In doing so, new organizational forms as well as technologies were used, eventually resulting in what we know as Customer Relationship Management (CRM). The main difference between RM and CRM is that the first does not acknowledge the use of technology, where the latter uses Information Technology (IT) in implementing RM strategies.
The essence of CRM The exact meaning of CRM is still subject of heavy discussions. However, the overall goal can be seen as effectively managing differentiated relationships with all customers and communicating with them on an individual basis. Underlying thought is that companies realize that they can supercharge profits by acknowledging that different groups of customers vary widely in their behavior, desires, and responsiveness to marketing.
Differences between CRM andeCRM1.Customer contacts 4.Customization and personalization of information2.System interface 5.System focus 6 .System maintenance and modification3.client computers
Why e-CRM? Gather and combine customer information into a unified picture Response faster and accurately Build customer loyalty
Different levels of eCRM Foundational services: This includes the minimum necessary services such as web site effectiveness and responsiveness as well as order fulfillment.
Different levels of eCRM Customer-centered services: These services include order tracking, product configuration and customization as well as security/trust.
Different levels of eCRM Value-added services: These are extra services such as online auctions and online training and education
Steps to eCRM Success Many factors play a part in ensuring that the implementation any level of eCRM is successful. One obvious way it could be measured is by the ability for the system to add value to the existing business. There are four suggested implementation steps that affect the viability of a project like this:
Steps to eCRM Success 1. Developing customer-centric strategies 2. Redesigning workflow management systems 3. Re-engineering work processes 4. Supporting with the right technologies
What is included in a successful eCRM? 1. Knowledge Management Acquisition of information about the customer What actions to take as a result of this knowledge
2. Database Consolidation Re-engineering the business process around the customer All interactions with customers recorded in one place
3. Integration of Channels and Systems: Respond to customers through their channel of choice E-mail, phone, chat line, etc.
4. Technology and Infrastructure: Organization and scalability of technology must be able to handle increased volume of customers
5. Change Management More than a change in technology is required Change in attitude and philosophy is key Product centric focus vs. customer centric focus
Future Trend CRM as a Strategic Function Mobile CRM (mCRM)
CRM as a Strategic Function Crucial element of e- business - planning and understanding goals Invite interaction from customers Merge vendor functions New technology
Mobile CRM (mCRM) 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.
three main reasons that mobile CRM isbecoming 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.
Mobile CRM (mCRM) Wireless-enabled CRM - Improved productivity and efficiency - Faster response times - Faster sales
Advantages of mobile CRM: 1. The mobile channel 3. Typically it is an opt- creates a more personal in only channel which direct connection with allows for high and customers. quality responsiveness. 2. It is continuously active and allows 4. Overall it supports necessary individuals to loyalty between the take action quickly customer and company, using the information. which improves and strengthens relationships
Wireless Technologies Wireless Access Protocol (WAP) Smart cell phones Personal Digital Assistants (PDAs) Pagers
Why a need for eCRM implementation? Traditional CRM approach: call centers Rapid growth of customer base Sharp increase in service inquiries Adding more customer service representatives would be costly To improve customer’s experience in doing business with Sprint Core differentiator in the industry/competitive advantage
Failures: Designing, creating and implementing IT projects has always been risky. Not only because of the amount of money that is involved, but also because of the high chances of failure. However, a positive trend can be seen, indicating that CRM failures dropped from a failure rate of 80% in 1998, to about 40% in 2003.Some of the major issues relating to CRM failure are the following:
Failures: Difficulty in measuring and valuing intangible benefits. Failure to identify and focus on specific business problems. Lack of active senior management sponsorship. Poor user acceptance. Trying to automate a poorly defined process.
Failure rates in CRM from 2001-2009 2001- 50% failure rate according to the Gartner group 2002- 70% failure rate according to Butler group 2003- 69.3% according to Selling Power, CSO Forum 2004- 18% according to AMR Research group 2005- 31% according to AMR Research 2006- 29% according to AMR Research 2007- 56% according to Economist Intelligence Unit 2009- 47% according to Forrester Research
Goals of eCRM implementation: Offer an efficient customer self-service where customers could learn about products, purchase service plans, phones and accessories, manage their account, request service and support all in one place Improve quality of service while reducing costs Reduce the number of calls to the service center
Results Integration of telephone, e-mail and Web environments Allowed the company to bring together all the members of the customer service community: marketing and sales, finance and accounting, distribution Customer access to every company function in one familiar place Customer interaction whenever they wish eCRM paid for itself in only 6 months
Future eCRM implementation Expand link to partners and suppliers