2. 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
3. From Relationship Marketing to Customer
Relationship 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.
4. 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.
5. Differences between CRM and
eCRM
1.Customer contacts 4.Customization and
personalization of
information
2.System interface
5.System focus
6 .System maintenance and
modification
3.client computers
6. Why e-CRM?
Gather and combine customer information
into a unified picture
Response faster and accurately
Build customer loyalty
7. Different levels of eCRM
Foundational services:
This includes the minimum necessary services such as web site
effectiveness and responsiveness as well as order fulfillment.
8. Different levels of eCRM
Customer-centered services:
These services include order tracking, product
configuration and customization as well as
security/trust.
9. Different levels of eCRM
Value-added services:
These are extra services such as online
auctions and online training and education
10. 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:
11. 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
12. 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
13. 2. Database Consolidation
Re-engineering the business process
around the customer
All interactions with customers recorded
in one place
14. 3. Integration of
Channels and
Systems:
Respond to
customers
through their
channel of
choice
E-mail, phone,
chat line, etc.
15. 4. Technology and
Infrastructure:
Organization and
scalability of
technology must
be able to handle
increased
volume of
customers
16. 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
17. Future Trend
CRM as a Strategic Function
Mobile CRM (mCRM)
18. CRM as a Strategic Function
Crucial element of e-
business
- planning and
understanding goals
Invite interaction from
customers
Merge vendor functions
New technology
19. 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.
20. 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.
21. Mobile CRM (mCRM)
Wireless-enabled CRM
- Improved productivity
and efficiency
- Faster response times
- Faster sales
22. 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
23. Wireless Technologies
Wireless Access
Protocol (WAP)
Smart cell phones
Personal Digital
Assistants (PDAs)
Pagers
24. 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
25. 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:
26. 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.
27. 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
28. 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
29. 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
