3. Customer Relationship Management
In e-business context, is the use of technology
to establish, develop, maintain and optimize
relationships with customers by
understanding customers’ needs and desires.
Marketing could use CRM to answer the
following questions:
Who are our customers?
What do these customers really want from us?
What advertising methods are most effective?
Which channels are likely to be most successful in
gaining repeat business?
4. Up-Selling and Cross-Selling
Sales will benefit from CRM by providing
sales representatives with better information
that they can use to up-sell or cross-sell
products and services:
Up-selling: is the process of encouraging
customers to purchase higher-priced products or
services.
Cross-selling: is encouraging customers to
purchase complementary or additional products or
services from the firm.
5. Process of CRM
Data capture
Data is captured and
stored :
Data warehouse: a central
data repository utilized to
organize, store, analyze,
and report upon data for
decision-making purposes.
Data mart: a data repository
that is dedicated to specific
user groups and is often
integrated into the data
warehouse.
Data Analysis
Also called Customer
Intelligence
Customer intelligence is the
use of CRM applications to
explore data to identify
relevant customer
information.
Strategic Decision Making
Data analysis often
identifies areas requiring
change e.g. cost-reduction
initiatives or product or
service delivery
Implementation
This may involve change
in the methods by which
information is delivered to
customers, modification of
marketing campaigns,
revisions to the online
store, or numerous other
possibilities.
6. CRM Goals
The overall goal of CRM should be to improve
customer relationships by providing better service,
improved sales efforts, and reduced marketing costs.
Marketing goals
Improved marketing planning, sales forecasting,
competitor intelligence, trend analysis and performance
analysis.
Sales goals
Sales Force Automation (SFA) is the process of
simplifying sales in the field and the integration of sales
activity into the corporate information structure.
Some of the leading CRM application providers have
evolved from SFA providers in the past.
Service goals
Customer Service Representatives have the capability to
become effective sales contacts through CRM
technology.
7. Concerns of CRM
Political and Cultural Concerns
Success requires strong buy-in from management.
Ownership of customer ‘touch-points’ is always an
issue.
Changes with employees adjusting to their new
responsibilities, compensation management and
other cultural changes need to be well attended to.
Technological Concerns
Need to use middleware and EAI tools for proper
integration
Integration of numerous touch points including use
of computer telephony integration (CTI).
CTI allows telephone systems to integrate with computer
systems to aid in customer service and data capture
9. Business Intelligence
“BI is about providing the right data at the right
time to the right people so that they can take the
right decisions”
– Nic Smith with Microsoft BI Solutions Marketing
10. What is BI?
BI enables businesses to capture, analyze,
interpret, and report on data – thus creating
valuable information for the enterprise.
The concepts of BI have emerged from data-mining
techniques, decision support systems,
data warehousing, knowledge management and
other business tools that have been used for
years.
11. Benefits of BI
Some of the key benefits of business intelligence
include:
continuous rather than periodic management-opportunity
to manage based on a continuous flow of
information that is current and exact
information can be correlated with other data at any
time, all the time.
improved management of diverse business
functions- including marketing, HR, and finance/at the
same time.
improved collaboration- enables different divisions to
share common data resources.
can produce a collaborative work culture among
employees.
improved understanding of customers- reactions of
customers to prices, products, and promotions.
can lead to action plans to meet or exceed their
12. BI Functions
Data Integration and Organization
Internal data sources include ERP systems, CRM systems,
e-procurement systems, legacy systems, and call centres.
External data sources include supply-chain partners,
industry information regarding competitors, or other external
information such as economic indicators
BI applications integrate all data sources in a manner
optimized for reporting and analysis.
Data warehouses exists outside of online transaction-processing
(OLTP) system or ERP, and is dedicated to
the analytical aspects of the organization.
OLTP is a program that facilitates and manages transaction-oriented
applications, typically for data entry and retrieval
transactions across a network.
Data in a BI system is structured around metadata.
Metadata is a structured definition of data; it is data about data
The integration of data occurs through a number of
methods, as the data warehouse consolidates data from
numerous sources using the process of Extraction,
Transformation and Loading (ETL).
ETL is the process of gathering data from a system such as an
ERP system, which can be simplified and stored within the data
warehouse.
13. BI Functions Cont’d
Data Analysis
Levels of data analysis may range from basic reporting
upon pre-configured data cubes to ad-hoc queries or
data mining.
Data cubes are multi-dimensional database structures that allow quick
drill-down and reformatting of data.
BI allows users to have access to reports and
information that previously resided only in the
information systems group.
Data analysis and reporting range from standard
reports through to data mining.
Standard reports
Ad-hoc query. The ability for users to generate any type of query or
report they wish within the system.
OLAP Analysis. Provides the ability for users to perform detailed,
summary or trend analysis on data and allows for drill-down into that
data.
Data mining. The analysis of data for relationships that may not have
previously been known.
14. BI Functions Cont’d
Data Integration and Organization
Internal data sources include ERP systems, CRM
systems, eprocurement systems, legacy systems,
and call centres.
External data sources include supply-chain
partners, industry information regarding
competitors, or other external information such as
economic indicators
BI applications integrate all data sources in a
manner optimized for reporting and analysis.
15. BI Performance Analysis
Key Performance Indicators
important standards that a company measures its
performance against in relation to goals, competitors, and the
industry.
Examples of KPI’s include market share percentages, revenue
growth, and quality deviations.
Balanced Scorecard
Multi-dimensional measurement tool aimed at capturing a
variety of performance indicators including performance
metrics on customers, internal processes, learning and
growth, and financial performance.
Dissemination
communicating on a timely basis
Collaboration
share info with entire supply chain
16. Technologies of BI
Core technologies.
Technologies that provide the basic infrastructure
for business intelligence: such as the use of
relational databases.
A relational database is one that uses numerous tables and can
relate fields or tables within the database to one another, and can
easily be reorganized or extended.
Enabling technologies.
Technologies that provide the ability of the BI
applications to interact and perform tasks within the
core technologies, such as the data warehouse.
E.g. OLAP, SQL, XML
BI Solutions
Technologies that provide the reporting and analysis
of data at the client or user end of the process.
17. Implementing BI
Planning phase
Critical Success
Factors:
Ease of use
Scalability
Flexibility
Performance
Data Quality
Security
Architectural Design
Database design
System architecture
Execution
Top management
commitment throughout
the project to ensure
adequate resources are
dedicated and to gain
employee buy-in.
Team approach to the
entire project is
necessary to allow
departmental input and
evaluation of the project
planning and
implementation.
make sure the system
covers the goals set out
in the planning stage
Planning must be very
detailed and well
thought out
Levels of detail required
need to be considered
18. Implementing BI Cont’d
Maintenance and Change Management.
Design and implementation of a BI system must be
revised as new user requirements and new
technologies come along.
As technologies such as ERP systems, databases,
and the internet continue to evolve, BI will need to
keep pace if it is to continue to provide value to the
firm.
Flexible systems are needed to enable the BI
implementation to adapt as the organization’s
needs change.
The company’s BI systems will need to be modified
to incorporate changes quickly and effectively.
20. What is E-Marketing?
Emarketing:
Utilization of the internet and electronic technologies
to assist in the creation, implementation and
evaluation of marketing strategy
Online research, internet advertising, online
consumer behaviour
Closely related to CRM and BI
Useful in online branding.
A brand is a name, term, sign, symbol, design, or a
combination of these attributes that is used to differentiate a
product or service from its competitors.
The objective of a brand is to:
Strengthen brand name
Increase net traffic
Build customer loyalty
Encourage repeat purchases
21. Strategy Creation
Development of an e-marketing strategy requires an
analysis of competition and other environmental
factors.
Research process should provide management with
the information necessary to define the segments in
their market.
A market segment is a group of customers who share
common needs and/or characteristics the selling firm may be
able to satisfy.
Online Research
The internet offers a real opportunity to carry out
research to develop marketing strategies.
An abundance of information is available dealing with
demographic trends, social and cultural climates,
competition, industry statistics, technological innovation,
economics, legal data, and political environments.
Secondary data are data that have not been developed
specifically for the task at hand, but that may be useful
for decision making.
22. Strategy Creation Cont’d
Methods of collecting primary data:
Surveys
Experiments
Focus Groups
Data collection methods provide data for use
in:
User behaviour analysis
click-stream analysis
Cookies
user profiles
Internet usage
Shopping Patterns
Email usage
Advertising planning. Strategy creation should
conclude with a comprehensive e-marketing
plan.
23. Implementation
Website Design
Brochureware phase.
An early stage of the internet’s development, where
commercial enterprises primarily put existing marketing
brochures in digital format
Interactive phase.
A stage of the internet’s development when websites began
to allow two-way communication through e-mail and web
forms
Personalization phase.
A stage in the internet’s development when websites began
to develop one-to-one marketing techniques through the
use of cookies and other tracking tools. Personalization
increases site stickiness.
Obtainan good domain name:
The internet offers the opportunity for businesses to
24. Online Advertising
The evolution of website design and online
technologies has led to improvements in the
capabilities for online advertising.
Banner ads are graphical images, which may
include interactive applications, that appear
on websites to attract users to click-through to
other websites or sections of the present
website.
Buttons are similar to banners and could be
used to submit data on web-pages or as a
means of clicking through to another
webpage.
25. Online Advertising Cont’d
The cost of banner advertising varies; depending on
the location of the advertisement, the host
company, and any barter deals that are in place.
Costs of advertising are often measured in cost per
thousand (CPM) impressions.
Charges are set for each thousand users who visit
the site or see an advertisement.
Interstitials are web-based windows that pop up as
a user enters an internet site, aiming to catch the
user’s attention.
Also known as daughter windows, commonly
promote a specific product of a site or aim to gather
survey data.
Superstitials®: Internet advertisement spots that
load into a user’s browser while the internet
connection is idle and then launch as a daughter
window showing a short, TV-like advertisement.
26. Online Advertising Cont’d
Email is an important vehicle for corporate
advertising and marketing campaigns, but it
should be used very carefully.
Interactive tools:
Interactive ads provide advertisers with numerous
capabilities such as branding, interactive selling,
and other advertising techniques in numerous
formats.
Spam is the name given to unsolicited email sent
in an attempt to gain commercial advantage. The
rising problem with spam was created by the
relative ease of gathering large numbers of email
addresses over the internet through newsgroups,
chat sites, and other websites.
27. Online Advertising Cont’d
Affiliate Programs
These are agreements between website operators whereby
delivery of customers or prospective customers to another
company’s site results in compensation becoming due.
Partnerships
Can be created to increase traffic or to target specific products
and services to a market segment.
Promotions
Sales Promotion tools
Points programs – PC Financial
Coupons – Rogers, Staples
Free samples/trials – Globeinvestor.com
Online focus groups – by invitation
Contests/sweepstakes - Orbitz
Public Relations
This is the activity of creating goodwill or positive company image.
28. Digitized Word of Mouth & Pricing
Mechanisms for recording feedback about ecommerce
sites, products and market participants, and sharing such
feedback with others:
The internet offers important new possibilities for digitized
word of mouth advertising and promotion, and for building
trust in ecommerce sites through formal online feedback
mechanisms.
Marketers have started to pay bloggers to promote certain
products in their blogs, thereby creating word of mouth for
those products.
Pricing
The internet offers a new medium within businesses must
establish pricing policies that capture potential sales and
maximize profits.
A solid pricing strategy can lead to substantially improved
profitability and market share.
30. What Are Metrics? What are
Benefits?
Metrics are used to measure e-business
performance range from the number of
website hits, to the proportion of customer
visits leading to sales, and ultimately
profitability.
Benefits of Metrics:
Improving understanding of business model
Helping to communicate corporate strategy
Motivating performance
Analyzing actual performance
Increasing accountability
32. Limitations of Metrics
Metrics can quickly become irrelevant or
misleading when strategies change rapidly.
Measurement can be costly, consuming money
and the time of key personnel.
Online measurements are vulnerable to
tampering by insiders or outsiders, hence data
sources require strict security.
Acceptance due to differences between soft
metrics and hard data. Some metrics require
subjectivity.
33. What to Measure?
Traffic Metrics
General measurements of site’s activity
Hits: A request of an element (page, graphics element etc.)
from the Web Server
Page Views: A full page request by a single user, including
all page’s elements
Ad Views, Ad Impressions or Banner Impressions: # of
times a page with a banner ad is viewed.
Visit/User Session: A stream of page requests from a
single user constitutes a “visit”.
Unique Visitors: Non-repeating visitors in a specific
timeframe
34. What to Measure Cont’d
Marketing Metrics
Referrer Analysis
Traffic Breakdown by Source (who is visiting?)
Log file contains information about last visited URL
Top referrer URLs indicate where traffic is coming from
Useful to measure effectiveness of advertising
campaigns
In case of search engines, URL can contain search
keywords as parameters
Location Analysis
Breakdown by geographical origin
Customer Profile Analysis.
Visitor’s/ shopper’s breakdown by profile attribute
Explicit: Information surrendered by user when subscribing, making a
purchase, completing a survey form:Name, Address, Marital Status
Implicit: Information inferred from the user’s actions and/or purchase
history: Favorite Color, Age group, Preferred Topics.
35. What to Measure Cont’d
Financial Metrics
Revenues
Sales revenue from products and services, advertising
revenue, affiliate commission and database marketing
Expenses
Fixed costs like infrastructure and operating costs
Operating costs like site maintenance,
advertising/promotion, marketing and operations
Marketing costs
Returns on Investment
36. What to Measure Cont’d
Other Performance Metrics
Internal and external (partners) e-business
metrics
Multi-dimensional scorecards
Internal Scorecard
External Scorecard. Identifies criteria in at
least four categories:
Ease of Use: demonstrations of functionality; simplicity;
design and navigation.
Customer Confidence: availability, depth, and breadth of
customer service options.
Online Resources: ability to look up account information for
each product.
Relationship Services: online help, tutorials, glossary, and
FAQs.
37. Sources of Information
Click-Stream Analysis
A method by which a user’s path through a website can be tracked and
analyzed
Cookies
Small text files stored by a website on individual computers that allow the
site to track the movements of a visitor.
Electronic Wallets
A file that securely stores a user’s information, such as name, address,
credit card number, and ship-to-address, for frequent use in executing
ecommerce transactions.
Web Server log Files
Files stored on a web server containing details of every action that has
occurred.
Log file analysis is the process of analyzing information regarding the
movements of users throughout a site based upon data captured in server
log files.
Web Bugs (clear GIFs)
Image files embedded into a webpage that can track user movements
without the user knowing.
39. What are some of the issues?
Legal and tax issues of Canada and other
countries were not designed to handle
ecommerce issues.
Napster brought ecommerce (intellectual
property) issues to the fore.
Technology improvements have given birth to
internet privacy concerns
Other issues include jurisdictional, e-contract ,
enforcement, liability and unfair competition
40. Internet Privacy
Medical Information
Personal information can easily gathered on the internet
Increasing privacy concerns have led to the development of
legislation within Canada and abroad
The Personal Information Protection and Electronic Documents
Act (PIPEDA) is a Canadian legislation that has provided privacy
protection for personal information since coming into full effect
on January 1, 2004.
Major component of PIPEDA are:
Legal basis for electronic service delivery
Recognizes secure electronic signatures
Clarifies status of electronic records
Recognizes the status of electronic statutes and regulations
Amends related legislation, e.g. evidence act
Protect any personal information that is collected
PIPEDA is designed to protect personal information.
41. Internet Privacy Cont’d
Personal information: is defined within the act as
information that could identify an individual and could
potentially be used to discriminate against that person
or invade his or her privacy, such as:
name, age, weight, height
medical records
income, purchases, and spending habits
race, ethnic origin, and colour
blood type, DNA code, fingerprints
marital status and religion
education
home address and phone number
Ensure that individuals’ privacy is respected and not
used inappropriately.
Misuse can lead to inappropriate business practices,
identity theft, and discrimination, and is therefore of
critical importance.
42. Intellectual Property
Intellectual property. This is a creation of the mind such as an
invention, artistic work, symbol, name, image, or design used in
commerce. Made up primarily of:
Metatags
Trademarks– belong to specific companies, not free to be
used.
Trademark: A distinguishable feature such as a word, symbol,
picture, logo, or design that can be used to identify the products or
services of a specific individual or organization.
Copyrights- a category of intellectual property that includes
literary and artistic works such as books, poems, films, and
musical works.
The major means by which copyright can be violated include
plagiarism, piracy, bootlegging, and counterfeiting. Results in
the inappropriate use of another’s work for commercial or other
purposes.
Digital Music Sharing
Creation of a technology that could easily allow millions of individuals to
share and distribute copyrighted music files over the internet.
Collectives
an organization that administers the common rights of several copyright
owners
The collective acts for its members to grant permission to use the
members’ works, and sets the conditions for that use.
Example: a ring tone is sufficient to warrant protection under copyright.
43. Intellectual Property Cont’d
Media Neutrality
Deep Linking: The creation of a link on one website to a
specific part or page (not the homepage) of another website.
Website framing: The use of HTML and browser technology to
split a page into segments, which is useful for facilitating ease of
use and building impressive websites.
Patents: documents issued by the government that grant an
inventor or patent owner the right to make and use an invention for
20 years after the patent is filed.
The issue of patents has recently become a concern for
ecommerce and e-business because “processes” are covered
as inventions that may be protected by patents.
One of the most recognized examples of a business method
patent is Amazon.com’s 1-Click process of its online purchasing
system, which allows users to easily make purchases by
speeding up the checkout process.
Other companies may be sued if they set up the same type of
online check-out system.
44. E-Contracts
Legally binding contracts require 3 parts
offer
acceptance
consideration ($ exchanged)
These three parts are challenging to confirm when parts of
the process are done digitally – e-contracts
More and more e-retailers require users to read the terms
of a contract and click on “I agree” before they can go to
next step
Assents of Users
Shrink-wrap agreements refer to the practice of
indicating on the outside of “shrink-wrapped” software
packaging that the use of the software product is subject
to license terms.
Click-wrap agreements are the online equivalent of the
standard agreements included within the shrink-wrap of
software bought in physical locations.
45. Taxation
Taxation in the global economy can be very
complex.
Where a business is located for tax purposes-known
as permanent establishment in
Canada or physical presence in the United
States.
The permanent establishment of an online company
can be very difficult to determine, since it could be:
the location of the vendor’s head office
the location of the website’s ISP
the physical location of the server
or some other location such as the branch closest to
the customer.
Results in extreme difficulties in determining
the appropriateness of collecting income
taxes, and proper sales taxes.
47. Small Business Intro
The potential to reach new markets, reduce costs
of operations and compete against larger
competitors brought the potential of ecommerce
to the forefront in the 1990s and early 2000s.
Much of the job growth in Canada can be
attributed to small businesses
Larger organizations and many high growth firms
have shifted their focus from the B2C market to
the B2B market, and left a massive opportunity
for the right individuals wishing to launch
ebusinesses in the B2C arena.
48. Opportunities
Marketing
Depending on business can be critical
Customer support
Technology makes our business available 24/7
One of the main tools that will reduce routine questions over the
phone is a frequently asked questions (FAQ) page on the web.
Market intelligence
As market expands need additional details
Procurement
Small businesses save money on procurement of virtually everything
they purchase, turning those savings into lower prices and increased
market share.
Operations
Simplify processes electronically
Sales transactions
Expanding the market
Public relations
Reach your audience at reasonable cost
49. Opportunities Cont’d
Employee Retention and Morale
Online training programs boost knowledge/ more
productive.
Use of e-business technologies help employees feel
challenged in a small company.
Potential Benefits
access to new markets
improved customer responsiveness
increased flexibility
improved profits
increased innovation
better managed resources
50. Challenges
Technological
Most small e-businesses
will lack internal IT
expertise
Need to ensure adequate
support available either
internally or externally
Valuable for internal
expertise to be gained
through training where
possible
Financial
Large web strategies and
other IT initiatives can be
very costly
Need to determine true
“needs” not just the “wants”
Develop systems that can
be scaled up and expanded
Organizational
Small businesses will also
face change management
issues
Owner/manager needs to be
promoter of
e-business
Provide adequate training
and support
Operational
Volume of data can be small
and yield limited results from
analysis - need to determine
case by case
Ability to integrate can be
limited if back office not
integrated
Support for growth must be
available
