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PRESENTED B Y
OVER VIEW
 Introduction of CRM
Definition
Need of CRM
Importance of CRM
Process
Requirement for effective CRM
 ECRM
 Problem definition
What is ECRM ?
Need of ECRM
Difference between CRM and e-CRM.
How it actually takes place ?
 Benefits
 Pitfalls
 Failure of ECRM in e-business
Reasons
 Solutions
 Proven Success & Conclusion
Introduction of CRM
 Customer Relationship Management is a concept that
gives a wider idea about how companies manage their
relations with customers.
 It includes capture ,storage & analysis of
customer information.
NEED FOR CRM
 To meet the changing expectations of customer due to:
(a) social and demographic factors.
(b) economic situations.
(c) educational standards.
(d) competitors product
(e) experience.
 To manage the dissatisfied customers.
CRM involves
 Shifting the focus from product to customer
 Considering the offer to what the customer require, not
what the organization can make.
 Integrating the customers.
IMPORTANCE OF CRM
 PARETO’S LAW
80:20 RULE
20% of customer account for 80% of turn over
20% of customer account for 80% of profit
20% of customer account for 80% of all your problems
PROCESS
 Whenever there is sales or service related interaction with customers,
all of these information are collected ,stored in appropriate place and
then analyzed properly to take decisions .
 whenever there is a opportunity Sales team collects the relevant data
regarding that perspective deal and draw their own conclusions about :
Perspective customer
Expected budget
Total spending
Product interested in
Key players in the deal & their key characteristics
Important dates etc.
REQUIREMENTS
Requirements for effective CRM
 Service order management
 Service contract management
 Planned service management
 Warranty management
 Knowledge management
Electronic Customer Relationship
Management
Latest paradigm in the world of CRM
NEED OF e-CRM
 Due to the introduction of new technology
 Due to globalization
(to satisfy the customers at global level)
Sometimes customer itself prefer to do online
purchasing.
 B asically ECRM is concerned with attracting & keeping
economically valuable customers & eliminating less
profitable ones.
DIFFERENCE BETWEEN CRM AND
e-CRM
CRITERION CRM eCRM
CUSTOMER CONTACTS TRADITIONAL MEANS-
RETAIL
STORE,TELEPHONE OR
FAX
THROUGH INTERNET,E-
MAIL,WIRELESS,MOBILE
AND PDA TECHNOLOGIES
SYSTEM INTERFACE WORKS WITH BACKEND
APPLICATION THROUGH
ERP SYSTEM
DESIGNED FOR FRONTEND
AS WELL AS BACKEND
APPLICATIONS THROUGH
ERP, DATA WAREHOUSE,
DATA-MART
SYSTEM IT REQUIRES PC CLIENTS
TO DOWNLOAD VARIOUS
APPLETS AND
APPLICATIONS.
HERE, BROWSER IS THE
CUSTOMERS PORTAL TO
eCRM
CRITERION CRM eCRM
CUSTOMIZATION AND
PERSONALIZATION
DIFFERENT PEOPLE
REQUIRE DIFFERENT
INFORMATION BUT
PERSONALIZED VIEWS
FOR DIFFERENT
AUDIENCE ARE NOT
POSSIBLE HERE.
PERSONALIZED VIEWS
BASED ON PURCHASE
AND PREFERENCE ARE
POSSIBLE
SYSTEM FOCUS SYSTEM IS DESIGNED
AROUND PRODUCT AND
JOB FUNCTIONS.
HERE,APPLICATIONS ARE
DESIGNED AROUND ONE
DEPARTMENT OR
BUSINESS UNIT.
SYSTEM IS DESIGNED
AROUND THE CUSTOMERS
NEED. ENTERPRISE WIDE
PORTALS ARE DESIGNED
AND NOT LIMITED TO A
SINGLE DEPARTMENT.
SYSTEM MAINTENANCE
AND MODIFICATIONS
IMPLEMENTATION IS
LONGER AND COSTLY
SYSTEM
IMPLEMENTATION
REQUIRE LESS TIME AND
COST
Process of eCRM
BENEFITS OF e-CRM
 Convenience
 Improvement in overall quality of customer experience
 Increased profitability
According to Anderson consulting a typical $1b
company can gain up to $130 million through ECRM.
Another study shows that 10% gain in repeat
customers can add about 10% in the company’s profit.
 Increased customer loyalty
It include personalization concept of time
saving.
collaborative filtering personalization s/
w
 More effective marketing.
 Improved customer service and support.
Through ECRM right tools helps sending
right orders to right customers at right time.
 Greater efficiency and cost reduction.
PITFALLS
 Huge money is required to implement ECRM.
 Highly knowledge requiring process.
 Results are not according to expectations.
 Sales and Marketing are reluctant to adopt new
automated CRM system.
FAILURE OF e-CRM IN BUSINESS
REASONS
• Quick implementation of e-CRM without proper study.
 Initial scope too broad.
 Complexity of system.
 Lack of user-friendliness.
 e-CRM fails if implementation takes more than 90 days.
EXAMPLES OF FAILURES
 Cisco
 B ain & Co.
 Report of Forrester Research
 B erkeley Enterprise Partners warns that 70% of projects
don’t produce +ve returns
 2 out of 5 respondents said –e CRM projects are “potential
flops” according to Data Ware House Institute Survey.
SOLUTIONS
 Developing customer focused business strategy
 BPR (Business Process Reengineering)
By: outsourcing
changing work process
 Training
 Change in Technology
 Providing security
CONCLUSION
 CRM is- to listen and learn, not tell and sell.
 ECRM boosts the energy in company.
 Strongest tool in retaining the customers
Websites:
• wikipedia.org
• ephany.com
Books:
• CRM made easy(CIO magazine)
• The truth about CRM
• CRM makes online shopping easy(magazine)

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crm-1225559716761662-9.pdf

  • 2. OVER VIEW  Introduction of CRM Definition Need of CRM Importance of CRM Process Requirement for effective CRM  ECRM  Problem definition What is ECRM ? Need of ECRM Difference between CRM and e-CRM. How it actually takes place ?  Benefits  Pitfalls  Failure of ECRM in e-business Reasons  Solutions  Proven Success & Conclusion
  • 3. Introduction of CRM  Customer Relationship Management is a concept that gives a wider idea about how companies manage their relations with customers.  It includes capture ,storage & analysis of customer information.
  • 4. NEED FOR CRM  To meet the changing expectations of customer due to: (a) social and demographic factors. (b) economic situations. (c) educational standards. (d) competitors product (e) experience.  To manage the dissatisfied customers.
  • 5. CRM involves  Shifting the focus from product to customer  Considering the offer to what the customer require, not what the organization can make.  Integrating the customers.
  • 6. IMPORTANCE OF CRM  PARETO’S LAW 80:20 RULE 20% of customer account for 80% of turn over 20% of customer account for 80% of profit 20% of customer account for 80% of all your problems
  • 7. PROCESS  Whenever there is sales or service related interaction with customers, all of these information are collected ,stored in appropriate place and then analyzed properly to take decisions .  whenever there is a opportunity Sales team collects the relevant data regarding that perspective deal and draw their own conclusions about : Perspective customer Expected budget Total spending Product interested in Key players in the deal & their key characteristics Important dates etc.
  • 8. REQUIREMENTS Requirements for effective CRM  Service order management  Service contract management  Planned service management  Warranty management  Knowledge management
  • 10. NEED OF e-CRM  Due to the introduction of new technology  Due to globalization (to satisfy the customers at global level) Sometimes customer itself prefer to do online purchasing.  B asically ECRM is concerned with attracting & keeping economically valuable customers & eliminating less profitable ones.
  • 11. DIFFERENCE BETWEEN CRM AND e-CRM CRITERION CRM eCRM CUSTOMER CONTACTS TRADITIONAL MEANS- RETAIL STORE,TELEPHONE OR FAX THROUGH INTERNET,E- MAIL,WIRELESS,MOBILE AND PDA TECHNOLOGIES SYSTEM INTERFACE WORKS WITH BACKEND APPLICATION THROUGH ERP SYSTEM DESIGNED FOR FRONTEND AS WELL AS BACKEND APPLICATIONS THROUGH ERP, DATA WAREHOUSE, DATA-MART SYSTEM IT REQUIRES PC CLIENTS TO DOWNLOAD VARIOUS APPLETS AND APPLICATIONS. HERE, BROWSER IS THE CUSTOMERS PORTAL TO eCRM
  • 12. CRITERION CRM eCRM CUSTOMIZATION AND PERSONALIZATION DIFFERENT PEOPLE REQUIRE DIFFERENT INFORMATION BUT PERSONALIZED VIEWS FOR DIFFERENT AUDIENCE ARE NOT POSSIBLE HERE. PERSONALIZED VIEWS BASED ON PURCHASE AND PREFERENCE ARE POSSIBLE SYSTEM FOCUS SYSTEM IS DESIGNED AROUND PRODUCT AND JOB FUNCTIONS. HERE,APPLICATIONS ARE DESIGNED AROUND ONE DEPARTMENT OR BUSINESS UNIT. SYSTEM IS DESIGNED AROUND THE CUSTOMERS NEED. ENTERPRISE WIDE PORTALS ARE DESIGNED AND NOT LIMITED TO A SINGLE DEPARTMENT. SYSTEM MAINTENANCE AND MODIFICATIONS IMPLEMENTATION IS LONGER AND COSTLY SYSTEM IMPLEMENTATION REQUIRE LESS TIME AND COST
  • 14. BENEFITS OF e-CRM  Convenience  Improvement in overall quality of customer experience  Increased profitability According to Anderson consulting a typical $1b company can gain up to $130 million through ECRM. Another study shows that 10% gain in repeat customers can add about 10% in the company’s profit.  Increased customer loyalty It include personalization concept of time saving. collaborative filtering personalization s/ w
  • 15.  More effective marketing.  Improved customer service and support. Through ECRM right tools helps sending right orders to right customers at right time.  Greater efficiency and cost reduction.
  • 16. PITFALLS  Huge money is required to implement ECRM.  Highly knowledge requiring process.  Results are not according to expectations.  Sales and Marketing are reluctant to adopt new automated CRM system.
  • 17. FAILURE OF e-CRM IN BUSINESS REASONS • Quick implementation of e-CRM without proper study.  Initial scope too broad.  Complexity of system.  Lack of user-friendliness.  e-CRM fails if implementation takes more than 90 days.
  • 18. EXAMPLES OF FAILURES  Cisco  B ain & Co.  Report of Forrester Research  B erkeley Enterprise Partners warns that 70% of projects don’t produce +ve returns  2 out of 5 respondents said –e CRM projects are “potential flops” according to Data Ware House Institute Survey.
  • 19. SOLUTIONS  Developing customer focused business strategy  BPR (Business Process Reengineering) By: outsourcing changing work process  Training  Change in Technology  Providing security
  • 20.
  • 21.
  • 22. CONCLUSION  CRM is- to listen and learn, not tell and sell.  ECRM boosts the energy in company.  Strongest tool in retaining the customers
  • 23. Websites: • wikipedia.org • ephany.com Books: • CRM made easy(CIO magazine) • The truth about CRM • CRM makes online shopping easy(magazine)