Post on 26-Jan-2015
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PRESENTED BY
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 CRMTo 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 over20% of customer account for 80% of profit20% of customer account for 80% of all your
problems
PROCESSWhenever 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 managementService contract managementPlanned service managementWarranty managementKnowledge 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.
Basically 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.
PITFALLSHuge 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 BUSINESSREASONS• 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 FAILURESCiscoBain & Co.Report of Forrester ResearchBerkeley Enterprise Partners warns that 70%
of projects don’t produce + ve returns2 out of 5 respondents said –e CRM projects
are “potential flops” according to Data Ware House Institute Survey.
SOLUTIONSDeveloping customer focused business strategy
BPR (Business Process Reengineering) By: outsourcing changing work process
Training
Change in Technology
Providing security
CONCLUSIONCRM 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)