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)