eCRM-chap 2

8/2/2019 eCRM-chap 2

http://slidepdf.com/reader/full/ecrm-chap-2 1/27

Chapter 2

eCRM



What is eCRM?

y Enables customers to access inf ormation and services about

the products that are less expensive and more convenient

than the traditional ways of helping customers evaluate and

purchase products.

y eCRM customers use self-service tools on web rather than

company's employees , hence customers become active

players in the purchase and service process.

y

Customer is empowered to manage and control the processvia the Web.



Using eCRM

y companies can increase their revenues and reduce their costs

and as a result can improve prof itability and customer

satisf action.

y

companies get more knowledge about the customer ascustomers become more active



Loopholes in traditional CRM packag es

y Traditional CRM off erings are channel centric , not customer

centric.

y Contemporary customers f acing traditional systems

yCustomer centric metrics do not exist in traditional CRMoff erings

y Customer f acing systems create new islands of non-

integrated inf ormation.

These loopholes lead to eCRM



Why eCRM?

y To optimize the value of interactive relationships

y To enable the business to extend its personalized reach

y To coordinate marketing initiatives across all customer

channels.y To leverage customer inf ormation f or eff ective e marketing

and e business.

y For consistent measurement, assessment and actionable

customer strategies.



Key eCRM features

y Driven by data warehouse

y Focused on consistent metrics to assess customer actions

across channels

yBuilt to accommodate the new market dynamics that placethe customer in control

y Structured to identif y a customer·s prof itability or prof it

potential.

y Leads to better allocation of investments based on customer·sprof itability.



Six Es in eCRM

y Electronic channels: eCRM thrives on new electronic channelssuch as the web and personalized e-messaging

y Enterprise: It is an enterprise wide project that helps to touchand shape a customer·s experience through electronic means

y

Empowerment: eCRM strategies must be structured toempower consumers to decide when and how to communicatewith the company through which channel, at what f requency.

y Economics: An eCRM strategy ideally should concentrate on customer economics-directing eff orts at individuals likely toprovide the greatest returns

y Evaluation: eCRM strategies must evaluate customerinteractions along various customer touch point channels

y External Information:Customer given inf ormation can beemployed to understand customer needs.



Stag es in Evolution of eCRM



Architecture of eCRM



eCRM Components

A company evolving to eCRM should:

yDef ine its business objectives

y eCRM assessment :Assess its current position with

respect to the environment and determine its current level of

sophistication along the eCRM continuum :

y Devise a numerical measure to know how company f ares in the

eyes of customers as compared to competitors.

y Devise capability Index f or cross-company comparison

y Company can now devise strategy to quickly f ix the problem

areas

y It is a diagnostic stage.



eCRM Components

y eCRM strategy alignment : Def ine new business

processes and align its existing strategy and existing

processes in line with the new realities.

yTo identif y, measure and align the gaps between customerexpectations and internal capabilities of the organization.

y Consensus should be built between stakeholders on certain key

issues



eCRM Components

y eCRM architecture :Def ine a technical architecture and the criteria associated with this architecture. It consists of thef ollowing tools:y Customer analytic software:to pedict , measure and interpret

customer behaviour, can

be used

by alld

epartmen

ts of

theorganization

y Data mining software:to identif y customers· behaviour patterns

y Campaign management sof tware:to plan and execute targeted campaigns based on timed events and customer behaviour

y Business simulation: along with campaign management,providing

off ers prior to campaign execution,helps to f oresee resultsy Real time decision engine: to coordinate and synchronize

communications across varied customer touch points,to provideappropriate off ers in real time.



Dimensions of eCRM

y Acquisition-getting new customers

y Expansion- expanding the value of each customer by getting

ref errals and other services-f eed back, advertise

y Retention- retaining already existing customers,

customization



Differences between CRM and eCRM

Customer contacts

y CRM- contact with customer made through the retail store,

phone, and f ax.

y

eCRM- all of the traditional methods are used in addition toInternet, email, wireless, and PDA technologies

System Interface

y CRM- implements the use of ERP systems, emphasis is on

the back-end y eCRM- geared more toward f ront end, which interacts with

the back-end through use of ERP systems, data warehouses




System overhead (client computers)

y CRM- the client must download various applications to view theweb-enabled applications.They would have to be rewritten f ordiff erent platf orm.

y eCRM- doesn't have these requirements because the client usesthe browser

Customization and Personalization of Information

y CRM- views diff er based on the audience, and personalized views

are not available.Individual personalization requires programchanges

y eCRM- Personalized individual views based on purchase historyand pref erences. Individual has ability to customize view.




System Focusy CRM- System (created f or internal use) designed based on job

f unction and products. Web applications designed f or a singledepartment or business unit

y

eCRM- System (created f or external use) designed based on customer needs. Web application designed f or enterprise-wideuse.

System Maintenance and Modificationy CRM- More time involved in implementation and maintenance is

more expensive because the system exists at diff erent locationsand on various servers

y eCRM- Reduction in time and cost. Implementation and maintenance can take place at one location and on one server



Different levels of eCRM

y Foundational Services:minimum necessary services f or

maintaining web site, order processing

y Customer centered services: order tracking, product

conf iguration, customization, security provisionsy Value added services: online auction, training, online

communities, f eed back



Key applications of eCRM

y Inf ormation Integration application

y An incomplete view of customers reduces their loyalty and

trust

y Consolidating customer data f rom various sources

y To keep up with every customer·s interaction

y Customer analysis application:

y to predict , measure and interpret customer behaviour

y Predictive models to identif y customers most likely to perf orm

an activity

y On line analytical processing, data mining and statistics



Key applications of eCRM

y Campaign management applicationy Targeted campaignsy Response to timed eventsy Use of diverse communication channels

y Integrating multichannel communication

y Real time decision applicationy To coordinate and synchronize communication across varied

dissimilar customersy To promote inf ormation exchange between company and every

customer

y Personalized messaging applicationy Enables personalized products and services off erings to large no. of

customers based on data present and constantly updated data



Benef its of eCRM

y Retaining existing customers

y Selling more to existing customers

y Finding and winning new customers: interactions leading to

stronger relationships

y Increasing eff iciency

y Improving marketing and sales decision making

y Enables 24/7 customer interaction

y personalization



Goals of eCRM

y Reduce:

y cost of marketing

y Improve:

y Accuracy and relevance of recommendations

y Customer satisf actiony Increase:

y Conversion rate: turn browsers to buyers

y Customer retention and f requency

y Order size

y Customer response

y Competitiveness

y Prof itability



mCRM

y Mobile CRM is the communication, either one-way or

interactive, which is related to sales, marketing and customer

service activities conducted through mobile medium f or the

purpose of building and maintaining customer relationships

between a company and its customer(s)

y Mobile CRM allows customers or managers to access the

systems f rom a mobile phone or PDA with internet access,

resulting in higher f lexibility

y Must be integrated in the CRM system as it can not provide

complete range of customer relationship activities



Why mCRM is becoming popular?

y Improved devices consumers use- larger displays ,improved

access times on networks

y Sophisticated users more used to technology advancements

y

Better sof tware developed that help in proper integration of inf ormation into existing CRM technologies.



Implementing mCRM system

y Needs analysis phase: understanding technical needs and

desires f or each of the users and stakeholders.

y Mobile design phase: technical concerns -screen size, device

storage a

ndsecurity.

y Mobile application testing phase: ensure that the users and

stakeholders all approve of the new system.

y Rollout phase: new system is implemented , users trained f or

the usage



Advantag es of mobile CRM:

y creates a more personal direct connection with customers.

y continuously active , allows individuals to take action quickly

using the inf ormation.

y

an opt-in channel which allows f or high and qualityresponsiveness.

y Enhances loyalty between the customer and company, which

improves and strengthens relationships.



THANKS

Further study:

Components of eCRM

Diff erences between CRM and eCRM

eCRM-chap 2

Documents

Transcript of eCRM-chap 2