E-Comm Unit4

GLS UNIVERSITY
0302501 E-COMMERCE
UNIT– IV
Customer Relationship Management (CRM)

Customer Relationship Management (CRM) is a
way to identify, acquire, and retain customers – a
business’ greatest asset.

By providing the means to manage and
coordinate customer interactions, CRM helps
companies maximise the value of every customer
interaction and in turn improve corporate
performance.
E-CRM

E-CRM This concept is derived from E-commerce.

It also uses net environment i.e., intranet, extranet and
internet

Definition of E-CRM: Electronic CRM concerns all forms
of managing relationships with customers making use of
Information Technology (IT).

The goal is to drive consistency within all channels
relative to sales, customer service and marketing initiatives
to achieve a flawless customer experience and maximize
customer satisfaction, customer loyalty and revenue.

E-CRM expands the traditional CRM techniques by
integrating new electronic channels, such as Web, wireless,
and voice technologies and combines it with e-business
applications into the overall enterprise CRM strategy.

Therefore ,it is just an expanded, integrated version of
CRM . Thus, Old CRM + Internet = e-CRM

eCRM processes include data collection, data
aggregation, and customer interaction. Compared to
traditional CRM, the integrated information for eCRM
intraorganizational collaboration can be more efficient to
communicate with customers.
Differences between CRM and E-CRM
The main difference between CRM and e-CRM is that

the first does not acknowledge the use of technology,
where the latter uses information technology (IT) in
implementing RM strategies
Major differences between CRM and eCRM:
Customer contacts
CRM – Contact with customer made through the retail store, phone, and fax.
eCRM – All of the traditional methods are used in addition to Internet, email,
wireless, and PDA technologies.
System interface
CRM – Implements the use of ERP systems, emphasis is on the back-end.
eCRM – Geared more toward front end, which interacts with the back-end
through use of ERP systems, data warehouses, and data marts.
System overhead (client computers)
CRM – The client must download various applications to view the web-enabled
applications. They would have to be rewritten for different platform.
eCRM – Does not have these requirements because the client uses the
browser.
Customization and personalization of information
CRM – Views differ based on the audience, and personalized views are not
available. Individual personalization requires program changes.
eCRM – Personalized individual views based on purchase history and
preferences. Individual has ability to customize view.
System focus
CRM – System (created for internal use) designed based on job function and
products. Web applications designed for a single department or business unit.
eCRM – System (created for external use) designed based on customer needs.
Web application designed for enterprise-wide use.
System maintenance and modification
CRM – More time involved in implementation and maintenance is more
expensive because the system exists at different locations and on various
servers.
eCRM – Reduction in time and cost. Implementation and maintenance can take
place at one location and on one server.
CRM Life Cycle
As we implement eCRM process, there are three steps life

cycle:

Data collection: About customers preference
information for actively (answer knowledge) and
passively (surfing record) ways via website, email,
questionnaire.

Data aggregation: Filter and analysis for firm's specific
needs to fulfill their customers.

Customer interaction: According to customer's need,
company provide the proper feedback to them.
E-CRM software systems may contain a selection of the following features:
i. Customer management:
Provides access to all customer information including enquiry status and
Correspondence
ii. Knowledge management:

A centralised knowledge base that handles and shares customer Information
iii. Account management:

Access to customer information and history, allowing sales teams and customer
service teams to function efficiently
iv. Case management:
Captures enquiries, escalates priority cases and notifies management
of unresolved issues
v. Back-end integration:
Blends with other systems such as billing, inventory and logistics
through relevant customer contact points such as websites and call
centres
vi. Reporting and analysis:

Report generation on customer behaviour and business criteria
Levels of eCRM
1. Foundational Service
It includes the minimum necessary services such as web site effectiveness
and responsiveness as well as order fulfilment.
2. Customer-centered services:
These services include order tracking, product configuration and
customization as well as security.
3. Value-added services:
These are extra services such as online training and education.
4. Reactive services:
It is where the customer has a problem and contacts the company.
5. Proactive services:
The customer itself in order to establish a dialogue and solve the problem.
TYPES OF eCRM
There are four basic types of CRM systems −


Strategic CRM

Operational CRM

Analytical CRM

Collaborative CRM
Strategic CRM :
Strategic CRM is a type of CRM in which the business puts the
customers first. It collects, segregates, and applies information about
customers and market trends to come up with better value proposition
for the customer.
Operational CRM
Operational CRM is oriented towards customer-centric business
processes such as marketing, selling, and services. It includes the
following automations: Sales Force Automation, Marketing Automation,
and Service Automation.
Salesforce is the best suitable CRM for large established businesses
and Zoho is the best CRM for growing or small-scale businesses.
Analytical CRM
Analytical CRM is based on capturing, interpreting,
segregating, storing, modifying, processing, and
reporting customer-related data. It also contains internal
business-wide data such as Sales Data (products,
volume, purchasing history), Finance Data (purchase
history, credit score) and Marketing Data (response to
campaign figures, customer loyalty schemes data).
Base CRM is an example of analytical CRM. It provides
detailed analytics and customized reports.
Collaborative CRM
Collaborative CRM enables smooth communication
and transactions among businesses. Though
traditional ways such as air mail, telephone, and fax
are used in communication, collaborative CRM
employs new communication systems such as chat
rooms, web forums, Voice over Internet Protocol
(VoIP), and Electronic Data Interchange (EDI)
SugarCRM is a popular collaborative CRM.
Empowered customers are those having the control to
buy goods or services from a business when and
where they want it, by selecting from a vast range of
available choice. Empowered customers access the
Internet and collect information about products,
dealers, and prices. They take advice from friends or
at times from strangers too, before making a buying
decision.
When a business fulfills most of the expectations, the
empowered customers can be loyal to them.
Customer Life Cycle
Reaching − It is the phase where a business communicates with
its target customer. It is mainly done through advertisements.
Acquisition − Attracting and influencing the target customer.

The marketing team decides the scope of the target audience
and convinces the customers about the benefits of its
products/services.
Conversion − It is when customers decide to purchase a

product or service.
Retention − In addition to flawless products/services, the
business offers some extra facilities to the customer such as
priority treatment, beautiful store ambience, free parking, etc.,
to retain existing customers.
Inspiration − To inspire a regular customer into a loyal one

by establishing a sound relationship. When a business puts
efforts on providing polite and quick service, personal
attention from the staff, knowledgeable sales staff, then the
customers are automatically inspired to buy a product/service
from a particular vendor.
Customer Management Strategies
There are seven core customer management strategies −
Start a relationship − When a customer is identified as having a high
potential to bring profits, start a relationship.
Protect the relationship − When the customer is significant for the business
and when there is a possibility of the competitor’s attraction, then the
managers need to protect the relationship.
Relationship re-engineering − This is necessary when the managers find

that the customer is not profitable as desired at the current stage. In such a
case, serve the customer by low-cost automated channels.
Enhance the relationship − The managers identify up-selling and cross-

selling opportunities and try to boost the customer on the scale of value.
Harvest the relationship − When the managers do not want to
spend much on the existing customer development, they use the
cash flow from these customers to develop new customers.
End the relationship − It is good to end the relationship when the

customer shows no sign of contributing to future business profit.
Regain the customer − When the customer goes to the competitor

while choosing another option to fulfill his requirement, then the
managers need to implement win-back strategies to regain the
customer and understand the reason of departing the customer.

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GLS UNIVERSITY

The main difference between CRM and e-CRM is that

As we implement eCRM process, there are three steps life

ii. Knowledge management:

iii. Account management:

vi. Reporting and analysis:

There are four basic types of CRM systems −

Acquisition − Attracting and influencing the target customer.

Conversion − It is when customers decide to purchase a

Inspiration − To inspire a regular customer into a loyal one

Relationship re-engineering − This is necessary when the managers find

Enhance the relationship − The managers identify up-selling and cross-

End the relationship − It is good to end the relationship when the

Regain the customer − When the customer goes to the competitor

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