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    ECRM

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    lakshay
    ecrm

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    © All Rights Reserved
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    ECRM

    Uploaded by

    lakshay
    234 views37 pages
    ecrm

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    ecrm

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    234 views37 pages

    ECRM

    Uploaded by

    lakshay
    ecrm

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 37

    Amity Business

    School

    E-CRM
    electronic customer relationship management

    What is E-CRM?

    Amity Business
    School

    eCRM This concept is derived from E-commerce. It also uses net


    environment i.e., intranet, extranet and internet. Electronic CRM
    concerns all forms of managing relationships with customers making
    use of Information Technology (IT). eCRM is enterprises using IT to
    integrate internal organization resources and external marketing
    strategies to understand and fulfill their customers needs. Comparing
    with traditional CRM, the integrated information for eCRM
    intraorganizational collaboration can be more efficient to communicate
    with customers

    From Relationship Marketing to Customer


    Relationship Marketing Amity Business

    School

    The concept of relationship marketing was first coined by Leonard Berry [in 1983.
    He considered it to consist of attracting, maintaining and enhancing customer
    relationships within organizations. In the years that followed, companies were
    engaging more and more in a meaningful dialogue with individual customers. In
    doing so, new organizational forms as well as technologies were used, eventually
    resulting in what we know as Customer Relationship Management (CRM).

    The main difference between RM and CRM is that the first does not acknowledge
    the use of technology, where the latter uses Information Technology (IT) in
    implementing RM strategies.

    Amity Business
    School

    The essence of CRM

    Amity Business
    School

    The exact meaning of CRM is still subject of heavy discussions.


    However, the overall goal can be seen as effectively managing
    differentiated relationships with all customers and communicating
    with them on an individual basis. Underlying thought is that
    companies realize that they can supercharge profits by
    acknowledging that different groups of customers vary widely in
    their behavior, desires, and responsiveness to marketing.

    Differences between CRM and


    eCRM

    Amity Business
    School

    1.Customer contacts

    4.Customization and
    personalization of information
    5.System focus

    2.System interface
    6 .System maintenance and
    modification

    3.client computers

    Why e-CRM?

    Amity Business
    School

    Gather and combine customer information


    into a unified picture
    Response faster and accurately
    Build customer loyalty

    Amity Business
    School

    Three phases of
    Amity Business
    customer relationship management
    School

    Three phases of customer relationship management

    Different levels of eCRM

    Amity Business
    School

    Foundational services:
    This includes the minimum necessary services such as web
    site effectiveness and responsiveness as well as order
    fulfillment.

    Different levels of eCRM

    Amity Business
    School

    Customer-centered services:
    These services include order tracking, product configuration
    and customization as well as security/trust.

    Different levels of eCRM

    Amity Business
    School

    Value-added services:
    These are extra services such as online
    auctions and online training and education

    Amity Business
    School

    Offline and online communications


    Amity Business
    techniques for e-commerce
    School

    Offline and online communications techniques for e-commerce

    Steps to eCRM Success

    Amity Business
    School

    Many factors play a part in ensuring that the implementation


    any level of eCRM is successful. One obvious way it could be
    measured is by the ability for the system to add value to the
    existing business. There are four suggested implementation
    steps that affect the viability of a project like this:

    Schematic of the relationship


    between satisfaction and loyalty

    Amity Business
    School

    Schematic of the relationship between satisfaction and loyalty


    Source: Adapted and reprinted by permission of Harvard Business Review from graph on p. 167 from
    Putting the service-profit chain to work, by Heskett, J., Jones, T., Loveman, G., Sasser, W., and
    Schlesinger, E., in Harvard Business Review, MarchApril 1994. Copyright 1994 by the Harvard
    Business School Publishing Corporation, all rights reserved.

    Steps to eCRM Success

    Amity Business
    School

    1. Developing customer-centric strategies


    2. Redesigning workflow management systems
    3. Re-engineering work processes
    4. Supporting with the right technologies

    Amity Business
    School

    What is included in a successful


    eCRM?

    Amity Business
    School

    1. Knowledge Management
    Acquisition of information about the customer
    What actions to take as a result of this knowledge

    Amity Business
    School

    2. Database Consolidation
    Re-engineering the business process
    around the customer
    All interactions with customers recorded
    in one place

    Amity Business
    School

    3. Integration of Channels and Systems:


    Respond to customers through their channel of
    choice
    E-mail, phone, chat line, etc.

    Amity Business
    School

    4. Technology and
    Infrastructure:
    Organization and
    scalability of
    technology must
    be able to handle
    increased
    volume of
    customers

    Amity Business
    School

    5. Change Management
    More than a change in technology is required
    Change in attitude and philosophy is key
    Product centric focus vs. customer centric focus

    Approaches to
    implementing e-CRM

    Amity Business
    School

    Attract new & existing customers to site


    Incentivise visitors to action
    Capture customer information to maintain
    relationship
    Maintain dialogue using online
    communication

    Future Trend
    CRM as a Strategic Function
    Mobile CRM (mCRM)

    Amity Business
    School

    CRM as a Strategic Function

    Amity Business
    School

    Crucial element of ebusiness


    - planning and
    understanding goals
    Invite interaction from
    customers
    Merge vendor functions
    New technology

    Mobile CRM (mCRM)

    Amity Business
    School

    One subset of Electronic CRM is Mobile CRM (mCRM). This


    is defined as "services that aim at nurturing customer
    relationships, acquiring or maintaining customers, support
    marketing, sales or services processes, and use wireless
    networks as the medium of delivery to the customers.

    three main reasons that mobile CRM


    is
    Amity Business
    School
    becoming so popular:

    The first is that the devices consumers use are improving in multiple ways
    that allow for this advancement. Displays are larger and clearer and access
    times on networks are improving overall. Secondly, the users are also
    becoming more sophisticated. The technology to them is nothing new so it
    is easy to adapt. Lastly, the software being developed for these applications
    has become worthwhile and useful to end users.

    Mobile CRM (mCRM)

    Amity Business
    School

    Wireless-enabled CRM
    - Improved productivity
    and efficiency
    - Faster response times
    - Faster sales

    Advantages of mobile CRM:

    Amity Business
    School

    1. The mobile channel


    creates a more personal
    direct connection with
    customers.
    2. It is continuously
    active and allows
    necessary individuals to
    take action quickly
    using the information.

    3. Typically it is an optin only channel which


    allows for high and
    quality responsiveness.
    4. Overall it supports
    loyalty between the
    customer and company,
    which improves and
    strengthens relationships

    Wireless Technologies

    Amity Business
    School

    Wireless Access
    Protocol (WAP)
    Smart cell phones
    Personal Digital
    Assistants (PDAs)
    Pagers

    Why a need for eCRM implementation?


    Amity Business

    School

    Traditional CRM approach: call centers


    Rapid growth of customer base
    Sharp increase in service inquiries
    Adding more customer service representatives
    would be costly
    To improve customers experience in doing
    business with Sprint
    Core differentiator in the industry/competitive
    advantage

    Amity Business
    School

    Failures:

    Amity Business
    School

    Designing, creating and implementing IT projects has always been risky.


    Not only because of the amount of money that is involved, but also
    because of the high chances of failure. However, a positive trend can be
    seen, indicating that CRM failures dropped from a failure rate of 80% in
    1998, to about 40% in 2003.Some of the major issues relating to CRM
    failure are the following:

    Failures:

    Amity Business
    School

    Difficulty in measuring and valuing intangible benefits.


    Failure to identify and focus on specific business problems.
    Lack of active senior management sponsorship.
    Poor user acceptance.
    Trying to automate a poorly defined process.

    Failure rates in CRM from 2001-2009

    Amity Business
    School

    2001- 50% failure rate according to the Gartner group

    2002- 70% failure rate according to Butler group

    2003- 69.3% according to Selling Power, CSO Forum

    2004- 18% according to AMR Research group

    2005- 31% according to AMR Research

    2006- 29% according to AMR Research

    2007- 56% according to Economist Intelligence Unit

    2009- 47% according to Forrester Research

    Amity Business
    School

    Goals of eCRM implementation:

    Offer an efficient customer self-service where customers could


    learn about products, purchase service plans, phones and
    accessories, manage their account, request service and support
    all in one place

    Improve quality of service while reducing costs

    Reduce the number of calls to the service center

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