eCRM

Prepared by: Prof. Rupali Rajesh

Evolving to eCRM
The

eCRM that CRM onlineImplies an additional means of communication and level of interaction with customer where there is a real difference in the technology and its architecture, which allows for ease of selfservice to the customer.

Evolving to eCRM
How

does a company go about building an eCRM solution? Define its business objective Assess its current sophistication along the eCRM continuum (range) in terms of process and technology and Define business processes and changes needed to support its goals.

Evolving to eCRM
A company

can then derive a plan and timetable to implement processes erect (put up) the necessary data warehouse to attain a consolidated view if the customers, and select, implement, and integrate the required eCRM applications.

Evolving to eCRM
To

develop an effective solution. An organization may need to consider a host of professional service offerings and products to improve internal development. Outside professional services experienced in both business and marketing providing technical infrastructure for eCRM. It can help re-engineer an organization for the eCRM challenges ahead: They help to construct data warehouse (or Datamart); optimize it for eCRM solution;

Evolving to eCRM
They

select the appropriate tools for customer analysis and customer communication software; Host eCRM software to help to get started quickly; teach the best practices for permission based marketing and Get started in e-mail marketing; and tie email and messaging capabilities for other online and offline customer communication channels.

CRM and eCRM differences

Being

able to take care of your customer via the Internet , or Customers being able to take care of themselves online Thats the difference between CRM and eCRM.

What is eCRM
eCRM provides to companies a means to conduct interactive, personalized and relevant communication with customers across both electronic and traditional channels. It utilizes a complete view of the customer to make decisions about messaging, offers, and channel delivery. It synchronizes communications across disjointed customer-facing systems. It also focuses on understanding how the economics of customer relationships affects the business.

What is eCRM
eCRM is the customer-facing Internet portion of CRM. It includes capabilities like self-service knowledge bases, automated e-mail responses, personalization of Web content, online product bundling and pricing, and so on. eCRM gives Internet uses the ability to carry on users with the business through their preferred communication channels. It also allows the business to offset expensive customer service agents to value its ability to improve customer satisfaction and reduce costs through improved efficiency.

The need to adopt eCRM

The need to adopt eCRM emerges from the following: Optimize the value of inter-active relationships. Enable business to extend is personalized messaging to the web and e-mail. Coordinate marketing initiatives across all customer channels

The need to adopt eCRM

Leverage

customer information for more effective eMarketing and eBusiness. Focus business on improving customer relationship, and earning a greater share of each customers business though consistent measurement, assessment, and actionable customer-contact strategies.

Basic Requirements of eCRM

They all need to proceed toward the same objective of optimizing the value of customer relationships.
Electronic

Channels: New electronic channels such as the Web and personalized eMessaging have become the medium for fast, interactive and economic customer communications, challenging companies to keep pace with this increased velocity.

 Enterprise:

Through eCRM, a company gains the means to touch and shape a customers experience across the entire organization, reaching beyond just the bounds of marketing to sales, services and corner offices. An eCRM strategy relies heavily on the construction and maintenance of a data warehouse that provides a consolidated, detailed view of individual customer Behaviour and communication history.

Basic Requirements of eCRM

Empowerment: eCRM strategies must be structured to accommodate consumers who now have the power to decide when and how to communicate with the company and through which channel, which ability to opt for or out of In the light of this new consumer empowerment, an eCRM solution must be structured to deliver timely, pertinent, and valuable information that a consumer accepts in exchange for his or her attention.

Basic Requirements of eCRM

Economics:-

Too many companies execute communication strategies with little- effort or ability to understand the economics of customer relationships and channel delivery choices. Customer economics derives smart asset allocation decisions, directing resources and efforts at individuals likely to provide the greatest return on customer communication initiatives.

Basic Requirements of eCRM

Assessment:-

Customer economics relies on a companys ability to attribute customer behaviour to marketing programs. A company should evaluate customer interactions along with various customer touch point channels and compare anticipated ROI against actual returns, through customer analytic reporting.

Basic Requirements of eCRM

Outside

information: Use of consumer-sanctioned external information can be employed to further understand customer needs. This information can be gained form sources such as third- party information networks and web-page profiler applications, under the condition that companies adhere to strict consumer opt-in rules and privacy concerns.

Basic Requirements of eCRM

A Company

builds an eCRM solution in order to optimize relationships in between itself and its customers. For each company, optimization might have different and multiple objectives such as increasing the number of customers, increasing customer profitability, growing revenue, driving customers through cost effective channels, and cross- selling for retaining customers.

Three dimensions in eCRM

eCRM must address customer optimization in three dimensions viz: Acquisition getting (increasing number of new customers) Expansion (increasing profitability by encouraging customers to purchase more products and services) Retention (increasing the amount of time customers stay as customers)

eCRM Features
Focused

on process: A CRM process brings appropriate technology and it will reduce the technology gap as well as refining business. Data warehouse driven: In an eCRM solution, data warehouse or customer data mart contains a consolidated and comprehensive view of the customer.

 A multi-

channel view: organization have different methods of interacting with customers. E.g. a bank might use one application to support its Website; another to support its call centre; e-mails; ATMs; direct mail and telemarketing. These applications rarely connect to each other thus precluding the sharing of information between channels and preventing meaningful cross channel connections for a customers.

eCRM features

Measurement driven: Many companies spend millions of dollars communicating with customers, but spend little time and effort determining the effectiveness of those campaigns. eCRM provides the means to measure communications efforts. It is a continuous, interactive process. It employs customer analytic tools to do the following project outcomes of customer communications initiatives, capture results, attribute changes in customer behaviour

to a particular communication of customer, communications initiatives, and access those results to improve subsequent customer interactions and generate returns on investment.

eCRM tools

Customer analytic software: customer analytic software predicts, measures, and interprets customer behaviors, allowing companies to understand the effectiveness of eCRM efforts. This software and it reports can be used virtually anyone across the organization, from marketers and salespersons to corner office executives. This packaging will help companies implement solutions quickly and limit risk.

eCRM tools
Data

mining software: It builds predictive models to identify customers who are most likely to behave in a particular fashion such as purchase an upgrade, or agitate against the company. Modeling must be tightly integrated with multiple campaigns running daily or weekly.

Campaign management: Campaign management software leverages the data warehouse to plan and execute multiple, highly targeted campaigns over a period of time, using triggers that respond to timed events and customer behaviour.

 Campaign

Management software tests various offers against control groups, captures promotion history of each customer and prospects and produces output for virtually any online or offline customer touch point channel, such as personalized e-messaging call centers, branch offices, direct mail houses, and ATMs.

eCRM tools
Business

simulation: business simulation used in combination with campaign management software, optimizes offers, messaging and channel delivery prior to the execution of campaigns, and compares planned costs.

 Portals: A CRM

solution provider has taken a creative and distinctive approach in building its RM application suite. Portals are the centerpieces for all its CRM functionality, whether through a client/ server platform or online. They are more advanced than the typical CRM application, because they provides multiple elements of Web-based self-service for customers, partners and employees, all of whom could be called, with a little stretching customers.

eCRM tools
An

employee portal: The employee portal is an enterprise-wide web solution that combines CRM functionality with third-party application and relevant Internet connections. Its purpose is to maximize the efficiency of marketing, sales, and service teams, which it does very well.

eCRM

Case Study

CRM AT HARRAHS ENTERTAINMENT

Introduction:
In 2003, Harrahs entertainment with revenues of $4.13 billion was one of the largest gaming cos. in the US.

It operated 28 casinos under the brand name Harrahs, Harveys, Players, Showboat & Rio in 13 states across the US.
This case deals with how Harrahs used the database of customers (which recorded the spending, shopping and gambling patterns at all the different properties of Harrahs) to treat them better and thereby establish, strengthen and convert relationship.

Casino industry in the US

A typical casino included gambling like Bingo, Poker, Lotteries

& games like Slots, Roulette, Card games and Sports betting.

Apart from this, casinos offered non-gaming facilities such as restaurants, hotels, retail stores and other entertainment attractions.
The non-gaming attractions accounted for more than half of casino sales.

HARRAHS CRM EVOLUTION

Initially feedback forms and also congratulatory certificates were sent to those people who had won the slot machine jackpots. PLAYER CARD PROGRAM

Cards valid at only one property

Card reading systems in each location differed Information systems at individual properties were not integrated or linked with the other properties. TOTAL GOLD PLAYER CARDS Cross market capture Change from an operations-driven co. to a marketing-driven co.

COMPONENTS OF CRM
Revenue management Total rewards

LOYALTY
Personal Contact management

Harrahs.com

Decision science

TOTAL REWARDS
This was Harrahs customer loyalty program that tracked,

rewarded and retained customers details on to a card. This card could be used at all Harrahs properties irrespective of the place of issue. Cash and compensation earned could be redeemed at any property irrespective of where they were earned. The total rewards cards operated under 3 tiers of gold, platinum and diamond membership. The idea was to motivate the customers to play more and earn more points and hence shift to a higher membership strata.

DECISION SCIENCE
With

the help of the data collected from the total rewards cards, various marketing strategies were implemented. WINet (Winners Information Network) worked on the principle that retaining a customer was onetenth of the cost of getting a new customer. Test Campaigns

HARRAHS.COM
It

enabled customers to log on and find out as to how to earn a higher level reward card.
eTotal Rewards

It helped to check availability and make online reservations at any one Harrahs casino hotels.

REVENUE MANAGEMENT

The system was targeted at increasing revenue growth by improving the ratio of high-rolling casino customers to other customers in the hotel rooms.

It was based on the analysis of the past spending habits of a customer who would call to reserve a room. It was also based on the frequency of visits.

PERSONAL CONTACT MANAGEMENT

o Prioritized

listing of the customers depending on the frequency of their visits. o VIP Hosts

Thank You