INTRODUCTION

The customer relationship management (CRM) is essential and vital function of

customer oriented marketing. Its functions include gathering and accumulating
customer-related information in order to provide effective services.

E-CRM is a combination of IT sector but also the key strategy to electronic

commerce. e-CRM is a combination of software, hardware, application and
management commitment.

Aim of e-CRM system is to improve customer service, develop a relationship and

retain valuable customers. e-CRM is a concern for many organizations especially
banking sector.

The purpose of this study is to gain a better understanding of the benefits e-CRM to
customers and organization in banking industry.

To justify the purpose two research questions have been addressed and on the basis
literature review, a frame of reference was developed which helped us to answer the
research questions and collect data.
 IMPLEMENTATION OF CRM & E-CRM
Who? What?

A leading with two Swedish banks needed help on a complex project, which had a
fixed schedule and budget.

The project involved customization and integration of a packaged framework product.

With a track-record of delivery in the organization as well as strong capabilities in
Enterprise Architecture and integration, J2EE and Forte, Thought Works were
selected for the job.

Why?

The bank was using multiple customer service platforms. All of them were 'one-off'
solutions designed exclusively for a specific product line.

The client needed a common platform that was scalable both functionally and
technically as well as allowing them to use their customer service staff more
efficiently and offer consistent customer service across all product lines.

How?

The customer contact management system was based on Cordiant version 3.5. This
framework supported extensive customization using Java for the development of all
desktop, Web and CTI components and Forte for all data access, legacy integration
and workflow.

Thought Works' Agile techniques were used to provide a platform for all call centers
and to serve as the system of record for all customer interactions with the bank
regardless of channel type.

The Results?

Thought Works and the client team working together delivered the customer contact
management system on time, within budget and with additional functionality. Benefits
of the new platform include:

1. Enabled customer service personnel to support multiple product lines with

ease
2. Streamlined training of new staff
3. Contribution to more efficient customer service
4. Improved integration between front-line customer service personnel and back-
office personnel
 5. Improved user experience.

The format of the project also served as a basis for improvements to the development
process for ongoing work within the client's IT department.

The new system supports several product lines and plans are in place for it to become
the default service desktop for the entire company.

A qualitative research approach was used for this study. Empirical data was collected
through in-depth interviews were conducted with two Swedish banks and a group of
their customers.

In the last chapter findings and conclusions were drawn on the basis on research
questions. Our findings indicate that Swedish banks are well aware of the benefits and
applications of the e-CRM and use the system to maintain good relationships with
their customers.

Our findings also indicate that with the implementation of e-CRM and the latest
technologies. We have found that both the banks seem to have same description about
the benefits of e-CRM.

We found that both banks have maintained good relationships with customers due to
the usage of e-CRM. Our finding indicates that with the implementation of e-CRM
and the latest technologies banks have ensured full security for the transactions of
their customer's.

E-CRM facilitates the organizations to provide one to one services and also maintain
the transaction security of the customers.
 Benefits of CRM
Shared or distributed data
As companies realize that customer relationships are happening on many levels
(not just through customer service or a web presence), they start to understand the need
for sharing all available data throughout the organization. A CRM system is an enabler
for making informed decisions and follow-up, on all the different levels.

Cost reduction
A strong point in Customer Relationship Management is that it is making the
customer a partner in your business, not just a subject. As customers are doing their own
order entry, and are empowered to find the info they need to come to a buy decision, less
order entry and customer support staff is needed.

Better Customer Service

All data concerning interactions with customers is centralized. The customer service
department can greatly benefit from this, because they have all the information they need
at their fingertips. No need to guess, no need to ask the customer for the n-th time. And
through the use of push-technology, customer service reps can lead the customer towards
the information they need. And, most of the time, the customer can do this on their own,
as the CRM system (remember, the 3 P's) is more and more able to anticipate the need of
the customer. The customer experience is greatly enhanced.

Increased Customer Satisfaction

The customer feels that he is more "part of the team" instead of just a subject for sales and
marketing (the proverbial number), customer service is better, his needs are anticipated.
There is no doubt that customer satisfaction will go up. If the products sold exceed the
customers expectation, of course, no

CRM system can help you with shoddy products. In my opinion, the term satisfaction is a
contaminated. Many companies think that if customers are satisfied that this is a good
predictor for repeat business. However, this is not the case. Only delighted customers
have a great level of loyalty.

Better Customer Retention

If a CRM system can help to enchant customers, this will increase customer loyalty, and
they will keep coming back to buy again and again, hence customer retention.

More repeat business

The repeat business is coming from the delighted customers, who are turned
from doubting clients into loyal advocates.
 More new business
If you are delivering the ultimate customer experience, this will seed the word-of-mouth
buzz, which will spawn more new business.

More Profit!
More business at lower cost equals more profit.

CRM Infrastructure is like a complex factory set up to enable customer

transactions and record data.

CRM Infrastructure is complex, both in terms of gathering data and in terms of

delivering services. Examining both sides not only highlights the complexity, but also reveals
obstacles that prevent current infrastructure from providing Final Mile functionality.

On the data side, the CRM infrastructure has evolved from large-scale data management
projects including Data Warehouses and Data Marts. These projects have focused on
extracting data from sales order systems, provisioning systems, and customer service
systems, and placing the data in a neatly defined, easily accessed master database.

The requirements for handling data in this fashion are intricate and involve many steps. A
small army of information technology personnel must be used to access legacy systems,
create standardized "meta-databases" with data definitions, establish data conversion and
standardization procedures, schedule data loads, integrate query tools, and define processes to
analyze and report on the data.

All of this work generates a standardized, 360-degree view of customers that can by used to
service the customer through any channel. But this is an operational problem, not a
marketing problem. The Final Mile issue for marketing is to convert data to “business
intelligence” to support short term, tactical campaigns targeted at customers and/or prospects
Advantages and Disadvantages of the CRM

The main advantage that brings harnessed the implementation of the

Administration of the Relationships with the Clients in a enterprise is the increment of
the information that this have of its current and potential clients, what allows to
address the offer toward its desires and necessities, increasing this way the grade of
satisfaction and optimizing its cycle of life.

Other advantages that brings harnessed the implementation of the CRM is the
increases of the sales and the reduction of the sale cycle. The disadvantages are so
much related with the high costs that has the application of CRM, in terms of
economic Resources as likewise human, and with the difficulty that has the handling
of the given information the reticence of some sectors to share it and also to the risk of
to invade the client's privacy and to expose it to situations not wanted

The micro and small company’s have the advantage of having less clients and less
personal what facilitates him the handling of the information and makes difficult the
appearance of problems to share it.

The fact of managing a low flow of information also reduces since the costs many
times it is not necessary to acquire a special software to make it but rather you can
take manually or in simple programs as the Access.

A problem that you can sometimes present in the company’s of smaller size is the lack
of formalization of the procedures and the lack of the employees' interest for submit in
the importance that they have these and in the philosophy of work of the company.
 Relationship betweenCRM,BPR&ERP

Customer relationship management (CRM):-

 Customer relationship management (CRM) – involves managing all aspects
of a customer’s relationship with an organization to increase customer
loyalty and retention and an organization's profitability

 Many organizations, such as Charles Schwab and Kaiser Permanente, have

obtained great success through the implementation of CRM systems

 CRM is not just technology, but a strategy, process, and business goal that an
organization must embrace on an enterprise wide level

 CRM can enable an organization to:

Identify types of customers

Design individual customer marketing campaigns

Treat each customer as an individual

Understand customer buying behaviors

customer relationship management generally denotes a company-wide

business strategy embracing all customer-facing departments and even beyond.
When an implementation is effective, people, processes, and technology work
in synergy to develop and strengthen relationships, increase profitability, and
reduce operational costs

Norm Francis, founder of Pivotal Software (1994), and a co-founder of Basis

Software Group (BSG) the company that developed ACCPAC, an accounting
software package (purchased from Norm by Computer Associates in 1985),
invented the concept of 360-degree customer relationship management, a
concept that continues to be used today to describe the unification of activities
across the organization by employees who play a role in the customer
relationship
CRM Overview

BUSINESS PROCESS REENGINEERING(BPR):-

 Business process – a standardized set of activities that accomplish a specific
task, such as processing a customer’s order

 Business process reengineering (BPR) – the analysis and redesign of workflow

within and between enterprises

The purpose of BPR is to make all business processes best-in-class

Reengineering the Corporation – by Michael Hammer and James Champy -

recommends seven BPR principles

Business process reengineering (BPR) is a 'free marks' question for any management
student. Like every management article, I begin it with a definition, leading on to the
process and its pros and cons. Read on to find out if you're indeed efficient, or merely
just effective.
  Hammer and Champy, its first proponents, define BPR as - "The fundamental
reconsideration and the radical redesign of organizational processes, in order to
achieve drastic improvement of current performance in cost, services and
speed."

For the non-management people's benefit, I'd define it as the difference

between efficiency and effectiveness. While effectiveness entails doing the
right things in a goal-oriented manner, efficiency is doing the right things in a
process-oriented way.

Finding OPPORTUNITY USING BPR

  Types of change an organization can achieve, along with the magnitudes
of change and the potential business benefit

Enterprise resource planning (ERP):-

 Enterprise resource planning (ERP) – integrates all departments and functions

throughout an organization into a single IT system so that employees can make
decisions by viewing enterprise wide information on all business operations

ERP SOFTWARE

 ERP functions offered by all ERP vendors include:

Finance, accounting, sales, marketing, human resources, operations,

and logistics

ERP vendors differentiate themselves by offering unique components

including:

CRM, SCM, and BI

 According to Gartner, the average failure rate for an ERP project is 66
percent

 The initials ERP originated as an extension of MRP (Material Requirements

Planning; later manufacturing resource planning) and CIM (Computer
Integrated Manufacturing). It was introduced by research and analysis
firm Gartner in 1990. ERP systems now attempt to cover all core functions of
an enterprise, regardless of the organization's business or charter. These
systems can now be found in non-manufacturing businesses, non-profit
organizations and governments.
 To be considered an ERP system, a software package must provide the
function of at least two systems. For example, a software package that
provides both payroll and accounting functions could technically be
considered an ERP software package.
 Examples of modules in an ERP which formerly would have been stand-
alone applications include: Product lifecycle management, Supply chain
management (e.g. Purchasing, Manufacturing andDistribution), Warehouse
Management, Customer Relationship Management (CRM), Sales Order
Processing, Online Sales, Financials, Human Resources, and Decision
Support System.
 This is common to retailers, where even a mid-sized retailer will have a
discrete Point-of-Sale (POS) product and financials application, then a series
of specialized applications to handle business requirements such as
warehouse management, staff rostering, merchandising and logistics.
 Ideally, ERP delivers a single database that contains all data for the various
software modules that typically address areas such as:
 Manufacturing
 Engineering, bills of material, scheduling, capacity, workflow management,
quality control, cost management, manufacturing process, manufacturing
projects, manufacturing flow
 Supply chain management
 Order to cash, inventory, order entry, purchasing, product configurator,
supply chain planning, supplier scheduling, inspection of goods, claim
processing, commission calculation
 Financials
 General ledger, cash management, accounts payable, accounts receivable,
fixed assets
 Project management
 Costing, billing, time and expense, performance units, activity management
 Human resources
 Human resources, payroll, training, time and attendance, rostering, benefits.
 Similarities between ERP and CRM

Attribute Similarity Significance

How these applications Companies have the same By synchronizing these
help businesses goals pertaining to the areas, companies can
effectiveness and expect to increase
performance of CRM, profitability, become
and ERP systems more competitive, and
support ground-breaking
business techniques
(become more
modernized)

Effective application CRM, and ERP systems With these four attributes,
qualities rely heavily containing CRM, and ERP systems
the following attributes: are much more effective
flexibility; modular in meeting the goals of
(being able to support the business; if one
many different quality is missing from a
platforms); certain application, the
comprehensive (the effectiveness of the entire
ability to support a wide system consequently
range of organizational decreases and is therefore
functions); and beyond unsuccessful in achieving
the company (connecting the aforementioned goals
organizations with
partners and customers)
 Difference between ERP and CRM
o
ERP stands for “Enterprise Resource Planning.” ERP software is a
system that allows medium-to-large businesses to automate their
distribution, financial, human resources, manufacturing, marketing,
sales, and project management functions. When it comes to high-end
corporate software, ERP is often about as ambitious as it can be.
o CRM stands for “Customer Relationship Management.” CRM software
focuses on the interaction a company maintains with its customers. In
short, it’s all about the customers. The premise is simple: keep better
track of your contacts and you close more sales while maintaining a
happy customer base. If you take care of those customers, they’ll keep
coming back for more.
o While CRM focuses squarely on the customer, ERP takes in a much
broader view–it’s there to run the whole business, not just marketing and
sales. Many software vendors will integrate CRM within a corporate-
wide ERP system.

Attribute CRM ERP Significance

Use Managing the Integrating all All of these areas

aspects of a departments of deal with the
customer’s an organization effectiveness of
relationship to into a single, certain aspects of
an organization comprehensive organizations in
IT system order to
accomplish goals:
SCM looks to
maximize supply
chain profitability;
CRM aims to
increase customer
loyalty and
retention; and ERP
strives to
universalize
organizations so
decisions can be
made by looking
at all of the data
Users Sales, Accounting, Even though the
marketing, finance, logistics, users are different,
customer production the applications
service are
interdependent;
they rely on one
another to ensure a
successful
customer value
delivery system

Business Benefits Sales forecasts, Forecasting, All systems allow

sales strategies, planning, for different
marketing purchasing, business benefits
campaigns material which in turn add
management, to the
warehousing, effectiveness of
inventory, the business itself;
distribution its productivity
and overall stance
in the business
world

Leading Vendors Siebel, Oracle, PeopleSoft, Because there is

PeopleSoft Oracle, SAP not necessarily
one single vendor
that can supply an
organization with
software for all
three systems, the
goal becomes to
find a way to
synchronize all of
the systems; to
have them work
together for
maximum
efficiency
 PRM (Partner Relationship Management)
Let us first look what do we mean by a partnership?? It defines that “people
who get together to achieve a common purpose”. Thus deeper the alliance, greater
value-add the partners can generate between them and plus greater potential for
profitability, new growth opportunities and so on. As we know Management is mainly
the task of reducing operational uncertainties. Let’s get to know now what thus PRM
stands for!

“Partner relationship management (PRM) is a business strategy for improving

communication between companies and their channel partners.”

Web-based PRM software applications enable companies to customize and

streamline administrative tasks by making shipping schedules and other real-time
information available to all the partners over the Internet. Several CRM providers
have incorporated PRM features, such as Web-enabled spreadsheets shared through an
extranet, in their software applications.

PRM is often compared to customer relationship management (CRM) and there

is some argument over whether the complex relationship of channel partnerships
makes it necessary for PRM to be a separate entity, or merely a component of CRM.

Partner Relationship Management solutions include key features for selling,

commission, opportunity, marketing campaigns, inventory access, and other features
designed to facilitate the relationship between manufacturers and their channel
partners. However, in many cases, partner relationship management is a term
specifically applied to relationships between businesses.

Partner relationship management can take a number of different forms. In some

cases, delivery of a product is needed during specific times of the day. For example, in
some shipping and receiving departments, suppliers must deliver within a certain time
frame. In the busiest of locations, that window could be as little as 30 minutes. When
traveling across a large geographic region, that can be a hard target to hit.

Using software and other communication tools often provided through a

partner relationship management strategy, suppliers, shippers and the end users can
keep in constant contact with each other. This means the end user will be able to know
where each item is each step in the process and when to expect it. Depending on the
situation, this may allow a factory to adjust production so that the entire operation
does not shut due to supply concerns.

Partner relationship management is also important for a manufacturer and

reseller or retailer. On this side, software allows the producer to understand when a
certain product is in demand and allows that producer to adjust his processes likewise.
Without this benefit, a manufacturer would need to wait for an order from the retailer
or reseller. That could delay the process and thus allow both sides to miss out on
valuable sales.

In addition to communication, partner relationship management can also

provide services in other areas. For example, it may include a partner loyalty
component, which provides a benefit to both companies. As those relationships are
solidified, it provides a good customer base on which both can depend.

PRM strategic thinking:

PRM strategy is similar to CRM strategy; PRM needs more than just an
internal strategy effort. Its stakeholders don’t only include the CxOs and power users;
it includes the partners, more than just an opinion givers. So when we talk of a PRM
strategy, we are talking about channel strategy for the value change. You can’t ever
think of CRM implementation before you plan for a successful effort with your
channel. The purpose of this strategy, and please pay close attention here is to utilize
partners to provide a satisfactory brand experience end to end for the customer.

That means enriched products and your customers in this effort are your paying
clients and your partners. You may be the brand holder with the keys to the kingdom.
But your partners are your generals and supporting armies that will provide you with
the scope and strength to provide the great customer experience you need for your
business to survive.
 Features and Functions of PRM
 Lead Management: This is the place where the sales pipeline opens. Lead
generation and distribution start from this module. Actually this is an extremely
important and well thought-out part of most PRM applications due to the
complexity of the workflow associated with proper partner lead distribution.

 Opportunity Management: It is not just a simple jump up from the

Management but also encompasses metrics to measure and the means to
monitor active sales. This provides visibility for the brand holder into the
partner pipeline.

 Marketing: Co marketing funds distribution and closed loop campaign

Management get complicated when you are dealing with thousands of partners.
Again, notice here the additional richness of the classic application.

 Planning: Planning for partner networks is aligning the business and revenue
goals one partner at a time with the overall revenue goals. It requires an
understanding of each partner’s business model and level of participation in
your partner program and their ability to align them with your corporate
objectives.

 Reporting: This is one of the mission critical features of PRM, as much as

“standard” CRM. Improper reporting means missed opportunities, lost revenue,
unreaped reward for the partners.

 Analytics: Demographic and partner analysis are essential features. e.g. by

segmenting MS partner base, it knows which partners are available for what
and how to weigh their value in any particular opportunity so that the
opportunity is provided to the best team for maximum chance of closure and
success.

 Service and Support: At one level this means automated and other centralized
call centers and technical helpdesks. The value to partners for both internal
purposes and for their customer is incalculable.