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Concept Opportunities and challenges e -CRM e-relationships
Evolution to e-CRM
Traditional CRM------------------ Technology driven CRM ------------------ e-CRM Customer contact by •Telephone - Customer Information System •Mail - Customer Database • In Person - Electronic Point of Sale • Personal Selling - Sales Force Automation • After Sales Service - Automation of Customer • Complaint Handling Support Processes • Account Management - Call Centers •Customer care - System Integration •Customer Satisfaction - Customer Life time Value •
which can be done by both the channel member as well as the marketing firm The entire focus has been on: Building a good working relationship with the channel member (upstream relationship) Providing the channel members incentives to build a strong customer relationship (downstream relationship) .The Role of Traditional Channels in Customer Relationships Indirect customer relationship Involves gathering and processing of customer and salestransaction information.
Direct customer relationship This is in the form of communication or contact channel The firm communicates product information through contact channels such as TV or print to persuade the consumer Another form is through brand equity The value of the brand embeds in itself an unexpected relationship in the future By building brand equity. firms try to build a psuedo-relationship (prior relationship) with all prospective consumers (by assuring them quality. and risk insurance) . differentiation.
Major Challenges Facing CRM Through Traditional Channels Prevent dilution of CRM strategies Indirect control of CRM through channels Eliciting customer information from all channels for central processing .
Implications for CRM Electronic channels and availability of precise customer information Seamless customer information systems Cooperation among channels .
Customer Relationships Through Differentiated Channels Channel Function Facilitate search Customer Decision Stage Awareness Preferred Channel Channel 1 Inventory control Learning Channel 2 Channel 3 Transaction Trial Evaluation Point of purchase Repeat purchase Channel 5 Channel 4 .
Impact of Emerging Channel Environment on CRM .
mail Fax Mail Media Personal Contact Retail Outlet Telephone Web Wireless .Touch Points for a Business e.
4/10/2013 voice response system (VOR) 12 . mobile technology. M-Commerce applications include mobile marketing based on WAP – wireless applications protocol – SMS text E-CRM tools are: e-mails. e-marketing. websites. ecommunications. social networking sites. e-CRM = CRM 2. e-CRM ---- CRM E-relationships based on e-commerce and m-commerce applications E-Commerce applications are like– e-retailing. E-CRM ……CONSOLIDATION OF TRADITIONAL CRM WITH EBUSINESS APPLICATIONS Two views on e-CRM 1. blogs.
CRM provides companies with a means to conduct interactive.e.CRM “e. personalized and relevant communications with customers across both electronic and traditional channels” .
Electronic channel 2.Driven by data Warehouse .Focused on consistent metrics to assess customer actions across channels .Expansion . and to determine effective investment allocation decision 4/10/2013 14 .Structured to identify customer’s profitability. External information E-CRM and customer optimization .Acquisition . Evaluation 6.Retention Key Features of e-CRM: . Enterprise 3. Economics 5.Six E’s of e-CRM ‘E’ in e-CRM stands for electronics and can also be used to frame alternative definition of e-CRM 1. Empowerment 4.
assessment. and actionable customer strategies .Why Employ e-CRM ? To optimize the value of interactive relationships To enable the business to extend its personalized rea ach To co-ordinate marketing initiatives across all the customer channels To leverage customer information for more effective emarketing and e-business To focus the business on improving customer relationships and earning a greater share of each customer's business through consistent measurement.
Case of Social Media •Grievance Handling Mechanism •Brand Building •Sales Tracking •Customer Understanding •Product Endorsement •Supply Partner Relationships •Feedback Platform •Product Selling Platform •Identification of potential employees 4/10/2013 16 .
Case of Mobile Commerce • Innovation in ways of Selling products • New Learning curves for managing interactions with customers •Customer acquisition • Enhancing customer relations 4/10/2013 17 .
and relationship To manage customer touch points and personalization opportunities TO leverage e-CRM capabilities as a potential source of competitive advantage 4/10/2013 18 .E-CRM opportunities To reduce Cost To optimize work flows To facilitate better market segmentation To enable enhanced customer interactions.
which enables all customer issues to be tracked and monitored in order to determine and improve resolution timeframes with the aim of further improving customer service. The system also allows tracking of issues with clients to ensure satisfaction. Approximately 500 customer profiles are currently on the system. The company selected an off-the-shelf software package to assist it in embedding aspects of best marketing practice as well as reducing development costs. follow-up and prospecting for repeat business.Example – Managing Work Flows: E-CRM technology is the engineering division of ESB International (ESBIEFM). There are difficulties inherent in the process of defining metrics to be used given the diverse range of clients involved both domestically and internationally but these are under constant 4/10/2013 19 review. delivering and exceeding specified levels of service provision and building and maintaining client relationships. Within ESBIEFM customer profiles have been developed and updated within the e-CRM system and the company has been able to drill down into workflow processes in terms of managing projects from the first initial enquiry or contact through to developing the business proposal. It was recognized and acknowledged that customer information and data acquired by customer-facing personnel and account managers should not reside with that person alone but should be a shared organizational asset available to relevant personnel within ESBIEFM and embedded within the company. The company recognized that it required a better understanding of customers and their expectations in order to focus the organization's resources where they are most required. . The business requirement for readily available real-time accurate information was identified as a priority. winning the business. and direct to signing the contract. Metrics emerging from the e-CRM system focus on issues such as the success rates in winning business and measuring repeat business with customers. aligned to objective metrics to monitor client satisfaction. ESBIEFM defined its e-CRM needs as the development of a systematic approach to the management of its customers. The company chose a browser application as opposed to a stand-alone system so that it could be easily accessed by customer facing staff via laptops and other mobile devices worldwide.
All details of the customer's history are shown on the agent's monitor including contact details. These customers were prioritized when calling the contact centre and routed immediately to a dedicated CIVIC team member. As a result of this initiative customer satisfaction ratings reached 90% and more and more contracts were being renewed.V. 4/10/2013 20 . Success of the programme at KPN is measured using the following key performance indicators: reduction of customer churn. mobile call and service behavior as well as ongoing campaigns and individual privileges to be offered. is a leading European mobile telecommunications network operator and provider of mobile voice and data services with over 15 million customers. As a result of high customer churn and low sales within the saturated mobile market. KPN turned its attention to its high-value customers and launched a CRM Implementation for Very Important Customers (CIVIC) programme.. increased customer lifetime value and reduction of operational costs.Example – Well defined segmentation KPN Mobile N.
enterprise-wide view of the customer has led to vast improvements in customer service and allowed the company to improve the bottom line at the same time. partners. The ability to provide a single. gain instant organizational knowledge and efficiently interact with customers across multiple communications channels.Example – Managing Multiple Customer touch Points The increased number of communication channels heightened customer expectations of DHL. 4/10/2013 21 . managers and other users to maintain a single view of all customer information. which addressed this issue through e-CRM technology. The technology employed enables agents.
Through such personalized websites customers are empowered to customize the site to suit their preferences and facilitate their navigation 4/10/2013 22 .Example – Personalization and e-loyalty Every Amazon customer gets personal recommendations for books based on Amazon's personalization technology. cut the number of phone calls into its call centers and provide employees with one computer system to tap for information across numerous sales channels. Internet-based CRM technology has allowed Nestlé to personalize its interactions with individual customers. The personalized web pages of American Airlines have provided a source of competitive advantage in a fiercely competitive marketplace. an initiative rewarding frequent drinkers of the Nescafe brand. Nestlé has also installed several web-based CRM systems to support customer loyalty and retention programmes such as Netspresso.
eircom is also turning its focus to re-engineering the corporate extranet experience to deliver the benefits of e-CRM to its customer base. E-CRM has developed significant scalability benefits to the organisation in comparison to traditional call centre and sales force operations and the on-line channel is perfectly placed to positively meet any increased traffic. www. making a 36o-degree view of the customer possible. was first developed as a high-level static marketing site in 1999 but since then has been upgraded to a fully integrated enterprise-scale portal application. 4/10/2013 23 . All channels access eircom's core CRM application. Online transactions are fully integrated with eircom's core provisioning and other enterprise applications. Key performance metrics include customer usage and an on-line satisfaction barometer. and in the case of eircom e-customers are incentivised by reduced prices for a number of products and services online. incorporating a personalisation platform and content management system.eircom. With e-CRM customer-centric companies can use customer information to better manage pricing and marketing decisions in real time. The implementation of eCRM has dramatically reduced the cost of communicating with customers and has led to reduced administrative and operational costs.000 e-customers. eircom's on-line sales and service channel. Ecustomer feedback is critically evaluated and used to constantly improve the e-customer offering.ie. Strategic initiatives planned for the on-line channel include the integration of a sophisticated billing analysis tool and ongoing usability analysis. which currently supports over 180.Example – Leaveraging e-CRM as source of competitive advantage eircom has adopted e-CRM as a strategic imperative with net benefits for both the company and its customers.
In the absence of such trust it is harder to get customers to share the data which is essential to creating effective CRM strategies. Privacy policies and guarantees become an essential element in building trust and consequently effective eCRM initiatives for companies 4/10/2013 24 . with the relationship element of e-CRM harder to build beyond a purely transactional one.E-CRM Challenges Building trust – channels are customer controlled The ability to create intimacy with the customer does not exist online and due to the remoteness of these channels building trust is more difficult.
Data Integration and Architecture E-CRM. Many companies have approached this as a separate project to their CRM strategy. Companies are setting up such new channels make every possible effort to integrate them tightly with existing business processes and/or channels first. the new channel needs traditional front and back office systems in place to make it function successfully. Such an approach makes for an inconsistent and unsatisfactory customer experience which does not make any business successful The ability to match e-CRM initiatives to an institutions own business model has emerged as a characteristic of successful companies in the e-CRM arena 4/10/2013 25 .
similarly companies need metrics to track the efficacy of their eCRM initiatives. An associated challenge for companies is trying to assess e-CRM performance. where a limited number of customer segments migrate to on-line delivery options. Traditional e-CRM has proved difficult to assess in terms of company performance and return on investment (ROI). The patterns can be seen within the provision of financial services and retailing in the marketplace. 4/10/2013 26 .Cannabilzation On-line channel must not be allowed to cannibalize other valuable customer contact points and should attract and retain only those customers best served through this contact point.
To implement e-CRM companies need a variety of hardware/software applications and tools. back office systems which supply product availability and pricing information as well as previous customer transaction details.Data Integration and IT Architecture From a technology perspective an e-CRM system represents a mass of seams that need to be tightly stitched together. nor is it likely to be filled internally. which companies need to incorporate into their overall strategic planning. Has significant resource and cost implications. No single software application is able to fill the gap. E-CRM system is highly dependent on neighboring systems to be effective. and finally Web content management and authoring tools Need for well-developed business processes and information and technology infrastructures on which to build and sustain e-CRM competences 4/10/2013 27 . for example: traditional 'front office' CRM which has to be consistent with an e-CRM system at both data and process levels. in essence a mass of integration. an existing data warehouse consolidating customer related information.
Example: In the area of on-line retailing. successfully deals with data and systems integration challenge. allowing customer queries to be efficiently and effectively dealt with. Ireland's on-line shopping centre. increasing the level of customer service offered and enhancing customer relationships. 4/10/2013 28 . Buy4Now. As the orders are filled they are updated on the system so that the customer can view their order status. Updates to the OFS4Now system link to the warehouse system operated by Buy4Now Logistics and to the Buy4Now portal and call centre system. Retailers receive orders and then pick the items from the shop floor. Buy4Now has developed its own order fulfillment system (OFS4Now) which allows partner retailers to view orders on their websites.
while the IT function tends to assess its technical quality. rarely produce an enterprise view of customers and modeling applications to a single functional view often lead to failure.Marketing and IT Alignment • Mismatched perceptions and expectations between the Marketing and IT functions can often impact and delay e-CRM strategies. •Marketing users often focus on the front end of applications and assess the functionality of the e-CRM system with limited understanding of data and Web integration issues. • e-CRM projects driven by a functional head. •Successful e-CRM strategies necessitate improved levels of integration between functions to successfully harness the opportunities available. such as Marketing or IT. 4/10/2013 29 .
Relationship Typology and Impact of e-Business Applications From/to Business Customer Business Customers B2B C2B B2C C2C 4/10/2013 30 .
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