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E-CRM
electronic customer relationship management

What is E-CRM?

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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

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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.

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The essence of CRM

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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

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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?

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Gather and combine customer information

into a unified picture
Response faster and accurately
Build customer loyalty

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Three phases of
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customer relationship management
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Three phases of customer relationship management

Different levels of eCRM

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

Different levels of eCRM

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

Different levels of eCRM

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

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Offline and online communications

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techniques for e-commerce
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Offline and online communications techniques for e-commerce

Steps to eCRM Success

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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

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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

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1. Developing customer-centric strategies

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

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What is included in a successful

eCRM?

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

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

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3. Integration of
Channels and
Systems:
Respond to
customers
through their
channel of choice
E-mail, phone,
chat line, etc.

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

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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

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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)

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CRM as a Strategic Function

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Crucial element of ebusiness

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

Mobile CRM (mCRM)

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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
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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)

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

Advantages of mobile CRM:

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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

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

Why a need for eCRM implementation?

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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

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Failures:

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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:

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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

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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

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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