White Paper What is eCRM?

2003 Chapelfield Systems Ltd www.chapelfieldsystems.com

-------------------- White Paper What is eCRM? --------------------

What is eCRM?
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onsider the following progression for a moment, and let's see where eCRM can lead: 1. eCRM provides Access 2. Access creates Information 3. Information enables Measurement 4. Measurement is an imperative for Process Improvement 5. Process Improvement leads to Growth in Revenues & Profit Therefore, eCRM, well implemented, leads to Growth in Revenues & Profits, a bold assertion? This paper offers a definition of eCRM and explains why this progression is a valid. Everywhere you look these days you see everybody.com and e-everything. CRM (Customer Relationship Management) has been undergoing evolution towards the Web for some years but only relatively recently have we seen the term eCRM. So what is eCRM? Is it old CRM with some Internet access bolted on? Or is it more fundamental than that? To properly understand eCRM it is useful to look at the evolution of CRM and to review its original objectives. As can be seen in Figure 1, CRM evolved out of the SFA (Sales Force Automation) systems from the early 90s. Prior to this, companies were not treating Sales & Marketing as priorities for IT investment. Areas such as Accounting, Office Automation and ERP were the money-spinners and it was difficult to find a seriously funded project for Sales & Marketing system. Today it is very different, CRM is considered as very important in most organisations and for

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Cost Reduction Stra

2003 Chapelfield Systems Ltd www.chapelfieldsystems.com

-------------------- White Paper What is eCRM? -------------------many it has become a major element of their ongoing IT investment. Of course, investment in any IT system has to ultimately contribute to increasing profitability. There is a close correlation between growth in revenues & profits and the benefits gained from wellimplemented CRM, these benefits are: Retaining existing customers Selling more to existing customers Finding and winning new customers Figure 1 - CRM Evolution CRM is now well understood as todays technology solution to improving these 3 areas of business by: Increasing efficiency Improving marketing and sales decision making Enabling process measurement leading to process improvement databases, customer service systems into an integrated system serving all front office/customer facing functions across the enterprise (see Figure 2). Figure 3 - Enterprise CRM Supporting the Front Office Many organisations today see CRM as the accepted tool to support these disciplines. Just as an organisation would not consider running their finances without an accounting system, many now would not consider running sales marketing and customer service without a CRM system. For example in marketing, CRM enables you to know your customers better, understand their value (LTV) and use the information to make better marketing, sales and service decisions. Trying to make marketing decisions today without a system is a bit like navigating at sea using the stars. Internal to the organisation managers can monitor activity, measure performance and improve processes to reduce waste and increase effectiveness. Todays enterprise CRM system will look similar to Figure 3. Prospects and customers will communicate with

Figure 2 - Integrated Database Over the past 10 or so years CRM has evolved out of ostensibly separate sales automation, marketing

2003 Chapelfield Systems Ltd www.chapelfieldsystems.com

-------------------- White Paper What is eCRM? -------------------the enterprise via a mix of internal staff. Staff will access channels, which may vary a central relational (SQL) depending upon where they database sitting on a LAN using are in the buying cycle. For specially configured CRM example, when responding to applications on PCs running direct marketing, contact may Windows. Users may be office be by bingo-card or telephone. based, or field based. Field When making a purchase people may have laptops decision it may be field sales or typically using dial-up or email a telephone-ordering centre. remote database Post-sales contact may be via a synchronisation. There is support help-desk. All fronthowever a major limitation in office functions (customer the conventional system one touch points) will share a of limited access. Lets look at central CRM database. this issue specifically. Integration between the CRM database and the so-called When embarking on any back-office systems e.g. project there are always accounts, manufacturing, budget constraints. As with any distribution, ERP etc may be investment, CRM systems real time or batch interface should be deployed to meet depending upon need. priority items first. For example, a typical roll out may The benefits of multiple be managed in phases. Phase 1 contact channels are obvious may include most of the sales customers have choice - they team plus a bit of marketing; will use whichever contact phase 2 may bring on board channel in most convenient to the rest of marketing and them. The information customer service; phase 3 may captured during all customer include remote field sales users contact and transactions is who were not part of phase 1, held on a database in a plus an interface to accounts; structure and easily accessible phase 4. I'm sure you get the way. Whats more, it can be picture. made available to anyone in the organisation. Core data Key issues dictate the need only be keyed in once rollout front office and back office A number of issues of course systems share the same core will dictate the rate of a rollout records, although each will and who is or is not included. have additional information For example, a key issue is specific to their processes. change-management, i.e. not wanting to do too much, to too Conventional CRM many, too quickly. What is being described here is what we will call conventional Another common issue of CRM. In conventional CRM the course is cost. How are we prospect or customer contact going to afford the new kit and will be with a member of your the licences for all these extra

2003 Chapelfield Systems Ltd www.chapelfieldsystems.com

-------------------- White Paper What is eCRM? -------------------users, particularly those who dont need to use it everyday, What eCRMs all about the occasional users - it would Put simply, eCRM means CRMbe nice to have them included. database access via the Web. It means Intranet access for What about our business internal users, extranet access partners? We would like to for business partners and include our external customers and of course, telemarketing company it Internet access for the market would be great if we could at large. send them list to call and have them enter results and set As well as this wider follow-up actions for our sales accessibility, eCRM enables team, using the same CRM new marketing opportunities. system. Web marketing, Web self service, automated response to What about the reseller email requests, remote data channel; the dealers why warehouse access, integrated cant they use the same marketing channels, etc lets system? We could really keep look at some of the track of all those leads we send advantages For example, the them and get feedback without Web offers an additional the continual chasing. marketing channel. For marketers the Web is quite Lets not forget our customers different to other channels in we could give them partial an important way everything access to the CRM system can be captured and tracked, they could look up product because by definition every details, request information, request, response, contact, log support calls, check transaction is carried out on delivery progress etc. This the system potentially would be more convenient for nothing is lost. them and lower cost for us. Another important difference is After all, the idea of tracking that Web marketing can be every contact and transaction focused more on the needs of with prospects and customers the buyer. You can build a Web was the original idea behind environment based on the way Database Marketing - the prethe customers prefer to do cursor to, and philosophy business indeed if you dont behind CRM. Unfortunately due they will pass you by! A further to limited access by the wider example is the ability to offer population this level of contract self-service. Prospects and tracking could never be customers can access product achieved until now Enter details, prices, delivery, they eCRM. can place an order; they can book onto a seminar or training course. They can request information, access a bulletin

2003 Chapelfield Systems Ltd www.chapelfieldsystems.com

-------------------- White Paper What is eCRM? -------------------board, log a support call, This vision has never really access a self-support database, been realised because much of and check progress of an the information in more action previously logged. traditional direct marketing campaigns is lost along the Plan to do eCRM right process. The Web is offering the customer an additional way of Studying a campaign for contacting the enterprise and guidance doing business. Customers will Contrast the following extract choose which contact channel from a Web campaign with a is most effective for them traditional direct mail event. eCRM means greater efficiency, you dont waste First, we advertise our Web site their time and they dont waste through focused media and yours. But, and its a big but, direct mail. Every web-hit is the system is capturing far captured and is attributed to more information about the the advertising event. customer than ever before. Do it right and you can become Multiple choices are offered to the easiest company to do the respondent e.g. request business with which brings us information; book onto an back to the original objectives event; self qualify; contact a of CRM - customer acquisition, salesman; purchase product customer retention, customer etc all is captured and development. tracked by the database. More than that we can respond From a marketingfrom the system and measurement point of view, all automatically acknowledge the this is very exciting indeed. response, we can fulfil very Consider some of the leading rapidly most probably directly Database Marketing literature from the system. of the late 1980s (e.g. Rapp and Collins; Shaw and Stone; We can route the enquiry to Moriarty and Schwartz). Their where ever and who ever is premise was that marketing best to deal with it based on Campaign Management was all self qualification data captured about capturing every point of at each subsequent stage dialogue with the market, down the process each player prospects and customers to in enterprise will have access enable accurate measurement to the complete picture so far. of marketing effectiveness and We have captured everything; to use this to plan future therefore we can measure the campaigns and events, process. eCRM is limited only continuously improving their by the creativity of the effectiveness doing more of marketer. what worked and avoiding what didnt.

2003 Chapelfield Systems Ltd www.chapelfieldsystems.com

-------------------- White Paper What is eCRM? -------------------Do we move to eCRM now? developed CRM database You may be asking yourself at structure? Is the entire CRM this point Should I be process functionality integrated replacing my current end to end? What if you want conventional CRM system to change data-structure, with eCRM? or if you are screens, navigation and userconsidering CRM for the first processes to match your time, you may be thinking, business? With most of these Should I not bother with CRM Web-architected products you but jump straight to eCRM? probably wont be able to Wait! Lets look at the pros and without getting into serious cons of both before answering customisation! these questions. Putting the access issue to Which approach to adopt? one side for a moment, A total Web solution may not conventional CRM systems be the best solution for many offer very powerful capability organisations, the optimum particularly to your intensive solution is likely to be a mix of users. These people, who are conventional and Web largely office-based, will need capability - the best of both the power of Windows and worlds. The most effective direct database access on the approach to Customer LAN Browser access would Management relies on more not be the environment of than one technology. choice for these users. As an existing CRM user, your Look for pedigree company will have invested in Leading CRM solutions such as a client server infrastructure CRMsoft from Chapelfield there is no business reason to Systems offer both Clientre-equip and re-train these Server CRM and Web-CRM people. integrated in a single system. CRMsoft system has evolved If you are a first time CRM from over 12 years of CRM purchaser you need to tread pedigree. The system is carefully when considering the steeped in sales, marketing so-called new Weband customer service architected products these functionality. Indeed, over are in their infancy and many 1000 standard business of the new entrant companies processes are available and have little core competence in this library expands CRM. continuously. You may be shown an attractive front-end but whats behind it? Is there a well-

2003 Chapelfield Systems Ltd www.chapelfieldsystems.com

-------------------- White Paper What is eCRM? -------------------The system offers one of the CSL calls the approach most powerful CRM configure once deploy functionality sets on the anywhere. market today as well as ultimate configurability the Figure 4 describes the system is so open, an integrated CRMsoft clientauthorised-user can change server and eCRM architecture. the data structure, screens and processes without touching the Conclusion source-code. In conclusion, eCRM takes conventional CRM to new This is all very well for a heights. Combining the conventional CRM system, but technologies of conventional what about eCRM? and Web CRM opens Customer Figure 4 - CRMsoft Architecture Relationship Management to all participants in the process, Chapelfield Systems has inside and outside the developed a Web-publisher, enterprise. which can deploy all existing Users can access the CRM client-server configurations to system via PCs or Laptops run in Web pages accessible by using Windows or via the Web any Web Browser. There is no using a Browser. special Web development needed; this means the use of As we move towards WAP common processes between all (Wireless Application Protocol) user communities whether they devices, cost-effective access are Windows Client-Server will increase still further. eCRM users or Web-browser users. takes us one step further Security and access-rights for towards harnessing the true different user communities is database marketing controlled by a sophisticated philosophy. rights-management system.

2003 Chapelfield Systems Ltd www.chapelfieldsystems.com