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Published by: Mohit Kala on Feb 21, 2012
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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 traditionalCRM, the integrated information for eCRM intraorganizational collaboration can be more efficient to communicate with customers

From Relationship Marketing to Customer Relationship Marketing
The concept of relationship marketing was first coined by Leonard Berry[who?] in 1983. He considered it to consist of attracting, maintaining and enhancing customer relationships within organizations.[2] 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.[3] [edit]The essence of CRM The exact meaning of CRM is still subject of heavy discussions.[4] However, the overall goal can be seen as effectively managing differentiated relationships with all customers and communicating with them on an individual basis.[5] 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.[6] Loyal customers can not only give operational companies sustained revenue but also advertise for new marketers. To reinforce the reliance of customers and create additional customer sources, firms utilize CRM to maintain the relationship as the general two categoriesB2B(Business-to-Business) and B2C(Business-to-Customer or Business-to-Consumer). Because of the needs and behaviors are different between B2B and B2C, so that the implementation of CRM should come from respective viewpoints.[7]

[edit]Differences between CRM and eCRM Major differences between CRM and eCRM:[8] Customer contacts   CRM ± Contact with customer made through the retail store. System overhead (client computers)  CRM ± The client must download various applications to view the web-enabled applications. and fax.  Customization and personalization of information  CRM ± Views differ based on the audience. They would have to be rewritten for different platform. and personalized views are not available.  System maintenance and modification  CRM ± More time involved in implementation and maintenance is more expensive because the system exists at different locations and on various servers. eCRM ± System (created for external use) designed based on customer needs. Individual has ability to customize view.  System focus  CRM ± System (created for internal use) designed based on job function and products. and PDA technologies. phone. which interacts with the back-end through use of ERP systems. wireless. eCRM ± All of the traditional methods are used in addition to Internet. Individual personalization requires program changes. eCRM ± Geared more toward front end. eCRM ± Personalized individual views based on purchase history and preferences. data warehouses. email. emphasis is on the back-end. Web applications designed for a single department or business unit. . eCRM ± Does not have these requirements because the client uses the browser. Web application designed for enterprise-wide use. System interface   CRM ± Implements the use of ERP systems. and data marts.

As we implement eCRM process. This avoids multiple times to bother customers and redundant process.[12] [edit]eCRM strategy components When enterprises integrate their customer information. Operational: Because of sharing information. where electronic methods were used to gather data and analyze customer information. We can define eCRM as activities to manage customer relationships by using the Internet. questionnaire.[9] ECRM is being adopted by companies because it increases customer loyalty and customer retention by improving customer satisfaction. Data Aggregation: Filter and analysis for firm¶s specific needs to fulfill their customers. Customer Interaction: According to customer¶s need. there are three steps life cycle:[11] 1.eCRM ± Reduction in time and cost. Data Collection: About customers preference information for actively (answer knowledge) and passively (surfing record) ways via website. the trend of the upcoming Internet can be seen as the foundation of what we know as eCRM today. email. E-loyalty results in long-term profits for online retailers because they incur less costs of recruiting new customers.[10] Together with the creation of Sales Force Automation (SFA). plus they have an increase in customer retention. tighten customer relationships and most important. many companies consider it as an opportunity to reduce customer-service costs. . The challenge hereby is to offer communication and information on the right topic. further personalize marketing messages and enable mass customization. 3. eCRM  As the internet is becoming more and more important in business life. 2. in the right amount. company provide the proper feedback them. Implementation and maintenance can take place at one location and on one server. the processes in business should make customer¶s need as first and seamlessly implement. one of the objectives of eCRM. there are three eCRM strategy components[1]: 1. and at the right time that fits the customer¶s specific needs. web browsers or other electronic touch points.

[14] Business personalized each of their customer profile unified in entire organization. Analytical: Analysis helps company maintain a long-term relationship with customers. companies can also choose to design and build their own solutions. As each department integrates customers¶ information.[15] . This proves beneficial for effective communication not only to enterprises but to external customers and internal departments. customer may communicate with different department staff in the corporate via Internet (or phone call). [edit]electronic solution (eCRM) Contrast with traditional CRM being implemented under ERP (Enterprise Resource Planning) interface communicating in firms and with their customers. By "central repository". Develop an end-to-end process to serve customers. Examples are Transaction Processing System (TPS) to process data real-time. And firms are able to use the marketing analysis for customer more mature services.2. Track all aspects of selling to customers. 3. they can focus on individual operational duty more efficiently. one needs to consider the following factors:      Create a customer-focused culture in the organization. different departments in company implement (intraorganizational) or work with business partners (interorganizational) more efficiently by sharing information.[13] Furthermore. Adopt customer-based managers to assess satisfaction. Collaborative: Due to improved communication technology. eCRM optimizes the customized environment via web browser. In order to implement CRM in an effective way. Recommend questions to be asked to help a customer solve a problem. as well as prospects. Once this information is transferred back to the CRM software and services it could prevent customers from placing an order in the belief that an item is in stock while it is not. [edit]Implementing and integrating eCRM work [edit]non-electronic solution Several CRM software packages exist that can help companies in deploying CRM activities. Besides choosing one of these packages. which can then be sent to the sales and finance departments in order to recalculate inventory and financial position quick and accurately. CRM solutions are more effective once they are being implemented in other information systems used by the company. so that firm may reduce execution cost.

customer/case experience and the interaction feedbacks are another way of CRM collaboration and integration information in corporate organization to improve businesses¶ services. save energy to retailer.[19] Moving managing system into cloud. the attitude of B2C individually purchase is decided by the positive experience and online shopping knowledge. In cloud based CRM system. convenient to return. Previous research[17][18] found B2C enjoy the shopping online is quick to transact. People may communication on mobile devices to get the efficient services. and upgrade etc. more and more enterprise CRM systems move to cloud computing solution. At the same time. and it becomes a long-term relationship eventually. maintain. according to Gartner".[21] There are multifarious cloud CRM services for enterprise to use and here are some hints to the your right CRMsystem:[22] 1. websites information has been becoming an important medium to reduce collecting cost and time. Customizing the specific product and reducing the repeated routine cost products for them can expense least. Furthermore. Thus. customers communicating. the marketing investigating. "up from 8 percent of the CRM market in 2005 to 20 percent of the market in 2008.[7] After businesses collaborate as "supply chain partners". more complex collaboration can be implemented on networking platform.[7] [edit]Cloud solution Today. eCRM in B2B market Traditional B2B customers are usually seeking ways in order to decrease the firm¶s expense. companies can cost efficiently as pay-per-use on manage. Due to information technology developing. transaction can be recorded via CRM database immediately.[20] Some enterprise CRM in cloud systems are web-based customers don¶t need to install an additional interface and the activities with businesses can be updated real-time. system and connect with their customers streamlined in the cloud. Assess your company¶s needs: some of enterprise CRM systems are featured . and fun to browse. and information obtaining are important factors to maintain customer services. it takes the mutual benefits can give both sides an equal position to increase co-work confidence[16]  eCRM in B2C market In contrast with B2B.

Make sure the sales team is on board: as the frontline of enterprise. eCRM has become a requirement for survival.[24] An extreme. the launched CRM system should be the help for sales. Ask about security: consider whether the cloud CRM provider give enough protect as your own. Some examples of tools used in eCRM:  Personalized Web Pages where customers are recognized and their preferences are shown. [edit]vCRM Channels through which companies can communicate with its customers. example of the creation of experiences in order to establish customer service is the use of Virtual Worlds. 7. and as a result.[23] One of the reasons eCRM is so popular nowadays is that digital channels can create unique and positive experiences ± not just transactions ± for customers. not just a competitive advantage.2.[26] Furthermore.[25] Its highly interactive character. However. are growing by the day. Customized products or services. in a world where almost every company is connected to the Internet. Know your exit strategy: understand the exit mechanism to keep flexibility. Consider mobile options: some system like Salesforce.  CRM programs should be directed towards customer value that competitors cannot match. getting their time and attention has turned into a major challenge. 4. 3. 6. 5.[27] However. but ever growing in popularity. is another feature of eCRM that helps companies establish and sustain long-term customer relationships. which allows companies to respond directly to any customer¶s requests or problems. Take advantage of free trials: comparison and familiarization each of the optional. Information Technology has helped companies to even further differentiate between customers and address a personal message or service.com can be combined with other mobile device application. Do the math: estimate the customer strategy for company budget. most companies are still struggling to identify effective entries in Virtual Worlds. companies are able to create synergies between virtual and physical channels and reaching a very wide consumer base. Through this so-called vCRM. given the newness of the technology.[28] . such as Second Life.

One obvious way it could be measured is by the ability for the system to add value to the existing business.[edit]Different levels of eCRM In defining the scope of eCRM. Proactive service is where the manager has decided not to wait for the customer to contact the firm.  Value-added services: These are extra services such as online auctions and online training and education. Developing customer-centric strategies 2. Re-engineering work processes 4. There are four suggested implementation steps that affect the viability of a project like this: 1. three different levels can be distinguished:  Foundational services: This includes the minimum necessary services such as web site effectiveness and responsiveness as well as order fulfillment. Supporting with the right technologies[32] .  Customer-centered services: These services include order tracking.[31] Steps to eCRM Success Many factors play a part in ensuring that the implementation any level of eCRM is successful. Redesigning workflow management systems 3.[30] CRM activities are mainly of two different types. Reactive service is where the customer has a problem and contacts the company.[29] Self-services are becoming increasingly important in CRM activities. product configuration and customization as well as security/trust. The rise of the Internet and eCRM has boosted the options for self-service activities. which provoked an outcry among its dealers network. but to be aggressive and contact the customer himself in order to establish a dialogue and solve problems. An example was Ford¶s plan to sell cars directly to customers via its Web Site. A critical success factor is the integration of such activities into traditional channels.

[33] However. since the Internet access points are increasing by the day. the software being developed for these applications has become worthwhile and useful to end users. Step 1 . Step 2 ± Mobile design phase: This is the next critical phase that will show all the technical concerns that need to be addressed. The technology to them is nothing new so it is easy to adapt. It also has to be kept in mind that the mobile CRM system must be able to grow and change with the business. sales or services processes.[35] There are three main reasons that mobile CRM is becoming so popular. support marketing. takes this one step further and allows customers or managers to access the systems for instance from a mobile phone or PDA with internet access. Secondly. By following these and also keeping the IT department.[34] eCRM allows customers to access company services from more and more places. The first is that the devices consumers use are improving in multiple ways that allow for this advancement. A few main things to consider are screen size. This is defined as "services that aim at nurturing customer relationships. resulting in high flexibility. .Needs analysis phase: This is the point to take your times and understand all the technical needs and desires for each of the users and stakeholders. mCRM however.Mobile CRM One subset of Electronic CRM is Mobile CRM (mCRM). Since mCRM is not able to provide a complete range of customer relationship activities it should be integrated in the complete CRMsystem. either one-way or interactive. the end users and management in agreement. since communications is the central aspect of customer relations activities. many opt for the following definition of mCRM: "communication. and use wireless networks as the medium of delivery to the customers. Displays are larger and clearer and access times on networks are improving overall. the outcome can be beneficial for all. acquiring or maintaining customers. the users are also becoming more sophisticated. Lastly. marketing and customer service activities conducted through mobile medium for the purpose of building and maintaining customer relationships between a company and its customer(s). which is related to sales.[36] There are four basic steps that a company should follow to implement a mobile CRM system. device storage and security.

CSO Forum 2004.70% failure rate according to Butler group 2003. Failure to identify and focus on specific business problems. It is continuously active and allows necessary individuals to take action quickly using the information.31% according to AMR Research 2006. 4. Poor user acceptance. indicating that CRM failures dropped from a failure rate of 80% in 1998. 2. Lack of active senior management sponsorship. a positive trend can be seen.69.Step 3 ± Mobile application testing phase: This step is mostly to ensure that the users and stakeholders all approve of the new system.29% according to AMR Research 2007.56% according to Economist Intelligence Unit .[37] Advantages of mobile CRM: 1. Typically it is an opt-in only channel which allows for high and quality responsiveness.18% according to AMR Research group 2005. The mobile channel creates a more personal direct connection with customers. Step 4 ± Rollout phase: This is when the new system is implemented but also when training on the final product is done with all users.50% failure rate according to the Gartner group 2002. 3. to about 40% in 2003.[38] Failures Designing.3% according to Selling Power.[39] Some of the major issues relating to CRM failure are the following:      Difficulty in measuring and valuing intangible benefits. Not only because of the amount of money that is involved. However. creating and implementing IT projects has always been risky. but also because of the high chances of failure. which improves and strengthens relationships.[40] Failure rates in CRM from 2001-2009:[41]        2001. Overall it supports loyalty between the customer and company. Trying to automate a poorly defined process.

if marketers want to use consumer information for advertising purposes.[45] Statistics on privacy   38% of retailers don't talk about privacy in their sign up or welcome email About 50% of major online retailers discuss privacy concerns during the email subscription process As the use of the Internet. CRM systems depend on databases in which all kinds of customer data is stored. 2009. [edit]Privacy The effective and efficient employment of CRM activities cannot go without the remarks of safety and privacy. the following rule applies: the more data. they must clearly illustrate the ways in which they will use the customer's information and present the benefits of this in order to acquire the customer's consent. if a company has a privacy policy. Some known examples of these problems are conducting credit-card transaction online of the phenomenon known as 'cookies' used on the Internet in order to track someone¶s information and behavior. they will not share the customer's information with third party companies without the customer's express consent. Most of these rates were based on customer response pertaining to questions on the success of CRM implementations. it was revealed that over half the respondents have an incorrect understanding of how their information is being used. Also.[42] The design and the quality of the website are two very important aspects that influences the level of trust customers experience and their willingness of reluctance to do a transaction or leave personal information.[43] Privacy policies can be ineffective in relaying to customers how much of their information is being used. In a recent study by The University of Pennsylvania and University of California. the better the service companies can deliver to individual customers. Internet policy officials are calling for more performance measures of privacy policies. . Therefore. Legislation is being proposed that regulates the use of personal data. They believe that. and even the existence e-business are rising. electronic CRM solutions. in order[who?] to further reap the benefits of their[use. so are the efforts to further develop the systems being used and to increase their safety for customers.47% according to Forrester Research Differing measurement criteria and methods of the research groups make it difficult to compare these rates.[44] Privacy concerns are being addressed more and more. In general.

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