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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
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.
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.
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.
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 backoffice 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.
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 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.
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
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 standalone 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
How these applications help businesses
Companies have the same goals pertaining to the effectiveness and performance of CRM, and ERP systems
By synchronizing these areas, companies can expect to increase profitability, become more competitive, and support ground-breaking business techniques (become more modernized) With these four attributes, CRM, and ERP systems are much more effective in meeting the goals of the business; if one quality is missing from a certain application, the effectiveness of the entire system consequently decreases and is therefore unsuccessful in achieving the aforementioned goals
Effective application qualities
CRM, and ERP systems rely heavily containing the following attributes: flexibility; modular (being able to support many different platforms); comprehensive (the ability to support a wide range of organizational functions); and beyond the company (connecting 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 corporatewide ERP system.
Managing the aspects of a customer’s relationship to an organization
Integrating all departments of an organization into a single, comprehensive IT system
All of these areas deal with the effectiveness of certain aspects of organizations in 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
Sales, marketing, customer service
Accounting, Even though the finance, logistics, users are different, production the applications are interdependent; they rely on one another to ensure a successful customer value delivery system Forecasting, planning, purchasing, material management, warehousing, inventory, distribution All systems allow for different business benefits which in turn add to the effectiveness of the business itself; its productivity and overall stance in the business world Because there is 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
Sales forecasts, sales strategies, marketing campaigns
Siebel, Oracle, PeopleSoft
PeopleSoft, Oracle, SAP
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.
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