Chapter 4

CHAPTER ?
E
C
04 R
E
N
E
F
IF
e-CRM H
E
D

T
’S
T
A
H
W
 DISCUSSION TOPICS
1. Merging CRM and the internet
2. CRM on and off the internet
3. Recognizing barriers to internet adoption
1. MERGING CRM AND THE INTERNET
a. New Customer Expectations
b. Why e CRM is so important
 New

Speed
Control Globalization
Access Automation
Importance of

To meet For cost

customer efficiency
expectations
To meet
competitor’s
initiatives
2. DELIVERING CRM ON & OFF THE NET
 Definition of CRM & e CRM

CRM is a strategy by which companies optimize

profitability through enhanced customer satisfaction-centric
business processes of Sales, Marketing, and Service.
 ECRM is the customer focused management of
the whole e Business relationship with each customer, in
order to generate greater positive lifetime value.
 Real difference is automation
 Information
 Process
 Technology
 Manner
 Personality
 Emotion
 People
 Business CRM e CRM
Concept

Customer Customer
Raw Material
Information information
Manufacturing Online
CRM interactions
Process Interactions
Internet
Energy or Power People
technology
Machinery & Internet
CRM technology
Equipment technology
Improved Improved
Product relationship & relationship &
loyalty loyalty
3. RECOGNIZING BARRIERS TO INTERNET
ADOPTION

Customer Customer
Legislation
confidence trust
 Barrier Customer Strategies Comments
Concerns
1. Customer The process Design and Try to mimic
confidence: seem build your e your best offline
While many unfamiliar and CRM so they services to
customers confusing are simple, online.
are eager to helpful, and
shop online, friendly.
many are not No real person Weave in Simplify your
is there to human contact online products
answer where and compare
questions. FAQ possible, such your practices
list is not as call center with
enough. direct link from competitors.
website.
Interactions Make your key This will create
can be cold manager visit empathy and
and unfriendly. your website you get the
and act like required
customers for internal support.
a day
 Barrier Customer Strategies Comments
Concerns
2. Customer Internet Don’t ask what If you ask too
Trust: openness you don’t much, you will
Customer makes it hard need, be get a Mickey
don’t trust us to feel secure. specific. Mouse.
with their data,
especially
online. Internet Clarify what Give them a
privacy issue you want and reason and
get more why you want. some future
popular, easily. benefit.

Customers Use consistent Help educate

don’t know terms and your
about the real language. customers, so
danger. they know the
dangers.
 Barrier Customer Strategies Comments
Concerns
3. Legislation Make your Use your
Legislation: may limit the Privacy and privacy policy
Some information Security to support your
legislation that can be policies part of brand image
threatens the collected your customer and build trust.
internet’s online and loyalty
ability to grow how it can be program.
as a medium used.
for transacting
business.
Trading Join and The DMA
restrictions, involved with lobbies for
negatively trade open markets
affect sales. organizations and limited
such as DMA. privacy
regulation.