E-CRM

electronic customer relationship management

Presented by:
omid minooee

What is E-CRM?

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

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.

The essence of CRM

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

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?

Gather and combine customer information into a unified picture Response faster and accurately Build customer loyalty

Different levels of eCRM

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

Different levels of eCRM

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

Different levels of eCRM

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

Steps to eCRM Success

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:

Steps to eCRM Success

1. Developing customer-centric strategies

2. Redesigning workflow management systems

3. Re-engineering work processes 4. Supporting with the right technologies

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

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

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

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

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

Future Trend

CRM as a Strategic Function Mobile CRM (mCRM)

CRM as a Strategic Function

Crucial element of ebusiness - planning and understanding goals Invite interaction from customers Merge vendor functions New technology

Mobile CRM (mCRM)

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 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)

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

Advantages of mobile CRM:

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

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

Why a need for eCRM implementation?

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

Failures:

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

Failures:

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

Failure rates in CRM from 2001-2009

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

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

Results

Integration of telephone, e-mail and Web

environments

Allowed the company to bring together all the members of the customer service community: marketing and sales, finance and accounting, distribution

Customer access to every company function in one familiar place

Customer interaction whenever they wish eCRM paid for itself in only 6 months

Future eCRM implementation

Expand link to partners and suppliers

Thank

you all!