Electronic Customer Relationship Management E-CRM

Learning Objective
To learn about E-CRM and how companies are using the same for connecting with customers

Introduction
Todays Customers
Are sophisticated. Are price sensitive. Are demanding. Live time-compressed lives. Want their needs met. Want their products fast with greater convenience. Have unprecedented control.

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Introduction
Todays companies are:
Are digital companies. Flatten (less hierarchy). Location Independent. Decentralization. Flexibility. Low transaction and coordinating cost. Using strong IT infrastructure ( Enterprise software, hardware, Internet, LAN,WAN etc....).

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e - CRM
Internet provides a new set of tools for interacting with customers. One of the major changes the internet has brought to the marketplace is putting more information and control in the hands of customers. Elimination of direct customer interaction by automation has changed the way we deliver experiences, but customer requirements about the quality of that experience havent changed.

e - CRM
NEW CUSTOMER EXPECTATION

There are five key areas in which the internet has impacted the way we do business: Access Control Speed Globalization Automation

E-CRM a definition
E-CRM is:

Applying
Internet and other digital technology (web, e-mail, wireless, iTV, databases) To

acquire and retain customers (through a multi-channel buying process and customer lifecycle)
By Improving customer knowledge, targeting, service delivery and satisfaction.

Concept of e-CRM
According to William McKnight, E-CRM is not just your call center, self-service Web site, sales force automation tool or the analysis of customers' purchasing behaviors. E-CRM is all of these initiatives working together to enable you to more effectively respond to your customers' needs and to market to them on a one-toone basis. It's about the customer, not any individual piece of technology. If we evaluate and understand how our customers behave and how we need to respond to them, then we can begin to understand the component pieces of e-CRM.
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Cost of Customer Contact

Internet is much more economical than other channels. For instance, it has been estimated that while it costs nearly US $1.07 per transaction using the normal means, on the Net the costs comes to a mere cent. Even when compared with telephone banking (5 cents) and the ATMs (2.7 cents), the Net seems to have an edge. In addition, the strategic and social benefits may be considerable for both parties (Halinen 1989)

American Airlines Offers Personalized Web Sites

American Airlines (aa.com) unveiled a the most advanced personalized, one-to-one interactions and transactions on its Web site in 1998
Intelligent agents enable the generation of personalized Web pages for each of its 1 million registered, travel-planning customers

Broadvisions application dynamically matches customer profiles to a database

Output of the matching process triggers the creation of a real-time customized Web page Slide 10 of 43

American Airlines Offers Personalized Web Sites

The use of intelligent-agent technology built a considerable edge over AAs competitors Personalizing Web pages is becoming more important in:
Increasing customer loyalty Cementing relationships with customers Fostering the community of AA frequent flyers Slide 11 of 43

Applications of e-CRM
The following are the basic applications of e-CRM:
Reducing technological gap: Implies that an application of eCRM in an organization brings an appropriate technology in use, which helps in reducing technological gaps. Maintaining a data warehouse: Implies that the e-CRM system of an organization is driven by a data warehouse. Reaching out customers by different channels: Implies that eCRM helps an organization to reach out to customers through various modes, such as e-mail and online web chat. Measuring communication efforts: Implies that e-CRM enables marketers to view overall customer interaction history. Providing faster customer service: Implies that e-CRM enables organizations to serve customers quickly by automating various processes.

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Requirements of e-CRM
Most organizations require an effective e-CRM application for the following reasons:
Communicating with customers in a fast and convenient way through e-messaging, Internet, and digital marketing Maintaining a systematic and organized database for better customer feedback and support Analyzing the touch-points of customer experience Coping with fierce competition in the market Collaborating internal and external information of an organization Empowering customers for making a convenient deal and getting the required information

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Benefits of e-CRM
The following are the benefits of e-CRM:
Direct Benefits: Imply that e-CRM helps an organization to reduce costs incurred on manual processes, achieve maximum output, and improve business performance. Indirect Benefits: Include benefits, such as reduced lead times for ordering products, minimum risk of obsolete stock, customer satisfaction, and effective communication. Strategic Benefits: Refer to long-term benefits of e-CRM that can be achieved through close interaction with customers, suppliers, and employees of an organization.

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Disadvantages of e-CRM
Can be impersonal
Systems aimed at increasing the efficiency of the organization can end up disenfranchising customers

Customer-facing applications. These include all the areas where customers interact with the company: call centers, including help desks; sales force automation; and field service automation. Such CRM applications basically automate information flow or support employees in sales or service. Customer-touching applications. In this category, customers interact directly with the applications. Notable are self-service activities, such as FAQs; campaign management; and general-purpose EC applications. Customer-centric intelligence applications. These are applications that analyze the results of operational processing and use the results of the analysis to improve CRM applications. Reporting, data warehousing, and data mining are the prime topics here.

Online networking applications. Online networking refers to methods that provide the opportunity to build personal relationships with a wide range of people. These include chat rooms, blogs, wikis, discussion lists, and social network sites.

Challenges of Managing Online Relationships

Controlling blogs
Handling the dissatisfied customer Brand hijack Customer empowerment

Developing Trust Online

Established brand name Seals of approval (testimonies) Payment safeguards (e.g. Paypal) Acknowledge orders with a reference or contact number Give customers an element of control

Keeping online customers

Track online behaviour for CRM purposes Invest in excellent technical systems Let customer personalize their site Develop online communities and chat rooms

Scope of e-CRM
Increasing the customer base

Scope of E-CRM Ensuring prolonged existence of customers

Increasing profitability

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Tools of e-CRM
The following are some of the important tools of e-CRM:
Customer Analytic Software Data Mining Software Campaign Management Software Business Simulation Personalized Messaging System Real-time Decision Engine
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Differences between CRM and e-CRM

Basis Customer Contacts CRM e-CRM

Contacts customers through retail stores, Approaches customers through business parties, telephone, and fax channels, such as the Internet, emessaging, e-mail, and Personal Digital Assistants (PDAs)

System Interface

Requires ERP and back-end systems

Requires front-end systems backed with ERP system and data warehouse Designed as per the needs of customers

System Focus

Designed on the basis of products and job functions

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e - CRM
Barriers to Customer Adoption of the Internet
Barrier Customer concern Strategies Comments

Customer confidence While many The process seems Customers unfamiliar Are eager To shop Online, many Are not

Design and build Look for your e-crm systems ways to mimic simple, helpful and the best of friendly understand your companys and prepare for what offline automation does well interactions where it is weak. With your customers.

e - CRM
Barriers to Customer Adoption of the Internet
Barriers customer concern strategies comments

Customer Trust Customers openness of the interDont trust net makes it appear Us with hard to secure data. Their data, Especially Online

Dont ask for If you require more information too much Than you really need. Information, customers will fill in garbage.

e - CRM
Barriers to Customer Adoption of the Internet
Barriers
Legislation
Some legislation Legislation may limit Make a privacy Threatens the the information that can and security Internets ability be collected online and policy part of To grow as a how it can be used your customer Medium for loyalty and Transacting relationship Business management program Use your privacy policy to support your brand image and build trust.

Customer concerns

strategies

Comments

Digital Marketing
Digital marketing is a strategy of promoting products or services through the Internet, e-mail, or other electronic devices. It is used as a powerful tool to reach out to maximum number of customers. The following are different types of digital marketing:
Display Advertising Search Engine Marketing (SEM) Search Engine Optimization (SEO) Social Media Marketing E-mail Marketing Video Marketing
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Checklists for Successful e-Business

The following are the checklists of e-business:
Keeping an eye on service quality Measuring the effectiveness of all service channels

Maintaining effective communication with business

partners Focusing on business processes Identifying offline customers
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Customers Will Be The Driving Force

Shift to Internet selling empowers customers Fragmentation of demand can be met Customer's rationality will determine what they buy on-line E-tailing enables retailers to move customers up the Ladder of Loyalty E-tailing benefits shoppers who are time poor Digital TV will bring e-tailing closer to the average shopper

Important CRM Software

Siebel: Serves the CRM needs of different industries, such as healthcare, finance, telecommunications, insurance, and travel.

Oracle: Refers to a relational database management system (RDBMS), which is marketed by Oracle Corporation.
MySAP CRM: Provides CRM solutions to various industries. SAP ERP is another popular product from SAP. PeopleSoft: Provides CRM solutions based on HTML, http, and XML.

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Anticipating the Buying Behavior of Online Customers

The following are the guidelines for predicting the buying behavior of online customers more effectively:
Identifying the needs of customers Increasing customer awareness Evaluating available alternatives

Analyzing purchasing decisions

Understanding the post-purchase behavior
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Evaluating e-CRM Return on Investment

Evaluating Return on Investment (ROI) is a challenging task for every organization especially in e-marketing. The following are the steps involved in evaluating e-CRM ROI:
Identifying the possible cost savings aspects from e-CRM initiatives Identifying the initial and ongoing costs for new software, services, and relevant equipment Setting a time period in which the measurable results are expected to be achieved Analyzing a no change scenario over the identified time period Involving finance experts for analyzing e-CRM budget and estimating its expected ROI Comparing the previous scenario with the existing one for determining the expected ROI Approaching the project systematically so that the anticipated results are attained
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