CRM AND e-CRM

ABHINAV SHARMA

CRM …..

Any application or initiative designed to help an organization optimize interactions with customers, suppliers, or prospects via one or more touch points for the purpose of acquiring, retaining customers.

Introduction of e-CRM

eCRM is the application of CRM to an e-business’ strategy Personalization/customization of customers’

experiences and interactions with the e-business Recall:

Relationship between merchant and customers is distant Less expensive to keep customers than to acquire new

ones Repeat customers have higher lifetime value than one-

time buyers

Tracking: Data Mining Data mining (building on a data warehouse)

Uses algorithms and statistical tools to find patterns in data gathered from customer visits

Costly and time consuming to go through large amounts of data manually

Use data-mining to analyze trends within their companies or in the marketplace

Uncovered patterns can improve CRM and marketing campaigns

Discover a need for new or improved services or products by studying the patterns of customers’ purchases

Tracking: Customer Registration

Customer registration Requiring visitors to fill out a form with personal

information that is then used to create a profile Only works when it will provide a benefit to the

customer When customers log on using usernames and

passwords, their actions can be tracked and stored in a database

Require only minimum information Need to give customers an incentive to register

E-MarketingE-Marketing ManagementManagementE-mail Marketing:E-mail Marketing: Alerts, E-Newsletter Management Alerts, E-Newsletter ManagementE-Surveying:E-Surveying: Progressive Profiling Management Progressive Profiling ManagementViral Marketing: Viral Marketing: Tell-a-Friend ManagementTell-a-Friend ManagementWeb Design: Web Design: Registration, Subscription, VIP ManagementRegistration, Subscription, VIP ManagementOnline CommunityOnline Community / E-Suggestion Box / Blog Management / E-Suggestion Box / Blog ManagementE-Commerce:E-Commerce: Memberships, Event Registration Memberships, Event Registration ManagementManagementAffiliate Management:Affiliate Management: Sponsorship Management Sponsorship Management (Boston (Boston Symphony)Symphony)Reporting / Analysis: Reporting / Analysis: Profiles, BehaviorsProfiles, Behaviors

TRADITIONAL FORM OF CRMThe existing CRM solution are not capable

enough to satisfy and retaining customers and also there is no integrated tool which connect the Central sales management, regional sales office, customers care, sales, sales distribution, regional sales team in effective manner.

A 360 view requires the automation to bring together all the data concerning a customer. This implies that organizations have to change the form :

TRADITIONAL CRM EMERGING SOLUTION

Mass production Product focus

Product focus Customer focus

1way communication Interactive communication

Response time Real time responses

EMERGING IMAPCT OF E-COMMERCE ON CRM

In a fast changing internet world there are very clear trends that are emerging :

Speed: people expect service at fast speed Increase of global market place: more more people ,

communities across the globe are able to build relationships.

Around the clock availability expansion of partners : internet offers the ability for

the organizations and people alike to partner with suppliers and customers alike across the globe.

EMERGING IMAPCT OF E-COMMERCE ON CRM

In global market place the channels of marketing are already causing an impact on the buying behavior of individuals as well as organizations alike. Some of the trends are :

1. VERTICAL E-MARKET PLACE :industry specific market place such as being formed by auto giants where organized buyers and sellers can meet, list, negotiate, make orders and track delivery.

EMERGING IMAPCT OF E-COMMERCE ON CRM

BUY SITE AND SELL SITE: where consumers and organization are alike can buy or sell online through online shopping mart concept.

HORIZONTAL MARKET PLACE: service that run across the different vertical e-market places or business to customers (B2C) buy and sell sites. Such sites should be delivery sites , insurance etc.

Use of internet to optimize supply chain management(SCM) : earlier organizations use to use EDI rather than the expensive preposition for limited numbers of partners but now organizations are implementing new ERP systems to optimize its SCM.

e-CRM With the abundance of product and services

offerings, consumer`s loyalty can only be commanded by providing better portfolio of services.

speed of response and understanding each individual one of the major key issues CRM has become the central focus area around which the entire gamut of organizational activity has to revolve round.

What is e-CRM ?In simplest terms e-crm provides company

to conduct interactive, personalized and relevant communications across the globe with their customers by utilizing the traditional and electronic channels both.

It adheres to permission based practices, respecting individual's preferences regarding how and whether they wish to communicate with you and it focuses on the understanding how the economics of the customers relationships affects the business.

What is e-CRM ?e- CRM is the electronic based version of

CRM. The user of the a e- CRM solution uses the sources of the internet to increase the relationship with the customer.

web based CRM can easily handle the relationships between Central sales management, regional sales office, customers care, sales, sales distribution, regional sales team.

Role & significance in the success of

e-CRM ? To optimize the value of the interactive relationships Enable the business to extends its personalized reach in

the hand of customers Co-ordinating marketing initiatives across the all

customers channels Leverage the customer`s information for more effective e-

marketing and e-business Focus the business on improving the customers

relationship and earning a greater share of each customer`s business through consistent measurement, assessment and actionable customer strategy.

The six “E`s” of e-CRM

The ‘e’ not only stands for “electronic” but also perceived to have many other connotations. Through the core of CRM remains to be cross channel integration and optimization. The six “E” of e-CRM are briefly explained in the next slides.

The six “E`s” of e-CRM

1) Electronic channels: new electronic channels such as web and personalized e- messaging have become a medium for fast and interactive , economic communication , challenging company to keep pace with the increased velocity. E – crm thrives on these electronic channels.

2) Enterprise : through e- CRM the company gains the mean to touch and shape a customers experience through sales, services.

The six “E`s” of e-CRM

3. Empowerment: it must be structured to accommodate consumers who now have the power to decide when and how to communicate with the company. Through ,which channel , at what frequency. An e- CRM must be structured to deliver timely pertinent, valuable information that consumers accepts in exchange of his/her attention.

The six “E`s” of e-CRM

4. Economics : an e-CRM strategy ideally should concentrate on the consumer economics, which drives smart asset allocation decisions, directing efforts at individuals likely to provide the greatest return on customer- communication initiatives.

The six “E`s” of e-CRM

5.Evaluation: understanding the customers relies on a company`s ability to attribute customers behavior to market programs, evaluate customer interactions along various customers touch points channels and compare anticipate ROI against actual returns through analytic reporting.

The six “E`s” of e-CRM

6. EXTERNAL INFORMATION : the e-CRM solution should be able to gain and leverage information from such sources as third party information networks and webpage profiler application.

Acquisition (increasing the no. of customers) Expansion (increasing the profitability by encouraging

customers to purchase more products and services) Retention (increase the amount of time in which the

customers stays with company, making a long-term relationship)

EVOLVING TO e-CRM

In nutshell a company evolving to e-CRM should be: Define its business objective. This would be specific and

different for different businesses Assess its current position with respect to the environment and

determine its current level of “sophistication” along the e-CRM continuum ( e-CRM assessment)

Define new business processes and align its existing business strategy and existing processes in line with the new realities (e-CRM Strategy alignment)

Define a technical architecture and the criteria`s associated with this architecture and the important criteria associated with this architecture. (e-CRM)