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SRI SHARAD INSTITUTE OF INDIANMANAGEMENT RESEARCH PHASE-II, 7th
INSTITUTIONAL AREA
VASANT KUNJ, NEW DELHIWWW.SRISIIM.ORG
E-CRM AND CASE STUDIES
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SUBMITTED TO: SUBMITTED BY:
Prof. N.VENKATESH Iqbal Ali (20110107)
Rahul Tuli (20110114)
DECLARATION
We Iqbal Ali and Rahul Tuli, student of PGDM (2011-13) hereby declare
that we have completed this project E-CRM AND CASE STUDIES. The
information submitted is true to the best of our knowledge.
IQBAL ALI (20110107)
RAHUL TULI (20110114)
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What is eCRM?
onsider thefollowing
progression for amoment, and let'ssee where eCRMcan lead:
C
1. eCRMprovidesAccess
2. AccesscreatesInformation
3. InformationenablesMeasurement
4. Measurementis animperative forProcessImprovement
5. ProcessImprovementleads to
Growth inRevenues &Profit
Therefore, eCRM,well implemented,leads to Growth inRevenues & Profits,a bold assertion?This paper offers adefinition of eCRM
and explains why this
progression is avalid.
Everywhere you lookthese days you seeeverybody.com ande-
everything. CRM(CustomerRelationshipManagement) hasbeen undergoing
evolution towards theWeb for some yearsbut only relativelyrecently have weseen the term eCRM.
So what is eCRM? Isit old CRM with someInternet accessbolted on? Or is itmore fundamental
than that? Toproperly understand
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CRM Evolution
BPR ERP SFA CRM eCRM
Cost Reduction Strategy Growth Strategy
IT LedBusiness Led Marketing Led
1980s 1990s 2000s
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eCRM it is useful tolook at the evolutionof CRM and toreview its originalobjectives.
As can be seen inFigure 1, CRMevolved out of theSFA (Sales ForceAutomation) systemsfrom the early 90s.Prior to this,companies were nottreating Sales &Marketing aspriorities for IT
investment. Areassuch as Accounting,Office Automationand ERP were themoney-spinners andit was difficult to finda seriously fundedproject for Sales &Marketing system.Today it is verydifferent, CRM is
considered as veryimportant in mostorganisations and formany it has becomea major element oftheir ongoing ITinvestment.
Of course,investment in any ITsystem has toultimately contributeto increasingprofitability. There isa close correlationbetween growth inrevenues & profitsand the benefitsgained from well-implemented CRM,these benefits are:
Retaining
existingcustomers
Selling more to
existingcustomers
Finding andwinning newcustomers
Figure 1 - CRMEvolution
CRM is now wellunderstood astodays technologysolution to improvingthese 3 areas ofbusiness by:
Increasing
efficiency
Improving
marketing andsales decisionmaking
Enabling
process
measurement leading toprocessimprovement
Figure 2 -Integrated Database
Over the past 10 or
so years CRM hasevolved out of ostensibly separatesales automation,marketingdatabases, customerservice systems intoan integrated systemserving all frontoffice/customer
facing functions
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across the enterprise(see Figure 2).
Figure 3 -Enterprise CRM
Supporting the
FrontOffice
Many organisationstoday see CRM asthe accepted tool tosupport thesedisciplines. Just asan organisationwould not considerrunning their finances without an
accounting system,many now would notconsider runningsales marketing andcustomer servicewithout a CRMsystem.
For example inmarketing, CRMenables you to knowyour customersbetter, understandtheir value (LTV) anduse the informationto make better
marketing, sales andservice decisions.
Trying to makemarketing decisionstoday without asystem is a bit like
navigating at seausing the stars.Internal to theorganisationmanagers canmonitor activity,measureperformance andimprove processes toreduce waste andincrease
effectiveness.Todays enterpriseCRM system will looksimilar to Figure 3.
Prospects andcustomers willcommunicate withthe enterprise via amix of channels,which may varydepending uponwhere they are in thebuying cycle. Forexample, whenresponding to direct
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marketing, contactmay be by bingo-card or telephone.When making apurchase decision itmay be field sales or
a telephone-orderingcentre. Post-salescontact may be via asupport help-desk.All front-officefunctions (customertouch points) willshare a central CRMdatabase. Integrationbetween the CRMdatabase and the so-
called back-officesystems e.g.accounts,manufacturing,distribution, ERP etcmay be real time orbatch interfacedepending uponneed.
The benefits of
multiple contactchannels are obvious customers havechoice - they will usewhichever contactchannel in mostconvenient to them.The informationcaptured during allcustomer contactand transactions isheld on a databasein a structure andeasily accessibleway. Whats more, itcan be madeavailable to anyonein the organisation.Core data need onlybe keyed in once front office and back
office systems sharethe same core
records, althougheach will haveadditional informationspecific to theirprocesses.
ConventionalCRM
What is beingdescribed here iswhat we will callconventional CRM.In conventional CRMthe prospect or customer contact willbe with a member ofyour internal staff.Staff will access acentral relational(SQL) databasesitting on a LANusing speciallyconfigured CRMapplications on PCsrunning Windows.Users may be office
based, or fieldbased. Field peoplemay have laptopstypically using dial-upor email remotedatabasesynchronisation.There is however amajor limitation in theconventional system one of limited
access. Lets look atthis issuespecifically.
When embarking onany project there arealways budgetconstraints. As withany investment,CRM systems shouldbe deployed to meet
priority items first.For example, a
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typical roll out maybe managed inphases. Phase 1may include most ofthe sales team plus abit of marketing;
phase 2 may bringon board the rest ofmarketing andcustomer service;phase 3 may includeremote field salesusers who were notpart of phase 1, plusan interface toaccounts; phase 4.I'm sure you get the
picture.
Key issues dictatethe rolloutA number of issuesof course will dictatethe rate of a rolloutand who is or is notincluded. For example, a key issueis change-
management, i.e. notwanting to do toomuch, to too many,too quickly.
Another commonissue of course iscost. How are wegoing to afford thenew kit and thelicences for all theseextra users,particularly thosewho dont need touse it everyday, theoccasional users - itwould be nice tohave them included.
What about our business partners?
We would like toinclude our external
telemarketingcompany it wouldbe great if we couldsend them list to calland have them enterresults and set
follow-up actions forour sales team, usingthe same CRMsystem.
What about thereseller channel; thedealers why cantthey use the samesystem? We couldreally keep track of
all those leads wesend them and getfeedback without thecontinual chasing.
Lets not forget ourcustomers wecould give thempartial access to theCRM system theycould look up product
details, requestinformation, logsupport calls, checkdelivery progress etc.This would be moreconvenient for themand lower cost for us.
After all, the idea oftracking everycontact andtransaction withprospects andcustomers was theoriginal idea behindDatabase Marketing- the pre-cursor to,and philosophybehind CRM.Unfortunately due tolimited access by the
wider population thislevel of contract
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tracking could neverbe achieved untilnow Enter eCRM.
What eCRMs all
aboutPut simply, eCRMmeans CRM-database access viathe Web. It meansIntranet access forinternal users,extranet access forbusiness partnersand customers andof course, Internetaccess for themarket at large.
As well as this wideraccessibility, eCRMenables newmarketingopportunities. Webmarketing, Web selfservice, automated
response to emailrequests, remotedata warehouseaccess, integratedmarketing channels,etc lets look atsome of theadvantages Forexample, the Weboffers an additionalmarketing channel.
For marketers theWeb is quite differentto other channels inan important way everything can becaptured andtracked, because bydefinition everyrequest, response,contact, transactionis carried out on the
system potentiallynothing is lost.
Another importantdifference is thatWeb marketing canbe focused more onthe needs of the
buyer. You can builda Web environmentbased on the way thecustomers prefer todo business indeedif you dont they willpass you by! Afurther example isthe ability to offerself-service.Prospects and
customers canaccess productdetails, prices,delivery, they canplace an order; theycan book onto aseminar or trainingcourse. They canrequest information,access a bulletinboard, log a support
call, access a self-support database,and check progressof an actionpreviously logged.
Plan to do eCRMright
The Web is offering
the customer anadditional way ofcontacting theenterprise and doingbusiness. Customerswill choose whichcontact channel ismost effective forthem - eCRM meansgreater efficiency,you dont waste their
time and they dontwaste yours. But,
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and its a big but, thesystem is capturingfar more informationabout the customerthan ever before. Doit right and you can
become the easiestcompany to dobusiness with which brings us backto the originalobjectives of CRM -customer acquisition,customer retention,customerdevelopment.
From a marketing-measurement pointof view, all this isvery exciting indeed.Consider some of theleading DatabaseMarketing literatureof the late 1980s(e.g. Rapp andCollins; Shaw andStone; Moriarty and
Schwartz). Theirpremise was thatmarketing CampaignManagement was allabout capturingevery point of dialogue with themarket, prospectsand customers toenable accuratemeasurement ofmarketingeffectiveness and touse this to planfuture campaignsand events,continuouslyimproving their effectiveness doingmore of what workedand avoiding what
didnt.
This vision has neverreally been realisedbecause much of theinformation in moretraditional directmarketing campaigns
is lost along theprocess.
Studying acampaign for guidanceContrast thefollowing extract froma Web campaignwith a traditionaldirect mail event.
First, we advertiseour Web site throughfocused media anddirect mail. Everyweb-hit is capturedand is attributed tothe advertising event.
Multiple choices areoffered to the
respondent e.g.request information;book onto an event;self qualify; contact asalesman; purchaseproduct etc all iscaptured and trackedby the database.More than that wecan respond from thesystem andautomaticallyacknowledge theresponse, we canfulfil very rapidly most probablydirectly from thesystem.
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We can route the
enquiry to whereever and who ever isbest to deal with itbased on self qualification datacaptured at eachsubsequent stagedown the processeach player inenterprise will haveaccess to the
complete picture sofar. We havecaptured everything;therefore we canmeasure theprocess. eCRM islimited only by thecreativity of themarketer.
Do we move toeCRM now?
You may be askingyourself at this pointShould I bereplacing my currentconventional CRMsystem with eCRM?or if you areconsidering CRM for
the first time, youmay be thinking,
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Should I not botherwith CRM but jumpstraight to eCRM?Wait! Lets look atthe pros and cons ofboth before
answering thesequestions.Putting the accessissue to one side fora moment,conventional CRMsystems offer verypowerful capabilityparticularly to yourintensive users.These people, who
are largely office-based, will need thepower of Windowsand direct databaseaccess on the LAN Browser accesswould not be theenvironment of choice for theseusers. As an existingCRM user, your
company will haveinvested in a clientserver infrastructure there is nobusiness reason tore-equip and re-trainthese people.
If you are a first timeCRM purchaser youneed to treadcarefully whenconsidering the so-called new Web-architected products these are in theirinfancy and many ofthe new entrantcompanies have littlecore competence inCRM.
You may be shownan attractive front-end but whatsbehind it? Is there awell-developed CRMdatabase structure?
Is the entire CRMprocess functionalityintegrated end toend? What if youwant to change data-structure, screens,navigation and user-processes to matchyour business? Withmost of these Web-architected products
you probably wontbe able to withoutgetting into seriouscustomisation!
Which approach toadopt?A total Web solutionmay not be the bestsolution for manyorganisations, the
optimum solution islikely to be a mix ofconventional andWeb capability - thebest of both worlds.The most effectiveapproach toCustomerManagement relieson more than onetechnology.
Look for pedigreeLeading CRMsolutions such asCRMsoft fromChapelfield Systemsoffer both Client-Server CRM andWeb-CRM integratedin a single system.
CRMsoft system hasevolved from over 12
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years of CRMpedigree. Thesystem is steeped insales, marketing andcustomer servicefunctionality. Indeed,
over 1000 standardbusiness processesare available and thislibrary expandscontinuously.
The system offersone of the mostpowerful CRMfunctionality sets onthe market today as
well as ultimateconfigurability thesystem is so open,an authorised-usercan change the datastructure, screensand processeswithout touching thesource-code.
This is all very well
for a conventionalCRM system, butwhat about eCRM?Figure 4 - CRMsoft
Architecture
Chapelfield Systemshas developed aWeb-publisher,which can deploy allexisting client-serverconfigurations to runin Web pagesaccessible by anyWeb Browser. Thereis no special Webdevelopmentneeded; this meansthe use of commonprocesses between
all user communitieswhether they are
Windows Client-Server users or Web-browser users.Security and access-rights for differentuser communities is
controlled by asophisticated rights-managementsystem. CSL callsthe approachconfigure once deploy anywhere.
Figure 4 describesthe integratedCRMsoft client-
server and eCRMarchitecture.
ConclusionIn conclusion, eCRMtakes conventionalCRM to new heights.Combining thetechnologies of conventional andWeb CRM opens
CustomerRelationshipManagement to allparticipants in theprocess, inside andoutside theenterprise.Users can accessthe CRM system viaPCs or Laptopsusing Windows or viathe Web using aBrowser.
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As we move towardsWAP (WirelessApplication Protocol)devices, cost-effective access willincrease still further.
eCRM takes us onestep further towardsharnessing the truedatabase marketingphilosophy.
e-CRM Features and Functions
CRM versus eCRM--there has been a lot ofdebate surrounding the differences, or lack ofdifferences, between what is called CRM andwhat is called eCRM. Is eCRM just web-enabled CRM? Is it merely symptomatic ofcompanies hoping to strengthen theirproposition or valuation? Or is eCRMfundamentally different? Clearly the Internet
and e-business are responsible for the e ineCRM. There are significant differences in theskills one needs and the things one can dowith eCRM as opposed to CRM but thefundamental principles are very similar.
Web Services
The combination of all Web services that areavailable to users. Allows companies to
provide self-service CRM to customers,suppliers, and partners.
e-SalesE-Sales applications are web-basedapplications that support unassisted B2B andB2C selling via the Internet. Theseapplications enable organizations to rapidlyestablish an online selling channel.
e-ServiceE-Service applications deliver valuablecustomer information that empowers customerservice organizations to proactively track,organize, and analyze all interactions with newand existing customers on an ongoing basis.Companies will be able to identify additionalproducts and services that may be a goodcross-sell or up-sell opportunity, assign statusand escalations based on the customer'sneeds, and most importantly determine which
customers are most profitable.
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http://www.technologyevaluation.com/features-functions/crm/crm-financial-insurance-markets/e-crm/web-services/web-services-features-functions.htmlhttp://www.technologyevaluation.com/features-functions/crm/crm-financial-insurance-markets/e-crm/e-sales/e-sales-features-functions.htmlhttp://www.technologyevaluation.com/features-functions/crm/crm-financial-insurance-markets/e-crm/e-service/e-service-features-functions.htmlhttp://www.technologyevaluation.com/features-functions/crm/crm-financial-insurance-markets/e-crm/web-services/web-services-features-functions.htmlhttp://www.technologyevaluation.com/features-functions/crm/crm-financial-insurance-markets/e-crm/e-sales/e-sales-features-functions.htmlhttp://www.technologyevaluation.com/features-functions/crm/crm-financial-insurance-markets/e-crm/e-service/e-service-features-functions.html -
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e-MarketingE-marketing modules allow organizations todeliver highly personalized Web offers anddynamic Web surveys that are fullysynchronized with marketing efforts intraditional channels.
e-CatalogE-Catalogs enable companies to create
hierarchical product catalogs and publish them
to the Web.
e-CollaborationE-Collaboration modules reduce call volumeand improve service profitability by offeringusers the assistance they need at preciselythe moment they need it--while on the Website.
e-Personalization
E-Personalization provides customers with
access to relevant information based on their
profiles.
e-RecommandationCustomers are guided through a questionnaire
to the most suitable choice of products or
services.
Content ManagementContent management applications are
considered to be part of personalization
service tools. In fact, any customization orrecommendation to the user is based on
suggestive content with regards to products
and services best matching a customer's
expectations.
e-ProfilingProfiling or tracking is the collection and theprocessing of users' raw data, in order to builda user profile.
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http://www.technologyevaluation.com/features-functions/crm/crm-financial-insurance-markets/e-crm/e-marketing/e-marketing-features-functions.htmlhttp://www.technologyevaluation.com/features-functions/crm/crm-financial-insurance-markets/e-crm/e-catalog/e-catalog-features-functions.htmlhttp://www.technologyevaluation.com/features-functions/crm/crm-financial-insurance-markets/e-crm/e-collaboration/e-collaboration-features-functions.htmlhttp://www.technologyevaluation.com/features-functions/crm/crm-financial-insurance-markets/e-crm/e-personalization/e-personalization-features-functions.htmlhttp://www.technologyevaluation.com/features-functions/crm/crm-financial-insurance-markets/e-crm/e-recommandation/e-recommandation-features-functions.htmlhttp://www.technologyevaluation.com/features-functions/crm/crm-financial-insurance-markets/e-crm/content-management/content-management-features-functions.htmlhttp://www.technologyevaluation.com/features-functions/crm/crm-financial-insurance-markets/e-crm/e-profiling/e-profiling-features-functions.htmlhttp://www.technologyevaluation.com/features-functions/crm/crm-financial-insurance-markets/e-crm/e-marketing/e-marketing-features-functions.htmlhttp://www.technologyevaluation.com/features-functions/crm/crm-financial-insurance-markets/e-crm/e-catalog/e-catalog-features-functions.htmlhttp://www.technologyevaluation.com/features-functions/crm/crm-financial-insurance-markets/e-crm/e-collaboration/e-collaboration-features-functions.htmlhttp://www.technologyevaluation.com/features-functions/crm/crm-financial-insurance-markets/e-crm/e-personalization/e-personalization-features-functions.htmlhttp://www.technologyevaluation.com/features-functions/crm/crm-financial-insurance-markets/e-crm/e-recommandation/e-recommandation-features-functions.htmlhttp://www.technologyevaluation.com/features-functions/crm/crm-financial-insurance-markets/e-crm/content-management/content-management-features-functions.htmlhttp://www.technologyevaluation.com/features-functions/crm/crm-financial-insurance-markets/e-crm/e-profiling/e-profiling-features-functions.html -
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eCRM Case Studies
La Tasca
An eCRM System For The Countrys
Favourite Tapas Bar and RestaurantBrand
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La Tasca Holdings is a newly formedorganisation that operates over 70 Tapasbars and restaurants across the UK.
Behind latasca.co.uk is a sophisticatedeCRM system that allows staff to manage
customer enquiries/reservations, managecontent, create and deploy vouchers, events,and to create and send email campaigns totargeted audiences. Alongside each activity isthe ability for central staff to viewperformance reports and easily trackcustomer behaviour.
La Tasca have re-launched their brand;centred on delivering an outstandingcustomer experience through a contemporary
interpretation of its Spanish heritage andtradition. By welcoming customers throughoutthe day whether for a shot of coffee, Tapas atthe bar, Lunch, Dinner or Party, therestaurants replicate the authenticity oftraditional Spanish Tapas but within acontemporary context.
Through this approach the brand has adeveloped a unique positioning; generatingstandout on the high street, increased
revenue and improved loyalty fromcustomers. Aardvark Media has undertakenall the digital activities for the brand,supporting the re-launch re-styling the onlinecustomer experience, improving the onlineconversion funnels, brand communicationlanding pages and extending the reach tocustomers via mobile optimization.
Novus Leisure
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An eCRM System For A Leading RetailLeisure Operator
Novus Leisure Limited operates premiumbars in high footfall venues in major urbanmarkets, with a substantial food offer and
corporate business.
The company has a pre-eminent position inthe West End of London and the City ofLondon markets. Its Tiger Tiger brand has astrong presence in prime regional sites.
Novus operate over 50 premium bars,restaurants and nightclubs in the heart ofLondons vibrant West End and the City, withfamous venues including Balls Brothers,
Lewis and Clarke,LVPO,Strawberry Moons,Grace, Jewel Bar and Zoo. Across the UKthey operate the Tiger Tigerchain, winner inthe 2009 Publican awards for Retail conceptof the year along with the eponymousMansion House in the heart of GlasgowsWest End.
An eCRM System For A Leading PubCompany
The Stonegate Pub Company is a newlyformed organisation that operates over 560pubs across the UK from high street pubs totraditional country inns, and from localcommunity pubs and student pubs to latenight bars and venues. The companycurrently support the eponymous Slug &Lettuce, the UKs leading high street barbrand.
Behind the website is a sophisticated eCRMsystem that allows Stonegate staff to managecustomer enquiries/reservations, managecontent, create and deploy vouchers, events,and to create and send email campaigns totargeted audiences. Alongside each activity isthe ability for central staff to viewperformance reports and easily trackcustomer behaviour.
The reservation process is at the heart of the
customer conversion funnel and throughoutthe site are appropriate calls to action and
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http://www.retail-leisure.com/ecrm/overview/http://www.ballsbrothers.co.uk/http://www.ballsbrothers.co.uk/http://www.ballsbrothers.co.uk/lewis-and-clarkhttp://www.ballsbrothers.co.uk/lewis-and-clarkhttp://www.lvpo.co.uk/http://www.strawberrymoonsbar.co.uk/http://www.strawberrymoonsbar.co.uk/http://www.grace-bar.co.uk/http://www.jewelbar.com/http://www.zoobar.co.uk/http://www.tigertiger.co.uk/http://www.mansionhouseglasgow.com/http://www.retail-leisure.com/ecrm/overview/http://www.slugandlettuce.co.uk/http://www.slugandlettuce.co.uk/http://www.retail-leisure.com/ecrm/overview/http://www.retail-leisure.com/ecrm/overview/http://www.retail-leisure.com/ecrm/overview/http://www.ballsbrothers.co.uk/http://www.ballsbrothers.co.uk/lewis-and-clarkhttp://www.lvpo.co.uk/http://www.strawberrymoonsbar.co.uk/http://www.grace-bar.co.uk/http://www.jewelbar.com/http://www.zoobar.co.uk/http://www.tigertiger.co.uk/http://www.mansionhouseglasgow.com/http://www.retail-leisure.com/ecrm/overview/http://www.slugandlettuce.co.uk/http://www.slugandlettuce.co.uk/http://www.retail-leisure.com/ecrm/overview/http://www.retail-leisure.com/ecrm/overview/ -
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guide points to drive traffic towards theenquiry form. Prior to the mgt's involvementtwo of the brands had used a well known off-the-shelf reservations system. Thanks to theimprovements we introduced we acceleratedthe growth of customer enquiries but without
Stonegate incurring additional per coverfees and offering the customer a betterintegrated experience.
To entice the burgeoning value consumer,looking for vouchers and special offers, wehave integrated landing pages, competitionsand a voucher mechanism to encourage newand existing customers to make reservations.These promotions are supported by specialoffers at the point of reservation, allowing
Stonegate to up-sell customers with pre-ordered items.
Behind the scenes the staff at individual barssimply login to manage their customerrequests, download reports and view theirperformance. Central staff, dependant upontheir role, can view tailored reports across theestate. For the first time the Board atStonegate are able to obtain immediatebusiness performance reports across the
group, allowing them to make better planningand organisational judgements.
The administration area is comprehensive,allowing staff to easily manage onlinereservations, review reports for performance,manage content, vouchers and reservationoffers. There is also a comprehensiveintegrated email-marketing suite, allowingadministrators to create stunning email
campaigns via a WYSIWIG editor.
Stonegate are able to track customerbehaviour from email campaigns, includingthe number of enquiries or reservationsgenerated, vouchers downloaded and pagesviewed. To make life easy for the marketingstaff the system provides a heat-map ofcustomer behaviour so that they can makebetter judgement calls for future campaigns.
The search engine friendly sites meet W3Caccessibility standards and have been
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optimised to increase their position on searchengine results.
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