CRM & eCRM

Customer delight is the only key to success and to the very existence of the company.

the choices open to the customers today are so much. Here information is the key to success.

The only entity seen by the company is its customer.

This requires a better understanding of the customers and what they expect form the organization.

It needs to be understood that not all customer contribute equally to profits.

Evolving to eCRM:

How do we optimize interactive relationships with customers?

The eCRM, .i.e.CRM online implies and additional means of communication and level of interaction with the customer which allows for ease of self-service to the customer.

It gives time o customer also to think and plan of explaining his needs.

In interpersonal contact, sometimes the customer is unable to explain his real need and real requirements.

How does a company go about building an eCRM solution? It must: Define its business objectives – Assess its current “sophistication” along the eCRM

continuum in terms of process and technology. Define business processes and changes needed to

support its goal.

Specific Service Areas of Assistance might include:

Business and Marketing Process Consulting

Technical Consulting for database-design optimization including the extraction, transformation, cleansing, and loading of data into a warehouse.

eCRM application and implementation, integration and project management

Hosted services through Application Service Providing

eMarketing strategy consulting

CRM and eCRM: The Differences:

Being able to take care of your customer via Internet or customers being able to take care of themselves online, that’s the difference between CRM and eCRM.

The philosophical, methodological, systematic process functional differences between CRM and eCRM they are minimal.

But the engineering and architecture for their execution is very different because the communication media is different.

Why the move to online CRM?

The world population is increasing.

WHAT IS ECRM

eCRM provides to companies a means to conduct interactive, personalized and relevant communication with customers across both electronic and traditional channels.

It synchronizes communication across joined customer-facing systems.

It adheres to permission-based practices, respecting each individual’s preferences regarding how and whether they wish to communicate with you.

Web Experience:In Interpersonal we are physically face to face with each other.Then we have letters, faxes and emails and telephones and SMS and then we have web sites to interact.It is a complex set of relationships between the Web suffer and the person(s) at the other end of the internet line.It is a social interaction done in isolation that creates as many problems as it solves.eCRM is the customer –facing Internet portion of CRM.It includes capabilities like self-service knowledge bases, automated e-mail response, personalization of Web content, online product bundling and pricing and so on.

Web browser: This model preserves the fundamental value of the internet

as a communication medium, and pervades a common platform for independent access to data anytime and anywhere

Modules in CRM: The CRM applications are a convergence of functional

components, advanced technologies, and channels. Functional components include sales applications marketing automation, and customer service and support application

Sales Applications: Calendar and Scheduling Contact and Account Management Compensation Opportunity and Pipeline Management Sales Forecasting Proposal Generation and Management Pricing Territory Assignment and Management Expense Reporting

Marketing Applications: Web-based/traditional marketing campaign planning,

execution and analysis Collateral generation and marketing materials management List generation and management Budgeting and forecasting A marketing encyclopedia (a repository of product, pricing

and competitive information) Lead tracking, distribution and management Marketing Applications primarily aim is to empower

marketing professionals.

Customer service and Support Applications: These applications have gained a major importance for

effective customer retention and in many cases profitability depends on providing superior service (call centre, web, etc.)

Common application includes: Customer care. Incident, defect, and order tracing Field service Problem and solution database Repair scheduling and dispatching Service agreements and contracts Service request management

CRM applications and objectives

CRM suits and Objectives – each suit may have different objectives.

Increased Revenue – Sales force should be encouraged to focus on

increasing company’s revenue through better information and better incentives.

Put their selling efforts to focus on high-value deals and meet revenue targets.

Improve Global Forecast and Pipeline Management.

Customer investment allocation There is no central mechanism to determine which

customers should receive which investment at a relationship level

Focus should be on database

On delivery

Target cross sell and up sell

1. It must focus on process – helps in refining the business process

2. Must be driven by data warehouse -1. provides broadest possible profile of the customer2. Used to determine the action, offer to make, &

best channel to deliver

3. multichannel view of customer behaviour-1. Organizations interact with customers in different

ways. E.g. bank

Key eCRM features

I app. To support website 1 to call centre 1 to email 1 to sales 1 to ATM 1 to direct mail or telemarketing

Companies should manage all the channels

The application must be able to capture and synchronize data from all the touch points

Data should be stored in data warehouse

4. Measurement driven – Companies spend on communication, but very little on

measuring the effectiveness eCRM does the work of measurement

eCRM drivers and challenges

Emergence of web

Cost effectiveness of internet

De-regulation, forcing companies to develop acquisition and retention strategies

The corporate realizes that consumers no longer tolerate mass mailings or e-messaging

CRM architecture

Analysis / Profiling – data mining, statistical analysis

Campaign planning and management

Customer interaction

Method

Best practices in phased implementation

Internet, Intranet & Extranet

Intranet Management

Employees

Production Centres

Other departments

Extranet Vendors/Suppliers

Distributors,

Bankers

Consultants

Internet Customers

Competitors

General Public

The 3 ways of achieving eCRM

Processes

People

Technology

A suggested eCRM transition

Mass Marketing

DatabaseMarketing

Customer specific Real time Marketing

Profit based Marketing

Measurement based framework

Collect Customer

DataAnalyze

Customer Data

Formulate Information

Based Hypothesis

Collect Data onPerformance of

Hypothesis

9-Step E-Biz Blueprint Methodology

CustomerWho are/should be your customers & what

are their requirements and preferences for

your organization in products and services?

1

drives

Strategy2

What are the e-business policies and differentiating set of activities that your organization needs to deliver a unique mix of value to customers? What customer needs should/ not you meet?

ProcessWhat is the series of action steps, tasks &business rules that is required to completethe desired e-biz strategies and polices?

3

drives

Organizational StructureWhat is the most logical grouping of jobs &

individuals needed to support the business

processes effectively?

4

dictates

is c

ompr

ised

of

PeopleWhat skills,training, roles, authority,

& incentives are needed to do these jobs?Include in-house and outsource jobs, withe-biz/ marketing, content/ design & tech.

5

IntelligenceWhat intelligence (research, reports, information) is needed to allow people to analyze the results, predict the out- come or decide a course of action?

6who need

AutomationWhat steps of these processes can be completed faster, better, or cheaperby using computers or equipment?

7supported by

DataWhat numbers, characters, images orother recorded information is needed toprovide intelligence to make decisions?

8supported by

TechnologyWhat hardware/ software is needed to to best capture, store, process, & distri-bute data & automate the processes?

9supported by

Customer Relationship Management

Strategic Development & Planning

Market Intelligence& Research

DE

MA

ND

Internet SalesRetail MailCustomerService

Customer(s)

Direct Channels Indirect Channels

Information Management

ProductManagement

ChannelManagement

MarComManagement

DistributionHuman

ResourcesManufacturingFinance

Sales

IntermediariesDistributors

SU

PP

LY Operations dBase

Customer dBase

Channel Management

Significant integration will be required to become customer-centric. However, the resulting institutional base of knowledge will

provide exponential returns.

CRM project – the three legs

ERP/ERM

Order Manag.

Supply ChainMgmt.

Order Prom.

LegacySystems

SalesAutomation

ServiceAutomation

MarketingAutomation

FieldService

Mobile SalesVertical Apps.

Category Mgmt.

MarketingAutomation

Campaign Mgmt.

CustomerActivity

Customers Products

DataWarehouse

Voice(IVR, ACD)

Conferencing

WebConferencing

E-mail

ResponseManagement

FaxLetter

DirectInteraction

Operational CRM Analytical CRM

Collaborative CRM

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