CRM and E- Business

8/14/2019 CRM and E- Business

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Customer Relationship

-Management and ebusiness resented by resented by

apna Cathrine Anthony apna Cathrine Anthony

atpal Singh Gandhi atpal Singh Gandhi

atyendra Chandra Pandey atyendra Chandra Pandey


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Definition of CRM

,As a software package System or.Technology

.As data storage and analysis As culture change with in the

.organization itself As a Management practice that

Focuses on Relationship as.opposed to Transaction

.As a practice that manages Demand As a strategy that focuses on


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Definition of CRM,ccording to Peel

CRM is the automation of horizontally integrated business-processes involving front office customer touch point sales

( , ),contact management product configuration marketing

( , ), (campaign management marketing and customer service called, )- ,data center field service via multiple interconnected

( , , , ).delivery channels telephone email Web direct interaction The CRM application architecture must combine both operational

( - )transaction oriented business process management

( -technologies as well as analytical data mart centered) .business performance management technologies


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Purpose (Objective) of CRM ,Identification of potential customers ,Understanding of customers needs both

,current and latent Differentiating from profitable from

,unprofitable customer and segments Decreasing attrition by increasing value

,and satisfaction Increasing Usage of current products and

.services


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The tangible Components of CRMB. Multichannel marketing,

C. DATA/Data warehouse/Data mart/data mining.D. Touch points,E. Call center,F. Sales Force Automation,G. 360 0 - View

Important Business ConstructsRelated to

CRM1. Customer Lifetime Value (CLV) and Second Lifetime value

(SLTV)2. Privacy3. Customization Vs. Personalization4. RFM (Recency, frequency, monetary value)


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Definit ion of CustomerRelationship Management

A management process of acquiringcustomers by understanding their requirements, retaining customers by fulfilling

their requirements more than their expectations and attracting new customersthrough customer specific strategic marketingapproaches. The process invites total

commitment on the part of the entire org inevolving and implementing relationshipstrategies that would be rewarding to allconcerned


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NEED FOR CRM

Reduction in customer recruitment cost Generation of more and more royal

customer

Expansion of customer base Reduction in advertisement & other

sales promotion expenses Benefiting customer selectivity

approach Increase in number of profitable

customers Easy introduction of new products Easy business expansion possibilities


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CRM as Business Strategy


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CRM Components

CRM s can be broken down into three.key components

Enhance Company Relationship wi

( ,Front Office Operations sales marketi

( , , , , )ers email letters phone meetings fax etc


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CRM Life Cycle


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Evolution Of CRM


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CRM Application through Channel


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CRM Processes and Systems


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Challenges in CRMq Richness of customer Data

q Analysis of customer Dataq Convenience of interacting with customersq Consistency of communicationq Intelligence at operational touch pointsq Feedback mechanism from customerq Integrated view of customer Informationq


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E CRM CRM

-E CRM implies an additional means of communication and level of interaction with the

customer where there is a real difference in,the technology and its architecture which

.allows for ease and self service to customers


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Need of e-CRMeed of e-CRM

Due to the introduction of new technology

Due to globalization

(to satisfy the customers at global level)Sometimes customer itself prefer to do online purchasing.

Basically e-CRM is concerned with attracting &keeping economically valuable customers &eliminating less profitable ones.


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Difference Between CRM And e-CRM CRITERION CRM -e CRM Customer Contacts -Traditional Means

,Retail Store Telephone Or Fax

, -Through Internet E, ,Mail Wireless Mobile

And PDA Technologies

System Interface Works With Backend Application Through

ERP System

Designed For Frontend As Well As backend

Applications Through,ERP Data Mart And Data

Warehouse

System IT Requires PC Clients To Download Various

Applets And.Applications

,Here Browser Is The-Customers Portal To e

CRM


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Contd..CRITERION CRM eCRM

Customization andPersonalization

Different People Require Different Information

But Personalized Views For Different Audience Are Not Possible Here

Personalized Views Based On Purchase Are.Possible

System Focus System Is Designed Around Product And Job. ,Functions Here

Applications Are designed Around One

Department Or Business.Unit

System Is Designed Around The Customers.Need Enterprise Wide Portals Are Designed

And Not Limited To A.Single Department

Systems Maintenance AndModifications

Implementation Is.Longer And Costly

System Implementation Require Less Time And.Cost


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Process of e-CRM


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Benefits Of e-CRM

Convenience Improvement in overall quality of customer experience

Increased profitability. According to Anderson consulting a typical $1bcompany

can gain up to $130 million through ECRM.

Another study shows that 10% gain in repeat customers can add about 10% inthe companys profit.

Increased customer loyalty. It include personalization concept of time saving.

More effective marketing. Improved customer service and support. Through ECRM right tools helps sending right orders to right customers at right

time. Greater efficiency and cost reduction.


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Categorizing Customers

*You have no choice but to handle*You have no choice but to handlethem very carefully.them very carefully.

Will consume energy.Will consume energy.#Think of innovate ways of getting #Think of innovate ways of getting them on your side, but the cost of them on your side, but the cost of acquisition must be controlled acquisition must be controlled

*Cultivate relationship.*Cultivate relationship.Spend energySpend energy

Go out of your wayGo out of your way# Think of strategies to moveThink of strategies to movethem away from competitionthem away from competitionWill consume disproportionatelyWill consume disproportionatelyhigh energyhigh energy

*Focus on short term profitabilityFocus on short term profitability

Spend minimum energy to meetSpend minimum energy to meetyour objectivesyour objectives## Dont pursue Dont pursueUse opportunity as it comesUse opportunity as it comes

Short term acquisition should not Short term acquisition should not affect affect

Long term image Long term image

* Very cautious decision needed* Very cautious decision neededRe-examine business plan &Re-examine business plan &strategy. Evaluate that your lossstrategy. Evaluate that your lossdoes not become nightmare fordoes not become nightmare foryouyou# Needs in-depth strategic review # Needs in-depth strategic review as acquisition alone and as acquisition alone and dissatisfaction later could be moredissatisfaction later could be moreharmful harmful

Low High Profitability Potential Profitability Potential

Low

High

* Existing Customer* Existing Customer # Potential Customers


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CRM Solution Architecture

INTEGRATION LAYER

Social Networking-Co creation / Ideation Platform Production Markets /Differentiation Personalization /Incentivizing Randomization Serv ice Virtualization

Branch .Rep Phone Paper -E mail Fax Chat KioskIVR Web M

Face to Face Contact Centre Self Service

Innovation

Operational Layer Lead Management Campaign Management Service Management

Insurance Core System

New Business Policy Servicing Claims Administration Distribution Management

Analytical Layer

Customer Loyalty Customer Profitability Customer Segmentation

Collaborative Layer


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Pitfalls

Huge money is required to implement ECRM. Highly knowledge requiring process.

Results are not according to expectations.

Sales and Marketing are reluctant to adopt newautomated CRM system.


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CRM: Not A Panacea Not feasible for every market and customers customers don t want to be committed to every/brand relationship

- ,Not feasible for low involvement habitual purchasing in B2B or B2C

/ Some markets customers may have low personalization.potential

Shopping agents used by consumers undercut the idea .of relp s

The organizational capability to produce a/seamless personalized experience is more difficult

.to master than a transactional approach Lower tier customers may become disaffected when

.they find out service is differentiated


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CRM and E- Business

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