eCRM-chap 2
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Transcript of eCRM-chap 2
8/2/2019 eCRM-chap 2
http://slidepdf.com/reader/full/ecrm-chap-2 2/27
What is eCRM?
y Enables customers to access inf ormation and services about
the products that are less expensive and more convenient
than the traditional ways of helping customers evaluate and
purchase products.
y eCRM customers use self-service tools on web rather than
company's employees , hence customers become active
players in the purchase and service process.
y
Customer is empowered to manage and control the processvia the Web.
8/2/2019 eCRM-chap 2
http://slidepdf.com/reader/full/ecrm-chap-2 3/27
Using eCRM
y companies can increase their revenues and reduce their costs
and as a result can improve prof itability and customer
satisf action.
y
companies get more knowledge about the customer ascustomers become more active
8/2/2019 eCRM-chap 2
http://slidepdf.com/reader/full/ecrm-chap-2 4/27
Loopholes in traditional CRM packag es
y Traditional CRM off erings are channel centric , not customer
centric.
y Contemporary customers f acing traditional systems
yCustomer centric metrics do not exist in traditional CRMoff erings
y Customer f acing systems create new islands of non-
integrated inf ormation.
These loopholes lead to eCRM
8/2/2019 eCRM-chap 2
http://slidepdf.com/reader/full/ecrm-chap-2 5/27
Why eCRM?
y To optimize the value of interactive relationships
y To enable the business to extend its personalized reach
y To coordinate marketing initiatives across all customer
channels.y To leverage customer inf ormation f or eff ective e marketing
and e business.
y For consistent measurement, assessment and actionable
customer strategies.
8/2/2019 eCRM-chap 2
http://slidepdf.com/reader/full/ecrm-chap-2 6/27
Key eCRM features
y Driven by data warehouse
y Focused on consistent metrics to assess customer actions
across channels
yBuilt to accommodate the new market dynamics that placethe customer in control
y Structured to identif y a customer·s prof itability or prof it
potential.
y Leads to better allocation of investments based on customer·sprof itability.
8/2/2019 eCRM-chap 2
http://slidepdf.com/reader/full/ecrm-chap-2 7/27
Six Es in eCRM
y Electronic channels: eCRM thrives on new electronic channelssuch as the web and personalized e-messaging
y Enterprise: It is an enterprise wide project that helps to touchand shape a customer·s experience through electronic means
y
Empowerment: eCRM strategies must be structured toempower consumers to decide when and how to communicatewith the company through which channel, at what f requency.
y Economics: An eCRM strategy ideally should concentrate on customer economics-directing eff orts at individuals likely toprovide the greatest returns
y Evaluation: eCRM strategies must evaluate customerinteractions along various customer touch point channels
y External Information:Customer given inf ormation can beemployed to understand customer needs.
8/2/2019 eCRM-chap 2
http://slidepdf.com/reader/full/ecrm-chap-2 10/27
eCRM Components
A company evolving to eCRM should:
yDef ine its business objectives
y eCRM assessment :Assess its current position with
respect to the environment and determine its current level of
sophistication along the eCRM continuum :
y Devise a numerical measure to know how company f ares in the
eyes of customers as compared to competitors.
y Devise capability Index f or cross-company comparison
y Company can now devise strategy to quickly f ix the problem
areas
y It is a diagnostic stage.
8/2/2019 eCRM-chap 2
http://slidepdf.com/reader/full/ecrm-chap-2 11/27
eCRM Components
y eCRM strategy alignment : Def ine new business
processes and align its existing strategy and existing
processes in line with the new realities.
yTo identif y, measure and align the gaps between customerexpectations and internal capabilities of the organization.
y Consensus should be built between stakeholders on certain key
issues
8/2/2019 eCRM-chap 2
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eCRM Components
y eCRM architecture :Def ine a technical architecture and the criteria associated with this architecture. It consists of thef ollowing tools:y Customer analytic software:to pedict , measure and interpret
customer behaviour, can
be used
by alld
epartmen
ts of
theorganization
y Data mining software:to identif y customers· behaviour patterns
y Campaign management sof tware:to plan and execute targeted campaigns based on timed events and customer behaviour
y Business simulation: along with campaign management,providing
off ers prior to campaign execution,helps to f oresee resultsy Real time decision engine: to coordinate and synchronize
communications across varied customer touch points,to provideappropriate off ers in real time.
8/2/2019 eCRM-chap 2
http://slidepdf.com/reader/full/ecrm-chap-2 13/27
Dimensions of eCRM
y Acquisition-getting new customers
y Expansion- expanding the value of each customer by getting
ref errals and other services-f eed back, advertise
y Retention- retaining already existing customers,
customization
8/2/2019 eCRM-chap 2
http://slidepdf.com/reader/full/ecrm-chap-2 14/27
Differences between CRM and eCRM
Customer contacts
y CRM- contact with customer made through the retail store,
phone, and f ax.
y
eCRM- all of the traditional methods are used in addition toInternet, email, wireless, and PDA technologies
System Interface
y CRM- implements the use of ERP systems, emphasis is on
the back-end y eCRM- geared more toward f ront end, which interacts with
the back-end through use of ERP systems, data warehouses
8/2/2019 eCRM-chap 2
http://slidepdf.com/reader/full/ecrm-chap-2 15/27
Differences between CRM and eCRM
System overhead (client computers)
y CRM- the client must download various applications to view theweb-enabled applications.They would have to be rewritten f ordiff erent platf orm.
y eCRM- doesn't have these requirements because the client usesthe browser
Customization and Personalization of Information
y CRM- views diff er based on the audience, and personalized views
are not available.Individual personalization requires programchanges
y eCRM- Personalized individual views based on purchase historyand pref erences. Individual has ability to customize view.
8/2/2019 eCRM-chap 2
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Differences between CRM and eCRM
System Focusy CRM- System (created f or internal use) designed based on job
f unction and products. Web applications designed f or a singledepartment or business unit
y
eCRM- System (created f or external use) designed based on customer needs. Web application designed f or enterprise-wideuse.
System Maintenance and Modificationy CRM- More time involved in implementation and maintenance is
more expensive because the system exists at diff erent locationsand on various servers
y eCRM- Reduction in time and cost. Implementation and maintenance can take place at one location and on one server
8/2/2019 eCRM-chap 2
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Different levels of eCRM
y Foundational Services:minimum necessary services f or
maintaining web site, order processing
y Customer centered services: order tracking, product
conf iguration, customization, security provisionsy Value added services: online auction, training, online
communities, f eed back
8/2/2019 eCRM-chap 2
http://slidepdf.com/reader/full/ecrm-chap-2 19/27
Key applications of eCRM
y Inf ormation Integration application
y An incomplete view of customers reduces their loyalty and
trust
y Consolidating customer data f rom various sources
y To keep up with every customer·s interaction
y Customer analysis application:
y to predict , measure and interpret customer behaviour
y Predictive models to identif y customers most likely to perf orm
an activity
y On line analytical processing, data mining and statistics
8/2/2019 eCRM-chap 2
http://slidepdf.com/reader/full/ecrm-chap-2 20/27
Key applications of eCRM
y Campaign management applicationy Targeted campaignsy Response to timed eventsy Use of diverse communication channels
y Integrating multichannel communication
y Real time decision applicationy To coordinate and synchronize communication across varied
dissimilar customersy To promote inf ormation exchange between company and every
customer
y Personalized messaging applicationy Enables personalized products and services off erings to large no. of
customers based on data present and constantly updated data
8/2/2019 eCRM-chap 2
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Benef its of eCRM
y Retaining existing customers
y Selling more to existing customers
y Finding and winning new customers: interactions leading to
stronger relationships
y Increasing eff iciency
y Improving marketing and sales decision making
y Enables 24/7 customer interaction
y personalization
8/2/2019 eCRM-chap 2
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Goals of eCRM
y Reduce:
y cost of marketing
y Improve:
y Accuracy and relevance of recommendations
y Customer satisf actiony Increase:
y Conversion rate: turn browsers to buyers
y Customer retention and f requency
y Order size
y Customer response
y Competitiveness
y Prof itability
8/2/2019 eCRM-chap 2
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mCRM
y Mobile CRM is the communication, either one-way or
interactive, which is related to sales, marketing and customer
service activities conducted through mobile medium f or the
purpose of building and maintaining customer relationships
between a company and its customer(s)
y Mobile CRM allows customers or managers to access the
systems f rom a mobile phone or PDA with internet access,
resulting in higher f lexibility
y Must be integrated in the CRM system as it can not provide
complete range of customer relationship activities
8/2/2019 eCRM-chap 2
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Why mCRM is becoming popular?
y Improved devices consumers use- larger displays ,improved
access times on networks
y Sophisticated users more used to technology advancements
y
Better sof tware developed that help in proper integration of inf ormation into existing CRM technologies.
8/2/2019 eCRM-chap 2
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Implementing mCRM system
y Needs analysis phase: understanding technical needs and
desires f or each of the users and stakeholders.
y Mobile design phase: technical concerns -screen size, device
storage a
ndsecurity.
y Mobile application testing phase: ensure that the users and
stakeholders all approve of the new system.
y Rollout phase: new system is implemented , users trained f or
the usage
8/2/2019 eCRM-chap 2
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Advantag es of mobile CRM:
y creates a more personal direct connection with customers.
y continuously active , allows individuals to take action quickly
using the inf ormation.
y
an opt-in channel which allows f or high and qualityresponsiveness.
y Enhances loyalty between the customer and company, which
improves and strengthens relationships.