CRM

eCRM

Prepared by:

Prof. Rupali Rajesh

Evolving to eCRM The eCRM that CRM online-

Implies an additional means of communication and level of interaction with customer where there is a real difference in the technology and its architecture, which allows for ease of self- service to the customer.

Evolving to eCRM How does a company go about building

an eCRM solution?Define its business objectiveAssess its current “sophistication”

along the eCRM continuum (range) in terms of process and technology and

Define business processes and changes needed to support its goals.

Evolving to eCRM A company can then derive a plan

and timetable to implement processes erect (put up) the necessary data warehouse to attain a consolidated view if the customers, and select, implement, and integrate the required eCRM applications.

Evolving to eCRM To develop an effective solution. An

organization may need to consider a host of professional service offerings and products to improve internal development.

Outside professional services experienced in both business and marketing providing technical infrastructure for eCRM.

It can help re-engineer an organization for the eCRM challenges ahead:-

They help to construct data warehouse (or Datamart); optimize it for eCRM solution;

Evolving to eCRM They select the appropriate tools for

customer analysis and customer communication software;

Host eCRM software to help to get started quickly; teach the best practices for permission based marketing and

Get started in e-mail marketing; and tie e-mail and messaging capabilities for other online and offline customer communication channels.

CRM and eCRM differences Being able to take care of your

customer via the Internet , or Customers being able to take care of

themselves online

That’s the difference between CRM and eCRM.

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 utilizes a complete view of the customer to make decisions about messaging, offers, and channel delivery.

It synchronizes communications across disjointed customer-facing systems.

It also focuses on understanding how the economics of customer relationships affects the business.

What is eCRM eCRM is the customer-facing Internet portion of

CRM. It includes capabilities like self-service knowledge bases, automated e-mail responses, personalization of Web content, online product bundling and pricing, and so on.

eCRM gives Internet uses the ability to carry on users with the business through their preferred communication channels.

It also allows the business to offset expensive customer service agents to value its ability to improve customer satisfaction and reduce costs through improved efficiency.

The need to adopt eCRMThe need to adopt eCRM emerges from

the following:- Optimize the value of inter-active

relationships. Enable business to extend is

personalized messaging to the web and e-mail.

Coordinate marketing initiatives across all customer channels

The need to adopt eCRM Leverage customer information for

more effective eMarketing and eBusiness.

Focus business on improving customer relationship, and earning a greater share of each customer’s business though consistent measurement, assessment, and “actionable” customer-contact strategies.

Basic Requirements of eCRMThey all need to proceed toward the same objective

of optimizing the value of customer relationships. Electronic Channels: New electronic

channels such as the Web and personalized eMessaging have become the medium for fast, interactive and economic customer communications, challenging companies to keep pace with this increased velocity.

Enterprise: Through eCRM, a company gains the means to touch and shape a customer’s experience across the entire organization, reaching beyond just the bounds of marketing to sales, services and corner offices.

An eCRM strategy relies heavily on the construction and maintenance of a data warehouse that provides a consolidated, detailed view of individual customer Behaviour and communication history.

Basic Requirements of eCRM Empowerment: eCRM strategies must be

structured to accommodate consumers who now have the power to decide when and how to communicate with the company and through which channel, which ability to opt for or out of

In the light of this new consumer empowerment, an eCRM solution must be structured to deliver timely, pertinent, and valuable information that a consumer accepts in exchange for his or her attention.

Basic Requirements of eCRM

Economics:- Too many companies execute communication strategies with little- effort or ability to understand the economics of customer relationships and channel delivery choices. Customer economics derives smart asset allocation decisions, directing resources and efforts at individuals likely to provide the greatest return on customer communication initiatives.

Basic Requirements of eCRM Assessment:- Customer economics relies

on a company’s ability to attribute customer behaviour to marketing programs. A company should evaluate customer interactions along with various customer touch point channels and compare anticipated ROI against actual returns, through customer analytic reporting.

Basic Requirements of eCRM Outside information: Use of

consumer-sanctioned external information can be employed to further understand customer needs. This information can be gained form sources such as third- party information networks and web-page profiler applications, under the condition that companies adhere to strict consumer opt-in rules and privacy concerns.

Basic Requirements of eCRM A Company builds an eCRM solution in

order to optimize relationships in between itself and its customers.

For each company, optimization might have different and multiple objectives such as increasing the number of customers, increasing customer profitability, growing revenue, driving customers through cost effective channels, and cross- selling for retaining customers.

Three dimensions in eCRM eCRM must address customer optimization in

three dimensions viz:- Acquisition getting (increasing number of new

customers) Expansion (increasing profitability by

encouraging customers to purchase more products and services)

Retention (increasing the amount of time customers stay as customers)

eCRM Features Focused on process: A CRM process

brings appropriate technology and it will reduce the technology gap as well as refining business.

Data warehouse driven: In an eCRM solution, data warehouse or customer data mart contains a consolidated and comprehensive view of the customer.

A multi- channel view: organization have different methods of interacting with customers. E.g. a bank might use one application to support its Website; another to support its call centre; e-mails; ATM’s; direct mail and telemarketing. These applications rarely connect to each other thus precluding the sharing of information between channels and preventing meaningful cross channel connections for a customers.

eCRM features Measurement driven: Many companies spend

millions of dollars communicating with customers, but spend little time and effort determining the effectiveness of those campaigns. eCRM provides the means to measure communications efforts. It is a continuous, interactive process. It employs customer analytic tools to do the following project outcomes of-customer communications initiatives,capture results, attribute changes in customer behaviour

to a particular communication of customer,communications initiatives, and access those results to

improve subsequent customer interactions and generate returns on investment.

eCRM tools Customer analytic software: customer analytic

software predicts, measures, and interprets customer behaviors, allowing companies to understand the effectiveness of eCRM efforts.

This software and it reports can be used virtually anyone across the organization, from marketers and salespersons to corner office executives.

This packaging will help companies implement solutions quickly and limit risk.

eCRM tools

Data mining software: It builds predictive models to identify customers who are most likely to behave in a particular fashion such as purchase an upgrade, or agitate against the company. Modeling must be tightly integrated with multiple campaigns running daily or weekly.

Campaign management: Campaign management software leverages the data warehouse to plan and execute multiple, highly targeted campaigns over a period of time, using triggers that respond to timed events and customer behaviour.

Campaign Management software tests various offers against control groups, captures promotion history of each customer and prospects and produces output for virtually any online or offline customer touch point channel, such as personalized e-messaging call centers, branch offices, direct mail houses, and ATM’s.

eCRM tools

Business simulation: business simulation used in combination with campaign management software, optimizes offers, messaging and channel delivery prior to the execution of campaigns, and compares planned costs.

Portals: A CRM solution provider has taken a creative and distinctive approach in building its RM application suite.Portals are the centerpieces for all its CRM functionality, whether through a client/ server platform or online. They are more advanced than the typical CRM application, because they provides multiple elements of Web-based self-service for customers, partners and employees, all of whom could be called, with a little stretching customers.

eCRM tools An employee portal: The employee

portal is an enterprise-wide web solution that combines CRM functionality with third-party application and relevant Internet connections. Its purpose is to maximize the efficiency of marketing, sales, and service teams, which it does very well.

eCRM

Case Study

CRM

AT

HARRAH’S

ENTERTAINMENT

Introduction:• In 2003, Harrahs entertainment with revenues of $4.13

billion was one of the largest gaming cos. in the US.

• It operated 28 casinos under the brand name Harrah’s, Harvey’s, Players, Showboat & Rio in 13 states across the US.

• This case deals with how Harrah’s used the database of customers (which recorded the spending, shopping and gambling patterns at all the different properties of Harrah’s) to treat them better and thereby establish, strengthen and convert relationship.

Casino industry in the US A typical casino included gambling like Bingo, Poker, Lotteries… & games like Slots, Roulette, Card games and Sports betting.

Apart from this, casinos offered non-gaming facilities such as restaurants, hotels, retail stores and other entertainment attractions.

The non-gaming attractions accounted for more than half of casino sales.

HARRAH’S CRM EVOLUTION

Initially feedback forms and also congratulatory certificates were sent to those people who had won the slot machine jackpots.

PLAYER CARD PROGRAM

• Cards valid at only one property

• Card reading systems in each location differed

Information systems at individual properties were not integrated or linked with the other properties.

TOTAL GOLD PLAYER CARDS

• Cross market capture

• Change from an operations-driven co. to a marketing-driven co.

COMPONENTS OF CRM

LOYALTY

Decision science

Revenue management

PersonalContact

management

Total rewards

Harrahs.com

TOTAL REWARDS• This was Harrah’s customer loyalty program that tracked, rewarded and retained customer’s details on to a card.

• This card could be used at all Harrah’s properties irrespective of the place of issue.

• Cash and compensation earned could be redeemed at any property irrespective of where they were earned.

•The total rewards cards operated under 3 tiers of gold, platinum and diamond membership.

• The idea was to motivate the customers to play more and earn more points and hence shift to a higher membership strata.

DECISION SCIENCE

• With the help of the data collected from the total rewards cards, various marketing strategies were implemented.

• WINet (Winners Information Network) worked on the principle that retaining a customer was one-tenth of the cost of getting a new customer.

• Test Campaigns

HARRAHS.COM

It enabled customers to log on and find out as to how to earn a higher level reward card.

eTotal Rewards

It helped to check availability and make online reservations at any one Harrah’s casino hotels.

REVENUE MANAGEMENT

• The system was targeted at increasing revenue growth by improving the ratio of high-rolling casino customers to other customers in the hotel rooms.

• It was based on the analysis of the past spending habits of a customer who would call to reserve a room.

• It was also based on the frequency of visits.

PERSONAL CONTACT MANAGEMENT

o Prioritized listing of the customers depending on the frequency of their visits.

o VIP Hosts

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