E-CRM

IT DEPT, B.COM, ST. XAVIER'S COLLEGE

1

E-CRME-CRMPrepared for B. Com 4Prepared for B. Com 4thth

Semester, 2009 Semester, 2009 St. Xavier’s CollegeSt. Xavier’s College


2

What is CRM?What is CRM? Customer relationship Customer relationship

management(CRM) means moving from management(CRM) means moving from ‘inside –out’ (seller-driven enterprise) to ‘inside –out’ (seller-driven enterprise) to ‘outside-in’ (customer-driven ‘outside-in’ (customer-driven enterprise). enterprise).

In order to achieve customer In order to achieve customer satisfaction objective, the companies satisfaction objective, the companies try to focus on the customers and build try to focus on the customers and build a long-term relationship with them. a long-term relationship with them.


3

A deep understanding of customers A deep understanding of customers is the primary component for making is the primary component for making the goal of CRM a reality the goal of CRM a reality

To simplify it even further, CRM is all To simplify it even further, CRM is all about getting, growing, and keeping about getting, growing, and keeping customers. customers.


4

What is E-CRM?What is E-CRM?

E-CRM uses electronic media to E-CRM uses electronic media to integrate and simplify customer-integrate and simplify customer-related business processes. It related business processes. It ensures that a company’s ensures that a company’s various divisions share a single various divisions share a single view of customer, and that the view of customer, and that the customers get a single view of customers get a single view of the company. the company.


5

DefinitionDefinition E-CRM may be defined as an integrated E-CRM may be defined as an integrated

sales, marketing and service strategy sales, marketing and service strategy that focuses on managing all of the that focuses on managing all of the ways that an organization deals with its ways that an organization deals with its existing and potential new customers. It existing and potential new customers. It uses information technology to create a uses information technology to create a cross-functional enterprise system that cross-functional enterprise system that integrates and automates many of the integrates and automates many of the customer-related processes in sales, customer-related processes in sales, marketing and customer services.marketing and customer services.


6

In other words, it is an integrated In other words, it is an integrated cross-functional information system cross-functional information system that includes a set of tools to that includes a set of tools to integrate and automate customer-integrate and automate customer-related processes in sales, marketing related processes in sales, marketing and customer services to provide and customer services to provide fast, convenient and reliable services fast, convenient and reliable services to its customer.to its customer.


7

Features of E-CRMFeatures of E-CRM E-CRM is not just a set of technology. It is E-CRM is not just a set of technology. It is

a combination of business process and a combination of business process and technology.technology.

It is an integration framework and It is an integration framework and business strategy, not a product.business strategy, not a product.

It comprises the acquisition and It comprises the acquisition and deployment of knowledge about deployment of knowledge about customers to enable a company to sell customers to enable a company to sell more of their product or service more more of their product or service more efficiently. efficiently.

In-depth analysis of customer behavior In-depth analysis of customer behavior creates a creates a customer information platform.customer information platform.


8

It encompasses a network of “touch It encompasses a network of “touch points” by which the organization can points” by which the organization can establish, cultivate and maintain a establish, cultivate and maintain a long-lasting and mutually beneficial long-lasting and mutually beneficial interactions with customer. interactions with customer.

It requires a set of integrated software It requires a set of integrated software applications to deal with all aspects of applications to deal with all aspects of customer interactions and also access customer interactions and also access channels (primarily internet). channels (primarily internet).


9

Goals of E-CRM business Goals of E-CRM business frameworkframework

1. Use of existing relationship to grow 1. Use of existing relationship to grow revenuerevenue

2. Use of integrated information for 2. Use of integrated information for excellent serviceexcellent service

3. Introduction of consistent, replicable 3. Introduction of consistent, replicable channel processes and procedures.channel processes and procedures.


10

1. Use of existing relationship to 1. Use of existing relationship to grow revenuegrow revenue

Existing relationship with the Existing relationship with the customers can not only be nurtured customers can not only be nurtured by using e-CRM as a business by using e-CRM as a business strategy, it can further be strategy, it can further be strengthened by making use of strengthened by making use of comprehensive view of the comprehensive view of the customers.customers.


11

2. Use of integrated information for 2. Use of integrated information for excellent serviceexcellent service

E-CRM involves the integration of all kinds E-CRM involves the integration of all kinds of customer-related information. This kind of customer-related information. This kind of integration can be utilized for of integration can be utilized for customer’s satisfaction in the best possible customer’s satisfaction in the best possible ways. ways.

Integration of information can also be used Integration of information can also be used to understand individual customer’s needs to understand individual customer’s needs and preferences and the products and and preferences and the products and services for that customer can be services for that customer can be designed accordingly. designed accordingly.


12

3. Introduction of consistent, 3. Introduction of consistent, replicable channel processes and replicable channel processes and

procedures.procedures. Since e-CRM offers many contact Since e-CRM offers many contact

channels for customers, employees of channels for customers, employees of different departments come into different departments come into contact with the customers directly contact with the customers directly and or indirectly during transactions. and or indirectly during transactions. So, transaction processes are required So, transaction processes are required to be improved and procedural to be improved and procedural consistency is required. consistency is required.


13

Three phases of CRMThree phases of CRM Acquiring new customersAcquiring new customers Enhancing the profitability of Enhancing the profitability of

existing customersexisting customers Retaining profitable customers for Retaining profitable customers for

lifelife


14

Acquiring new customersAcquiring new customers

New customers are acquired by (i) New customers are acquired by (i) making differentiation in terms of making differentiation in terms of preference-based designing of products preference-based designing of products and services for each customer; (ii) and services for each customer; (ii) innovating new products/services by innovating new products/services by understanding customer’ need and understanding customer’ need and responding to that need; and (iii) creating responding to that need; and (iii) creating convenience for customers for getting convenience for customers for getting information and making on-line information and making on-line transaction.transaction.


15

Retaining profitable customers for Retaining profitable customers for lifelife

It focuses on service adaptability It focuses on service adaptability delivering what customers want, not delivering what customers want, not what the market requires the what the market requires the customer to accept. Keeping regular customer to accept. Keeping regular contact with the customers, offering contact with the customers, offering loyalty incentives and designing loyalty incentives and designing more competitive prices for the loyal more competitive prices for the loyal customers are some of the efforts customers are some of the efforts towards customer retention. towards customer retention.


16

Types of E-CRMTypes of E-CRM 1. Operational 1. Operational 2. Analytical 2. Analytical 3. Collaborative.3. Collaborative.


17

1. 1. Operational E-CRMOperational E-CRM. . It involves the automation of horizontally It involves the automation of horizontally

integrated business processes. integrated business processes. It focuses on data collection, query, and It focuses on data collection, query, and

reporting. reporting. E-CRM covers the front-end customer-facing E-CRM covers the front-end customer-facing

applications and the operational components applications and the operational components include sales automation, call centre include sales automation, call centre automation, channel automation and proposal automation, channel automation and proposal generation. generation.

Operational e-CRM can be integrated with Operational e-CRM can be integrated with financial and HR functions of ERP applications; financial and HR functions of ERP applications; thereby providing an end-to-end functionality thereby providing an end-to-end functionality (as ERP forms the back-end). (as ERP forms the back-end).


18

Analytical E-CRMAnalytical E-CRM transforms Operational CRM data into transforms Operational CRM data into

"actionable" customer information. Analytic CRM "actionable" customer information. Analytic CRM tools provide companies with the means to tools provide companies with the means to manage their customer-facing processes and help manage their customer-facing processes and help them acquire, grow, and retain customers. them acquire, grow, and retain customers.

It makes use of It makes use of data-miningdata-mining models as models as front-end tools and builds a front-end tools and builds a data data warehousewarehouse in the back-end by using in the back-end by using transactional and marketing research transactional and marketing research data. data.


19

Data miningData mining is the process of sorting is the process of sorting through large amounts of data and through large amounts of data and picking out relevant information. picking out relevant information. Data Data mining software is one of a number of mining software is one of a number of analytical tools for analyzing data.. analytical tools for analyzing data.. Technically, data mining is the process Technically, data mining is the process of finding correlations or patterns of finding correlations or patterns among dozens of fields in large among dozens of fields in large relational databases. For example, data relational databases. For example, data mining software can be used to analyze mining software can be used to analyze buying patterns of customers in buying patterns of customers in shopping malls.shopping malls.


20

DData warehouseata warehouse is a repository of an is a repository of an organization's electronically stored data. organization's electronically stored data. Data warehouses are designed to Data warehouses are designed to facilitate reporting and analysis. facilitate reporting and analysis. However, the means to retrieve and However, the means to retrieve and analyze data, to extract, transform and analyze data, to extract, transform and load data, and to manage dictionary data load data, and to manage dictionary data are also considered essential components are also considered essential components of a data warehousing system.of a data warehousing system.


21

Customer data captured within Customer data captured within operational components of e-CRM operational components of e-CRM system are stored, retrieved and system are stored, retrieved and analysed for performance management analysed for performance management and result measurement. and result measurement.

Analytical components include decision Analytical components include decision support tools and customer behaviour support tools and customer behaviour modeling. modeling.

On the basis of analytical capability of e-On the basis of analytical capability of e-CRM customers can be differentiated CRM customers can be differentiated and segmented. Market trends also can and segmented. Market trends also can better be understood.better be understood.


22

Collaborative E-CRMCollaborative E-CRM Collaborative CRM Technologies are Collaborative CRM Technologies are

all about communicating and sharing all about communicating and sharing information within the company, with information within the company, with business partners and suppliers, and business partners and suppliers, and with customers. (See Figure 3.) with customers. (See Figure 3.) These technologies are primarily These technologies are primarily Internet-based (e-CRM) tools which Internet-based (e-CRM) tools which include:include:


23

Interactive response communications (email, Interactive response communications (email, fax, and wireless). fax, and wireless).

Real-time communications (conferencing, Real-time communications (conferencing, instant messaging/chat, and voice over IP). instant messaging/chat, and voice over IP).

Web content personalization. Web content personalization. Information management and sharing using Information management and sharing using

"Enterprise Information Portals" (EIPs). EIPs "Enterprise Information Portals" (EIPs). EIPs allow companies to increase collaboration allow companies to increase collaboration among corporate employees, business partners, among corporate employees, business partners, suppliers, and customers by integrating and suppliers, and customers by integrating and managing dynamic free-form content, Internet managing dynamic free-form content, Internet services, and enterprise application information. services, and enterprise application information.


24

As the understanding of the As the understanding of the customer improves, the richness of customer improves, the richness of information and services being information and services being offered to them also improves, offered to them also improves, adapting to their particular interests adapting to their particular interests and reflecting the timeliness of their and reflecting the timeliness of their needs. needs.


25

Functional Components of E-Functional Components of E-CRMCRM

E_CRM is based on three major E_CRM is based on three major functional modules. These are: functional modules. These are:

1. Sales Force Automation 1. Sales Force Automation 2. Marketing Automation 2. Marketing Automation 3. Customer Service and Support. 3. Customer Service and Support.


26

1. Sales Force Automation1. Sales Force Automation(SFA)(SFA)

Critical functions of SFA include lead Critical functions of SFA include lead management, contact management, management, contact management, account management, configuration of account management, configuration of products for price quotation, forecasting, products for price quotation, forecasting, win/loss analysis and sales win/loss analysis and sales administration. SFA systems enable administration. SFA systems enable sales people to find and retrieve sales people to find and retrieve information more quickly than what they information more quickly than what they could do by consulting paper catalogue. could do by consulting paper catalogue.


27

Benefits of SFA may be mentioned as Benefits of SFA may be mentioned as follows: (i) It improves customer follows: (i) It improves customer management by helping to keep track management by helping to keep track of customers. (ii) It helps to reduce the of customers. (ii) It helps to reduce the cost of sales by reducing the time used cost of sales by reducing the time used by sales people. (iii) It improves sales by sales people. (iii) It improves sales planning, reporting and scheduling. (iv) planning, reporting and scheduling. (iv) It facilitates rapid, accurate and It facilitates rapid, accurate and inexpensive communication among inexpensive communication among sales people and corporate office.sales people and corporate office.


28

2.2. Marketing Automation(MA)Marketing Automation(MA)

Marketing application module of e-CRM Marketing application module of e-CRM attempts to increase the efficiency of the attempts to increase the efficiency of the marketing programme.. It complements SFA marketing programme.. It complements SFA application and provides certain functions application and provides certain functions unique to marketing. These functions include: unique to marketing. These functions include: (i) campaign planning, execution and (i) campaign planning, execution and analyses; (ii) list generation and management; analyses; (ii) list generation and management; (iii) budgeting and forecasting; (iv) lead (iii) budgeting and forecasting; (iv) lead tracking, distribution and management. tracking, distribution and management.


29

Marketing Automation involves three Marketing Automation involves three major activitiesmajor activities: :

High-end campaign managementHigh-end campaign management. It is . It is involved in B to C marketing to assist involved in B to C marketing to assist campaign planning, management and campaign planning, management and tracking.tracking.

Web-driven campaign executionWeb-driven campaign execution. It . It focuses mostly on B to B market and focuses mostly on B to B market and uses the internet as campaign execution uses the internet as campaign execution vehicle. vehicle.

Marketing-oriented analysisMarketing-oriented analysis. It focuses on . It focuses on all major aspects of sales and marketing.all major aspects of sales and marketing.


30

3. Customer Service and Support3. Customer Service and Support

This addresses after-sale activities such as This addresses after-sale activities such as help desks, call centres and field-service help desks, call centres and field-service operations.operations.

It includes activities such as order tracking, It includes activities such as order tracking, repair scheduling and dispatching, service repair scheduling and dispatching, service agreements and contract, and service request agreements and contract, and service request management. management.

The customer self-service feature enables the The customer self-service feature enables the customer to access account information, customer to access account information, product information, order history, account product information, order history, account balance etc. balance etc.


31

Major benefits of CSS may be mentioned Major benefits of CSS may be mentioned as followsas follows::

Relationship with the customer is Relationship with the customer is strengthenedstrengthened

Call centre efficiency is increased Call centre efficiency is increased through automated call routing, call through automated call routing, call tracking, entitlement processing and tracking, entitlement processing and problem resolution.problem resolution.

Costs of service and support are Costs of service and support are decreased by extending Web-based decreased by extending Web-based support directly to the customer. support directly to the customer.

Excellent customer service can be Excellent customer service can be delivered by centralizing all kinds of delivered by centralizing all kinds of customer contact information. customer contact information.


32

Strategies for E-CRM Strategies for E-CRM solutionssolutions


33

Stages for developmentStages for development

Stage I : Customer information Stage I : Customer information environmentenvironment

Stage II: Customer value Stage II: Customer value orientationorientation

Stage III: Customer loyaltyStage III: Customer loyalty


34

Important strategiesImportant strategies

From segmentation to mass From segmentation to mass customizationcustomization: This strategy : This strategy involves (i) initial segmentation of involves (i) initial segmentation of the customers on the basis of the the customers on the basis of the value and then by the needs or value and then by the needs or preferences; and (ii) customizing preferences; and (ii) customizing products and services to suit products and services to suit individual needs of all the customers. individual needs of all the customers.


35

Customer profitability:Customer profitability: It includes It includes different marketing programmes for different marketing programmes for different customers. Knowing the different customers. Knowing the value of each customer helps to value of each customer helps to determine the optimal marketing determine the optimal marketing efforts required for that customer. efforts required for that customer. Data mining techniques help to decide Data mining techniques help to decide the current and potential level of the current and potential level of customer profitability, which can guide customer profitability, which can guide the company in its marketing efforts. the company in its marketing efforts.


36

Customer loyalty:Customer loyalty: Customer loyalty Customer loyalty plays an important role in the growth plays an important role in the growth of business. If customer is satisfied of business. If customer is satisfied with the service he/she is even with the service he/she is even willing to pay a premium, Customer willing to pay a premium, Customer loyalty also reduces the cost of sales loyalty also reduces the cost of sales as efforts for awareness are not as efforts for awareness are not required for the existing products. required for the existing products.


37

Personalisation :Personalisation : It helps to identify It helps to identify the needs and requirements of the needs and requirements of individual customers. It includes all individual customers. It includes all aspects of customer interaction a aspects of customer interaction a unique and beneficial experience, unique and beneficial experience, wherever the interaction takes place. wherever the interaction takes place.


38

ConclusionConclusion

Customer relationship management is Customer relationship management is being increasingly used to identify, being increasingly used to identify, attract and retain valuable customers. attract and retain valuable customers. The The 4R’s4R’s of marketing – of marketing – retention, retention, relationship, referrals and relationship, referrals and recovery recovery - are of critical importance - are of critical importance in the establishment of successful in the establishment of successful marketing programme. These are marketing programme. These are facilitated by e-CRM practices.facilitated by e-CRM practices.

E-CRM

Documents

crm e ecrm

xaviers college

operational ecrm

ecrm eas

definition ecrm

profitable customers

customer services

loyal customers