Online crm

R'tist @ Tourism

Online Mktg - CRM

© Ramakrishna Kongalla, Assistant Professor

Indian Institute of Tourism & Travel Management(An Organization of Ministry of Tourism, Govt. of India)

R'tist @ Tourism

e-CRM

• CRM …..

Any application or initiative designed to help an organization optimize interactions with customers, suppliers, or prospects via one or more touch points for the purpose of acquiring, retaining customers.

R'tist @ Tourism

Introduction of e-CRM

• eCRM is the application of CRM to an e-business’ strategy– Personalization/customization of customers’ experiences

and interactions with the e-business

• Recall:– Relationship between merchant and customers is distant– Less expensive to keep customers than to acquire new

ones– Repeat customers have higher lifetime value than one-time

buyers

R'tist @ Tourism

How? Track and Analyze Data

• Employ tracking devices– Personalize each visitor’s experience– Find trends in customer use – Measure effectiveness of a Web site over time– ID cards

• An ID card enables information to be sent to a Web site such as your IP address, your browser, or your operating system

– Click-through banner advertisements• Click-through ads enable visitors to view a service or product by

clicking the ad• Advertisers can learn what sites generate sales

R'tist @ Tourism

Tracking: Web BugsWeb Bugs– A type of image file embedded in an image on the screen– Site owners allow companies, especially advertising

companies, to hide these information-collecting programs on various parts of their sites

– Every time a user requests a page with a Web bug on it, the Web bug sends a request to the Web bug’s company’s server, which then tracks where the user goes on the Web.

R'tist @ Tourism

Tracking: Log-File Analysis

• When visiting a site, you are submitting a request and this is recorded in a log file

– Log files consist of data generated by site visits, including each visitor’s location, IP address, time of visit, frequency of visits, etc.

– Log-file analysis organizes and summarizes the information contained in the log files• Can be used to determine the number of unique visitors • Can show the Web-site traffic effects of changing a Web site or

advertising campaign

• E.g. WebTrends.com

R'tist @ Tourism

Tracking: Data Mining

• Data mining (building on a data warehouse)– Uses algorithms and statistical tools to find patterns in data

gathered from customer visits– Costly and time consuming to go through large amounts of

data manually – Use data-mining to analyze trends within their companies or

in the marketplace– Uncovered patterns can improve CRM and marketing

campaigns – Discover a need for new or improved services or products by

studying the patterns of customers’ purchases

R'tist @ Tourism

Tracking: Customer Registration

Customer registration• Requiring visitors to fill out a form with personal

information that is then used to create a profile• Only works when it will provide a benefit to the

customer• When customers log on using usernames and

passwords, their actions can be tracked and stored in a database

• Require only minimum information• Need to give customers an incentive to register

R'tist @ Tourism

Tracking: Cookies

• Cookie– A text file stored by a Web site on an individual’s personal

computer that allows a site to track the actions of a customer– Information collected is intended to be an anonymous

account of log-on times, the length of stay at the site, purchases made on the site, the site previously visited, the site visited next

– Does not interact with other information stored on the system

– Can only be read by the host that sets them on a person’s computer

R'tist @ Tourism

Personalization

• Uses information from tracking, mining and data analysis to customize a person’s interactions with a company’s products, services, Web site and employees

• Establish relationships that improve each time visitors return to site

• Customers may enjoy individual attention and become more loyal, e.g.

http://www.moneycontrol.com

R'tist @ Tourism

Contact Centers

• Traditional call centers house customer-service representatives

• e-contact center – Purpose is the same—to provide a personal customer

service experience– Allow customers with Internet access to contact customer

service representatives through e-mail, online text chatting or real-time voice communications

• Integration of all customer service functions

R'tist @ Tourism

E-Contact Centers

• Can change the culture of customer service representatives:– More technically knowledgeable to handle all forms of

contact– Provide a highly personalized experience that satisfies

customers• New forms of contact can decrease costs• Outsource contact center services– May be appropriate if a company cannot afford to

implement a contact center due to the costs of equipment, office space, service representatives and technical support.

R'tist @ Tourism

Frequently Asked Questions (FAQs)

• A Frequently Asked Questions (FAQ) section on the site– Will help customers find answers to some of their

questions– Frees up time to handle questions that can not be

answered without human interaction• Typically accompanied by phone numbers, e-mail

addresses, and a search engine

R'tist @ Tourism

TRADITIONAL FORM OF CRM

The existing CRM solution are not capable enough to satisfy and retaining customers and also there is no integrated tool which connect the Central sales management, regional sales office, customers care, sales, sales distribution, regional sales team in effective manner.

A 360 view requires the automation to bring together all the data concerning a customer. This implies that organizations have to change the form :

R'tist @ Tourism

TRADITIONAL CRM EMERGING SOLUTION

Mass production Product focus

Product focus Customer focus

1way communication Interactive communication

Response time Real time responses

R'tist @ Tourism

Present CRM alternatives• Present CRM solutions are offered by the host

of vendors that are to a great extent not industry specific.

• While some vendors, who have come up with industry specific solutions, the broad model around which the CRM solutions are built, remain the same.

• A typical offerings of the current CRM solution (such as Siebel, oracle apps or Mysap.com etc.) vary form solution to solution.

R'tist @ Tourism

Present CRM alternatives

A typical offerings of the current CRM solutions offerings comprise of :

• Customer developments • Service center• Sales management & support• Market Analysis• Internet, telemarketing product & brand

management

R'tist @ Tourism

Present CRM alternatives

• Field sales , Tele sales, • internet sales• Call centers• Field service• Internet customer service• Service interaction center(call centers)• Business partners collaborations

R'tist @ Tourism

Technology impact on CRM

• Technology is touching the way, we live our lives, expectations of individuals is changing continuously and PCs and internet revolutionizing our lives in 21st century .

• Some clear trends that can be clearly seen are :• More and more individual will like to be treated as

one single person rather then as among the masses .

• People wish products and services round the clock.

R'tist @ Tourism

EMERGING IMAPCT OF E-COMMERCE ON CRM

In a fast changing internet world there are very clear trends that are emerging :

• Speed: people expect service at fast speed• Increase of global market place: more more people ,

communities across the globe are able to build relationships.

• Around the clock availability• expansion of partners : internet offers the ability for

the organizations and people alike to partner with suppliers and customers alike across the globe.

R'tist @ Tourism

EMERGING IMAPCT OF E-COMMERCE ON CRM

• In global market place the channels of marketing are already causing an impact on the buying behavior of individuals as well as organizations alike. Some of the trends are :

1. VERTICAL E-MARKET PLACE : industry specific market place such as being formed by auto giants where organized buyers and sellers can meet, list, negotiate, make orders and track delivery.

R'tist @ Tourism

• BUY SITE AND SELL SITE: where consumers and organization are alike can buy or sell online through online shopping mart concept.

• HORIZONTAL MARKET PLACE: service that run across the different vertical e-market places or business to customers (B2C) buy and sell sites. Such sites should be delivery sites , insurance etc.

• Use of internet to optimize supply chain management(SCM) : earlier organizations use to use EDI rather than the expensive preposition for limited numbers of partners but now organizations are implementing new ERP systems to optimize its SCM.

R'tist @ Tourism

e-CRM• With the abundance of product and services

offerings, consumer`s loyalty can only be commanded by providing better portfolio of services.

• speed of response and understanding each individual one of the major key issues CRM has become the central focus area around which the entire gamut of organizational activity has to revolve round.

R'tist @ Tourism

In simplest terms e-crm provides company to conduct interactive, personalized and relevant communications across the globe with their customers by utilizing the traditional and electronic channels both.

It adheres to permission based practices, respecting individual's preferences regarding how and whether they wish to communicate with you and it focuses on the understanding how the economics of the customers relationships affects the business.

R'tist @ Tourism

e- CRM is the electronic based version of CRM. The user of the a e- CRM solution uses the sources of the internet to increase the relationship with the customer.

web based CRM can easily handle the relationships between Central sales management, regional sales office, customers care, sales, sales distribution, regional sales team.

R'tist @ Tourism

Why employ e-CRM ?• To optimize the value of the interactive relationships• Enable the business to extends its personalized reach in

the hand of customers• Co-ordinating marketing initiatives across the all

customers channels• Leverage the customer`s information for more effective

e-marketing and e-business• Focus the business on improving the customers

relationship and earning a greater share of each customer`s business through consistent measurement, assessment and actionable customer strategy.

R'tist @ Tourism

The six “E`s” of e-CRM

• The ‘e’ not only stands for “electronic” but also perceived to have many other connotations. Through the core of CRM remains to be cross channel integration and optimization. The six “E” of e-CRM are briefly explained in the next slides.

R'tist @ Tourism

E- “electronic channels”

E- “External Informati

on”

R'tist @ Tourism

1) Electronic channels: new electronic channels such as web and personalized e- messaging have become a medium for fast and interactive , economic communication , challenging company to keep pace with the increased velocity. E – crm thrives on these electronic channels.

2) Enterprise : through e- CRM the company gains the mean to touch and shape a customers experience through sales, services and corners offices whose occupants need to understand and assess the customers behavior.

3. Empowerment: it must be structured to accommodate consumers who now have the power to decide when and how to communicate with the company. Through ,which channel , at what frequency. An e- CRM must be structured to deliver timely pertinent, valuable information that consumers accepts in exchange of his/her attention.

R'tist @ Tourism

• 4. Economics : an e-CRM strategy ideally should concentrate on the consumer economics, which drives smart asset allocation decisions, directing efforts at individuals likely to provide the greatest return on customer- communication initiatives.

• 5.Evaluation: understanding the customers relies on a company`s ability to attribute customers behavior to market programs, evaluate customer interactions along various customers touch points channels and compare anticipate ROI against actual returns through analytic reporting.

6. EXTERNAL INFORMATION : the e-CRM solution should be able to gain and leverage information from such sources as third party information networks and webpage profiler application.

• Acquisition (increasing the no. of customers)• Expansion (increasing the profitability by encouraging customers to purchase

more products and services)• Retention (increase the amount of time in which the customers stays with

company, making a long-term relationship)

R'tist @ Tourism

KEY FEATURES OF e-CRM

• Regardless of an company objectives e-CRM solution must posses certain key characteristics. It must be:

• driven by a DATA WAREHOUSE• Focused on the consistent metrics to asses customers

actions across the channels• Structured to identify a customer profitability or profit

potential• To determine the effective allocation decisions accordingly,

so that most profitable customers could be indentified and retained and the resource could be invested in the relationships, which are more profitable.

R'tist @ Tourism

EVOLVING TO e-CRM• In nutshell company a company evolving to e-CRM should be:• Define its business objective. This would be specific and

different for different businesses• Assess its current position with respect to the environment

and determine its current level of “sophistication” along the e-CRM continuum ( e-CRM assessment)

• Define new business processes and align its existing business strategy and existing processes in line with the new realities (e-CRM Strategy alignment)

• Define a technical architecture and the criteria`s associated with this architecture and the important criteria associated with this architecture. (e-CRM)

R'tist @ Tourism

E – CRM ASSESSMENT Before the implementation of a particular strategy into any business scenario, it is worthwhile to know the current state of the business with respect to prevailing competition. It is vary important to develop a numerical measure of how a company measures up in the eye of the customers with respect to its competitors.

in this particular case of e- CRM ,an e- CRM capability index would be devised , which provide a benchmark for cross company comparison based on these results, a company identifies quick hits based upon e- CRM gap which can which can be immediately implemented to improve the business processes ,impact the bottom line and further enhanced its understanding of its customers` view of the company. E- CRM stage would be the diagnostic stage , followed by e-CRM strategy alignment and e-CRM architecture model.

R'tist @ Tourism

E- CRM STRATEGY ALIGNMENT

Every company moving in to e- CRM must make a key decisions on a number of significant customers related factors. Each company must indentify, measure and align to the gaps that exist between customer expectations already measured in the e-CRM assessment stage and the internal capabilities that these customers expectations.

Ideally in this module a company should try to build up the consensus across the functions , which the company need to take to satisfy the customer expectations.

R'tist @ Tourism

E-CRM architectureThe primary input to this module are mainly from the e-CRM

assessment and strategy alignment modules. during this stage the company will try and develop a connected enterprise architecture(CEA) within the context of the companies' own customers relationship management strategy. The following is set of technical e-CRM capabilities and applications that collectively and ideally comprise a full e-CRM solutions :

Customers analytic soft wares Data mining soft wares Campaign management soft wares Business simulation A real time decision engines

• Customer analytic software : predicts ,measures and interprets the customers behavior allowing companies to understands the effectiveness of e-CRM efforts across both inbound and outbound channels. Most importantly, customers analysis should integrate with customers communication software to enable the company to transform customer findings into ROI- producing initiatives.

• Data mining software : it builds the predictive models to identify customers most likely to perform a particular behaviors such as purchase an upgrade or churn from the company. Modeling must be tightly integrated with the campaign management software to keep the pace with the multiple campaign running daily or- weekly.

R'tist @ Tourism

R'tist @ Tourism

• Campaign management soft wares : leverages the data wares house to plan and execute multiple, highly targeted campaigns overtimes, using triggers that respond timed events and customers behavior. Campaign management software test various offers against controls groups, capture promotion history for each customers and prospect and produces output virtually any online or offline customers touch point channel.

• Business simulation : it is used with conjunction with campaign management software optimize offer, messaging and channel delivery prior to the execution of campaigns and compare planned cost and ROI projection with actual cost.

R'tist @ Tourism

• A real time decision engine : coordinate and synchronizes communications across various customers touch point systems. It contains the business intelligence to determine and communicate the most appropriate message ,offer, and channel delivery in real time and support two way dialogue with the customers

R'tist @ Tourism

MOBILE CRM• One subset of Electronic CRM is Mobile CRM (m-

CRM). This is defined as “services that aim at nurturing customer relationships, acquiring or maintaining customers, support marketing, sales or services processes, and use wireless networks as the medium of delivery to the customers.

• However, since communications is the central aspect of customer relations activities, many opt for the following definition of m-CRM:

R'tist @ Tourism

• “communication, either one-way or interactive, which is related to sales, marketing and customer service activities conducted through mobile medium for the purpose of building and maintaining customer relationships between a company and its customer(s)”

• E-CRM allows customers to access company services from more and more places, since the Internet access points are increasing by the day. M-CRM however, takes this one step further and allows customers or managers to access the systems for instance from a mobile phone or PDA with internet access, resulting in high flexibility.

R'tist @ Tourism

• An example of a company that implemented m-CRM is Finn-air, who made it possible for their customers to check in for their flights by SMS.

• Since m-CRM is not able to provide a complete range of customer relationship activities it should be integrated in the complete CRM system.

R'tist @ Tourism

Thank You…!!!©Ramakrishna Kongallae-mail: [email protected]