Chapter 7 : E_CRMBy:

Marya sholevarWinter 2014

From RM to CRM The concept of relationship marketing was first coined by

Leonard Berry in 1983. He considered it to consist of attracting, maintaining and enhancing customer relationships within organizations. In the years that followed, companies were engaging more and more in a meaningful dialogue with individual customers. In doing so, new organizational forms as well as technologies were used, eventually resulting in what we know as Customer Relationship Management (CRM).

The main difference between RM and CRM is that the first does not acknowledge the use of technology, where the latter uses Information Technology (IT) in implementing RM strategies.

Customer Relationship Management (CRM)

CRM is a strategy by which companies optimise profitability through enhanced customer satisfaction.

CRM is about automating and enhancing the customer-centric business processes of Sales, Marketing, and Service.

CRM not only deals with automating these processes, but also focuses on ensuring that the front-office applications improve customer satisfaction, resulting in added customer loyalty that directly affects the organization’s bottom line.

Electronic Customer Relationship Management (E-CRM)

E-CRM This concept is derived from E-commerce. It also uses net environment i.e., intranet, extranet and internet

Definition of E-CRM: Electronic CRM concerns all forms of managing relationships with customers making use of Information Technology (IT).

The goal is to drive consistency within all channels relative to sales, customer service and marketing initiatives to achieve a flawless customer experience and maximize customer satisfaction, customer loyalty and revenue.

Electronic Customer Relationship Management (E-CRM)

E-CRM (Electronic Customer Relationship Management) expands the traditional CRM techniques by integrating new electronic channels, such as Web, wireless, and voice technologies and combines it with e-business applications into the overall enterprise CRM strategy.

Therefore ,it is just an expanded, integrated version of CRM . Thus, Old CRM + Internet = e-CRM

Differences between CRM and E-CRM

1.Customer contacts2.System interface3.client computers 4.Customization and personalization of information 5.System focus 6.System maintenance and modification

Why E-CRM?

Gather and combine customer information into a unified picture

Response faster and accurately Build customer loyalty Due to the introduction of new technology Due to globalization Changing customer attitudes and expectations To gain competitive advantage To measure, create and increase income for the business To reduce costs

Different levels of E-CRM

Foundational services: This includes the minimum necessary services such as web

site effectiveness and responsiveness as well as order fulfillment.

Customer-centered services: These services include order tracking, product configuration

and customization as well as security/trust.

Different levels of E-CRM

Value-added services: These are extra services such as online auctions and online

training and education

Goals of E-CRM

Reduce : Costs of marketing

Improve : Accuracy and relevancy of recommendations Customer satisfaction

Goals of E-CRM

Increase : Conversion rate, i.e., Turn browsers into buyers Customer retention and frequency Order size customer response competitiveness through differentiation Profitability.

Key applications of E-CRM

1- Information integration application An incomplete view of customers reduces their loyalty and trust Consolidating customer data and information from different

sources To keep up with every customer’s interaction

Key applications of E-CRM

2- Customer analysis application Measures, predicts, and interprets customer behaviors Predictive models to identify the customers most likely to

perform a particular activity Online analytical processing, data mining and statistics

Key applications of E-CRM

3- Real-time decision application To coordinate and synchronize communications across

disparate customer An effective real-time decision application promotes

information exchange between the company and every customer

Key applications of E-CRM

4- Personalized messaging application Building customer profiles and enables customized product

and service offerings based on the information integration application

Benefits of E-CRM

Retaining existing customers. Selling more to existing customers. Finding and winning new customers. Interactions lead to trusted relationships: Focus the business on improving customer relationships and

earning a greater share of each customer’s business.

Benefits of E-CRM

Increasing efficiency. Improving marketing and sales decision making. Enables 24/7 customers interaction: optimize interactive

relationships between customers and companies. Personalization through technology: enable a business to

extend its personalized messaging through the Web and email.