Chapter 6. CRM in e-business. Customer Relationship Management chapter-6 CRM in E-Business
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1 Chapter 6 CRM in e-business
2 Objectives What is ecrm Different levels of ecrm Concept of mobile CRM Evaluation of ecrm Different between CRM and ecrm Need to adopt ecrm
3 What is ECRM? Electronic CRM concerns all forms of managing relationships with customers making use of Information Technology Electronic CRM also used to Give managers online access to analytical reports Allow efficient identification of profitable customers Integrate analytics across the enterprise Provide access to enterprise statistics from remote locations
4 Different Levels of ecrm Three different levels can be distinguished defining the scope of ecrm Foundational services Minimum necessary services Customer-centered services Order tracking, product configuration and customization, security Value-added services Online auctions, training and education
5 Concept of Mobile Mobile CRM 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 Reasons for growth of e commerce and e CRM Growth of web as commerce and communication medium Online services and grow consumer desire for self services Transactional relationships today s multi-model Customer management morphed to modern complex form Web based technology and architecture driven ecrm
6 Evolution of ecrm ecrm is CRM online. ecrm implies an additional means of communication and level of interaction with customer enabling self service Organization go about building ecrm must Define its business objectives Assess its current sophistication along the ecrm continuum in terms of process and technology Define business processes and changes needed to support its goals
7 Different between CRM and ecrm Being able to take care of customer via internet, or customers being able to take care of themselves online; that is difference between CRM and ecrm. It implies a myriad of issues, questions, approaches, technologies and architecture that are different from client/server-based CRM Why move online CRM Main business passage Web Experience ecrm is customer facing internet portion of CRM ecrm and Portals Portals become gateways to entire web based activity
8 Modules of CRM The CRM applications are a convergence of functional components, advanced technologies, and channels. Functional components include sales applications, marketing automation, and customer service and support applications. Channel include the Web; call centers, phones, and mobile devices. Components and channels are Sales applications- Go hand in hand with SFA applications Marketing applications Newest breed of applications in CRM space, that complements FA applications and provide certain capabilities unique to marketing
9 Need to adopt ecrm The need to adopt ecrm emerges from the following Optimize the value of inter-active relationships Enable business to extend its personalized messaging to the Web and Coordinate marketing initiatives across all customer channels Leverage customer information for more effective emarketing and ebusiness Focus business on improving customer relationships and earning a greater share of each customer s business through consistent measurement, assessment and actionable customer contact strategies
10 Three Dimensions in ecrm ecrm address customer optimization in three dimensions, while acquisition and retention are fairly well understood, customers profitability through expansion requires some scrutiny. Expansion presents enormous untapped value and ecrm strategy must be able to identify expansion potential of each customer Acquisition, getting increased number of new customers Expansion Retention
11 Key ecrm Features An ecrm solution must possess certain key characteristics regardless of objectives are: Focused on process Driven by a data warehouse Focused on a multi-channel view of customer behavior Build to accommodate the new market dynamics that place the-customer in control Structured to identify a customer s profitability or profit potential and determine effective investment allocation decisions accordingly Scalable to meet growth and performance needs
12 ecrm Drivers The emergence of new, dynamic customer interaction channels such as the web The speed and unparalleled cost effectiveness of the internet De-regulation, which is forcing utilities and other companies to develop acquisition and retention strategies The corporate realizations that consumers will no longer tolerate mass mailings or measure emessaging
13 ecrm Tools Customer Analytic software measures and interprets customer behavior Predicts, Data mining software Builds predictive models to identify customer likely to behave in particular fashion Campaign management Plan and execute multiple highly targeted campaigns Business simulation Used in conjunction with campaign management software, optimize offers, messaging and channel delivery, compares planned costs and ROI projections with actual results
14 Summary ecrm is the customer facing internet portion of CRM that includes capabilities like self service knowledge bases, automated response, personalization of web content, online product bounding and pricing Management chapter 6 CRM in
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