Electronic customer relationship management (ecrm) and its role in marketing

Electronic customer relationship management (ecrm) and its role in marketing Faramarz Sharifi Azar 1, Razzagh Safari 2,Keivan Ebrahimian 3,Gholamreza Fahimi 4 1234 MA Students of Insurance Business Management Islamic Azad University, Rasht Branch, Guilan Iran Abstract Marketing tasks in a wide range of innovative marketing concepts, tools, methods and practices including marketing efforts in order to win the competition for customers, customer satisfaction is the key to winning this competition. One of the most effective tools of achieving this goal is customer relationship management with the development of technology and communication. with today's electronic customer relationship management (ecrm) are enumerated the purpose of this safe and profitable relationship management is based on customer value as the company's main asset, This article is an attempt to collect the relevant material, with special emphasis on the impact of the adoption of ecrm Marketing and the interests of customers, there is a way for businesses and organizations. Key words: marketing, customer, Customer Relationship CRM) (, electronic customer relationship (ecrm) 1- Introduction Organization or institution that has been active in the economic field and the customer name is meaningless the ultimate goal of any organization is essentially unthinkable and resources to achieve customer the customer is willing to pass in return of obtaining equal or superior value of it. Naturally in today's competitive business world, access to resources and more profit is Consumer competition is also subject in the past, if customers seek to satisfy their needs in searching for and obtaining the required information here are the companies and organizations who wish to communicate with the customer. In this course are experimenting all methods. Perhaps the customer relationship (Relationship Management Customer) and CRM is the most important concept of modern marketing. Until recently, CRM, customer data management function was defined briefly as this definition includes detailed information about each management and careful management of customer contact points in order to maximize customer loyalty was but the new definition of customer relationship management is a broader concept. This concept is widely involved in the process. To establish and maintain effective relationships with customers by providing higher value to his cause. This defines all aspects of capturing, storing, and includes many customers. (Kotler, Armstrong, 2008, 15) COPY RIGHT 2013 Institute of Interdisciplinary Business Research 986

Methods of communication between customers and the company are changing dramatically. In the past, companies focused on mass marketing, what they can spend on themselves and their products were introduced to the public, but today the company after careful selection of customers, attempt to communicate with their immediate and durable.. However, striking advances in computer related technologies and information systems new opportunities facing companies and organizations deal ECRM concept a step in the customer relationship. This concept can also develop your potential and creativity also provided. The advantage of the new capabilities offered ecrm company every day. Various aspects of the operations the orders - which is regarded as the first stage of the customer relationship - Plans, proposals to provide specific product or service and match customer needs in light of all the capabilities of using ecrm is allowed. Internet technology has made the world established suddenly communication limitations of time and space quickly recovered and smart marketers who understand the value of this property. Later introduce various aspects of the concepts and issues associated with customer issues with special emphasis on the electronic (ecrm) the advantages of this system is to provide information brief but informative. Concepts such as the role of ecrm, the benefits of information technology, ECRM challenges and examples of applying this system will be described in a local company. 2- Concepts and definitions: Definition of ICT For there are many different definitions of Information and Communication Technology. Review articles and texts published on the application and use of information and communication technologies that none of them provided a comprehensive definition of information and communication technology and other related concepts such as the difference between the term "information technologies" is specified. The assumption in this study is acceptable terms of information and communication technology can be used as a substitute for the term information technology (Thriving, 2006). Below are a few of the definitions in different contexts for ICT, is expressed as: - ICT is the technology that we capture, store, process, retrieve, transmit, and receive their help. Information technology has created a revolution in the way we do things. Information and communication technology are interdependent; so that the information operator is considered and communication of its products. - Information technology as a means of "Information Technology Association of America" has been defined; the study, design, development, implementation, support or management of computer-based information systems, particularly software applications and computer hardware is concerned. " in short, information technology issues such as the use of electronic computers and software deals to convert, store, protect, process, transmit and retrieve information in a safe and secure way done.. Recently changed in this statement is slightly clearly, this term shall include electronic communication circle. Therefore, some of the most willing to "take ICT to work. - Electronic Customer Relationship Management Customer Relationship Management refers to all processes the companies and organizations to identify, encourage, develop, maintain, and provide customer service used to (Obvious, Dorfingaz, Nelson, 1995) COPY RIGHT 2013 Institute of Interdisciplinary Business Research 987

3- How to communicate with customers, An important key factor in achieving a distinct advantage for businesses is considered. Furthermore, an important role in increasing the competitiveness of companies manage customer relationships in ways that create better and more effective relationships with customers, companies can go to compete with other competitors. In today's market environment and its characteristics compared with traditional markets, changes in attitudes, procedures and practices are necessary some of the features of traditional and modern markets is reflected in the following table: Market Conditions Past Today Low competition and manageable High competition and uncontrollable Lack of pricing limits The impact of competitive pricing and global prices Conditions imposed to customers (without discounts) Choices and decisions Narrow areas trading for newcomers Reducing barriers to market entry Slow reaction and lack of proper accountability to customers' needs Reaction speed and responsiveness to customer needs Low productivity and inefficiency The need to increase productivity and efficiency, staff productivity approach Ensure a worry-free return of capital Increase the return on investment risk Long product life curve Curve shortening product life Limited knowledge of customers Increase customers' knowledge Stable economic conditions and under government control Open and competitive economy Comparison of traditional and modern markets (Ebrahimpour, Ameli, Ayoubi, 2008) COPY RIGHT 2013 Institute of Interdisciplinary Business Research 988

Changing the face of today's markets with the advent of information technology and its rapid expansion was feasible.product, process orders over the phone or in person died if the company was and then prepare the purchase order process and other steps were performed the goods will be delivered to the customer. But today information technology with dramatic effects on different parts of an organization particularly how organizations interact with their customers in a more effective way is to replace CRM tools are now widely used in information technology. The new concept called "Customer relationship management in electronic form» ecrm has emerged. Close relationship between the uses of information technology in the field of ecrm drastically reduces the costs of different companies and the competitive advantage of the company adds. Companies using ecrm first could be important to the perceived customer for company shall provide the customer the secret of success in the marketing of a company is considered associated with a range of other factors such as quality and service is the customer loyalty. It is emphasized that ecrm originally formed based on CRM principles and may be better and is advanced tools to communicate with customers. - Features of the ecrm Shift of customer relationship company to company and customer relationship marketing perspective due to a change in the concept of customer orientation, will be realized only under the ecrm and because the system is a function of various technologies, especially information technology with the development of technology has changed our relationship with the customer. In fact ecrm Help to recruit and keep economically valuable customers through new channels and eliminate those that are looking for a low interest (Romano and F Jermstad, 2002) In other words, ecrm companies to implement tools for personalized interactive communications with customers through traditional channels and is equipped with modern electric. As a leading company that IBM computer equipment are recognized in the marketplace leader and activist the concept of customer relationship and ecrm capabilities made it possible customers to visit the company web site the prices, specifications and dimensions of products and know their orders through the system to apply. Leh Wi Strawski company is active in the field of clothing production facilities using ecrm in addition to providing direct relationship with the customer in obtaining information online features and the types of products the company plans to allow its customers the models are designed to perform desired and the transfer line. (Sen, James, Lauden, 1994, 44) This approach affects multiple aspects of the marketing concepts the company's unique competitive advantage and succeed in making personal and specific to a particular client relationship is formed. ECRM level of personalization can be achieved with CRM is virtually impossible, this will facilitate the provision of goods and services is a customer. (Jrmstad VAF Romano, 2002) 4- The benefits of using information technology in CRM Naturally, companies are always looking to gain and maximize your profits COPY RIGHT 2013 Institute of Interdisciplinary Business Research 989

and operating system or tool in this regard in order to achieve sufficient advantages of the system are analyzed. ecrm also has several advantages, which are some of the most important points. i - Access to the "relative value" price above Customer service has always seek to gain the desired value is purchased or received companies tend to achieve competitive advantage the take up of for this purpose, cost reductions with lower pricing will enhance this ratio (Roosta, Venus, Ebrahimi, 2008, 264) ECRM with data storage and Easy re-access with the effect on storage methods and manpower in addition to increased productivity and reduced costs. Among the important factors in this regard,reduce the cost of customer care research shows that the results the cost of attracting a new customer.6 times - 5 times as is mentioned in some sources is available More than the preservation of customer (Jarahi, Saida, Zare'ian, 2009) ii. - Increase Sales The process of information gathering stage consumer buying decision ecrm strictly comply with the requirements of act and most valuable information is being provided for consumers also noteworthy is the importance of the customer to buy the time, so that the client provides a pleasant shopping experience easier. In a survey reported that 60 percent of buyers easy shopping centers did not want to buy again.(roosta, Venus, Ebrahimi 2008,266) Accordingly, the ecrm all the information, including an Order, insertion orders, ideas, and received the product or service makes it easier and enjoyable So natural consequence of this system would be expected to increase sales. iii. - Customer Loyalty maybe customer loyalty be the main outcome measure used in ecrm sales promotion activities a marketing company this directly results in increased sales and profitability and ensure effective the company is considered as a powerful competitive advantage. Because electronic customer relationship systems the principle is contained in multiple databases therefore, to obtain records of customer transactions and the previous is invoked and provides useful information to the customer. Facilitate affairs associated with companies and private facilities and help customers make quick decisions are customer's loyalty factors. Some companies in visit client's company site to purchase a particular product propose others items that buyers with similar interests have done that in total leads to feel value in customer and increasing loyalty (Jarahi, Saida, Zare'ian, 2009) iv. Eliminate middlemen COPY RIGHT 2013 Institute of Interdisciplinary Business Research 990

When buyers and sellers are Online directly connected, the role of intermediaries is very pale. Eliminating middlemen characteristics of e-business is taken into account. Complaisance quite seen in aviation industry and online travel. In these systems, Client is able to connect to a central booking system. Through networks and reserve their flight, faster and more convenient way to act. This enables organizations to automate the booking process. Complaisance reduces the cost and does not require the expensive physical equipment. Some airlines make the database through the utilization of customer relationship systems. For customers who have a lot of air travel in their next flights. Prepared some favorites that have stated previously make them excited and add to their satisfaction. v.internet the most prominent aspect of ecrm The communication network is the product of the world's largest Network that it will be used more internet. That both businesses and people who use it is perhaps as an invisible flexible network based ecrm introduced. The use of the aim is to improve customer satisfaction. Clearly provided the extraordinary power of the web to better relationships with customers (Compared to the offline world) Internet Technology in fact is the supportive tools of business processes which can e-mail to cover customer database and channels of communication between buyer and seller must complete. Supposed to paying Czech or get cash out of the bank maybe someday seemed impossible but now the client banks not only is it possible but in line with ongoing communication and effectively with their customers, private Banking customers have designed on the one hand due to the fast process is attractive to customers customer and the bank actually serve as a banking officer puts their targets. - Web-based tools used in relationship with customers In this section will present some Internet tools used in ecrm: 1 - portals: the fact that websites with extensive facilities in order to provide communication including discussion boards, online stores and... - Electronic posts: In fact, the traditional posts more effectively in the virtual world plays and obviously the necessity to respect the privacy avoidance of occasional interventions needed by marketers. Research findings indicate 10-fold effectiveness of the use of electronic posts in compared to the telephone (Surgery, Saida, Zare'ian, 2009) - Forums: The groups are integrated in cyberspace that mainly based on common interests in the discussion boards are present for example, an Internet search for information about attributes of a product we encounter with a significant number of comments provided that such associations COPY RIGHT 2013 Institute of Interdisciplinary Business Research 991

Presence of marketers in this forum and obtain customers' views critics and advocates of a product or service provides an opportunity until without certain charge be aware of Potential problems of their product and attempt to resolve the deficiencies. - Catalogs and banners: In this type of advertising easy change and update the information quickly and reduce the cost of traditional catalogs are positive aspect of this type of instrument card purchases, downloads, images, sound and..are other web-based tools in ecrm. Application of ecrm in Health Insurance Office of Ardabil province This Office was established in 1996 and issuance of insurance agencies to cover medical expenses has started its activities. Issuing insurance ID initially was conducted concentrated in Tehran. Since the demand until delivery insurance ID about a month had passed time in the year 1382 in line with the relevant software automation installed in the province and issues book fell to less than a few days. In 1384 by designing Office Portal, insured could visit the website and by entering insurance code (That number is a unique singular) apply issuing insurance ID and if there is no legal prohibition,that system is controlled intelligent Insured Information is called from different databases and even photographs were insured previously scanned reflected book cover and is transferred to the printed after printing ID by courier will be sent to the address of the insured. This Facilities other provinces, especially in the case of insured of due to vacation or treating to other provinces is useful because each office can connected to the administration portal and issue prospectus. At present Duration of issuing insurance ID for an insured is less than 5 minutes. Although the health insurance of the organizations included exclusive, but naturally in case of competitiveness and other competitors in this context, adoption of such structure and tools could be effective in gaining competitive advantage. However, with this action naturally customer convenience and satisfaction are increased but the actual research that indicates this satisfaction has not been done. - Is customer's satisfaction of the users of ecrm more than people that they are not users of ecrm Answer to mentioned question is shown in the research that conducted in the performance of Customers of Golsar corporate. With a brief survey in the Golsar Fars company, interviews with managers and marketing, specified that the main users of e- CRM system of Golsar Fars company, are company sales representatives throughout the country. These agents, somehow themselves are customers of the company and daily continuously through the company's website, and get information about new products, last Products Price and... These agents are divided into two categories: A bunch of ecrm systems have been associated with company and the second batch in the traditional way have acquired their information this is the only difference between the two groups. COPY RIGHT 2013 Institute of Interdisciplinary Business Research 992

Result of reviews confirms that groups of ecrm. systems users Significantly had greater satisfaction Than the second group And was suggested that Company should provide hardware and software platforms and provide the necessary training other agencies also use the system encourage (Kamalian, A., Mo'ezzi, 2010) 5- Ahead Challenges It seems that the main challenges to deploying ecrm in the scope of the problems facing software systems in particular, the web-based is Impacted these will be more challenging, especially in Iran. According to the latest data released the Ministry of Communications and Information Technology there are 23, million Internet users represents approximately 30% of the diffusion coefficient and according to data from the International Telecommunications Union, the members of one of the 20 states with the most population in the world. This technology is expected to help the business. Nevertheless while ecrm the fast and low-cost things and satisfaction of emphasizes internet speed is very low as the main communication tool and often is boring. In many cases, an online shopping finally, does the frequency and start the purchase process the completion of data fields it is frustrating. The cost of using the Internet not commensurate with the location and the services provided are not restrictions also apply to high-speed internet and enjoy views. The other important security thread list and companies especially since the introduction of Internet and online purchases is considered a new experience so the risk of data theft is probable. 6- Conclusions Today, in order to maintain competitiveness, all organizations are looking for ways of developing maintenance, stability, accuracy and timely collection of customer product and service information during the marketing and sales are to fulfill these demands intelligent tools processor and at the same time low costs are needed that has found in ecrm. ecrm is intelligent interpretation of endless possibilities that provided by information technology and local companies and organizations. Regardless of the many benefits of electronic communication with customers in the future are forced to join the Groups of ECRM users otherwise, the competition will be awarded. COPY RIGHT 2013 Institute of Interdisciplinary Business Research 993

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