E-CRM

1. Compiled by : Navita Khanna

2. 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 also focuses on added customer loyalty that directly affects the organization’s bottom line. Customer Relationship Management

3. Customer Relationship Management

4. CRM Evolution

5. ECRM is the customer focussed management of the whole eBusiness relationship with each customer, in order to measure , create and increase income and reduce costs for each customer & segment and thus to generate greater positive lifetime value . Electronic CRM ( eCRM ) ECRM is the customer focussed management of the whole eBusiness relationship with each customer, in order to measure , create and increase income and reduce costs for each customer & segment and thus to generate greater positive lifetime value . Put simply, eCRM means CRM-database access via the Web. It means Intranet access for internal users, extranet access for business partners and customers and of course, Internet access for the market at large.

6. Electronic CRM ( eCRM ) e -CRM 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. Traditional CRM + Internet = e-CRM

7. Why eCRM ? 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

8. The essence of eCRM

9. e-CRM System Architecture Technical e-CRM Capabilities

10. e-CRM System Architecture Technical e-CRM Capabilities Customer analytic software  predicts, measures, and interprets customer behaviors, allowing companies to understand the effectiveness of e-CRM efforts. Data mining software  builds predictive models to identify customers most likely to perform a particular behavior. Campaign management software  leverages the data warehouse to plan and execute multiple, highly targeted campaigns overtime, using triggers that respond timed events and customer behaviour. Business simulation  used in conjunction with campaign management software optimises offer; messaging and channel delivery prior to the execution of campaigns, and compares planned costs and ROI projections with actual results. A real time decision engine  coordinates and synchronises communications using business intelligence.

11. e-CRM Components

12. 5 Engines of e-CRM

13. 5 Engines of e-CRM The customer-centric information store C onsolidates information about millions of customers together with preferences, permissions, and information that may be useful to them. The analysis and segmentation engine   Helps in leveraging this customer information to build a business campaign strategy and evaluate its success. The personalisation engine Helps in personalising the entire customer experience, configuring unique sets of messages and offers to each customer.

14. 5 Engines of e-CRM The broadcast engine Helps to proactively deliver information and offers to every customer via the media of his or her choice. The transaction engine Helps to facilitate the interactions between customer and the company, either exchanging information or driving transactions.  Equipped with such infrastructure, companies can continually create significant customer value at Internet speed, automating the “who, what, when, where, and how of sales and marketing”.

15. Planning for e-CRM An organization should plan for e-CRM if it aims on any of the following goals – Better levels of customer service  More effective customer lifecycle management  A single ‘360 degree’ customer view  Higher sales (better conversion rates etc.)  User-generated content  Site ‘stickiness’  Increased customer switching costs  Decreased costs (through customer self service etc .) Reduce customer acquisition costs Improve customer retention

16. Planning for e-CRM 7 C’s of effective e-CRM

17. Planning for e-CRM – The Strategy I. Terms of Reference  Everyone needs to be clear on what they understand by e-CRM for the project and why they consider e-CRM is going to be of benefit . II. Commercial Scope  What is the realistic scope and likely ROI for the initiative? III. Customer Insight The better you know your customers, or get to know them, the better you will be able to serve them. Who are your current and future customers? How much do you currently know about them? What are your points of contact with them ? How do they perceive you etc.?

18. Planning for e-CRM – The Strategy IV. Data Capture & Analysis What data you will need to support your digital strategy? How you are going to capture that data? How you will store, manage and use that data? V. Business Case & Implementation Path How do you best roll out and phase the implementation of your e-CRM initiative? How do you ensure you build a platform for future growth and yet not spend too long and too much money trying to do everything at once? What is your optimal cost / ROI development path in light of your digital strategy? VI. Do & Review

19. Planning for e-CRM - Facts A Forrester Research study of 70 retailers found that convenience was the number one ranked reason (84%) for purchasing on-line versus off-line . A study by the Boston Consulting Group found that 65% of on-line customers who purchase at a given web site will never make a second purchase . A recent McKinsey & Co. study revealed that a 10% gain in repeat customers can add about 10% to the company’s profits. Typically costs 5 times as much to acquire a new customer as it does to retain an existing one. The best way to keep existing customers happy is to deliver value to them on their own terms .

20. Comparative Analysis Oracle Demand Products Sage MS Dynamics CRM SAP CRM India’s Top 5 e-CRMs 2 1 5 3 4

21. Comparative Analysis MS Dynamics CRM Good integration with Microsoft Office Products Reasonable sales force automation Strong technology & architecture Strong partner delivery network Heavy browser architecture - fat client Not taken seriously in the SaaS market place Titan is Microsoft's first attempt at hosted CRM Weak marketing and customer support Lacks functionality depth PROS CONS

22. Comparative Analysis Oracle On-Demand CRM integrates to Oracle Financials Nice dashboard Good data warehousing (lacks flexibility, but good presentation) Strong sales force automation (SFA) Not as strong marketing automation or customer service Lacks deep functionality offered by some other hosted vendors Offline version is pretty bad Allegedly poor customer service and turnover PROS CONS

23. Comparative Analysis SAP CRM Backing by the largest application software vendor in the world Isolated tenancy hosted delivery model is a welcome change from most other hosted CRM vendors The product is new, shallow and comparatively weak when compared to other hosted CRM vendors; however, offers much broader and powerful ERP capabilities. PROS CONS

24. e-CRM : The Closure e -CRM isn’t CRM unless it affects the customer’s experience for the good e -CRM is a strategy, not a project !!! e -CRM should improve ROI Technology is a means, not an end to achieve effective relations with customers !!! Get a ‘360—degree’ view of your customer

25. Thanks !!!