| E-CRM | | | | consist of attracting, maintaining and enhancing |
| eCRM Electronic CRM concerns all forms | | | | customer relationships within organizations. In the |
| of managing relationships with customers making | | | | years that followed, companies were engaging |
| use of Information Technology (IT). | | | | more and more in a meaningful dialogue with |
| The essence of CRM | | | | individual customers. In doing so, new |
| The exact meaning of CRM is still subject of | | | | organizational forms as well as technologies were |
| heavy discussions. However, the overall goal can | | | | used, eventually resulting in what we know as |
| be seen as effectively managing differentiated | | | | Customer Relationship Marketing (CRM). The main |
| relationships with all customers and communicating | | | | difference between RM and CRM is that the first |
| with them on an individual basis. Underlying thought | | | | does not acknowledge the use of technology, |
| is that companies realize that they can | | | | where the latter uses Information Technology |
| supercharge profits by acknowledging that | | | | (IT) in implementing RM strategies. |
| different groups of customers vary widely in their | | | | Mobile CRM |
| behavior, desires, and responsiveness to | | | | One subset of Electronic CRM is Mobile CRM |
| marketing.eCRM | | | | (mCRM). This is defined as “services that aim |
| As the internet is becoming more and more | | | | at nurturing customer relationships, acquiring or |
| important in business life, many companies | | | | maintaining customers, support marketing, sales or |
| consider it as an opportunity to reduce | | | | services processes, and use wireless networks as |
| customer-service costs, tighten customer | | | | the medium of delivery to the customers. |
| relationships and most important, further | | | | However, since communications is the central |
| personalize marketing messages and enable mass | | | | aspect of customer relations activities, many opt |
| customization. Together with the creation of Sales | | | | for the following definition of mCRM: |
| Force Automation (SFA), where electronic | | | | “communication, either one-way or interactive, |
| methods where used to gather data and analyze | | | | which is related to sales, marketing and customer |
| customer information, the trend of the upcoming | | | | service activities conducted through mobile |
| Internet can be seen as the foundation of what | | | | medium for the purpose of building and maintaining |
| we know as eCRM today. We can define eCRM | | | | customer relationships between a company and |
| as activities to manage customer relationships by | | | | its customer(s).eCRM allows customers to access |
| using the Internet, web browsers or other | | | | company services from more and more places, |
| electronic touch points. The challenge hereby is to | | | | since the Internet access points are increasing by |
| offer communication and information on the right | | | | the day. mCRM however, takes this one step |
| topic, in the right amount, and at the right time | | | | further and allows customers or managers to |
| that fits the customer’s specific needs. | | | | access the systems for instance from a mobile |
| Channels through which companies can | | | | phone or PDA with internet access, resulting in |
| communicate with its customers, are growing by | | | | high flexibility. An example of a company that |
| the day, and as a result, getting their time and | | | | implemented mCRM is Finnair, who made it |
| attention has turned into a major challenge. One | | | | possible for their customers to check in for their |
| of the reasons eCRM is so popular nowadays is | | | | flights by SMS. Since mCRM is not able to provide |
| that digital channels can create unique and positive | | | | a complete range of customer relationship |
| experiences – not just transactions – for | | | | activities it should be integrated in the complete |
| customers. An extreme, but ever growing in | | | | CRM system |
| popularism, example of the creation of | | | | Implementing and integrating CRM solutions |
| experiences in order to establish customer service | | | | Several CRM software packages consist that can |
| is the use of Virtual Worlds, such as Second Life. | | | | help companies in deploying CRM activities. Besides |
| Through this so-called vCRM, companies are able | | | | choosing one of these packages, companies can |
| to create synergies between virtual and physical | | | | also choose to design and build their own solutions. |
| channels and reaching a very wide consumer | | | | In order to implement CRM in an effective way, |
| base. However, given the newness of the | | | | one needs to consider to following factors: |
| technology, most companies are still struggling to | | | | - Create a customer-based culture in the |
| identify effective entries in Virtual Worlds. Its | | | | organization. |
| highly interactive character, which allows | | | | - Adopt customer-based managers to assess |
| companies to respond directly to any | | | | satisfaction. |
| customer’s requests or problems, is another | | | | - Develop an end-to-end process to serve |
| feature of eCRM that helps companies establish | | | | customers. |
| and sustain long-term customer relationships. | | | | - Recommend questions to be asked to help a |
| Furthermore, Information Technology has helped | | | | customer solve a problem. |
| companies to even further differentiate between | | | | - Track all aspects of selling to customers, as well |
| customers and address a personal message or | | | | as prospects. |
| service. Some examples of tools used in eCRM: | | | | Furthermore, CRM solutions are more effective |
| - Personalized Web Pages where customers are | | | | once they are being implemented in other |
| recognized and their preferences are shows. | | | | information systems used by the company. |
| - Customized products or services (Dell). | | | | Examples are Transaction Processing System |
| CRM programs should be directed towards | | | | (TPS) to process data real-time, which |
| customer value that competitors cannot match. | | | | can than be send to the sales and finance |
| However, in a world where almost every | | | | departments in order to recalculate inventory and |
| company is connected to the Internet, eCRM has | | | | financial position quick and accurate. Once this |
| become a requirement for survival, not just a | | | | information is transferred back to the CRM |
| competitive advantage. | | | | software and services it could prevent customers |
| Different levels of eCRM | | | | from placing an order in the belief that an item is |
| In defining the scope of eCRM, three different | | | | in stock while it is not. |
| levels can be distinguished: | | | | Front-Line Usage |
| - Foundational services: | | | | In the near future, the most dramatic changes in |
| This includes the minimum necessary services | | | | technology and operations will be seen by people |
| such as web site effectiveness and | | | | who are using CRM systems to service and sell |
| responsiveness as well as order fulfillment. | | | | to customers and prospects as part of their |
| - Customer-centered services: | | | | regular jobs. Today, knowledge-workers are |
| These services include order tracking, product | | | | already using personalized CRM portals for quick |
| configuration and customization as well as security | | | | access to information resources and customized |
| trust. | | | | applications that easily present data. Front-line |
| - Value-added services: | | | | workers have access to a variety of CRM tools |
| These are extra services such as online auctions | | | | to assist them in making real-time decisions based |
| and online training and education. | | | | on the automated, yet specific, recommendations |
| Self-services are becoming increasingly important | | | | generated by the collective information within the |
| in CRM activities. The rise of the Internet and | | | | system. |
| eCRM has boosted the options for self-service | | | | Conclusion |
| activities. A critical success factor is the | | | | Today, CRM systems often present information in |
| integration of such activities into traditional | | | | terms of maps, charts and graphs that are |
| channels. An example was Ford’s plan to sell | | | | generated by report writers and visual profiling |
| cars directly to customers via its Web Site, which | | | | programs. Tomorrow, there will be |
| provoked an outcry among its dealers network. | | | | voice-activated and speech-feedback tools, as well |
| CRM activities are mainly of two different types. | | | | as other more elaborate visual aids using 3-D and |
| Reactive service is where the customer has a | | | | CAD-style graphics. Armed with their own |
| problem and contacts the company. Proactive | | | | calculators and self-help systems, front-line |
| service is where the manager has decided not to | | | | workers will be able to quickly find answers to |
| wait for the customer to contact the firm, but to | | | | assist customers in their purchase decisions. The |
| be aggressive a contact the customer himself in | | | | use of knowledge databases and artificial |
| order to establish a dialogue and solve problems. | | | | intelligence (AI) will make a comeback to allow the |
| From Relationship Marketing to Customer | | | | front line to focus on assessing the problem and |
| Relationship Marketing | | | | quickly communicating a solution. |
| The concept of relationship marketing was first | | | | .C.Pavithira |
| coined by Berry in 1983. He considered it to | | | | M. |