Prof.

Aparna Kanchan

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 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.

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 CRM Evolution
Cost Reduction Strategy Growth Strategy

BPR ERP SFA CRM eCRM

Business Led IT Led Marketing Led

1980s 1990s 2000s

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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.
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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

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 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

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Technical e-CRM Capabilities

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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.

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 The customer-centric information store

Consolidates 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.
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 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”.

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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

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7 C’s of effective e-CRM

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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?
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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
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 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.

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 1 Oracle

Demand
India’s 2 Products
Top 5
e-CRMs

3 SAP CRM

MS Dynamics
4 CRM

5 Sage
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 Good integration with Microsoft
Office Products
Reasonable sales force
O S automation
P R Strong technology & architecture
Strong partner delivery network
MS
Dynamics
CRM
Heavy browser architecture - fat client
CO Not taken seriously in the SaaS
NS
market place
Titan is Microsoft's first attempt at
hosted CRM
Weak marketing and customer
support
Lacks functionality depth

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 CRM integrates to Oracle
Financials
Nice dashboard
Good data warehousing (lacks
O S
R flexibility, but good presentation)
P Strong sales force automation
Oracle (SFA)
On-
Demand
CO Not as strong marketing automation
NS or customer service
Lacks deep functionality offered by
some other hosted vendors
Offline version is pretty bad
Allegedly poor customer service and
turnover

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 Backing by the largest application
software vendor in the world
O S Isolated tenancy hosted delivery
P R
model is a welcome change from
most other hosted CRM vendors
SAP
CRM

CO The product is new, shallow and

NS comparatively weak when
compared to other hosted CRM
vendors; however, offers much
broader and powerful ERP
capabilities.

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 l e s s i t a ffects e-CR
M i s n’ t CRM un c e f o r the M sho u
e-CR r ’ s exper i en l d im
s t o m e prove
the cu good ROI

Techno
logy is
end to a mean
achiev s, not a
e n
relation effective j ect !!!
s p r o
custom with a st r a t egy, not a
ers !!! e-CRM is

Get a ‘360—degree’ view of your

customer
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