7/3/2024

Introduction to e-CRM
BBAM 31043
Customer Relationship Management

“If you make customer unhappy in the Physical World, They

might each tell 6 Friends.

If you make customer unhappy on the

internet they can each tell 6000 friends.“

- Jeff Bezoz -

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Evolution of CRM

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Introduction
• If anything, the Internet and the World Wide Web have
highlighted the importance of a customer- focused approach
to business and marketing.

• Move forward a few decades to an increasingly connected

society and marketplace, and the customer’s voice is being
heard in blogs, forums, reviews, and other forms of social
media. It is easier for consumers to connect with one
another, to share experiences with services and products.

• Customer relationship management (CRM) is, as the name

suggests, about managing relationships with customers. It
should imply a customer focused approach to business for
fostering real relationships with these important
stakeholders: customers.

• Often, online marketing is referred to as e-CRM (electronic

customer relationship management). This appears to
underline the importance of technology in CRM. It also
highlights the most important consideration of any
eMarketing tactic: customers.

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What is e-CRM?
• All forms of managing relationships with customers through the use
of information technology.
• eCRM processes include Data Collection, Data Aggregation, and
Customer Interaction.

e-CRM = Traditional CRM + Information technology

CRM to e-CRM
• Due to the introduction of new technologies.
• Due to Globalization.
• Change the Customer attitudes and Expectations.
• To gain competitive advantage.
• To measure, create and increase income for the Business.
• To reduce cost.

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Difference between CRM and e-CRM

CRM e-CRM

01. Customer contacts • Through the retail store, phone, • All of the traditional methods are
and fax. used in addition to Internet,
email, wireless, and PDA
technologies.

02. System overhead (client • The client must download • Client is already uses the
computers) various applications to view the browser.
web-enabled applications
• Have to be rewritten for different
platform.

03. Customization and • Views differ based on the • Personalized individual views
personalization of information audience based on purchase history and
• personalized views are not preferences
available.

CRM e- CRM

04. System focus • System (created for internal use) • System (created for external
designed based on job function use) designed based on
and products customer needs.

05. System maintenance and • More time involved in • Reduction in time and cost
modification implementation and • Implementation and
maintenance maintenance can take place at
• More expensive one location

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Essence of e-CRM

e-CRM System Architecture

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 behavior.
• Business simulation used in conjunction with campaign management software optimizes
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 synchronizes communications using business
intelligence.

e-CRM Components

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5 Engines of e-CRM
Customer Centric information Store

Analysis and Segmentation Engine

Personalization Engine

Broadcast Engine

Transaction Engine

5 Engines of e-CRM
1. The customer-centric information store
Consolidates information about millions of customers together with
preferences, permissions, and information that may be useful to them.

2. The analysis and segmentation engine

Helps in leveraging this customer information to build a business campaign
strategy and evaluate its success.

3. The personalization engine

Helps in personalizing the entire customer experience, configuring unique
sets of messages and offers to each customer.

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4. The broadcast engine

Helps to proactively deliver information and offers to every customer
via the media of his or her choice.

5. 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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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

Planning for e-CRM

7C’s of Effective e-CRM
CONTEXT

CUSTOMER
SERVICE CULTURE

7C’s
Connection COLLABORATION

communication Customization

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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.?

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

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