Tools Technology Networks

eCRM
Customer Relationship
Management
Mike Watson - Director
Sound Solutions Marketing
E-CRM Chapter 8, Page 345 E-marketing Excellence
8.1 Introduction the significance of e-CRM
8.2 Relationship Marketing
8.3 Database Marketing
8.4 E-CRM
8.5 Profiling
8.6 Personalisation
8.7 E-Mail Marketing
8.8 Control issues
8.9 Cleaning the database
8.10 Making e-CRM happen
8.1 E-CRM
A Question of Definitions
Customer Relationship Management (CRM) are
methods that companies use to interact with
customers. The methods include employee training
and special purpose CRM software. There is an
emphasis on handling incoming customer phone calls
and email, although the information collected by CRM
software may also be used for promotion, and surveys
such as those polling customer satisfaction.
8.1 E-CRM
Customer Relationship Management
From the outside, customers interacting with a company
perceive the business as a single entity, despite often
interacting with a number of employees in different roles
and departments.
CRM is the combination of policies, processes, and strategies
implemented by an organization to unify its customer
interactions and provide a means to track customer
information.
It involves the use of technology in attracting new and
profitable customers, while forming tighter bonds with
existing ones.
8.1 E-CRM
Customer Relationship Management
Initiatives often fail because implementation was
limited to software installation, without providing the
context, support and understanding for employees to
learn.[1]
Tools for customer relationship management should
be implemented "only after a well-devised strategy
and operational plan are put in place".[2]
8.1 E-CRM
1. Avoid the Four Perils of CRM (HBR OnPoint Enhanced Edition)
Author(s): Frederick F. Reichheld, Darrell K. Rigby, and Phil
Schefter DOI: 10.1225/8946

2. Arussy, Lior (2005). "Understanding the Fatal Mistakes".
Passionate & Profitable: Why Customer Strategies Fail and 10 Steps
to Do them Right. John Wiley & Sons, Inc.. p. 151

Elements of CRM
Front office operations
Direct interaction with customers, e.g. face to face
meetings, phone calls, e-mail, online services etc.
Back office operations
Operations that ultimately affect the activities of the front
office (e.g., billing, maintenance, planning, marketing,
advertising, finance, manufacturing, etc.)
8.1 E-CRM
Elements of CRM
Business relationships
Interaction with other companies and partners, such as
suppliers/vendors and retail outlets/distributors, industry
networks (lobbying groups, trade associations). This
external network supports front and back office activities.
Analysis
Key CRM data can be analyzed in order to plan target-
marketing campaigns, conceive business strategies, and
judge the success of CRM activities (e.g., market share,
number and types of customers, revenue, profitability).

8.1 E-CRM
The Benefits of CRM
Allows customer relationships to be managed more
efficiently
Encourages a more customer-centric approach to
conducting business.
Executives often cite the lack of proper tools as a barrier to
delivering the experience their customers expect. A 2009
study of over 860 corporate executives revealed only 39%
believe that their employees have the tools and authority to
solve customer problems.[1]

8.1 E-CRM
1. Strativity Group (2009), 2009 Global Customer Experience Management Benchmark Study, Strativity Group, Inc., http://strativity.com/products/2009-
Experience-Management-Benchmark-Study.aspx

What is e-CRM?
As the internet is becoming more and more important in
business life, many companies consider eCRM as an
opportunity to reduce customer-service costs, tighten
customer relationships and most important, further
personalize marketing messages and enable mass
customization.
We can define eCRM as activities to manage customer
relationships by using the Internet, web browsers or other
electronic touch points. The challenge hereby is to offer
communication and information on the right topic, in the right
amount, and at the right time that fits the customers specific
needs.
8.1 E-CRM
The Challenges of Delivering e-CRM
Channels through which companies can communicate with its
customers, are growing by the day, and as a result, getting their time
and attention has turned into a major challenge.
One of the reasons eCRM is so popular nowadays is that digital
channels can create unique and positive experiences not just
transactions for customers.
An extreme, but ever growing in popularity, example of the creation of
experiences in order to establish customer service is the use of Virtual
Worlds, such as Second Life.
Its highly interactive character, which allows companies to respond
directly to any customers requests or problems, is another feature of
eCRM that helps companies establish and sustain long-term customer
relationships.
8.1 E-CRM
The Challenges of Delivering e-CRM
Furthermore, Information Technology has helped companies
to even further differentiate between customers and address a
personal message or service. Some examples of tools used in
eCRM:
Personalized Web Pages where customers are recognized and their
preferences are shown.
Customized products or services (Dell).
CRM programs should be directed towards customer value
that competitors cannot match.
However, in a world where almost every company is
connected to the Internet, eCRM has become a requirement
for survival, not just a competitive advantage.
8.1 E-CRM
Three Levels of e-CRM
Foundational services:
This includes the minimum necessary services such as
web site effectiveness and responsiveness as well as
order fulfillment.
Customer-centered services:
These services include order tracking, product
configuration and customization as well as security/trust.
Value-added services:
These are extra services such as online auctions and
online training and education.
8.1 E-CRM
Three Levels of e-CRM
Self-services are becoming increasingly important in CRM activities.
The rise of the Internet and eCRM has boosted the options for self-
service activities. A critical success factor is the integration of such
activities into traditional channels.
An example was Fords plan to sell cars directly to customers via its Web Site,
which provoked an outcry among its dealers network.

CRM activities are mainly of two different types.
Reactive service is where the customer has a problem and contacts the
company.
Proactive service is where the manager has decided not to wait for the customer
to contact the firm, but to be aggressive a contact the customer himself in order to
establish a dialogue and solve problems.
8.1 E-CRM
Introduction to E-CRM
Operates where customers demand quality services
from organisations
Technology based it can be used to increase the the
speed, frequency and relevance of interactions
Remember human contact is the best for some
situations
8.1 E-CRM
Attract
Capture
Data
Get Closer
Embrace
Them
Golden
Handcuffs
Review
&
Develop
Analytics Data
eCRM
Implement strategies
for retention that make
it difficult for
customers to leave
Life style integration
Systems reliance
Cost of switching
Review and consider role
of emerging technologies,
e.g. impact of social
media
Results and performance
versus targets

Whats the offer?
Where to and how
to respond?
Database design
Fields & Formatting
Data capture process
Forms, Captcha
Role of email
Landing Pages
Database platform
Personalisation
Incentive to complete
Postcode look-up
Build profiles over time
Role of survey tools
Align profiling with
marketing or product
led segmentation
Demographics
Data enhancment

Offers, Prizes,
Rewards, Incentives,
Information,
Developing a
eCRM Strategy
8.3 E-CRM Page 371
Web Enquiry Data Management Process
Linked &
Affiliate Sites
Call Me Back
Request
Live Room RFP/Q
Options
Home Page
Website Visitors
(Push e.g. Email & Pull e.g. Adwords)
Contact Us
Page
Site Standard
Enquiry Form
Web Enquiry Database
Inbound
Phone
Enquiry
Email
Enquiry
Independent
Microsite
Custom Enquiry
Form
Connected
Microsite
Indexed
Web Pages
Relationship Marketing
A long term rather than transactional approach to
customers
Based on building up permissions, trust, listening then
responding to customers
8.1 E-CRM

8.1 E-CRM

SalesForce.com
Customer relationship management (CRM) is all about managing the relationships you
have with your customersincluding potential customers. CRM combines business
processes, people, and technology to achieve this single goal: getting and keeping
satisfied customers.
It's an overall strategy to help you learn more about your customers and their behavior
so you can develop stronger, lasting relationships that will benefit both you and your
customers. Its very hard to run a successful business without a strong focus on CRM.
After all, its all about the customer.
Successful CRM involves many different areas of your company, starting with sales, of
course. But also various other customer-facing areas, like marketing and customer
service. Salesforce.com offers a technology solution for all those areas and more.
With Salesforce CRM software as a service and our Force.com cloud computing
platform, you can mind your customers and your budget at the same time (very
important in todays economy). Get up and running in 30 days with the world's most
proven and loved CRM solution.
8.1 E-CRM
eCRM Providers
8.1 E-CRM
Relationship Marketing

8.1 E-CRM
Database Marketing
Key to e-CRM since the database is used to use
customer needs through profiling and data mining,
customer segmentation and manage integrated and
direct marketing campaigns
8.1 E-CRM
E-CRM
Provides DRAMA Dialogue, Relevancy, Accuracy,
Magic and Access to marketing communications.
A good approach to the CRM cycle is attract, capture
data, get closer, embrace and golden handcuffs
8.1 E-CRM
DRAMA Dialogue
Every message sent should allow for a response
Website design should facilitate capture of in-bound
enquiries
Processes should be defined for responding to
unsolicited enquiries
Demonstrate listening skills as well as talking and
telling
8.1 E-CRM
DRAMA Relevancy (Targeted,
Segmentation)
Making mass communication personal and relevant to
the recipient
Dangerous now not to somehow tailor the message
Therefore avoid bulk messages
8.1 E-CRM
DRAMA Accuracy
Data quality is key
Poor quality can originate from customers form
completion
Develop and implement processes for data cleaning
Especially is data is being presented back to customer
8.1 E-CRM
DRAMA Magic
Customer delight to customer amazement to delivering magic
in communication
Technically advanced packages of information:
Animation
Sound
Interaction
Prizes
Incentives
Collection Schemes
The Creative Execution
8.1 E-CRM
DRAMA Access
Delivering the message with the right frequency
Not too often
But not ignored
Profile segments by desire to be involved/included
Role of RSS
Survey tools
8.1 E-CRM
Attract
Capture
Data
Get Closer
Embrace
Them
Golden
Handcuffs
Review
&
Develop
Analytics Data
eCRM
Implement strategies
for retention that make
it difficult for
customers to leave
Life style integration
Systems reliance
Cost of switching
Review and consider role
of emerging technologies,
e.g. impact of social
media
Results and performance
versus targets

Whats the offer?
Where to and how
to respond?
Database design
Fields & Formatting
Data capture process
Forms, Captcha
Role of email
Landing Pages
Database platform
Personalisation
Incentive to complete
Postcode look-up
Build profiles over time
Role of survey tools
Align profiling with
marketing or product
led segmentation
Demographics
Data enhancment

Offers, Prizes,
Rewards, Incentives,
Information,
Developing a
eCRM Strategy
8.3 E-CRM Page 371
M-CRM (Wikipedia)
One subset of eCRM is Mobile CRM (mCRM). This is defined
as services that aim at nurturing customer relationships,
acquiring or maintaining customers, support marketing, sales
or services processes, and use wireless networks as the
medium of delivery to the customers.
However, since communications is the central aspect of
customer relations activities, many opt for the following
definition of mCRM: communication, either one-way or
interactive, which is related to sales, marketing and customer
service activities conducted through mobile medium for the
purpose of building and maintaining customer relationships
between a company and its customer(s).
8.1 E-CRM
M-CRM (Wikipedia)
eCRM allows customers to access company services from
more and more places, since the Internet access points are
increasing by the day.
mCRM however, takes this one step further and allows
customers or managers to access the systems for instance
from a mobile phone or PDA with internet access, resulting in
high flexibility. An example of a company that implemented
mCRM is Finnair, who made it possible for their customers to
check in for their flights by SMS. Since mCRM is not able to
provide a complete range of customer relationship activities it
should be integrated in the complete CRM system.
8.1 E-CRM
Profiling
Helps identify groups of customers and rank them
according to their importance to achieving business or
organisational objectives
Appropriate communications and offers can then be
developed for these groups with the aim of building
long-term relationships with them
8.1 E-CRM
Personalisation
Refers to tailoring a range of communications from
emails to websites. These can be individual (one-to-
one) or to segments (mass customisation).
Personalisation can occur due to
User selection (customisation)
Marketing rules (individualisation)
Group Characterisation such as collaborative filtering
8.1 E-CRM
In-coming Emails
Procedures essential for managing, placing, sorting,
routing incoming emails
Automated response notification
Response handling
FAQ
Call Centre
8.1 E-CRM
Control
Essential for avoiding and minimising problems of
poor e-CRM
Unconnected systems
Information overload
High churn rate of customers
Data cleaning costs
Changing regulations
8.1 E-CRM
Database Cleaning
Old and inaccurate data increases marketing costs
and reduces ROI
Clean data allows for timely and effective outbound
marketing
8.1 E-CRM
Human Resources
Strong project management needed for cost-effective
use of systems and human resources
Pan-company involvement helps chances of
successful e-CRM implementation and benefits
Database Administrator essential to champion the
system and to deliver data quality, security and
performance
8.1 E-CRM