More Close, More Personal And More Valuable With Customer through e-CRM

Martinus Fieser Sitinjak Business School of Management, Bina Nusantara Martin7@binus.ac.id

Abstract The development of information of technology enables every business has the opportunity to be able to develop the companys ability to understand more deep, more close and personal about the markets, prospects and customers in particular. E-CRM is not just a mere concept. It is an integrated system which is now become a need for every company in the industries both large and small, to better implement their goal that is based on customer-oriented. Not a few companies fail to implement e-CRM system or do not feel the benefit significantly. It is therefore, needs a basic knowledge of e-CRM system itself and the basic stages in developing the right e-CRM system. This paper will also describe the framework and the basic format and the ability of e-CRM systems currently used. Keyword: CRM, e-CRM system. Executive Summary Every business people who agreed with a statement "the customer is king," understand the importance of establishing close relationships with customers. If you are a restaurant owner and received a news that the President will visit your restaurant, obviously, you will prepare the best menu. You certainly will not disappoint your honored guest. Before the day, you certainly will find information about the the president's favorite food, favorite drink, favorite music, favorite color and so on. And I think not only the President alone, but also information about the preferences of the First Lady and his family either. In the end, you can prepare for the event very well, and of course, very special. The question is: What if you have a thousand or a hundred thousand, or even a million customers. Is it possible to treat all customers like a President. Is it possible to get detail and event dept information from thousands or even millions of customers. How do we get information about what the individual's favorite color, food, movie, what is her/his familys favorite, favorite brand of watches, shoes, clothing and their clothing sizes and so on. Do we have to research one by one of millions of our customers? And how do we manage the data, given the preferens, loyalty level, needs and desires as well as their behavior will change with the changing times. If so, you need a huge marketing budget. This paper is expected to help provide a better and deeper understanding about the concept of CRM (Customer Relationship Management), particularly in the development of e-CRM systems in general. The elaboration of this basic understanding will help by the question WHAT? WHY? WHEN? HOW? WHERE? About e-CRM. Keyword: CRM, sistem e-CRM, Costumer-Oriented Company, mobile, market-oriented company, e-CRM implementation,failure e-CRM implementing

Daftar isi: WHAT? What is a CRM and e-CRM sistem. Definition, concepts, approaches and development. WHY? Why is e-CRM is so difficult but also very necessary for every company in every industry. HOW? How does the development of e-CRM systems for companies can be implemented with maximum and effective and well targeted. WHEN? When the concept and the system should be implemented and how its implications for the company in general. WHERE? Where is the development of e-CRM can be run properly? Is there only for the company's middle and upper? Is it only in certain places, especially in affordable Internet network infrastructure?

WHAT IS e-CRM?
e-CRM is an integrated system aimed to improving the income of the business and to maintaining relationships with customers by managing all sources of data and information to get a comprehensive format, broader picture and more rich kriteria about the customer, segment, target prospects and the market itself. The system is also capable effectively and efficiently to assist Management to manage, monitor and evaluate all the company's processes and interactions with customers from various channels to create a mutually beneficial lifetime value. The basic purpose in the early development of CRM is to help front-end to retain existing customers by keeping in touch and continue to communicate regularly. However, along with the development of infrastructure and information technology allows this trending topic in the era of the 1970s, continues to undergo major changes to a system that connects the front-end to back-end in real-time. E-CRM system enables an integrated analysis of a variety of formats which can help to manage customers, prospects, and potential market segments. At the same time, management can monitor the process of back-end, financial analysis, market share information, evaluate the performance of marketing programs and inventory information. This will greatly assist the company in preparing, executing,

Target, which is a Department Store had approximately 1770 stores across the region The United States. Target create a program specifically to give special offer only to customers who are pregnant. The program provides a wide range of special offers for their needs during early phase of pregnancy until the time the baby birth. To make the offer more personal, Target is sending a special circulars directly to all customer that indicate get pregnant. Targets one of challenges is www. phys.org how to detect someone in the early phase of pregnancy. Given A woman under 4 months of pregnancy has not seen the changes that occur in women who are pregnant. CRM systems have been developed by Target help to do so. Testimony from one of his customers who get a letter from Target saying: "It's a great surprise for me and my husband. I want to surprise my husband but he was the first to receive the congratulatory letter from Target.

monitor and evaluate a comprehensive marketing program and evaluate media messages and communications more effective and efficient.

Sistem e-CRM CRM system now known as e-CRM is a form of information technology-based system by using internet facilities. The use of internet facilities is a form of response to behavioral and social changes in society and an increasingly dependency in internet facilities. E-CRM framework consists of a wide range of applications that help companies monitor, analyze, evaluate and control of marketing activities and customers simultaneously. Some applications of e-CRM system is as follows:

CUSTOMER SERVICE FUNCTION

MARKETING FUNCTION

SALES MANAGEMENT FUNCTION

CRM APPLICATION
Segmentation and Targeting valuable Markets, Groups & individu Distributor, retailer and operator maximization Monitoring, Analyse, evaluate Marketing Campaigns Monitoring, Analyse, evaluate Social Media Customer database and datamining Contact center tools maximization

Personalization and content Management

Sales force automation Customer-based value metrics: - Acquisition, retention, survival rate - Size of wallet - Share of wallet - Sales & demand Forecasting - Customer equity

Profitability Analysis: - Market Share - Sales Growth - Sales & demand Forecasting

e-commerce and online transaction

One of CRM Applications in Management is able to perform segmentation and targeting by analyzing the basic information (address, no.telp, region), Demographic information (age, gender, marital status, education, income, etc), Psycographic information (value, activities , interest, preference, etc), Transaction Histories (goods, stuff, how much did They spend? How were They acquires? Where They were shopping?) and other relevant information such as

satisfaction, loyalty and others. Another application is Manager can analyze each customer individually to make Datamining to help develop a customer insight that is more focused and on target.

Matahari Department Store is one of largest multi-format in Indonesia which has 104 stores throughout Indonesia. CRM systems help to improve performance to their customer loyalty program. The management is able to perform better segmentation, planning loyalty program more effective, and more strategic marketing campaigns in acquiring new customers. In addition, Matahari Dept is able to improve closer relations to the customer and more personal.

Power of e-CRM does not stop there. The system is developed along with the software capabilities such as mobile phones and tablets. With mobile devices that can access the internet, e-CRM system allows any marketer or salesman to up-date customer data in mobile. This allows any information about the customer is always up-to-date and on-the-spot. Not only that, customers will get the information up-to-date at anytime, whenever and wherever they are, about the products or services offered, and even new product information to be offered to the market.

WHY e-CRM?
E-CRM implementation is so difficult because a company is difficult to assess the benefits directly. In addition to feeling uncomfortable with the new system takes time for all employees to adjust to, the lack of commitment from top management is the cause of failure. On the other hand, the integration of e-CRM in the enterprise has become a liability. Some important factors which lead to e-CRM to the needs of each company. First, the existence of the changes that occur within the community, especially individuals. Ranging from cultural change, preferences, perchieved value, satisfaction, needs and levels of loyalty (4). In addition, the livelihood of many people globally, who now are more individualistic. Second, the standard and level of customer desires and demands are increasingly high. People have assumed that good quality products and excellent service quality is a must. Human nature is not satisfied with a sense of things and always want something new and innovative. Society also, has a more open and loyalty levels tend to decline. Third is Virtual World. The rapid developments in the world of technology and information led to the formation of a place where the community and various types of social interaction met.

One form of change that occurs is that social media is an internet application that can connect different individu in the world to interact each other. Not only that, Virtual world is also a meeting place for buyers and sellers to transact.
Robert McDonald is a CEO at Procter & Gamble want to make P&G the most technologically enabled business in the world. He is overseeing the large-scale application of digital technology and advanced analytics across every aspect of operations and activities from the way the consumer goods giant creates molecules in its R&D labs to how it maintains relationships with retailers, manufactures products, builds brands, and interacts with customers. The prize: better innovation, higher productivity, lower costs, and the promise of faster growth. its now possible to have a one-on-one relationship with every consumer in the world. The more intimate the relationship, the more indispensable it becomes. We want to be the company that creates those indispensable relationships with our brands, and digital technology enables this.
www.mckinseyquarterly.com

Dreams of any company is to have an integrated system where all parts are connected to each other and can be managed in accordance with Company requirement. One format that is under development is to integrate ERP into the CRM. The format of this system even allows customers to get more information about the status of the product that is being sought by customers such as comments from other customers regarding the products, the level of product demand in the market, product available, location the product offered, product promotion program, available Channel and many more which can be developed. Therefore, e-CRM has become a system that is fundamental to any company that wants to develop in this increasingly fierce competition.

TO IMPLEMENT e-CRM SYSTEM? e-CRM Implementation Several things are common causes of failure in implementing e-CRM are: 1. People. Including: an incompetent CRM Consultant. Most of profider that offers e-CRM systems employ IT people who understand the technology but didnt understand about the Customer Relationship Management concept. Moreover, They didnt know anything about the marketing concept and are ignoring the company business process. Then the Management. Top management who is not committed to create change and employees who are not ready to accept the changes. 2. Technology and IT Infrastructure. Poor infrastructure and inadequate companys technology limited the development process. Once again, It requires the top management commitment. 3. False analyse business requirements. Management mistaken and false in identifying business process functions within each department associated with CRM

HOW

implementation caused ineffective implementation and not in accordance with the criteria and the needs of the company. According to Forrester Research, the percentage of CRM implementation failure was 47% in 2009. This results showed the high failure in implementing e-CRM. Although indications show a decrease, but the value is still relatively high when compared with the growing number of companies whos were trying to implement e-CRM. Successful e-CRM implementation is the responsibility of all levels of management. In order to avoid errors when analysing enterprise business process, all parties must be involved to produce a framework that suits each needs, so the company can determine the right e-CRM. Several important need to consider when the company will implement e-CRM system is: 1. Support from Top Management. Top management must have a commitment when decided to develop e-CRM system for the results can not be seen directly. It takes time for each department and the individuals to learn and understand any existing applications. Readiness of the Top Management is an essential requirement before moving to the next stage. Top Management should establish a special team to run the implementation from the earlier stages. Marketing, Sales, Customer Service Center, Financial, and Logistics Department need to be involved in analyzing the company's business at the earlier stages. . 1. Analysing Business Needs. At this stage, the team has been formed to analyze the company with the following steps: a. Identification of companys offers, customers, services, channels / partners, distribution, marketing and sales information, workflows, interfaces and parties who have direct and indirect relationship as an intermediary company to the customer. b. Design and develop new processes in a workflow and business needs. In this stage, there should be a feasibility study of the effectiveness, efficiency, usability and ease of the new system. This implementation must have a positive and significant impact on the parties or departments directly involved in the implementation of the project team. c. Identification of the possibilities of the gap, especially in the department of information technology development. Also, the gap that may occur in the human resources within the department that will use e-CRM system directly. 2. Develop a new technology system that can support the development of systems for the foreseeable future. Any company that does not have experience in both management information systems which can be ascertained will have difficulty in competing with others who have experience with IT. Companies that still rely on the telephone as a means of interacting with customers can be assured will have difficulty competing. Any company that still rely on fax machines, copy machines, manual map will be difficult to develop market and minimum in develop competitive advantage.

3. Enable Your People. Development and improvement of the employee performance who were in the department where the activity is directly related to e-CRM system. TO IMPLEMENT e-CRM SYSTEM? Now is the time for any company to take an important step to be able to develop and enhance better performance in maintaining and building deep relationships with customers. The competition has entered a new phase. Knowledge of technology is growing rapidly. Gap between the developed and developing companies begin to narrow. Offering the more varied selection of products, the greater the desire, the higher the satisfaction level, the population grew rapidly and openness to information easier and faster, social and cultural changes dramatically. Develop a system that requires a well-organized infrastructure requires huge investment as well. Therefore, the government of a country should also be aware of this and the full support of government is indispensable. The Government should have a clear blueprint about how IT developments can help create a sustainability macro economiy that has competitive advantages. Associations of various industries should also be addressing this as a necessity and make it a standard to create a competitive environment and establish a corporate culture that familiar in social-based technologies. Moreover, not just help the company to grow but also have the strength to survive. TO IMPLEMENT e-CRM SYSTEM? E-CRM system has become a monopoly of large corporations as to develop these systems require huge investment. But, with the rapid development of IT, accelerate the development of e-CRM system as well. Every small and large companies, micro and macro, and from various industries have the same opportunity to be able to do the same thing. Cloud e-CRM system helps small and micro enterprises tailored to the needs and capabilities. This system allows any employee could access the system via internet wherever they are located and the position in real time. The Options were varied and very affordable to allow each company to choose according to their needs and abilities. e-CRM provider with cloud systems also provide benefits to companies that still lay on the e-CRM could be able to try a more simple standart version to try and learn the system before they decide to integrate more complex one.

When

Where

Conclusion
It's important to every manager to understand the business processes and the importance of having a concept and insight to make the company as an organization that is market-driven and oriented to the stakeholders. The principles knowledge of customer-driven will greatly assist in developing the concept and blueprint for e-CRM system that can create relationships not only more closely, but deeper and stronger between the company with customers. E-CRM is not just to ensure service excellence, but also capable of developing enterprise systems that are effective, efficient and precise in building relationships with customers. In addition, companies are more flexible and has a faster and better response to changes and problems that occurred

in the micro and macro environment. Because, when there is a change in the micro and macro environment, in fact, the most important thing that must be detected first by the company is the change in the customer itself.

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