4.

ELECTRONIC CUSTOMER RELATIONSHIP MANAGEMENT (E-CRM)

4.1 INTRODUCTION
E-CRM This concept is derived from E-commerce. It also uses net environment i.e., intranet, extranet and internet. Electronic CRM concerns all forms of managing relationships with customers making use of Information

Technology (IT). E-CRM is enterprises using IT to integrate internal organization resources and external marketing strategies to understand and fulfill their customers needs. Comparing with traditional CRM, the integrated information for ECRM intra-organizational collaboration can be more efficient to communicate with customers. As the internet is becoming more and more important in business life, many companies consider it as an opportunity to reduce customer-service costs, tighten customer relationships and most important, further personalize marketing messages and enable mass customization. ECRM is being adopted by companies because it increases customer loyalty and customer retention by improving customer satisfaction, one of the objectives of ECRM. E-loyalty results in long-term profits for online retailers because they incur less costs of recruiting new customers, plus they have an increase in customer retention. Together with the creation of Sales Force Automation (SFA), where electronic methods were used to gather data and analyze customer information, the trend of the upcoming Internet can be seen as the foundation of what we know as ECRM today.

As we implement E-CRM process, there are three steps life cycle: 1. Data Collection: About customers preference information for actively (answer knowledge) and passively (surfing record) ways via website, email, questionnaire. 2. Data Aggregation: Filter and analysis for firms specific needs to fulfill their customers. 3. Customer Interaction: According to customers need, company provide the proper feedback them. 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. ECRM is an integrated online sales, marketing and service strategy that is used to identify, attract and retain an organisations customers. It describes improved and increased communication between an organisation and its clients by creating and enhancing customer interaction through innovative technology.ECRM software provides profiles and histories of each interaction the organisation has with its customers, making it an important tool for all small and medium businesses.

4.2 FEATURES
E-CRM software systems may contain a selection of the following features: 1. Customer management Provides access to all customer information including enquiry status and correspondence 2. Knowledge management A centralised knowledge base that handles and shares customer information

3. Account management Access to customer information and history, allowing sales teams and customer service teams to function efficiently 4. Case management Captures enquiries, escalates priority cases and notifies management of unresolved issues 5. Back-end integration Blends with other systems such as billing, inventory and logistics through relevant customer contact points such as websites and call centres 6. Reporting and analysis Report generation on customer behaviour and business criteria.

4.3 DIFFERENCE BETWEEN CRM & E-CRM

Major differences between CRM and E-CRM are: 1. Customer contacts CRM Contact with customer made through the retail store, phone, and fax. ECRM All of the traditional methods are used in addition to Internet, email, wireless, and PDA technologies.

2. System interface CRM Implements the use of ERP systems, emphasis is on the back-end. ECRM Geared more toward front end, which interacts with the back-end through use of ERP systems, data warehouses, and data marts.

3. System overhead (client computers) CRM The client must download various applications to view the webenabled applications. They would have to be rewritten for different platform. ECRM Does not have these requirements because the client uses the browser.

4. Customization and personalization of information CRM Views differ based on the audience, and personalized views are not available. Individual personalization requires program changes. ECRM Personalized individual views based on purchase history and preferences. Individual has ability to customize view.

5. System focus CRM System (created for internal use) designed based on job function and products. Web applications designed for a single department or business unit. ECRM System (created for external use) designed based on customer needs. Web application designed for enterprise-wide use.

6. System maintenance and modification CRM More time involved in implementation and maintenance is more expensive because the system exists at different locations and on various servers. ECRM Reduction in time and cost. Implementation and maintenance can take place at one location and on one server.

4.4 OPPORTUNITIES OF E-CRM

ECRM is not here to change marketing but to enhance it by presenting opportunities to companies to improve their effectiveness and to deliver customer value. It can reduce the costs involved in communicating to customers, optimize work flows as a result of integration with other enterprise systems, facilitate better market segmentation and enable enhanced customer interactions, relation-ship and personalisation opportunities. The goal of ECRM systems is to improve cus-tomer service, retain valuable customers and to aid in providing analytical capabilities within an organisation.

CRM applications take full advantage of technology innovations with their ability to collect and analyse data on customer patterns, interpret customer behaviour, develop predictive models, respond with timely and effective customised communications and deliver product and service value to individual customers. Using technology to optimise interactions with customers companies can create a -degree view of customers to learn from past interactions to optimise future ones. It is also the infrastructure that enables the delineation of, and increases in, customer value and the correct means by which to motivate valuable customers to stay.

Industries that tend to be more ECRM ready are aware of distinct contact with customers, are very competitive and are constantly seeking differentiation. ECRM can be used as an approach to relationship management with multiple stakeholders including customers, employees, channel partners and suppliers. Specific opportunities of ECRM highlighted here include enhanced customer interactions and relationships, managing customer touch points, personalisation options and leveraging ECRM capabilities as a potential source of competitive advantage.

4.5 DIFFERENT LEVELS OF E-CRM

In defining the scope of eCRM, three different levels can be distinguished: 1. Foundational services: This includes the minimum necessary services such as web site effectiveness and responsiveness as well as order fulfillment. 1. Customer-centered services: These services include order tracking, product configuration and customization as well as security/trust. 2. Value-added services: These are extra services such as online auctions and online training and education. 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.

4.6 BENEFITS OF E-CRM

Implementation of an ECRM system enables an organisation to streamline processes and provide sales, marketing and service personnel with better, more complete customer information. The result is that ECRM allows organisations to build more profitable customer relationships and decrease operating costs. Benefits of an ECRM system include: Service level improvements Using an integrated database to deliver consistent and improved customer responses Revenue growth Decreasing costs by focusing on retaining customers and using interactive service tools to sell additional products. Productivity Consistent sales and service procedures to create efficient work processes. Customer satisfaction : Automatic customer tracking and detection will ensure enquiries are met and issues are managed. This will improve the customer's overall experience in dealing with the organisation. Across every sector and industry, effective CRM is a strategic imperative for corporate growth and survival: Sales organisations can shorten the sales cycle and increase key salesperformance metrics such as revenue per sales representative, average order size and revenue per customer. Marketing organisations can increase campaign response rates and marketing driven revenue while simultaneously decreasing lead generation and customer acquisition costs.

 Customer service organisations can increase service agent productivity and customer retention while decreasing service costs, response times and requestresolution times.

4.7 HOW DOES ECRM WORK?

In today's world, customers interact with an organisation via multiple communication channelsthe World Wide Web, call centres, field salespeople, dealers and partner networks. Many organisations also have multiple lines of business that interact with the same customers.

ECRM systems enable customers to do business with the organisation the way the customer wants - any time, via any channel, in any language or currency and to make customers feel that they are dealing with a single, unified organisation that recognises them every step of the way. The ECRM system does this by creating a central repository for customer records and providing a portal on each employees computer system allowing access to customer information by any member of the organisation at any time. Through this system, ECRM gives the ability to know more about customers, products and performance results using real time information across business.

4.8 IMPLEMENTING AND INTEGRATING E-CRM

Contrast with traditional CRM being implemented under ERP (Enterprise Resource Planning) interface communicating in firms and with their customers, eCRM optimizes the customized environment via web browser. This provides beneficial for effective communication not only enterprises to external customers and internal departments. Business personalized each of their customer profile unified in entire organization. By "central repository", customer may communicate with different department staff in the corporate via Internet (or phone call). And firms are able to use the marketing analysis for customer more mature services. As each department integrates customers information, they can focus on individual operational duty more efficiently, so that firm may reduce execution cost.

eCRM in B2B market

Traditional B2B customers are usually seeking ways in order to decrease the firms expense. Customizing the specific product and reducing the repeated routine cost products for them can expense least. Due to information technology developing, websites information has been becoming an important medium to reduce collecting cost and time, and it becomes a long-term relationship eventually. At the same time, more complex collaboration can be implemented on networking platform. After businesses collaborate as "supply chain partners", it takes the mutual benefits can give both sides an equal position to increase co-work confidence.

eCRM in B2C market

In contrast with B2B, the attitude of B2C individually purchase is decided by the positive experience and online shopping knowledge. Previous research found B2C enjoy the shopping online is quick to transact, convenient to return, save energy to

retailer, and fun to browse. Thus, the marketing investigating, customers communicating, and information obtaining are important factors to maintain customer services.

4.9 MOBILE CRM

One subset of Electronic CRM is Mobile CRM. 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 M-CRM: "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 customers. ECRM allows customers to access company services from more and more places, since the Internet access points are increasing by the day. M-CRM 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. Since M-CRM is not able to provide a complete range of customer relationship activities it should be integrated in the complete CRM system. There are three main reasons that mobile CRM is becoming so popular. The first is that the devices consumers use are improving in multiple ways that allow for this advancement. Displays are larger and clearer and access times on networks are improving overall. Secondly, the users are also becoming more sophisticated. The

technology to them is nothing new so it is easy to adapt. Lastly, the software being developed for these applications has become worthwhile and useful to end users. There are four basic steps that a company should follow to implement a mobile CRM system. By following these and also keeping the IT department, the end users and management in agreement, the outcome can be beneficial for all. Step 1 - Needs analysis phase: This is the point to take your times and understand all the technical needs and desires for each of the users and stakeholders. It also has to be kept in mind that the mobile CRM system must be able to grow and change with the business. Step 2 Mobile design phase: This is the next critical phase that will show all the technical concerns that need to be addressed. A few main things to consider are screen size, device storage and security. Step 3 Mobile application testing phase: This step is mostly to ensure that the users and stakeholders all approve of the new system. Step 4 Rollout phase: This is when the new system is implemented but also when training on the final product is done with all users.

Advantages of mobile CRM:

1. The mobile channel creates a more personal direct connection with customers. 2. It is continuously active and allows necessary individuals to take action quickly using the information. 3. Typically it is an opt-in only channel which allows for high and quality responsiveness. 4. Overall it supports loyalty between the customer and company, which improves and strengthens relationships.