1. Online Mktg - CRM
© Ramakrishna Kongalla,
Assistant Professor
Indian Institute of Tourism & Travel Management
(An Organization of Ministry of Tourism, Govt. of India)
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2. e-CRM
• CRM …..
Any application or initiative designed to help
an organization optimize interactions with
customers, suppliers, or prospects via one or
more touch points for the purpose of
acquiring, retaining customers.
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3. Introduction of e-CRM
• eCRM is the application of CRM to an e-business’
strategy
– Personalization/customization of customers’ experiences
and interactions with the e-business
• Recall:
– Relationship between merchant and customers is distant
– Less expensive to keep customers than to acquire new
ones
– Repeat customers have higher lifetime value than one-time
buyers
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4. How? Track and Analyze Data
• Employ tracking devices
– Personalize each visitor’s experience
– Find trends in customer use
– Measure effectiveness of a Web site over time
– ID cards
• An ID card enables information to be sent to a Web site such as
your IP address, your browser, or your operating system
– Click-through banner advertisements
• Click-through ads enable visitors to view a service or product
by clicking the ad
• Advertisers can learn what sites generate sales
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5. Tracking: Web Bugs
Web Bugs
– A type of image file embedded in an image on the screen
– Site owners allow companies, especially advertising
companies, to hide these information-collecting programs
on various parts of their sites
– Every time a user requests a page with a Web bug on it, the
Web bug sends a request to the Web bug’s company’s
server, which then tracks where the user goes on the Web.
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6. Tracking: Log-File Analysis
• When visiting a site, you are submitting a request and
this is recorded in a log file
– Log files consist of data generated by site visits, including
each visitor’s location, IP address, time of visit, frequency of
visits, etc.
– Log-file analysis organizes and summarizes the information
contained in the log files
• Can be used to determine the number of unique visitors
• Can show the Web-site traffic effects of changing a Web site or
advertising campaign
• E.g. WebTrends.com
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7. Tracking: Data Mining
• Data mining (building on a data warehouse)
– Uses algorithms and statistical tools to find patterns in data
gathered from customer visits
– Costly and time consuming to go through large amounts of
data manually
– Use data-mining to analyze trends within their companies or
in the marketplace
– Uncovered patterns can improve CRM and marketing
campaigns
– Discover a need for new or improved services or products by
studying the patterns of customers’ purchases
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8. Tracking: Customer Registration
Customer registration
• Requiring visitors to fill out a form with personal
information that is then used to create a profile
• Only works when it will provide a benefit to the
customer
• When customers log on using usernames and
passwords, their actions can be tracked and stored in
a database
• Require only minimum information
• Need to give customers an incentive to register
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9. Tracking: Cookies
• Cookie
– A text file stored by a Web site on an individual’s personal
computer that allows a site to track the actions of a customer
– Information collected is intended to be an anonymous
account of log-on times, the length of stay at the
site, purchases made on the site, the site previously
visited, the site visited next
– Does not interact with other information stored on the
system
– Can only be read by the host that sets them on a person’s
computer
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10. Personalization
• Uses information from tracking, mining and data
analysis to customize a person’s interactions with a
company’s products, services, Web site and
employees
• Establish relationships that improve each time
visitors return to site
• Customers may enjoy individual attention and
become more loyal, e.g.
http://www.moneycontrol.com
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11. Contact Centers
• Traditional call centers house customer-service
representatives
• e-contact center
– Purpose is the same—to provide a personal customer
service experience
– Allow customers with Internet access to contact customer
service representatives through e-mail, online text
chatting or real-time voice communications
• Integration of all customer service functions
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12. E-Contact Centers
• Can change the culture of customer service
representatives:
– More technically knowledgeable to handle all forms of
contact
– Provide a highly personalized experience that satisfies
customers
• New forms of contact can decrease costs
• Outsource contact center services
– May be appropriate if a company cannot afford to
implement a contact center due to the costs of
equipment, office space, service representatives and
technical support.
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13. Frequently Asked Questions (FAQs)
• A Frequently Asked Questions (FAQ) section on the
site
– Will help customers find answers to some of their
questions
– Frees up time to handle questions that can not be
answered without human interaction
• Typically accompanied by phone numbers, e-mail
addresses, and a search engine
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14. TRADITIONAL FORM OF CRM
The existing CRM solution are not capable enough to
satisfy and retaining customers and also there is no
integrated tool which connect the Central sales
management, regional sales office, customers care,
sales, sales distribution, regional sales team in
effective manner.
A 360 view requires the automation to bring together
all the data concerning a customer. This implies that
organizations have to change the form :
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15. R'tist @ Tourism
TRADITIONAL CRM EMERGING SOLUTION
Mass production Product focus
Product focus Customer focus
1way communication Interactive communication
Response time Real time responses

16. Present CRM alternatives
• Present CRM solutions are offered by the host
of vendors that are to a great extent not
industry specific.
• While some vendors, who have come up with
industry specific solutions, the broad model
around which the CRM solutions are
built, remain the same.
• A typical offerings of the current CRM solution
(such as Siebel, oracle apps or Mysap.com etc.)
vary form solution to solution.
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17. Present CRM alternatives
A typical offerings of the current CRM
solutions offerings comprise of :
• Customer developments
• Service center
• Sales management & support
• Market Analysis
• Internet, telemarketing product & brand
management
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18. Present CRM alternatives
• Field sales , Tele sales,
• internet sales
• Call centers
• Field service
• Internet customer service
• Service interaction center(call centers)
• Business partners collaborations
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19. Technology impact on CRM
• Technology is touching the way, we live our lives,
expectations of individuals is changing
continuously and PCs and internet revolutionizing
our lives in 21st century .
• Some clear trends that can be clearly seen are :
• More and more individual will like to be treated as
one single person rather then as among the
masses .
• People wish products and services round the
clock.
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20. EMERGING IMAPCT OF E-COMMERCE ON CRM
In a fast changing internet world there are very
clear trends that are emerging :
• Speed: people expect service at fast speed
• Increase of global market place: more more
people , communities across the globe are able
to build relationships.
• Around the clock availability
• expansion of partners : internet offers the
ability for the organizations and people alike to
partner with suppliers and customers alike
across the globe.
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21. EMERGING IMAPCT OF E-COMMERCE ON CRM
• In global market place the channels of marketing
are already causing an impact on the buying
behavior of individuals as well as organizations
alike. Some of the trends are :
1. VERTICAL E-MARKET PLACE : industry specific
market place such as being formed by auto giants
where organized buyers and sellers can meet, list,
negotiate, make orders and track delivery.
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22. • BUY SITE AND SELL SITE: where consumers and
organization are alike can buy or sell online through
online shopping mart concept.
• HORIZONTAL MARKET PLACE: service that run across the
different vertical e-market places or business to
customers (B2C) buy and sell sites. Such sites should be
delivery sites , insurance etc.
• Use of internet to optimize supply chain
management(SCM) : earlier organizations use to use EDI
rather than the expensive preposition for limited
numbers of partners but now organizations are
implementing new ERP systems to optimize its SCM.
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23. e-CRM
• With the abundance of product and services
offerings, consumer`s loyalty can only be
commanded by providing better portfolio of
services.
• speed of response and understanding each
individual one of the major key issues CRM has
become the central focus area around which the
entire gamut of organizational activity has to
revolve round.
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24. In simplest terms e-crm provides company to conduct
interactive, personalized and relevant communications
across the globe with their customers by utilizing the
traditional and electronic channels both.
It adheres to permission based practices, respecting
individual's preferences regarding how and whether
they wish to communicate with you and it focuses on
the understanding how the economics of the
customers relationships affects the business.
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25. e- CRM is the electronic based version of CRM.
The user of the a e- CRM solution uses the
sources of the internet to increase the
relationship with the customer.
web based CRM can easily handle the
relationships between Central sales
management, regional sales office, customers
care, sales, sales distribution, regional sales
team.
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26. Why employ e-CRM ?
• To optimize the value of the interactive relationships
• Enable the business to extends its personalized reach
in the hand of customers
• Co-ordinating marketing initiatives across the all
customers channels
• Leverage the customer`s information for more
effective e-marketing and e-business
• Focus the business on improving the customers
relationship and earning a greater share of each
customer`s business through consistent
measurement, assessment and actionable customer
strategy.
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27. The six “E`s” of e-CRM
• The ‘e’ not only stands for “electronic” but
also perceived to have many other
connotations. Through the core of CRM
remains to be cross channel integration and
optimization. The six “E” of e-CRM are briefly
explained in the next slides.
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28. R'tist @ Tourism
E- “electronic
channels”
E- “enterprise”
E- “empowerment”
E- “Economics”
E- “
Evaluation”
E-
“Extern
al
Informa
tion”

29. 1) Electronic channels: new electronic channels such as web
and personalized e- messaging have become a medium for
fast and interactive , economic communication
, challenging company to keep pace with the increased
velocity. E – crm thrives on these electronic channels.
2) Enterprise : through e- CRM the company gains the mean
to touch and shape a customers experience through
sales, services and corners offices whose occupants need
to understand and assess the customers behavior.
3. Empowerment: it must be structured to accommodate
consumers who now have the power to decide when and
how to communicate with the company. Through ,which
channel , at what frequency. An e- CRM must be structured
to deliver timely pertinent, valuable information that
consumers accepts in exchange of his/her attention.
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30. • 4. Economics : an e-CRM strategy ideally should concentrate on the
consumer economics, which drives smart asset allocation decisions,
directing efforts at individuals likely to provide the greatest return on
customer- communication initiatives.
• 5.Evaluation: understanding the customers relies on a company`s ability to
attribute customers behavior to market programs, evaluate customer
interactions along various customers touch points channels and compare
anticipate ROI against actual returns through analytic reporting.
6. EXTERNAL INFORMATION : the e-CRM solution should be able to gain and
leverage information from such sources as third party information networks
and webpage profiler application.
• Acquisition (increasing the no. of customers)
• Expansion (increasing the profitability by encouraging customers to
purchase more products and services)
• Retention (increase the amount of time in which the customers stays with
company, making a long-term relationship)
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31. KEY FEATURES OF e-CRM
• Regardless of an company objectives e-CRM solution
must posses certain key characteristics. It must be:
• driven by a DATA WAREHOUSE
• Focused on the consistent metrics to asses customers
actions across the channels
• Structured to identify a customer profitability or profit
potential
• To determine the effective allocation decisions
accordingly, so that most profitable customers could be
indentified and retained and the resource could be
invested in the relationships, which are more profitable.
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32. EVOLVING TO e-CRM
• In nutshell company a company evolving to e-CRM should
be:
• Define its business objective. This would be specific and
different for different businesses
• Assess its current position with respect to the
environment and determine its current level of
“sophistication” along the e-CRM continuum ( e-CRM
assessment)
• Define new business processes and align its existing
business strategy and existing processes in line with the
new realities (e-CRM Strategy alignment)
• Define a technical architecture and the criteria`s
associated with this architecture and the important
criteria associated with this architecture. (e-CRM)
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33. E – CRM ASSESSMENT
Before the implementation of a particular strategy into any business
scenario, it is worthwhile to know the current state of the business
with respect to prevailing competition. It is vary important to develop
a numerical measure of how a company measures up in the eye of the
customers with respect to its competitors.
in this particular case of e- CRM ,an e- CRM capability index would be
devised , which provide a benchmark for cross company comparison
based on these results, a company identifies quick hits based upon e-
CRM gap which can which can be immediately implemented to
improve the business processes ,impact the bottom line and further
enhanced its understanding of its customers` view of the company. E-
CRM stage would be the diagnostic stage , followed by e-CRM strategy
alignment and e-CRM architecture model.
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34. E- CRM STRATEGY ALIGNMENT
Every company moving in to e- CRM must make a key
decisions on a number of significant customers
related factors. Each company must indentify,
measure and align to the gaps that exist between
customer expectations already measured in the e-
CRM assessment stage and the internal capabilities
that these customers expectations.
Ideally in this module a company should try to build up
the consensus across the functions , which the
company need to take to satisfy the customer
expectations.
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35. E-CRM architecture
The primary input to this module are mainly from the e-CRM
assessment and strategy alignment modules. during this stage the
company will try and develop a connected enterprise
architecture(CEA) within the context of the companies' own
customers relationship management strategy. The following is set
of technical e-CRM capabilities and applications that collectively
and ideally comprise a full e-CRM solutions :
 Customers analytic soft wares
 Data mining soft wares
 Campaign management soft wares
 Business simulation
 A real time decision engines
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36. • Customer analytic software : predicts ,measures and
interprets the customers behavior allowing companies
to understands the effectiveness of e-CRM efforts across
both inbound and outbound channels. Most
importantly, customers analysis should integrate with
customers communication software to enable the
company to transform customer findings into ROI-
producing initiatives.
• Data mining software : it builds the predictive models to
identify customers most likely to perform a particular
behaviors such as purchase an upgrade or churn from
the company. Modeling must be tightly integrated with
the campaign management software to keep the pace
with the multiple campaign running daily or- weekly.
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37. • Campaign management soft wares : leverages the data
wares house to plan and execute multiple, highly
targeted campaigns overtimes, using triggers that
respond timed events and customers behavior.
Campaign management software test various offers
against controls groups, capture promotion history for
each customers and prospect and produces output
virtually any online or offline customers touch point
channel.
• Business simulation : it is used with conjunction with
campaign management software optimize
offer, messaging and channel delivery prior to the
execution of campaigns and compare planned cost and
ROI projection with actual cost.
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38. • A real time decision engine : coordinate and
synchronizes communications across various
customers touch point systems. It contains
the business intelligence to determine and
communicate the most appropriate message
,offer, and channel delivery in real time and
support two way dialogue with the
customers
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39. MOBILE CRM
• One subset of Electronic CRM is Mobile CRM (m-
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:
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40. • “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)”
• E-CRM 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.
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41. • An example of a company that implemented
m-CRM is Finn-air, who made it possible for
their customers to check in for their flights by
SMS.
• Since m-CRM is not able to provide a
complete range of customer relationship
activities it should be integrated in the
complete CRM system.
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42. Thank You…!!!
©Ramakrishna Kongalla
e-mail: artist.ramakrishna@gmail.com
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