2. CRM is a strategy by which companies optimise
profitability through enhanced customer satisfaction.
CRM is about automating and enhancing the customer-
centric business processes of Sales, Marketing, and
Service.
CRM also focuses on added customer loyalty that
directly affects the organization’s bottom line.
4. CRM Evolution
Cost Reduction Strategy Growth Strategy
BPR ERP SFA CRM eCRM
Business Led IT Led Marketing Led
1980s 1990s 2000s
5. ECRM is the customer focussed management of the
whole eBusiness relationship with each customer, in
order to measure, create and increase income and
reduce costs for each customer & segment and thus to
generate greater positive lifetime value.
Put simply, eCRM means CRM-
database access via the Web. It
means Intranet access for
internal users, extranet access
for business partners and
customers and of
course, Internet access for the
market at large.
6. e-CRM expands the traditional CRM
techniques by integrating new electronic
channels, such as Web, wireless, and voice
technologies and combines it with e-business
applications into the overall enterprise CRM
strategy.
Traditional CRM + Internet = e-CRM
7. Due to the introduction of new technology
Due to globalization
Changing customer attitudes and
expectations
To gain competitive advantage
To measure, create and increase income for
the business
To reduce costs
9. Technical e-CRM Capabilities
Customer Campaign Real Time
Data Mining Business
Analytic Management Decision
Software Simulation
Software Software Engine
10. 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 behaviour.
Business simulation used in conjunction with campaign
management software optimises 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 synchronises
communications using business intelligence.
12. Customer Centric Information Store
Analysis & Segmentation Engine
Personalization Engine
Broadcast Engine
Transaction Engine
13. The customer-centric information store
Consolidates information about millions of customers together
with preferences, permissions, and information that may be
useful to them.
The analysis and segmentation engine
Helps in leveraging this customer information to build a
business campaign strategy and evaluate its success.
The personalisation engine
Helps in personalising the entire customer
experience, configuring unique sets of messages and offers to
each customer.
14. The broadcast engine
Helps to proactively deliver information and offers to every
customer via the media of his or her choice.
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‖.
15. 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
16. 7 C‘s of effective e-CRM
Context
Content
Community
Customization
Communication
Connection
Commerce
17. 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.?
18. 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
19. A Forrester Research study of 70 retailers found that convenience
was the number one ranked reason (84%) for purchasing on-line
versus off-line.
A study by the Boston Consulting Group found that 65% of on-line
customers who purchase at a given web site will never make a
second purchase.
A recent McKinsey & Co. study revealed that a 10% gain in repeat
customers can add about 10% to the company‘s profits.
Typically costs 5 times as much to acquire a new customer as it
does to retain an existing one.
The best way to keep existing customers happy is to deliver value to
them on their own terms.
20. Oracle
1
India‘s Demand Products
2
Top 5
e-CRMs
SAP CRM
3
MS Dynamics
4 CRM
Sage
5
21. Good integration with Microsoft
Office Products
Reasonable sales force automation
Strong technology & architecture
Strong partner delivery network
MS Dynamics
CRM
Heavy browser architecture - fat client
Not taken seriously in the SaaS market
place
Titan is Microsoft's first attempt at
hosted CRM
Weak marketing and customer support
Lacks functionality depth
22. CRM integrates to Oracle Financials
Nice dashboard
Good data warehousing (lacks
flexibility, but good presentation)
Strong sales force automation (SFA)
Oracle
On-Demand
Not as strong marketing automation or
customer service
Lacks deep functionality offered by
some other hosted vendors
Offline version is pretty bad
Allegedly poor customer service and
turnover
23. Backing by the largest application
software vendor in the world
Isolated tenancy hosted delivery
model is a welcome change from
most other hosted CRM vendors
SAP
CRM
The product is new, shallow and
comparatively weak when compared
to other hosted CRM vendors;
however, offers much broader and
powerful ERP capabilities.
It is the expected profit that you will realize from sales to a particular customer in the future. Although it builds on past customer history, LTV is all about the future.