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Thursday, December 20, 2007

The Six “e’ s” of e - CRM


The Six "e’ s" of e - CRM
1 Electronic Channels Web / Personalized e – messaging
2 Enterprise
3 Empowerment Power to divide when & how to communicate with
the company
4 Economics Customer economics
Greatest return on customer communication
initiatives
5 Evaluation Evaluate customer interactions
6 External information Shall be able to gain & leverage information from
sources as third party information networks &
web page profiler application
 E-CRM must address customer optimization along 3 dimensions.
1 Acquisition Increasing the number of customers
2 Expansion Increasing the profitability by encouraging
customer to purchase more products & services
3 Retention Increasing the amount of time that customer
stays customers


 Key E-CRM features
Loopholes in traditional CRM Package.
 Channel centric – not customer centric
 Weak – metrics & measurement capabilities
 Contemporary customers focusing system such as sales force &
customer care have their own IT set up, these systems rarely
interact with each other.


 Evolving to e-CRM
In a nutshell a company evolving to e-CRM should:
 Define its business objectives
 Assess the current position
 Define new business processes
 Define technical architecture
 Contemporary customers focusing system such as sales force &
customer care have their own IT set up, these systems rarely
interact with each other.


 Technical & Business issues involved
1 Switching costs Shifting to new system
2 Scalability &
reliability
Whether the system would be able to adopt to new
levels of usage & functionality
3 Security The information risks arising because of the threats
to…
Data integrity
Violations of confidentiality
Data integrity


 E – CRM Business drives
More competitors
Shorter product life cycles
An explosion of new techniques – Pink Pill syndrome
New distribution channels
 Companies need to take firm initiatives on the e-CRM frontier to…
 Optimize the business to interactive relationships
 Enable the business to extend its personalized reach
 Co-ordinate marketing initiatives across all the customer
channels.
 Leverage customer information for more effective e-marketing &
e-business.
 Focus the business on improving customer relationships &
earnings a greater share of each customer’s business through
consistent measurement, assessment & "actionable" customer
strategies.


 E – CRM Architecture
Set of technical e-CRM capabilities & applications that collectively &
ideally comprise a full e-CRM solution…
1) Customer Analytic Software
 Predicts, measures & interprets customer behaviors
 Allows inbound & outbound channels
2) Data mining Software
 Identify customers most likely to perform a particular behavior
3) Campaign Management Software
 Leverages the data warehouse to plan & execute multiple,
highly targeted campaigns overtime, using triggers that respond
timed events & customer behavior.
4) Business simulation
 Used in conjunction with campaign management software
5) A real time decision Engine
 Co-ordinates & synchronizes communications across disparate
customer touch point system.
 Contains business intelligence


 E – Loyalty Matrix
The key is to focus on the customer’s relationship with the company.

 E – CRM Components
 E – Commerce
 E – Marketing
 E – Shipping
 E - Care

 The five Engines of E – CRM
1) The Customer Centric information Store
2) The Analysis & Segmentation Engine
3) The Personalization Engine
4) The Broadcast Engine
5) The Transaction Engine
 The Customer Centric Information Store – A unified view of every
customer
Integrated data from disparate information source such as…
 Web Sites – Transactional Systems – Operation Databases –
Call Centers – Expert System – Third Party Data
Enable the company to recognize & respond accurately to
customers
Should be scalable, flexible & gives high performance
Decreases customer attrition rules & improves retention
 The analysis & segmentation Engines
Performs business analysis, segmentation & prediction
 The Personalized Engine
Personalized products & services for customer in a cost effective
manner.
Example : amazon.com – personal recommendation for books
 The broadcast engine
Enabling 24/7 customer interactions
 The transition engine
Promotes information exchange between every customer &
enterprise
Maintains customer contact & transmits information
Develops information life long customer relationship

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