Transcript CRM in Information Age

CRM and Its
Relationship with EC
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Customer relationship management (CRM):
A customer service approach that focuses on
building long-term and sustainable customer
relationships that add value both for the
customer and the company
CRM and Its
Relationship with EC (cont.)
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Classification of CRM programs
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Loyalty program
Prospecting
Save or win back
Cross-sell/up-sell
eCRM: Customer relationship management
conducted electronically
CRM and Its
Relationship with EC (cont.)
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Extent of service
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Customer acquisition (prepurchase support)
Customer support during purchase
Customer fulfillment (purchase dispatch)
Customer continuance support (postpurchase)
CRM and Its
Relationship with EC (cont.)
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Benefits of CRM
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Provides:
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Limitations of CRM
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choices of products and services
fast problem resolution and response
easy and quick access to information
Requires integration with a company’s other
information systems which is costly
Difficult to support mobile employees
CRM and Its
Relationship with EC (cont.)
CRM implementation issues
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Steps in building EC strategy focused on
customer:
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focus on the end customer
systems and business processes that are
designed for ease of use and from the end
customer’s point of view
efforts to foster customer loyalty
CRM and Its
Relationship with EC (cont.)
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Five factors required to implement a CRM
program effectively:
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Customer-centric strategy
Commitments from people
Improved or redesigned processes
Software technology
Infrastructure
CRM and Its
Relationship with EC (cont.)
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Web-related metrics a company uses to determine
the appropriate level of customer support:
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Response time
Site availability
Download time
Timeliness
Security and privacy
On-time order fulfillment
Return policy
Navigability
CRM Applications and Tools:
Delivering Customer Service in Cyberspace
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CRM applications improve upon traditional customer
service by means of easier communications and
speedier resolution of customer problems
Customer service adds value to products and
services
It is an integral part of a successful business
CRM Applications and Tools (cont.)
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Classifications of CRM applications
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Customer-facing applications
Customer-touching applications
Customer-centric intelligence applications
Online networking and other applications
CRM Applications and Tools (cont.)
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Customer-facing applications
Customer interaction center (CIC): A
comprehensive service entity in which EC
vendors address customer service issues
communicated through various contact channels
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Intelligent agents in customer service and
call centers
CRM Applications and Tools (cont.)
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CRM Applications and Tools (cont.)
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Autoresponders: Automated e-mail reply systems
(text files returned via e-mail), which provide
answers to commonly asked questions
Sales force automation (SFA): Software that
automates the tasks performed by sales people in
the field, such as data collection and its transmission
CRM Applications and Tools (cont.)
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Customer-touching applications
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Personalized Web Pages
E-Commerce Applications
Campaign Management
CRM Applications and Tools (cont.)
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Web Self-Service
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Activities conducted by users on the Web to provide
answers to their questions (e.g., tracking) or for
product configuration
Self-tracking
Self-configuration and customization
CRM Applications and Tools (cont.)
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Customer-centric applications
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Data reports
Data warehouse
A single, server-based data repository that allows
centralized analysis, security, and control over the
data
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CRM Applications and Tools (cont.)
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Data analysis and mining
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Analytic applications automate the processing
and analysis of CRM data
can be used to analyze the performance, efficiency, and
effectiveness of an operation’s CRM applications
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Data mining involves sifting through an immense
amount of data to discover previously unknown
patterns
CRM Applications and Tools (cont.)
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Online networking and other applications
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Forums
Chat rooms
Usenet groups
E-mail newsletters
Discussion lists
CRM Applications and Tools (cont.)
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Mobile CRM
the delivery of CRM applications to any user, whenever
and wherever needed
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Voice communication
people are more comfortable talking with a person,
even a virtual one, than they are interacting with
machines. The smile and the clear pronunciation of the
agent’s voice increases shoppers’ confidence and trust
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CRM Applications and Tools (cont.)
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CRM Applications and Tools (cont.)
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Role of knowledge management and intelligent
agents in CRM
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Automating inquiry routing and answering queries
requires knowledge
Generated from historical data and from human
expertise and stored in knowledge bases for use
whenever needed
Intelligent agents support the mechanics of inquiry
routing, autoresponders, and so on