INTRODUCTION:

CRM:

Customer relationship management (CRM) is about identifying a companys best

customers and maximizing the value from them by satisfying and retaining them.

From the viewpoint of the Management, CRM can be defined as an organized approach
of developing, managing, and maintaining a profitable relationship with customers.

By equating the term with technology, the IT organizations define CRM as software that
assists marketing, merchandising, selling, and smooth service operations of a business.

E-CRM:
Electronic customer relationship management (E-CRM) is the application of Internetbased technologies such as emails, websites, chat rooms, forums and other channels to achieve
CRM objectives. It is a well-structured and coordinated process of CRM that automates the
marketing.
An effective E-CRM increases the efficiency of the processes as well as improves the
interactions with customers and enables businesses to customize products and services that meet
the customers individual needs.

E-CRM IN RETAILING:
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 eCRM process, there are three steps life cycle
1.

Data collection
information for actively

About

customers

preference

(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 provides the proper feedback to them.

E-CRM can be defined as activities to manage customer relationships by using the Internet,
web browsers or other electronic touch. 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 STRATEGY COMPONENTS:

When enterprises integrate their customer information, there are three eCRM strategy
components:
1. Operational:
Because of sharing information, the processes in business should make
customers need as first and seamlessly implement. This avoids multiple times to bother
customers and redundant process.
2. Analytical:
Analysis helps company maintain a long-term relationship with customers.
3. Collaborative:
Due to improved communication technology, different departments in company
implement (intraorganizational) or work with business partners (intraorganizational)
more efficiently by sharing information.

DIFFERENT LEVELS OF ECRM:

In defining the scope of eCRM, three different levels can be distinguished:

Foundational services:
This includes the minimum necessary services such as web site effectiveness and
responsiveness as well as order fulfillment.

Customer-centered services:
These services include order tracking, product configuration and customization as
well as security/trust.

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 and contact the
customer himself in order to establish a dialogue and solve problems.

STEPS TO ECRM SUCCESS:

Many factors play a part in ensuring that the implementation any level of eCRM is
successful. One obvious way it could be measured is by the ability for the system to add value to
the existing business. There are four suggested implementation steps that affect the viability of a
project like this:
1. Developing customer-centric strategies
2. Redesigning workflow management systems
3. Re-engineering work processes
4. Supporting with the right technologies

OBJECTIVES OF E-CRM:
1. Effectively managing differentiated relationships with all customers and communicating
with them in an individual basis.
2. Companies can super profits by acknowledging that different group of customers vary
widely in their behavior, desires and responsiveness to marketing.
3. To reinforce the reliance of the customers and create additional customer sources, firms
maintain relationships in two general categories B2B (business-to-business) and B2C
(business-to-customer or business-to-consumer) so that implementation of CRM should
come from respective view points.
4. It increases customer loyalty and customer retention by improving customer satisfaction,
E-loyalty results in long-term profits for online retailers as they incur less cost of
recruiting new customers.

WHY e-CRM? :
Due to the introduction of new technology
Due to globalization
Changing customer attitude and expectation
To gain competitive advantage
To measure , create and increase income for the business
To reduce cost
GOALS OF E-CRM IMPLEMENTATION:
Offer on efficient customer self-service where customers could learn about products,
purchase service plans, phones and accessories, manage their accounts, request service
and support all in one place.
Improve quality of service while reducing cost
Reduce number of calls to service centre

4 KEY FACTORS IN E-CRM PROCESS:

Find your customers

Collect their information
Build a relationship with them
Commercialize their relationship

STEPS IN E-CRM:
1. Setting the objectives of e-CRM
2. Methodologies for e-business initiative

3. Processes
4. Partnership
IT service providers
Content management
Call carters
5. Supply chain integration
6. Knowledge management
7. Evaluating the performance of e-CRM system

KEY OBJECTIVES OF E-CRM:

EFFICIENT MARKETING STRATIGES:

Organizations can create better, organised and planned marketing strategies.

Can attract relevant customer range based on the product likings.

 SUPERIOR QUALITY CUSTOMER SERVICE:

Creates a unified database of customers

Eliminates the long time gaps that can be created owing to lack of customer
information

Services customers requirements at its best

INCREASED

EFFICIENCYWITH

CONTROLLED

TOTAL

COST

OF

OWNERSHIP:

Data mining brings forwards varied teams together to share informations.

Leads to a reduction in the total cost factor

ENHANCED CUSTOMER RELIABILITY:

Facilitates easy communication between the organization and its customer.

Independent of the means of communication

CONCLUSION:
E-CRM application is actually integration with other points of contacts , leading to a
single view of the multinational interactions.web based CRM applications provide integrated
marketing sales..,A major consideration in deciding which E-CRM system to adopt depends
largely on the compact ability of the system.