Question: What Is Behavior Analysis?

Answer: Behavior Analysis Defined Behavior analysis is a science based upon the foundations and principles of behaviorism. Division 25 of the American Psychological Division is devoted to the area of behavior analysis. According to Division 25, the fact that behavior analysis focuses on behavior as a subject makes it unique. The division also explains that this analysis of behavior can occur in three different ways.

First, through the experimental investigation of behavior.

Secondly, through applied behavior analysis. This process involves taking what researchers know about behavior and applying it in individual, social, and cultural contexts.

Finally, through the conceptual analysis of behavior. According to Division 25, this address the philosophical, historical, theoretical and methodological issues in behavior analysis.

Experimental and Applied Behavior Analysis There are two major areas of behavior analysis: experimental and applied. Experimental behavior analysis involves basic research designed to add to the body of knowledge about behavior. Applied behavior analysis, on the other hand, is focused on applying these behavior principles to real-world situations. Those who work in the field of applied behavior analysis are interested in behaviors and their relationship with the environment. Rather than focusing on internal states, ABA therapists focus on observable behaviors and utilize behavioral techniques to bring about behavioral change. According to the Behavior Analyst Certification Board: "Professionals in applied behavior analysis engage in the specific and comprehensive use of principles of learning, including operant and respondent learning, in order to address behavioral needs of widely varying individuals in diverse settings. Examples of these applications include: building the skills and achievements of children in school settings; enhancing the development, abilities, and choices of children

and adults with different kinds of disabilities; and augmenting the performance and satisfaction of employees in organizations and businesses." History of Behavior Analysis Behaviorism was largely established through the influential work of three theorists:

Ivan Pavlov John B. Watson B.F. Skinner Pavlov discovered the conditioning reflex during his studies with dogs, establishing classical conditioning as a learning method. His research demonstrated that an environmental stimulus (i.e. ringing bell) could be used to stimulate a conditioned response (i.e. salivating at the sound of the ringing bell). John B. Watson extended Pavlov's theory to apply to human behavior, publishing his landmark article Psychology as the Behaviorist View It in 1913 and establishing behaviorism as a major school of thought. B.F. Skinner later introduced the concept of operant conditioning in which reinforcement leads to a desired behavior. These concepts continue to play influential roles in behavior analysis, behavior modification, and psychotherapy. Behaviorism was once a very prominent school of thought within psychology, although its dominance began to decline during the 1950s as psychologists became more interested in humanistic and cognitive approaches. However, behavioral techniques are still widely used today in psychotherapy, counseling, education, and even in parenting. Techniques and Strategies Used In Behavior Analysis Some of the techniques used by behavior analysts include:

Chaining: This behavior techniques involves breaking a task down into smaller components. The simplest or first task in the process is taught first. Once that task has been learned, the next task can be taught. This continues until the entire sequence is successfully chained together.

Prompting: This approach involves using some type of prompt to trigger a desired response. This might involve issues a verbal cue, such as telling the person what to do, or a visual cue, such as displaying a picture designed to cue the response.

Shaping: This strategy involves gradually altering a behavior, rewarding closer and closer approximations of the desired behavior.

Applications of Behavior Analysis Behavior analysis has proven to be a particularly effective learning tool for helping children with autism or developmental delays acquire and maintain new skills. These treatments include the Lovaas Method and ABA (applied behavior analysis) and utilize techniques such as discrete trial training. The basic principles of behavior medication are often adapted for use in educational settings, the workplace and childcare.

Partner Relationship Management Brings Indirect Channels into CRM

These days eCommerce is top of mind in just about every business. And rightly so because the Internet offers an efficient means of marketing and selling all types of goods. Yet most enterprises continue to rely on indirect sales channels to reach certain markets, add value, and deliver a complete solution. Can Internet technology be used with equal effectiveness to recruit, manage and support channel partners? Absolutely! In fact, industry leaders are already doing so, quite successfully. In the first quarter of 2000, Front Line Solutions interviewed 35 channel managers and executives at companies using the Internet to incorporate partners into their eBusiness strategies. This approach, known as Partner Relationship Management (PRM), is a compelling new trend.
The goal of PRM is to create long-term competitive differentiation with indirect sales channels. Can the Internet cut costs? Certainly, but the real benefit is transforming traditional channels into networks of ePartners, where Web-based applications enable channels to deliver more value, faster and at less cost. PRM early adopters have implemented a wide variety of Internet-based applications. Some focused on partner management and measurement systems based on a robust partner profile database. Others invested in smart channel portals to give a more personalized experience to channel extranet visitors. And still others implemented automation tools to improve sales processes or streamline order management through eCommerce systems. The initial results are promising. PRM project managers report increased channel sales productivity, enhanced partner mind share, and in some cases, dramatic cost savings too. Over the long haul these businesses expect ePartner initiatives to increase partner loyalty and competitive differentiation while streamlining channel operations. Case in point: Bang & Olufsen, a manufacturer renowned for its high-end audio-visual systems. And not just among audiophiles. The Danish company has also earned a reputation

for cutting-edge industrial design. As such, its products appeal to a very knowledgeable, sophisticated customer, calling for an equally sophisticated sales approach among the companys 2,500 retail partners worldwide. The channel is critical, said Jens Harder, senior manager for retail systems. Our retailers must have the right skills and information to speak to this audience, to make sales and to ensure quality of service. To give its dealers better access to product information, plus reduce the resources required to process orders, Bang & Olufsen invested heavily in a PCbased configurator but found the system difficult to maintain and support. The effort was refocused on an Internet-based solution. The company is looking for payback in less than two years, based on a 50% reduction in its ordering staff along with increased sales resulting from service improvements. Thats fine for complex retail sales, but what about reseller channels typically found in the high-tech industry? Consider Tivoli, a software company intent on making it easier for channel partners to do business. An independent division of IBM, Tivoli specializes in data storage systems for routine backup as well as disaster recovery. The company takes a consultative approach to sales, carefully evaluating customer requirements, then proposing an end-to-end solution that delivers the best return on investment. Customer needs are changing and there is more specialization in the market, said George Mele, director of worldwide storage management sales. The VARs [Value Added Resellers] we work with must do more than provide access to the product. Therefore, its important for us to select the right partners, keep them trained, and deliver the information they need. Tivoli selected a PRM channel portal solution to provide a more intuitive way for users to find information based on their specific needs. The theory is, the easier the system is to use, the more hits there will be. Easier to use means easier to do business with. Business should grow as a result, as the good word-of-mouth attracts other VARs. PRM is spreading to many other industries too, including telecommunications. From its distant roots as a rural telephone company in turn-of-the-century Kansas, Sprint has grown and evolved into a world leader in telecommunications, capable of providing leading-edge digital voice and data services on a local, national or global basis. The Kansas City, Missouribased corporation places particular emphasis on integrated business communications solutions. Were selling the total end-to-end package, said Kim McMinn, senior director of distributor marketing for the Sprint Business division. That means we must reach all department heads, not just IT. For a number of years, Sprint has been using channel partners to help open new markets but found it difficult to coordinate the channels sales efforts. Basically, we had no database of partner information. We couldnt profile them, couldnt track their activities and couldnt get timely feedback on the effectiveness of our programs. Sprint Business implemented a PRM system to consolidate partner information and help manage marketing information and incentive programs. Kim said that the company expects to see gains in revenue brought about by the increased integration of field sales activities with Sprint Business lead-generation programs, plus the generally greater ease of doing business. As mentioned earlier, PRM is very much a part of the overall CRM framework which should support employees, customers, and partners. As one of the more recent developments in the CRM market, its not surprising that many of the initial PRM systems are being provided by

startups specializing in this niche. However, CRM market leaders are increasingly offering PRM capabilities as part of multi-channel software suites.

7 problems to solve negative inrnal customer

Co-workers Are Customers Too By John Tschohl When we talk about customer service, we usually think about how we deal with the people who walk through our doorsboth physical and virtualto purchase our products and services. What we often fail to realize, however, is that we also have customers within our organizations; those customers are our co-workers.

Customer service means being responsive to a customers needs and being resourceful in meeting those needs. Customer service is many things: knowledge, communication, skill, attitude, efficiency, integrity, reliability, knowledge, and helpfulness. How you interact with co-workers and supervisors has a huge impact on the effectiveness of the team. When Dan asks for your help in completing a report, do you tell him that its not your responsibility, or do you eagerly offer to do whatever you can to help him meet his deadline? When Bethany points out an error, do you get defensive, or do you view her comment as constructive and vow to improve your performance? When you treat co-workers and supervisors with respect, when you help them solve their problems and meet or exceed the demands of the job, your value as an employee increases dramatically. Just as you should do whatever it takes to satisfy a customer, you should do whatever it takes to help a co-worker. If you want to ensure that the internal customer service you are providing is exceptional, take these steps: 1. Develop a positive attitude. Your attitude is reflected in everything you do. It not only determines how you approach your job and your co-workers, it determines how they respond to you. Dont complainand dont hang around negative co-workers. Do whatever it takes to get the job doneand done right. 2. Listen. You cant help a co-worker unless you hear and understand what he needs. Listening shows that you care and provides you the information you need to do what needs to be done. Ask questions. Rephrase what your co-worker is saying to ensure that you understand the situation. Then use that information to decide how to move forward. 3. Solve problems. Great customer service professionals are quick on their feet. They have the skills necessary to quickly analyze a situation and decide what needs to be done to solve the problem. Dont procrastinate. Develop a plan of attack, and handle the situation as quickly and efficiently as possible. 4. Be accessible. This means returning phone calls and responding to emails as quickly as possible. Doing so sends the message that what your co-worker needs is important to you and that you are available and eager to provide whatever assistance is needed. 5. Be honest. If a task is outside your level of expertise, or if you cannot meet the required deadline, admit it. Then offer to facilitate by helping your co-worker identify someone in the organization who does have the expertise and the time to assist with the project. Honesty earns respect. The same holds true when you make a mistake. Admit it, apologize, and learn from it.

6. Make your co-workers feel valued. Recognize them with a smile. Call them by name. Make eye contact. Be attentive to what they have to say. Compliment them when they do a good job. Ask for their advice. Make them feel important. 7. Perform. Deliver what you promise. Send the message that your co-workers can depend on you. Do what you say you will doand do it with quality, speed, and accuracy. If you say you are going to complete a report by Tuesday, do your best to complete it by Monday. There is great power in mastering the skills necessary to provide exceptional internal customer service. You will gain confidence in yourself and your abilities, you will earn the respect of your coworkers, and you will be recognized and rewarded. You will set yourself apart and be recognized as a valuable member of the team. And you will have satisfied customers.

1 How customization can improve csutomer relation

Customer Relationship Skills Training
Build customer advocacy skills as a brand differentiator. Hands-on exercises with realistic internal and external customer scenarios accelerate adoption of valuable capabilities. Develop strong customer relationship skills to bring your customer experience strategies to life. 80% of companies say customer experience strategies are a more important part of their organization's agenda. Companies that have increased their customer experience investment in the past 3 years, compared to those that have decreased their investment, report satisfaction scores that are 60% higher, and are 30% more likely to have less than 5% churn / attrition rates. (Strativity) Mix and match modules to customize training to your specific needs: Clear Communication, Trustful Relationships, System Dynamics.

Communication Skills
Effective communicators are skilled navigators of circumstances and personalities in receiving as well as sending messages.

The Power of Listening

Practice listening skills appropriate to the situation at hand, including nonverbal cues, the skills of empathy and silence, and advanced levels of listening that will propel your relationship growth.

The Power of Questions

Involve your client through appropriate questions that reveal the often unspoken issues, criteria, rationale, perceived risks, motives and vision that are germane to your mutual success.

The Power of Intended Outcome

Identify success factors for each client interaction, taking into account the expectations of each party, what to share or reserve, managing disengagement or resistance, and discovering underlying needs.

Balancing Open Dialog

Integrate communication techniques for various phases of discussion, using the exploring, stating and teaming dialog components appropriately.

Interaction BridgesTM
Learn techniques to use on-the-fly in navigating unexpected changes with clients or colleagues, or gaining cooperation from persons outside your line of authority during moments of impasse.

Personalities Under Stress

Recognize what stresses different thinking types and develop methods to transform yourself and others to a positive outlook during stressful situations.

Relationship Skills
Trust is the defining factor for long-term relationships. Catalyze and manage bonds that transcend inevitable challenges.

Building Trust
Explore the character and competence dimensions of the trust you convey and tools for building credibility, managing commitments, maintaining standards, and demonstrating your trust in others.

Partnering Roles
Monitor your journey from expert-for-hire to trusted advisor by identifying your current level of partnership and growing the relationship through dimensions of expertise, process and people.

Sources of Influence
Measure your formal and informal sources of influence: positional, political, knowledge, relationship, and personal power ... and leverage your client's sources for win-win arrangements.

Building Client Relationships

Prioritize stretch goals for opportunities and relationships, thought leadership, team development, quality assurance, and commercial success; develop tools to monitor and celebrate success.

Dynamics Skills

Anticipate connections and interactions within and between processes and groups, to maximize customer experience success.

Stakeholder Management
Map the players integral to an initiative and determine strategies to create a common vision and build momentum and success in achieving desired results.

Building Relationships With Each Buying Influence

Identify the players in your client organization in various roles of the buying decision, gain awareness of each role's care-abouts, and nurture your relationship with each client role.

Creating Value Through Systems Thinking

Optimize the value you bring to clients through big-picture techniques that accommodate critical system components through framing, analogies, patterns, perspectives, openness, and connectivity.

Learning From Challenges & Successes

Imagine yourself in the future with both positive and negative scenarios and ask "how did that happen?" to discover strategies to thwart competitors and build relationships.

Mastering Implementation
Bring action plans to life by integrating customer perspective, root cause analysis, metrics, execution specifics, and recognition on a single page as a living document that encourages follow-through.

3. Cost of retaining new customers is less

New Customers or Retain Existing Customers. Which is better and more cost effective?
Ever company needs to grow, but how do you achieve that growth? Many companies attract new customers by giving discounts on services to new customers at attract them from the competition. How do the existing customers feel and react to these incentives? Would a better marketing plan to lessen the costs of discounting services to new customers and divert some of this expense to rewarding loyal existing customers. If one of your service provides suddenly sent you a coupon or discount on one of it's services, would you not talk about it to friends and colleagues, "wow, they really appreciate my business and loyalty". Would this not attract new customers to that company? I ask this question, as we recently received a "fantastically thought out" piece of

marketing from our cable supplier. After being a loyal customer for 10 years and spending countless thousands of dollars with them. We thought, "wow, they appreciate our business"! So we opened and read this mail with interest. As it turned out it was for something that we would not use anyway, BUT, it was only available at this price to NEW CUSTOMERS. Opportunity missed? This resulted in a loyal customer being, disappointed, slightly angry, and ready for a change! So is the need to discount services to new customers a result of them not being able to retain there existing customers?

In marketing, the focus is more or less always on acquiring new customers. Its by far the most appealing and seductive route to higher sales or profits. But unless your company is just starting out, your current customers may actually contain more untapped potential than theoretical new ones. It is far easier, for various reasons, to squeeze more value out of customers you already have than it is to go out and find more. Heres why:

Acquisition Costs
As you likely know, acquiring a customer for the first time is rarely cheap. Whether you use search engine marketing, cold calls or direct mail, there is a toll which must be paid to bring new prospects into your sales funnel. Chances are, if you track each marketing campaign and know your numbers, you have the cost of new customer acquisition down to an exact science. Being able to systematically generate new business on demand is a tremendous skill, and certainly nothing to make light of. However, its much cheaper selling over and over to customers you already sold to once than persuading brand new people to buy for the first time.

Pre-Existing Loyalty

(Nanagyei) Another reason its easier to retain existing customers is that they are already loyal to your company. Having bought from you at least one time before, they are already in agreement with your companys unique selling proposition (USP), organizational philosophy and niche in the marketplace. That doesnt mean existing customers dont need to be reminded of all of these things. They do because everyone eventually forgets. But it does mean (usually) that you dont need to convince them from square one to make a second or third purchase. Think about your favorite take-out restaurant in town. It helps to be nudged by getting fliers in the mail or seeing TV commercials for their food, but the reason you buy over and over again is because you did before and know that theyre good. The same principle applies, roughly, to your existing customers.

Referrals

(visual.dichotomy) Nurturing your existing customers is also the surest way to increase word-of-mouth referrals. Think about it: tips from friends or relatives on where to buy something are always more convincing and believable than advertising. The company has a vested interest. Of course theyre going to say their own stuff is good, your prospects say to themselves. Word-of-mouth referrals, on the other hand, are seen as innocent and objective because the person referring you has no selfish motives. Thats why serving your existing customers needs to be a high priority. In his article Getting & Keeping Customers, Perry Marshall writes that companies with poor customer service only know how to replace angry customers with ignorant ones. This, he continues, is very dumb, and very expensive. Keep your current customers happy and you will get new ones.

Back-End Sales & Lifetime Value

(House Of Sims)

Savvy business owners know that the real money lies not in the first sale, but in progressive up-sells, cross-sells (products sold to already existing customers), and back-end offers (products sold to past customers by contacting them directly) to the same customers. The total revenue generated from a single customer is known as the lifetime value of that customer. As a Harvard Business School webpage explains: Customer lifetime value (CLTV) is a formula that helps a marketing manager arrive at the dollar value associated with the long-term relationship with any given customer, revealing just how much a customer relationship is worth over a period of time. The same webpage offers a handy calculator that any business owner can use to determine the CLTV of a customer. The idea behind up-selling is to always have higher-priced products to sell to existing customers so that their CLTV is pushed higher and higher.

Market Value Of Your Business

Its been said that the most valuable asset a company possesses is not its buildings, employees or intellectual property, but its customer list. And its certainly a defensible position to take. A truly savvy entrepreneur, stripped of his or her entire infrastructure, could conceivably rebuild from scratch with only a list of proven buyers. Interestingly, potential acquirers will also assess your companys market value by taking your customer list into account. Should you ever choose to sell your business, it will help immensely if you can point to a well-maintained customer list and express exactly how much your existing customers are worth in dollars.

2&5 Customer Relationship Management

Customer relationship management (CRM) is a widely implemented model for managing a companys interactions with customers, clients, and sales prospects. It involves using technology to organize, automate, and synchronize business processesprincipally sales activities, but also those for marketing, customer service, and technical support.[1] The overall goals are to find, attract, and win new clients; nurture and retain those the company already has; entice former clients back into the fold; and reduce the costs of marketing and client service.[2] Customer relationship management describes a company-wide business strategy including customer-interface departments as well as other departments.[3] Measuring and valuing customer relationships is critical to implementing this strategy.[4]

Benefits of Customer Relationship Management

A Customer Relationship Management system may be chosen because it is thought to provide the following advantages:[citation needed]

Quality and efficiency Decrease in overall costs Decision support Enterprise ability Customer Attentions Increase profitability Improved planning Improved product development.

[edit]Challenges Successful development, implementation, use and support of customer relationship management systems can provide a significant advantage to the user, but often there are obstacles that obstruct the user from using the system to its full potential. Instances of a CRM attempting to contain a large, complex group of data can become cumbersome and difficult to understand for ill-trained users. The lack of senior management sponsorship can also hinder the success of a new CRM system. Stakeholders must be identified early in the process and a full commitment is needed from all executives before beginning the conversion. But the challenges faced by the company will last longer for the convenience of their customers.[citation needed] Additionally, an interface that is difficult to navigate or understand can hinder the CRMs effectiveness, causing users to pick and choose which areas of the system to be used, while others may be pushed aside. This fragmented implementation can cause inherent challenges, as only certain parts are used and the system is not fully functional. The increased use of customer relationship management software has also led to an industry-wide shift in evaluating the role of the developer in designing and maintaining its

software. Companies are urged to consider the overall impact of a viable CRM software suite and the potential for good or bad in its use.[citation needed] [edit]Complexity Tools and workflows can be complex, especially for large businesses. Previously these tools were generally limited to simple CRM solutions which focused on monitoring and recording interactions and communications. Software solutions then expanded to embrace deal tracking, territories, opportunities, and the sales pipeline itself. Next came the advent of tools for other client-interface business functions, as described below. These tools have been, and still are, offered as on-premises software that companies purchase and run on their own IT infrastructure.[citation needed] [edit]Poor

usability

One of the largest challenges that customer relationship management systems face is poor usability. With a difficult interface for a user to navigate, implementation can be fragmented or not entirely complete.[citation needed] The importance of usability in a system has developed over time.[5] Customers are likely not as patient to work through malfunctions or gaps in user safety, [5] and there is an expectation that the usability of systems should be somewhat intuitive: it helps make the machine an extension of the way I think not how it wants me to think.[citation needed] An intuitive design can prove most effective in developing the content and layout of a customer relationship management system.[6] Two 2008 case studies show that the layout of a system provides a strong correlation to the ease of use for a system and that it proved more beneficial for the design to focus on presenting information in a way that reflected the most important goals and tasks of the user, rather than the structure of the organization.[6] This ease of service is paramount for developing a system that is usable.[7] In many cases, the growth of capabilities and complexities of systems has hampered the usability of a customer relationship management system. An overly complex computer system can result in an equally complex and non-friendly user interface, thus not allowing the system to work as fully intended.[7] This bloated software can appear sluggish and/or overwhelming to the user, keeping the system from full use and potential. A series of 1998 research indicates that each item added to an information display can significantly affect the overall experience of the user.[8] [edit]Fragmentation Often, poor usability can lead to implementations that are fragmented isolated initiatives by individual departments to address their own needs. Systems that start disunited usually stay that way: [siloed thinking] and decision processes frequently lead to separate and incompatible systems, and dysfunctional processes.[citation needed]

A fragmented implementation can negate any financial benefit associated with a customer relationship management system, as companies choose not to use all the associated features factored when justifying the investment.[9] Instead, it is important that support for the CRM system is companywide.[9] The challenge of fragmented implementations may be mitigated with improvements in late-generation CRM systems.[10] [edit]Business

reputation

Building and maintaining a strong business reputation has become increasingly challenging. The outcome of internal fragmentation that is observed and commented upon by customers is now visible to the rest of the world in the era of the social customer; in the past, only employees or partners were aware of it. Addressing the fragmentation requires a shift in philosophy and mindset in an organization so that everyone considers the impact to the customer of policy, decisions and actions. Human response at all levels of the organization can affect the customer experience for good or ill. Even one unhappy customer can deliver a body blow to a business.[11] Some developments and shifts have made companies more conscious of the life-cycle of a customer relationship management system.[7] Companies now consider the possibility of brand loyalty and persistence of its users to purchase updates, upgrades and future editions of software.[7] Additionally, CRM systems face the challenge of producing viable financial profits, with a 2002 study suggesting that less than half of CRM projects are expected to provide a significant return on investment.[12] Poor usability and low usage rates lead many companies to indicate that it was difficult to justify investment in the software without the potential for more tangible gains.[12] [edit]Security,

privacy and data security concerns

One function of CRM is to collect information about clients. It is important to consider the customers' need for privacy and data security. Close attention should be paid to relevant laws and regulations. Vendors may need to reassure clients that their data not be shared with third parties without prior consent, and that illegal access can be prevented.[citation needed] A large challenge faced by developers and users is found in striking a balance between ease of use in the CRM interface and suitable and acceptable security measures and features. Corporations investing in CRM software do so expecting a relative ease of use while also requiring that customer and other sensitive data remain secure. This balance can be difficult, as many believe that improvements in security come at the expense of system usability.[13] Research and study show the importance of designing and developing technology that balances a positive user interface with security features that meet industry and corporate

standards.[14] A 2002 study shows, however, that security and usability can coexist harmoniously.[13] In many ways, a secure CRM system can become more usable. Researchers have argued that, in most cases, security breaches are the result of usererror (such as unintentionally downloading and executing a computer virus). In these events, the computer system acted as it should in identifying a file and then, following the users orders to execute the file, exposed the computer and network to a harmful virus. Researchers argue that a more usable system creates less confusion and lessens the amount of potentially harmful errors, in turn creating a more secure and stable CRM system.[13] Technical writers can play a large role in developing content management systems that are secure and easy to use. A series of 2008 research shows that CRM systems, among others, need to be more open to flexibility of technical writers, allowing these professionals to become content builders.[15] These professionals can then gather information and use it at their preference, developing a system that allows users to easily access desired information and is secure and trusted by its users. [edit]Types/variations [edit]Sales

force automation

Sales force automation (SFA) involves using software to streamline all phases of the sales process, minimizing the time that sales representatives need to spend on each phase. This allows a business to use fewer sales representatives to manage their clients. At the core of SFA is a contact management system for tracking and recording every stage in the sales process for each prospective client, from initial contact to final disposition. Many SFA applications also include insights into opportunities, territories, sales forecasts and workflow automation.[citation needed] [edit]Marketing CRM systems for marketing help the enterprise identify and target potential clients and generate leads for the sales team. A key marketing capability is tracking and measuring multichannel campaigns, including email, search, social media, telephone and direct mail. Metrics monitored include clicks, responses, leads, deals, and revenue. Alternatively, Prospect Relationship Management (PRM) solutions offer to track customer behaviour and nurture them from first contact to sale, often cutting out the active sales process altogether.[citation needed] In a web-focused marketing CRM solution, organizations create and track specific web activities that help develop the client relationship. These activities may include such activities as free downloads, online video content, and online web presentations.[citation
needed]

[edit]Customer

service and support

CRM software provides a business with the ability to create, assign and manage requests made by customers. An example would be Call Center software which helps to direct a customer to the agent who can best help them with their current problem. Recognizing that this type of service is an important factor in attracting and retaining customers, organizations are increasingly turning to technology to help them improve their clients experience while aiming to increase efficiency and minimize costs. [16] CRM software can also be used to identify and reward loyal customers which in turn will help customer retention. Even so, a 2009 study revealed that only 39% of corporate executives believe their employees have the right tools and authority to solve client problems.[17] [edit]Appointment Creating and scheduling appointments with customers is a central activity of most customer oriented businesses. Sales, customer support, and service personnel regularly spend a portion of their time getting in touch with customers and prospects through a variety of means to agree on a time and place for meeting for a sales conversation or to deliver customer service. Appointment CRM is a relatively new CRM platform category in which an automated system is used to offer a suite of suitable appointment times to a customer via e-mail or through a web site. An automated process is used to schedule and confirm the appointment, and place it on the appropriate person's calendar. Appointment CRM systems can be an origination point for a sales lead and are generally integrated with sales and marketing CRM systems to capture and store the interaction.[citation needed] [edit]Analytics Relevant analytics capabilities are often interwoven into applications for sales, marketing, and service. These features can be complemented and augmented with links to separate, purpose-built applications for analytics and business intelligence. Sales analytics let companies monitor and understand client actions and preferences, through sales forecasting and data quality.[citation needed] Marketing applications generally come with predictive analytics to improve segmentation and targeting, and features for measuring the effectiveness of online, offline, and search marketing campaigns. Web analytics have evolved significantly from their starting point of merely tracking mouse clicks on Web sites. By evaluating buy signals, marketers can see which prospects are most likely to transact and also identify those who are bogged down in a sales process and need assistance. Marketing and finance personnel also use analytics to assess the value of multi-faceted programs as a whole.[citation needed] These types of analytics are increasing in popularity as companies demand greater visibility into the performance of call centers and other service and support channels,[16] in order to correct problems before they affect satisfaction levels. Support-

focused applications typically include dashboards similar to those for sales, plus capabilities to measure and analyze response times, service quality, agent performance, and the frequency of various issues.[citation needed] [edit]Integrated/collaborative Departments within enterprises especially large enterprises tend to function with little collaboration.[18] More recently, the development and adoption of these tools and services have fostered greater fluidity and cooperation among sales, service, and marketing. This finds expression in the concept of collaborative systems that use technology to build bridges between departments. For example, feedback from a technical support center can enlighten marketers about specific services and product features clients are asking for. Reps, in their turn, want to be able to pursue these opportunities without the burden of re-entering records and contact data into a separate SFA system. [edit]Small

business

For small business, basic client service can be accomplished by a contact manager system: an integrated solution that lets organizations and individuals efficiently track and record interactions, including emails, documents, jobs, faxes, scheduling, and more. These tools usually focus on accounts rather than on individual contacts. They also generally include opportunity insight for tracking sales pipelines plus added functionality for marketing and service. As with larger enterprises, small businesses may find value in online solutions, especially for mobile andtelecommuting workers.[citation needed] [edit]Social

media

Social media sites like Twitter, LinkedIn, Facebook and Google Plus are amplifying the voice of people in the marketplace and are having profound and far-reaching effects on the ways in which people buy. Customers can now research companies online and then ask for recommendations through social media channels, as well as share opinions and experiences on companies, products and services. As social media is not as widely moderated or censored as mainstream media, individuals can say anything they want about a company or brand, positive or negative. Increasingly, companies are looking to gain access to these conversations and take part in the dialogue. More than a few systems are now integrating to social networking sites. Social media promoters cite a number of business advantages, such as using online communities as a source of high-quality leads and a vehicle for crowd sourcing solutions to client-support problems. Companies can also leverage client stated habits and preferences to "Hypertargeting" their sales and marketing communications.[19] Some analysts take the view that business-to-business marketers should proceed cautiously when weaving social media into their business processes. These observers recommend careful market research to determine if and where the phenomenon can provide measurable benefits for client interactions, sales and support.[20] It is stated[by

whom?]

that people feel their interactions are peer-to-peer between them and their contacts, and resent company involvement, sometimes responding with negatives about that company. [edit]Non-profit

and membership-based

Systems for non-profit and membership-based organizations help track constituents and their involvement in the organization. Capabilities typically include tracking the following: fund-raising, demographics, membership levels, membership directories, volunteering and communications with individuals. [edit]Horizontal

Vs. Vertical

Horizontal CRM manufacturers offer the same non-specialized base product across all industries. They tend to be cheaper, least common denominator solutions. [citation needed] For example, a bakery would get the same product as a bank. Vertical CRM manufacturers offer specialized, specific industry or pain-point CRM solutions. In general, horizontal CRM solutions are less costly up front, and more costly in the future, due to the fact that companies must tailor them for their particular industry and business model.[citation needed] On the other hand, Vertical CRM solutions tend to be more costly up front and less costly down the road because they already incorporate best practices that are specific to an industry and business model.[citation needed] Major CRM vendors offer horizontal CRM solutions. In order to tailor a horizontal CRM solution, companies may use industry templates to overlay some generic best practices by industry on top of the horizontal CRM solution.[citation needed] Horizontal CRM vendors may also rely on value added reseller networks of systems integrators to build vertical solutions and sell them as 3rd party add-ons or to come in and customize the solution to fit into a particular scenario.[citation needed] Vertical CRM vendors focus on a particular industry. As a general rule of thumb in CRM, it is ten times as costly to build a vertical solution from a horizontal software program than it is to find a particular vertical solution that is already tailored to your business model and industry.[citation needed] [edit]Strategy For larger-scale enterprises, a complete and detailed plan is required to obtain the funding, resources, and company-wide support that can make the initiative of choosing and implementing a system successfully. Benefits must be defined, risks assessed, and cost quantified in three general areas:

Processes: Though these systems have many technological components, business processes lie at its core. It can be seen as a more client-centric way of doing business, enabled by technology that consolidates and intelligently distributes pertinent information about clients, sales, marketing effectiveness, responsiveness, and market trends. Therefore, a company must analyze its business workflows and

processes before choosing a technology platform; some will likely need reengineering to better serve the overall goal of winning and satisfying clients. Moreover, planners need to determine the types of client information that are most relevant, and how best to employ them.[3]

People: For an initiative to be effective, an organization must convince its staff that the new technology and workflows will benefit employees as well as clients. Senior executives need to be strong and visible advocates who can clearly state and support the case for change. Collaboration, teamwork, and two-way communication should be encouraged across hierarchical boundaries, especially with respect to process improvement.[21] Technology: In evaluating technology, key factors include alignment with the companys business process strategy and goals, including the ability to deliver the right data to the right employees and sufficient ease of adoption and use. Platform selection is best undertaken by a carefully chosen group of executives who understand the business processes to be automated as well as the software issues. Depending upon the size of the company and the breadth of data, choosing an application can take anywhere from a few weeks to a year or more.[3]

[edit]Implementation [edit]Implementation

issues

Increases in revenue, higher rates of client satisfaction, and significant savings in operating costs are some of the benefits to an enterprise. Proponents emphasize that technology should be implemented only in the context of careful strategic and operational planning.[22] Implementations almost invariably fall short when one or more facets of this prescription are ignored:

Poor planning: Initiatives can easily fail when efforts are limited to choosing and deploying software, without an accompanying rationale, context, and support for the workforce.[23] In other instances, enterprises simply automate flawed client-facing processes rather than redesign them according to best practices. Poor integration: For many companies, integrations are piecemeal initiatives that address a glaring need: improving a particular client-facing process or two or automating a favored sales or client support channel.[24] Such point solutions offer little or no integration or alignment with a companys overall strategy. They offer a less than complete client view and often lead to unsatisfactory user experiences. Toward a solution: overcoming siloed thinking. Experts advise organizations to recognize the immense value of integrating their client-facing operations. In this view, internally focused, department-centric views should be discarded in favor of reorienting processes toward information-sharing across marketing, sales, and service. For example, sales representatives need to know about current issues and

relevant marketing promotions before attempting to cross-sell to a specific client. Marketing staff should be able to leverage client information from sales and service to better target campaigns and offers. And support agents require quick and complete access to a clients sales and service history.[24] [edit]Adoption

issues

Historically, the landscape is littered with instances of low adoption rates. Many of the challenges listed above offer a glimpse into some of the obstacles that corporations implementing a CRM suite face; in many cases time, resources and staffing do not allow for the troubleshooting necessary to tackle an issue and the system is shelved or sidestepped instead. Why is it so difficult sometimes to get employees up to date on rapidly developing new technology? Essentially, your employees need to understand how the system works, as well as understand the clients and their needs. No doubt this process is time consuming, but it is well worth the time and effort, as you will be better able to understand and meet the needs of your clients. CRM training needs to cover two types of information: relational knowledge and technological knowledge. [edit]Statistics In 2003, a Gartner report estimated that more than $1 billion had been spent on software that was not being used. More recent research indicates that the problem, while perhaps less severe, is a long way from being solved. According to CSO Insights, less than 40 percent of 1,275 participating companies had end-user adoption rates above 90 percent.[25] Additionally, many corporations only use CRM systems on a partial or fragmented basis, thus missing opportunities for effective marketing and efficiency. [26] In a 2007 survey from the UK, four-fifths of senior executives reported that their biggest challenge is getting their staff to use the systems they had installed. Further, 43 percent of respondents said they use less than half the functionality of their existing system; 72 percent indicated they would trade functionality for ease of use; 51 percent cited data synchronization as a major issue; and 67 percent said that finding time to evaluate systems was a major problem.[27] With expenditures expected to exceed $11 billion in 2010,[27] enterprises need to address and overcome persistent adoption challenges. The amount of time needed for the development and implementation of a customer relationship management system can prove costly to the implementation as well. Research indicates that implementation timelines that are greater than 90 days in length run an increased risk in the CRM system failing to yield successful results. [12] [edit]Increasing

usage and adoption rates

Specialists offer these recommendations[25] for boosting adoptions rates and coaxing users to blend these tools into their daily workflow:

Additionally, researchers found the following themes were common in systems that users evaluated favorably. These positive evaluations led to the increased use and more thorough implementation of the CRM system. Further recommendations include[28]

Breadcrumb Trail: This offers the user a path, usually at the top of a web or CRM page, to return to the starting point of navigation. This can prove useful for users who might find themselves lost or unsure how they got to the current screen in the CRM. Readily available search engine boxes: Research shows that users are quick to seek immediate results through the use of a search engine box. A CRM that uses a search box will keep assistance and immediate results quickly within the reach of a user. Help Option Menu: An outlet for quick assistance or frequently asked questions can provide users with a lifeline that makes the customer relationship management software easier to use. Researchers suggest making this resource a large component of the CRM during the development stage.

A larger theme is found in that the responsiveness, intuitive design and overall usability of a system can influence the users opinions and preferences of systems.[29] Researchers noted a strong correlation between the design and layout of a user interface and the perceived level of trust from the user.[30] The researchers found that users felt more comfortable on a system evaluated as usable and applied that comfort and trust into increased use and adoption. [edit]Help

menus

One of the largest issues surrounding the implementation and adoption of a CRM comes in the perceived lack of technical and user support in using the system. Individual users and large corporations find themselves equally stymied by a system that is not easily understood. Technical support in the form of a qualified and comprehensive help menu can provide significant improvement in implementation when providing focused, context-specific information.[31] Data show that CRM users are often unwilling to consult a help menu if it is not easily accessible and immediate in providing assistance.[31] A 1998 case study found that users would consult the help menu for an average of two or three screens, abandoning the assistance if desired results werent found by that time.[31] Researchers believe that help menus can provide assistance to users through introducing additional screenshots and other visual and interactive aids.[32] A 2004 case study concluded that the proper use of screenshots can significantly support a users developing a mental model of the program and help in identifying and locating window elements and objects.[32] This research concluded that screen shots allowed users to learn more, make fewer mistakes, and learn in a shorter time frame, which can

certainly assist in increasing the time frame for full implementation of a CRM system with limited technical or human support.[32] Experts have identified five characteristics to make a help menu effective: [33]

context-specific the help menu contains only the information relevant to the topic that is being discussed or sought useful in conjunction with being context-specific, the help menu must be comprehensive in including all of the information that the user seeks obvious to invoke the user must have no trouble in locating the help menu or how to gain access to its contents non-intrusive the help menu must not interfere with the users primary path of work and must maintain a distance that allows for its use only when requested easily available the information of the help menu must be accessible with little or few steps required

[edit]Development Thoughtful and thorough development can avoid many of the challenges and obstacles faced in using and implementing a customer relationship management system. With shifts in competition and the increasing reliance by corporations to use a CRM system, development of software has become more important than ever.[34] Technical communicators can play a significant role in developing software that is usable and easy to navigate.[35] [edit]Clarity One of the largest issues in developing a usable customer relationship management system comes in the form of clear and concise presentation. Developers are urged to consider the importance of creating software that is easy to understand and without unnecessary confusion, thus allowing a user to navigate the system with ease and confidence. Strong writing skills can prove extremely beneficial for software development and creation. A 1998 case study showed that software engineering majors who successfully completed a technical writing course created capstone experience projects that were more mindful of end user design than the projects completed by their peers. [36] The case study yielded significant results:

Students who completed the technical writing course submitted capstone projects that contained more vivid and explicit detail in writing than their peers who did not complete the course. Researchers note that the students appeared to weigh multiple implications on the potential user, and explained their decisions more thoroughly than their peers.

Those participating in the writing course sought out test users more frequently to add a perspective outside their own as developer. Students appeared sensitive of the users ability to understand the developed software. The faculty member overseeing the capstone submissions felt that students who did not enroll in the technical writing class were at a significant disadvantage when compared to their peers who did register for the course.

In the case study, researchers argue for the inclusion of technical writers in the development process of software systems. These professionals can offer insight into usability in communication for software projects.[36] Technical writing can help build a unified resource for successful documentation, training and execution of customer relationship management systems.[37] [edit]Test

users

In many circumstances, test users play a significant role in developing software. These users offer software developers an outside perspective of the project, often helping developers gain insight into potential areas of trouble that might have been overlooked or passed over because of familiarity with the system. Test users can also provide feedback from a targeted audience: a software development team creating a customer relationship management software system for higher education can have a user with a similar profile explore the technology, offering opportunities to cater the further development of the system. Test users help developers discover which areas of the software perform well, and which areas require further attention. [38] Research notes that test users can prove to be most effective in providing developers a structured overview of the software creation.[38] These users can provide a fresh perspective that can reflect on the state of the CRM development without the typically narrow or invested focus of a software developer. A 2007 study suggests some important steps are needed in creating a quality and effective test environment for software development.[39] In this case study, researchers observed a Danish software company in the midst of new creating new software with usability in mind. The study found these four observations most appropriate:

The developers must make a conscious effort and commitment to the test user. Researchers note that the company had dedicated specific research space and staff focused exclusively on usability. Usability efforts must carry equal concern in the eyes of developers as other technology-related concerns in the creation stage. The study found that test users became discouraged when items flagged as needing attention were marked as lower priority by the software developers. Realistic expectations from both test users and software developers help maintain a productive environment. Researchers note that developers began to limit seeking input from test users after the test users suggested remedies the developers felt

were improbable, leading the developers to believe consulting the test users would only prove to be more work.

Developers must make themselves available to test users and colleagues alike throughout the creation process of a software system.

The researchers note that some of the best instances of usability adjustments can be made through casual conversation, and that often usability is bypassed by developers because these individuals never think to consult test users. Allowing users to test developing products can have its limits in effectiveness, as the culture of the industry and desired outcomes can affect the effect on CRM creation,[40] as a 2008 case study suggests that the responsiveness of test users can vary dramatically depending on the industry and field of the user. Research suggests that test users can rate the importance or severity of potential software issues in a significantly different fashion than software developers.[38] Similarly so, researchers note the potential for costly delay if developers spend too much time attempting to coerce hesitant test users from participating. [39] Additionally, involving too many test users can prove cumbersome and delay the development of a CRM system.[39] Additional research notes that test users may be able to identify an area that proves challenging in a software system, but might have difficulty explaining the outcome. A related 2007 case study noted that test users were able to describe roughly a third of the usability problems.[38] Further, the language used by test users in many circumstances proves to be quite general and lacking the specific nature needed by developers to enact real change.

5. CRM (customer relationship management)

What is CRM (customer relationship management)? CRM (customer relationship management) is an information industry term for methodologies, software, and usually Internet capabilities that help an enterprise manage customer relationships in an organized way. For example, an enterprise might build adatabase about its customers that described relationships in sufficient detail so that management, salespeople, people providing service, and perhaps the customer directly could access

information, match customer needs with product plans and offerings, remind customers of service requirements, know what other products a customer had purchased, and so forth. Ask your CRM questions at ITKnowledgeExchange.com According to one industry view, CRM consists of: Helping an enterprise to enable its marketing departments to identify and target their best customers, manage marketing campaigns and generate quality leads for the sales team. Assisting the organization to improve telesales, account, and sales management by optimizing information shared by multiple employees, and streamlining existing processes (for example, taking orders using mobile devices) Allowing the formation of individualized relationships with customers, with the aim of improving customer satisfaction and maximizing profits; identifying the most profitable customers and providing them the highest level of service. Providing employees with the information and processes necessary to know their customers, understand and identify customer needs and effectively build relationships between the company, its customer base, and distribution partners. Many organizations turn to CRM software to help them manage their customer relationships. CRM technology is offered on-premise, on-demand or through Software as a Service

(SaaS) CRM, depending on the vendor. Recently, mobile CRM and the open source CRM software model have also become more popular.

5. EcRM

eCRM This concept is derived from E-commerce. It also uses net environment i.e., intranet, extranet and internet. Electronic CRM concerns all forms of managing relationships with customers making use of Information Technology (IT). eCRM is enterprises using IT to integrate internal organization resources and external marketing strategies to understand and fulfill their customers needs. Comparing with traditional CRM, the integrated information for eCRM intraorganizational collaboration can be more efficient to communicate with customers.[1]

Relationship Marketing to Customer Relationship Marketing

The concept of relationship marketing was first founded by Leonard Berry[who?] in 1983. He considered it to consist of attracting, maintaining and enhancing customer relationships withinorganizations.[2] In the years that followed, companies were engaging more and more in a meaningful dialogue with individual customers. In doing so, new organizational forms as well as technologies were used, eventually resulting in what we know as Customer Relationship Management (CRM). The main difference between RM and CRM is that the first does not acknowledge the use of technology, where the latter uses Information Technology (IT) in implementing RM strategies.[3] [edit]The

[edit]From

essence of CRM

The exact meaning of CRM is still subject of heavy discussions.[4] However, the overall goal can be seen as effectively managing differentiated relationships with all customers and communicating with them on an individual basis.[5] Underlying thought is that companies realize that they can supercharge profits by acknowledging that different groups of customers vary widely in their behavior, desires, and responsiveness to marketing.[6] Loyal customers can not only give operational companies sustained revenue but also advertise for new marketers. To reinforce the reliance of customers and create additional customer sources, firms utilize CRM to maintain the relationship as the general two categories B2B(Business-to-Business) and B2C(Business-to-Customer or Business-toConsumer). Because of the needs and behaviors are different between B2B and B2C, so that the implementation of CRM should come from respective viewpoints. [7] [edit]Differences

between CRM and eCRM

Major differences between CRM and eCRM:[8]

Customer contacts

CRM Contact with customer made through the retail store, phone, and fax. eCRM All of the traditional methods are used in addition to Internet, email, wireless, and PDA technologies.

System interface

CRM Implements the use of ERP systems, emphasis is on the back-end. eCRM Geared more toward front end, which interacts with the back-end through use of ERP systems, data warehouses, and data marts.

System overhead (client computers)

CRM The client must download various applications to view the web-enabled applications. They would have to be rewritten for different platform. eCRM Does not have these requirements because the client uses the browser.

Customization and personalization of information

CRM Views differ based on the audience, and personalized views are not available. Individual personalization requires program changes. eCRM Personalized individual views based on purchase history and preferences. Individual has ability to customize view.

System focus

CRM System (created for internal use) designed based on job function and products. Web applications designed for a single department or business unit. eCRM System (created for external use) designed based on customer needs. Web application designed for enterprise-wide use.

System maintenance and modification

CRM More time involved in implementation and maintenance is more expensive because the system exists at different locations and on various servers. eCRM Reduction in time and cost. Implementation and maintenance can take place at one location and on one server.

[edit]eCRM 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.[9] 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.[10] 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:[11] 1. Data Collection: About customers preference information for actively (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 provide the proper feedback them. We can define eCRM as activities to manage customer relationships by using the Internet, web browsers or other electronic touch points. The challenge hereby is to offer communication andinformation on the right topic, in the right amount, and at the right time that fits the customers specific needs.[12] [edit]eCRM

strategy components

When enterprises integrate their customer information, there are three eCRM strategy components[1]: 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 (interorganizational) more efficiently by sharing information. [edit]Implementing

and integrating eCRM work

[edit]non-electronic solution Several CRM software packages exist that can help companies in deploying CRM activities. Besides choosing one of these packages, companies can also choose to design and build their own solutions. In order to implement CRM in an effective way, one needs to consider the following factors:

Create a customer-focused culture in the organization. Adopt customer-based managers to assess satisfaction. Develop an end-to-end process to serve customers.

Recommend questions to be asked to help a customer solve a problem. Track all aspects of selling to customers, as well as prospects. [13]

Furthermore, CRM solutions are more effective once they are being implemented in other information systems used by the company. Examples are Transaction Processing System (TPS) to process data real-time, which can then be sent to the sales and finance departments in order to recalculate inventory and financial position quick and accurately. Once this information is transferred back to the CRM software and services it could prevent customers from placing an order in the belief that an item is in stock while it is not. [edit]vCRM Channels through which companies can communicate with its customers, are growing by the day, and as a result, getting their time and attention has turned into a major challenge.[18] One of the reasons eCRM is so popular nowadays is that digital channels can create unique and positive experiences not just transactions for customers.[19] An extreme, but ever growing in popularity, example of the creation of experiences in order to establish customer service is the use of Virtual Worlds, such as Second Life. Through this so-called vCRM, companies are able to create synergies between virtual and physical channels and reaching a very wide consumer base. However, given the newness of the technology, most companies are still struggling to identify effective entries in Virtual Worlds.[20] Its highly interactive character, which allows companies to respond directly to any customers requests or problems, is another feature of eCRM that helps companies establish and sustain long-term customer relationships.[21] Furthermore, Information Technology has helped companies to even further differentiate between customers and address a personal message or service. Some examples of tools used in eCRM:

Personalized Web Pages where customers are recognized and their preferences are shown. Customized products or services.

CRM programs should be directed towards customer value that competitors cannot match.[22] However, in a world where almost every company is connected to the Internet, eCRM has become a requirement for survival, not just a competitive advantage.[23] [edit]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. [24] 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.[25]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.[26] 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[27] [edit]Mobile

CRM

One subset of Electronic CRM is Mobile CRM (mCRM). 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.[28] However, since communications is the central aspect of customer relations activities, many opt for the following definition of mCRM: "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).[29] eCRM allows customers to access company services from more and more places, since the Internet access points are increasing by the day. mCRM 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.

Since mCRM is not able to provide a complete range of customer relationship activities it should be integrated in the complete CRM system.[30] There are three main reasons that mobile CRM is becoming so popular. The first is that the devices consumers use are improving in multiple ways that allow for this advancement. Displays are larger and clearer and access times on networks are improving overall. Secondly, the users are also becoming more sophisticated. The technology to them is nothing new so it is easy to adapt. Lastly, the software being developed for these applications has become worthwhile and useful to end users. [31] There are four basic steps that a company should follow to implement a mobile CRM system. By following these and also keeping the IT department, the end users and management in agreement, the outcome can be beneficial for all. Step 1 - Needs analysis phase: This is the point to take your times and understand all the technical needs and desires for each of the users and stakeholders. It also has to be kept in mind that the mobile CRM system must be able to grow and change with the business. Step 2 Mobile design phase: This is the next critical phase that will show all the technical concerns that need to be addressed. A few main things to consider are screen size, device storage and security. Step 3 Mobile application testing phase: This step is mostly to ensure that the users and stakeholders all approve of the new system. Step 4 Rollout phase: This is when the new system is implemented but also when training on the final product is done with all users.[32] Advantages of mobile CRM: 1. The mobile channel creates a more personal direct connection with customers. 2. It is continuously active and allows necessary individuals to take action quickly using the information. 3. Typically it is an opt-in only channel which allows for high and quality responsiveness. 4. Overall it supports loyalty between the customer and company, which improves and strengthens relationships.[33] [edit]Failures Designing, creating and implementing IT projects has always been risky. Not only because of the amount of money that is involved, but also because of the high chances of failure. However, a positive trend can be seen, indicating that CRM failures dropped from a failure rate of 80% in 1998, to about 40% in 2003. [34] Some of the major issues relating to CRM failure are the following:

Difficulty in measuring and valuing intangible benefits.

Failure to identify and focus on specific business problems. Lack of active senior management sponsorship. Poor user acceptance. Trying to automate a poorly defined process.[35]

Differing measurement criteria and methods of the research groups make it difficult to compare these rates. Most of these rates were based on customer response pertaining to questions on the success of CRM implementations. [edit]Privacy The effective and efficient employment of CRM activities cannot go without the remarks of safety and privacy. CRM systems depend on databases in which all kinds of customer data is stored. In general, the following rule applies: the more data, the better the service companies can deliver to individual customers. Some known examples of these problems are conducting credit-card transaction online of the phenomenon known as 'cookies' used on the Internet in order to track someones information and behavior.[37] The design and the quality of the website are two very important aspects that influences the level of trust customers experience and their willingness of reluctance to do a transaction or leave personal information.[38] Privacy policies can be ineffective in relaying to customers how much of their information is being used. In a recent study by The University of Pennsylvania and University of California, it was revealed that over half the respondents have an incorrect understanding of how their information is being used. They believe that, if a company has a privacy policy, they will not share the customer's information with third party companies without the customer's express consent. Therefore, if marketers want to use consumer information for advertising purposes, they must clearly illustrate the ways in which they will use the customer's information and present the benefits of this in order to acquire the customer's consent.[39] Privacy concerns are being addressed more and more. Legislation is being proposed that regulates the use of personal data. Also, Internet policy officials are calling for more performance measures of privacy policies. [40] Statistics on privacy:[41]

38% of retailers don't talk about privacy in their sign up or welcome email About 50% of major online retailers discuss privacy concerns during the email subscription process

As the use of the Internet, electronic CRM solutions, and even the existence[clarification needed] of e-business are rising, so are the efforts to further develop the systems being used and to increase their safety for customers, in order[who?] to further reap the benefits of their[clarification needed] use.

5. eCRM what is it and how do you go about it?

1. Ashley FriedleinSTAFF
CEO at Econsultancy 30 October 2000 15:40pm

eCRM is one of the hottest new buzz words on the block, but what exactly is it and how do you do it? A little tricky to answer properly in a single post, but here is an overview that might help clarify things. 1. What is eCRM? It depends on who you talk to. As its such a hot topic, many people describe what they do as eCRM in order to make it easier to sell. eCRM has been used to cover a wide range of things including the following: - Web-enabled CRM. Its just traditional CRM with an e in front. Big CRM players like Siebel and Vantive or the ERP crowd such as SAP, JD Edwards and Baan have e-enabled their CRM solutions and this has been called eCRM. - Analytics. Taking customer data generated by their interaction with digital offerings and mining it for segmentation, profiling, marketing and other purposes. Software vendors such as Broadbase, Net Perceptions, BroadVision, Vignette, Microstrategy and E.piphany are strong players in this arena - Personalisation. Passive, active, inferred, real-time where you change what you present the customer through digital channels according to what you know about them or others like them. This is very closely tied with Content Management you cannot personalize the customer experience without being able to manipulate content in accordance with a user profile. Merchandising and cross/up selling can be considered part of personalization. BroadVision, Vignette, ATG and Open Market are big players in the personalisation sphere. - Customer Contact Management. Using digital means to handle interaction with the customer including email management (inbound and outbound), online agents and customer service, call me functions, web chat etc. Companies such as e2 Communications, LivePerson and PhoneMe are active in this area. - Community Building. This is more about encouraging inter-user interaction through discussion forums, usergenerated content, messaging functions, ratings, auctions, viral marketing etc. Companies who specialize in this area include eLoyalty (US) and etribes (UK). 2. Why is eCRM such a hot topic? As you can see from the above list of areas that eCRM could be described as covering, it has been seen as the magic wand that will bring the following:

- 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.) Perhaps the single biggest aim of eCRM is to reduce customer acquisition costs and improve customer retention. Much has been made of the high customer acquisition costs for web sites (around 60 for a net pure play by most reckonings), indeed this has been blamed as the reason for the demise of many dot coms, the bottom line being that customers cost more to acquire and retain than they generate in profit. Equally everyone knows a) the web customer is only one click away from the competition and b) it typically costs 5 times as much to acquire a new customer as it does to retain an existing one. A recent McKinsey study showed that the average new customer spends $24.50 at a give web site in the first 3 months as a shopper. The average repeat customer spends $52.50 every 3 months. So customer retention and loyalty are absolutely key to driving profitability. In reality eCRM must be seen not necessarily as a way to grow a customer base but as a means to defend it. In the real world a customers experience of a particular product or service may be restricted to a particular catchment area, whereas online he or she can get the best in the world. Unfortunately this means that users expectations of eCRM (including all of the elements outlined earlier) are exceptionally high and only continue to grow with every better experience they have. Customers want what they want, when they want it, how they want it, through the channel they choose to use. Best practice eCRM is ultimately about trying to meet customers needs in order that they dont desert elsewhere. 3. So how do you go about it? It will depend on which flavour of eCRM youre trying to implement. However, having a user profile database is fundamental to most flavours of eCRM and essential for effective analytics and personalization. Here are some of the things you will need to do in implementing such an eCRM strategy: - Terms of Reference Everyone needs to be clear on what they understand by eCRM for the project and why they consider eCRM is going to be of benefit. - Commercial Scope Before plunging into an eCRM project, it is worth at least doing a back of the envelope business case to support the aspired to level of eCRM being proposed. Advanced analytics and customer segmentation, or the Holy Grail that is the single customer view, are clearly desirable but typically dont get out of bed for less than 250k+. What is the realistic scope and likely ROI for the initiative? - Customer Insight eCRM is fundamentally about your customers. The better you know them, or get to know them, the better you will be able to serve them, the better your proposition to them can become. So, who are your current and future customers? How much do you currently know about them (audit your quantitative and qualitative data)? What are your points of contact with them? How do they perceive you etc.? - Data capture and analytics Many e-businesses suffer from data overload but cannot make out how to use it to business benefit. You have to think through 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. You must define the key metrics that should drive performance and benchmarking evaluations (browse to buy vs. number of page impressions per user session etc.). - Business Case and Implementation path Once you have clearer idea of what you want to do, you will need to revisit your business case to see if the numbers still stack up. Bearing in mind that strong customer relationships and the benefits that these bring do not happen overnight, how do you best roll out and phase the implementation of your eCRM 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?

- Do and Review Much of your time could be spent on capturing or cleaning data, getting it into the right format and structure so that it can be used, systems integration etc., until you can begin to apply the required marketing savvy to exploit the data. This really does require the ultimate fusion of marketing and IT skills. You dont need to conquer the world from day one. Concentrate on manageable and measurable projects that you can quickly learn from. You wont develop strong customer relationships overnight however, you need to make sure that whatever you do do, you do very well. And make sure you measure and review what you do against the hard metrics you defined earlier. 4. eCRM resources - If you want to read up on eCRM then you can do a lot worse than going to the white papers search section of this site (http://www.e-consultancy.com/knowledge/whitepapers/search.asp ) and doing a search on eCRM. There is a lot of good stuff there. - http://crmproject.com/crm/home.html - a tome of information on CRM and personalization. This page contains whitepapers that cover the spectrum of personalization and CRM. - http://www.personalization.com/ - "personalization.com focuses on the most critical challenges facing e-businesses today - how to deliver value to the customer and to the business using profiles of customers. By seeking to provide a gathering point for all parties to address this challenge, personalization.com performs a real service for the ecommerce community." - John Hagel, co-author of Net Worth and Net Gain - http://www.crm-forum.com/ - The CRM-Forum is the pre-eminent independent on-line resource center for CRM professionals working in the business-consumer marketplace. It provides CRM professionals and companies involved in CRM on both the demand and supply side of the industry with a place to keep up-to-date with CRM developments, and to, meet, discuss, and contact each other about CRM-related issues. 5. This post can only go so far in addressing eCRM and perhaps raises more questions than it gives answers. Feel free to contact me to discuss things further: