ECRM: Introduction
Dr. Hong- Mei Chen
Department of Information Technology Management
College of Business Administration
University of Hawaii
c
2000, Hong-Mei Chen, College of Business Administration, University of Hawaii
Basic E-business Architecture & E-business Technology
Storefront Systems
Customer
Information Management
Web
Catalogue
Customer
Billing &
Payment
SCM
Databases
Supply Chain
Management
application
servers
web
servers
Data
Warehouse
payment
gateway
application
servers
Data
Mining
CRM:
Customer
Customer
Relationship
Management
application
servers
Content/
Knowledge
Management
Internet;
Telecom
Back office
Systems
application
servers
Supplier
SFA
Sales Force
Automation
Supplier
Finance
Accounting
Human
Resource
Mgmt
Supplier
Telecom
ERP
EAI
c Dr. Hong-Mei Chen, University of Hawaii, 2001
•Information flow & distribution
•Demographics
•Purchasing behavior
•Pattern / profile
•Perception
•Attitudes
•Motivation
•Channel Preference
•Interaction style
•Transaction goals
•Needs & wants
•Communication
Capabilities
•Integration: Marketing, Sales &
Service functions & other
operations: SCM
•Strategies
•Process change & new
product/services
•Policy
•Software agents
•Industry
characteristics
•Multi-channel real-time
interaction
•Knowledge discovery
•Content management
•Self-service & anonymity
•Culture Change
Trust
•Competency
•Governance
Loyalty
•Human agents
•Dynamic Pricing
•Personalization
•Prediction of needs
•Value to customers: convenience,
community/portal, fast response,
accessibility,
Satisfaction
•Profitability
•ROI
•Market share
•Growth
•Branding
•Social
What is ECRM?
Source:crmguru.com
 A business strategy to select and manage
customer relationships to optimize long-term
value to an enterprise. CRM requires a
customer centric business philosophy and
culture to support effective marketing, sales and
service processes across all direct and indirect
customer interaction channels. CRM software
applications can enable effective Customer
Relationship Management provided that an
enterprise has the right strategy, leadership and
culture.
Why ECRM?
 3 Trends:
– The failure of ERP systems in integration of front office
– The product cycle has accelerated
– Efficient pricing information
 Cheaper to retain customer than to acquire a new one
 Customer service is a competitive advantage
Why now?
 Volume of information collected
 Reduced costs and higher levels of performance
for database management platforms
 Advances in contact management technology
and supporting infrastructure
 Internet provides a new way for an enterprise to
interact with its customer
CRM vs. eCRM
Categories of CRM
 Operational (transactional)
 Collaborative
 Analytical
Operational CRM
– Marketing, SFA, and Customer Service
– Tracks customer activities
– Does not provide why customer behave they
way they do.
– Single view of customer
Operational CRM Applications:
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Marketing automation and management
– Two major functions:
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Campaign management, lead management
demographic analysis (analytic)
Sales force automation (SFA)
– Contact management, account management
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Customer service
– Call Center, field service dispatch, knowledge
repository.
Collaborative CRM
– Communication and interaction between
customer, staff and business partners across
the customer life-cycle.
 Engage, transact, fulfill and service
– Voice, (web)conferencing, E-mail, Fax/Letter,
Direct Interaction.
– Establishing cooperative partner networks
(affiliates, portals)
Analytical CRM
– capture, storage, extraction, processing,
interpretation and reporting of customer data
– provide feedback from info gather from
operational CRM functions
– analyze customer behaves, provide context and
insight and answer why they act certain way.
– Data warehouse, data mart, data mining.
Five Engine of eCRM
The Five Engines of eCRM
360 Degree Customer Info
Personalization Engine
 Personalization through technology
– Low cost, scalable to serve large customer base
 Customer Experience Personalization (CEP)
– Rule-based, collaborative filtering, inference
model
– a unique experience for each customer
 Creating subscription-based info & service
 Breaking away from the Web  tailing
– E-mail, voice mail, multi-channel, etc.
Broadcast Engine
 Broadcast engine enable 24/7 customer
interaction via all communication devices
 Mutltimedia/multi-Channel (MMMC)
 Open Architecture & scalability
 Benefits:
– integrated channel strategy
– Increased switching costs
– Speed to transaction
Transaction Engine
 Promotes info exchange between every
customer and the enterprise
 Maintains customer contact and transmits
info to info store for later use
 Facilitates the value exchange and provides
a single interface to any set of information
sources
 Avoid inundation
 Permission Marketing
CRM processes and functions
Types of eCRM products
eCRM Software (MLE)
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Applix (iCRM suite)
Broadvision(*personalization)
Chordiant (unified CRM)
Clarify (eBusiness Solution)
eGain (*call center)
E.piphany (e.5 system)
Epicor (efrontOffice & Clientele)
Onyx
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Oracle (eBusiness Suite)
PeopleSoft (PeopleSoft 8)
Pivotal (eRelationship 2000
RightNow (RightNow web)
SAP (mySAP)
Siebel (eBusiness 2000)
eCRM Software (SME)
 Interact Commerce Corp. (ACT!2000): contact
manager
 Front Range Solutions (Goldmine 5.5): SFA
 SuperOffice CRM 5: simple & user friendly
 SalesLogix (Interact Commerce Corporation): midmarket leader
 Update.com software AG (marketing manger):
European CRM leader
 Upshot and Salesforce.com: CRM software for
rent; ASP
Marketing Automation Products
 PrimeResponse:
– segmentation and integration across traditional, ecommerce and wireless channels.
 Protagona Worldwide
– Support e-mail, direct mail, web-based dialogues, and
planning MMMC.
 Teradata: NCR’s CRM: analyzing and predicting
customer behavior. 6 family: Analysis, modeling,
coummunication, personalization, optimization, and
Interaction
 Unica (Affinium Suite)
 Xchange: partner with SAS and MicroStrategy
CRM Business Strategy
CSF for eCRM initiative
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Accurately assess eCRM needs
Understand customer requirements
Don’t view eCRM as a technology initiative
Quantify expected returns from eCRM
Make eCRM an enterprise-wide initiative
Ensure integration across all distribution channels
Employees will make or break eCRM efforts
Be willing to change business processes
Recognize eCRM is a change effort
Enhancers and Enablers
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Culture issue: embrace a new culture
Speed issue: implement change in maximum speed
Communication issue: real-time with customer
Prioritization issue: enterprise service standard
Motivation issue: common goals
Resource issue
Project overload issue: many eCRM subprojects
People issue
CEO issue: commitment & leadership
Where is CRM going?