ECRM: Introduction Dr. Hong- Mei Chen Department of Information Technology Management College of Business Administration University of Hawaii

Basic E-business Architecture & E-business Technology 2000, Hong-Mei Chen, College of Business Administration, University of Hawaii Basic E-business Architecture & E-business Technology Information Management Back office Systems SCM Supply Chain Management SFA Sales Force Automation Finance Accounting Human Resource Mgmt Storefront Systems Web Catalogue Billing & Payment CRM: Customer Relationship Management Supplier Customer Databases web servers payment gateway applica- tion applica- tion servers Data Warehouse Data Mining Content/ Knowledge Management Internet; Telecom Telecom ERP EAI

eCRM Framework IT Business Trust Goals Loyalty Satisfaction Customers Dr. Hong-Mei Chen, University of Hawaii, 2001 eCRM Framework IT Business Information flow & distribution Integration: Marketing, Sales & Service functions & other operations: SCM Process change & new product/services Software agents Multi-channel real-time interaction Knowledge discovery Content management Self-service & anonymity Dynamic Pricing Personalization Prediction of needs Value to customers: convenience, community/portal, fast response, accessibility, Customers Strategies Culture Change Policy Industry characteristics Competency Governance Human agents Trust Performance Demographics Purchasing behavior Pattern / profile Perception Attitudes Motivation Channel Preference Interaction style Transaction goals Needs & wants Communication Capabilities Goals Profitability ROI Market share Growth Branding Social Loyalty Satisfaction

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. Customer Centric -

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 3 Trends: The failure of ERP systems (back office) to provide lasting competitive advantage for companies The product cycle has accelerated- abundance of options for customers and shrinking market window for vendors. Efficient pricing information – switch to another vendor at the click of mouse.

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 1. Volume of information collected by ERP, sales force automation and integrated point-of-sale systems 2.Reduced costs and higher levels of performance for database management platforms enable us to gain access to this customer information 3.Advances in contact management technology and supporting infrastructure allow us to take advantage of this information in increasingly cost-effective and innovative ways. 4.Internet provides a completely new way for an enterprise to interact with its customer-the electronic channel, or the e-channel

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: Marketing automation and management Two major functions: Campaign management, lead management demographic analysis (analytic) Sales force automation (SFA) Contact management, account management Customer service Call Center, field service dispatch, knowledge repository. Campaign management – marketing budget management, ad management and placement, targeting campaign and response management. Demographic analysis – segmenting and targeting capabilities from data collected from website traffic monitoring. SFA – lead distribution and tracking, pipeline management, contacts centralization and management, and group collaboration. Customer service Most changes due to internet Call center with access to database connected to supply chain, financials, and ERP subsystem Consolidated picture (single view) of the customer Integrated contact center – email, interactive chat, phone.

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) Applix (iCRM suite) Oracle (eBusiness Suite) Broadvision(*personalization) Chordiant (unified CRM) Clarify (eBusiness Solution) eGain (*call center) E.piphany (e.5 system) Epicor (efrontOffice & Clientele) Onyx 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): mid-market 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, e-commerce 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 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 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?