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Abstract Technology has helped fuel the growth of CRM strategies. The evolution of CRM is moving forward with e - business evolutions. eCRM is the new strategy of customer relationship management in the Internet era. This paper addresses the basics of CRM and what is eCRM, explains the relationship between technology and eCRM and introduces the 4 principles of eCRM. Introduction The growing waves of merger and acquisition in the international business arena, coupled with broader use of e - technologies, have contributed to increase in the scale of business relationships and also to exponential increase in customer data. It is obvious that who is able to use the data pro - actively, can make a dramatic difference.
To exploit business opportunities, more and more companies are rapidly implementing integrated Customer Relationship Management (CRM) systems to make their business processes more customer - focused. CRM is nothing but the evolution of the business processes. Moreover the definition of CRM will evolve and change over time. It will encompass new components with economy development. Basics of Customer Relationship Management (CRM) Defining CRM CRM stands for Customer Relationship Management. It has been defined in a variety of different ways.
For some, CRM is a way to identify, acquire, and retain customers. For others, it is a way of automating the front office functions of sales, marketing, and customer service. For some vendors, whatever their current product may be, that is CRM. This diversity of definitions is a result of differences in perspectives.
The first is based on a business perspective of increasing competition that is driving companies to focus on their customers. The second is based on the relatively new phenomenon of the integration of previously separate applications such as Sales Force Automation and Customer Service Support into Enterprise Applications. The third is a result of software vendors repositioning their information technology products and services under the CRM umbrella, to take advantage of the fast growth of the CRM market. What is CRM? "CRM is a comprehensive approach which provides seamless integration of every area of business that touches the customer - namely marketing, sales, customer service and field support - through the integration of people, process and technology, taking advantage of the revolutionary impact of the information technology. CRM creates a mutually beneficial relationship with your customers. It is fundamentally cross-functional, customer - focused business strategy" (Full& What, 2000).
CRM is in fact about creating value for customers. (Cash, 1999) CRM itself is not a technology, even though technology is required to enable CRM. Technology makes it possible to integrate the large volumes of customer information that are required for CRM, and to efficiently transform this information into useful knowledge. Technology also enables a company to interact with its customers in ways that provide value to the customer, as well as makes it easier for the customer to do business with them. However, leveraging this customer knowledge to make better business decisions and to be responsive to customers remains the responsibility of individual managers and workers at all levels within the company. Components of CRM GOAL APPLICATION Customer acquisition SFA (sales - force automation) and marketing Customer retention Data warehousing and analytical tools; customer service: call center and contact center Increasing customer value Marketing automation and campaign management for cross - selling and up - selling; data warehousing and analytical tools (Leon, 2001) CRM in the Internet Era Customer relationships become even more important in today's Internet marketplace. The Internet has enabled a dramatic reduction in the cost of transactions and interactions among people and businesses, which in return has created a new set of expectations among customers. (Norris, 2000) Online customers expect shorter sales cycles, personalized information, quicker resolution of service issues, and added value at each stage of the transaction.
To maintain positive customer relationships, business needs to meet and exceed these expectations. CRM, therefore, must be a well - integrated effort, using the Internet to shorten time and distance across the supply chain and to customers, creating new levels of speed and efficiency in business. Companies that do this successfully will be those that adopt CRM as a philosophy and way of doing business, rather than just as a technology that automates pieces of their business. Within Dell, for example, about 75 percent of order status transactions, and almost 50 percent of sales are enabled by the Web. Dell is moving these transactions online because customers told us they want faster, more efficient support for routine interactions. Over the phone, these transactions cost between $ 3 and $ 10 each, but the Internet lowers the cost to zero in most cases. (web) More importantly, the entire process is more efficient for customers and enables Dell to extend cost savings to them, resulting in winners all the way around.
Research shows that a positive customer experience drives more e - loyalty than traditional attributes like product selection or price, in traditional channels, you can lose customers if they walk into a physical location and are disappointed in the store appearance, have an unsatisfactory experience with a salesperson, or can't find what they want. (Halal, 2000) The Internet environment is no different: You must not only excel in your market but do so in a convenient, helpful, and reliable website. The ultimate goal is to deepen relationships by adding convenience, efficiency, cost savings, and a wider array of services. Doing business online is about more than processing Web - based transactions. It is about using the Internet to develop, maintain and manage positive relationships with customers, partners, and suppliers.
The result is long - term relationships, repeat sales, business efficiency, and increased profitability. Companies that put a strategic focus on customers and leverage the capabilities of the Internet to enhance those relationships will survive and thrive in the Internet Marketplace. Technology has helped fuel the growth of CRM strategies. The evolution of CRM is moving forward with the e - business revolution.
Data capture, storage, manipulation, and analysis capabilities have improved dramatically, as have the applications, user interface and data retrieval capabilities for Customer Service Representatives (CSRs). Essentially, eCRM involves giving customers Web access to customer, product, and company information, greatly reducing the number calls handled by CSRs. ECRM could be viewed as an oxymoron: it implies turning over to the customer the management, responsibility, data and relationship. (Nykamp, 2001) That approach itself is not a CRM strategy, because the contacts with the customer become electronic and directed by the customer. Therefore, companies should limit the "e" to e - customer care or e - customer service.
It must be greater for customers who prefer to communicate electronically - and it should be just one component of an entire CRM strategy. The New Economy and Customer Expectations The New Economy has brought more than technological change to the business world. The Internet Revolution was really about people - customers and the fundamental shift of market power from the seller to the buyer. In the New Economy, customers' expectations are very different than before.
A companies understanding of this difference and its ability to capitalize on it will be key to its success. Robert Rodin sums the expectations of the New Economy customer in the title of his book, Free, Perfect, and Now. Today, customers are empowered to move their business to another vendor with a simple click of the mouse, to demand 24 X 7 access to sales and service, and to have access to the same cost information as their supplier. Consumers can use the web to easily learn the "true" price of an automobile and initiate a bidding war among dealers online. In the B 2 B environment, a salesperson may never "meet" the million - dollar customer that helped them make their quarterly quota. New Economy customers do the work themselves, online, and they do it eagerly and happily because of the control it gives them over the outcome - because they believe the end result will be of greater benefit to themselves.
The New Economy mandates for business success is clear: companies must exceed their customers' expectations all of the time. Many companies believe that the way to achieve this goal is to put their basic business activities - marketing, sales, financial transactions - on the web and let their customers and growing a business in the New Economy. To win in the New Economy, businesses must go much further. To win in the New Economy, businesses must develop a new strategy for customer relationship management - that new strategy is eCRM.
What is eCRM? eCRM is not simply electronic CRM. (Nykamp, 2001) It is customer management for e - business that must confront the complexity of managing sophisticated customers and business partners in a variety of media including: online and offline media, personal contact, and more automated and electronic forms of communication. To understand eCRM, companies should understand eBusiness as a whole. (Brown, 2001) The new economy mandates that businesses fully utilize all available modes of communication - web, email, chat, video, and voice - to serve and support their customers. It further demands that businesses electronically integrate those media throughout the entire value chain - engaging not only the customer, but also all who support the customer across the business. When the management of a business has realized that it is not enough to mouth clich regarding the "power of the Internet" and has taken these steps, they have created what can truly be called an "eBusiness." Technology and eCRM Technology is a critical component of eBusiness. (Brown, 2001) It is required for building an infrastructure that can streamline the ordering...
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Research essay sample on Ecrm Customer Relationship Management In The Internet Era
