ECRM Introduction Dr Hong Mei Chen Department of

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 application servers payment gateway Data Warehouse Data Mining Customer CRM: Customer Relationship Management SCM Databases web servers application servers Content/ Knowledge Management Internet; Telecom Back office Systems application servers Supply Chain Management 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 • Competency • Governance Trust 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. e. CRM

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.

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 e. CRM

The Five Engines of e. CRM

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 e. CRM products

e. CRM Software (MLE) § § § § Applix (i. CRM suite) Broadvision(*personalization) Chordiant (unified CRM) Clarify (e. Business Solution) e. Gain (*call center) E. piphany (e. 5 system) Epicor (efront. Office & Clientele) Onyx § § § Oracle (e. Business Suite) People. Soft (People. Soft 8) Pivotal (e. Relationship 2000 Right. Now (Right. Now web) SAP (my. SAP) Siebel (e. Business 2000)

e. CRM Software (SME) § Interact Commerce Corp. (ACT!2000): contact manager § Front Range Solutions (Goldmine 5. 5): SFA § Super. Office CRM 5: simple & user friendly § Sales. Logix (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 § Prime. Response: – 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 Micro. Strategy

CRM Business Strategy

CSF for e. CRM initiative § § § § § Accurately assess e. CRM needs Understand customer requirements Don’t view e. CRM as a technology initiative Quantify expected returns from e. CRM Make e. CRM an enterprise-wide initiative Ensure integration across all distribution channels Employees will make or break e. CRM efforts Be willing to change business processes Recognize e. CRM 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 e. CRM subprojects People issue CEO issue: commitment & leadership

Where is CRM going?