Table of Contents

Table of Contents......................................................................................................................................................... 1 What Is CRM? ............................................................................................................................................................. 3 Key Elements of CRM................................................................................................................................................... 3 Why CRM? .................................................................................................................................................................. 4 1.Provide etter C!stomer "ervi#e........................................................................................................................... 4 $.In#rease Reven!es................................................................................................................................................ 4 3.%is#over &e' C!stomers....................................................................................................................................... 4 4.(Cross "ell( and ()* "ell( Prod!#ts More Effe#tively.............................................................................................4 +.,el* "ales "taff Close %eals -aster...................................................................................................................... + ..Ma/e Call Centers More Effi#ient........................................................................................................................... + 0."im*lify Mar/etin1 2nd "ales Pro#esses...............................................................................................................+ Ty*es of CRM............................................................................................................................................................... + 3oal of CRM?............................................................................................................................................................... . The three *hases of the relationshi* bet'een the b!siness and its #!stomers are4..................................................0 What are the Key fa#tors for s!##essf!l CRM im*lementation? ...............................................................................0 CRM 2r#hite#t!re......................................................................................................................................................... 5 "o6 before investin1 in a CRM a**li#ation6 ............................................................................................................... 5 The main feat!res of CRM sho!ld be 4...................................................................................................................... 5 These are the basi# f!n#tions of any CRM ar#hite#t!re. ..........................................................................................7 -ive sim*le6 time8*roven te#hni9!es to hel* yo! 'ith yo!r (*roblem( #!stomers. ...................................................7 C!stomer "atisfa#tion "alient *oints....................................................................................................................... 1: "ome Motivational fa#tors are4................................................................................................................................ 11 !siness enefits of CRM.......................................................................................................................................... 1$ "ales ...................................................................................................................................................................... 1$ Mar/etin1 ............................................................................................................................................................... 1$ "ervi#e ................................................................................................................................................................... 13 Con#l!sion ............................................................................................................................................................. 14 1

CRM benefits ......................................................................................................................................................... 14 1.More /no'led1e 4 ................................................................................................................................................ 14 $.More o**ort!nities ............................................................................................................................................... 14 3.In#rease *rofitability............................................................................................................................................. 14 !siness Challen1es of CRM..................................................................................................................................... 14 1.To /ee* #!stomer information or1ani;ed6 !*8to8date6 and readily available ........................................................14 $.To se#!re #!stomer loyalty in the fa#e of in#reased #om*etition .........................................................................14 3."tr!#t!re mar/etin1 #am*ai1ns to 1et the best res!lts from the ri1ht tar1et 1ro!*?.............................................1+ 4.To t!rn *otential sales into a#t!al sales < and *revent lost o**ort!nities?...........................................................1+ +.To 1et #!rrent #!stomers to s*end more money 'ith yo!r b!siness?..................................................................1+ Im*a#t of e8Commer#e on CRM................................................................................................................................. 10 E8C=MMERCE....................................................................................................................................................... 10 %rivers of e8Commer#e4.......................................................................................................................................... 15 enefits of E8#ommer#e.......................................................................................................................................... 15 E8Commer#e > CRM.................................................................................................................................................. 17 %=?s4....................................................................................................................................................................... 17 %=&?Ts4.................................................................................................................................................................. 17 E8CRM........................................................................................................................................................................ $: The ,istory of CRM ................................................................................................................................................ $: The "i@ mar/ets are4............................................................................................................................................... $1 "ome "alient *oints that hel* in develo*in1 e8CRM methodolo1y are4..................................................................$1 1.)se of te#hnolo1y in CRM ................................................................................................................................... $1 i."ales -or#e 2!tomation..................................................................................................................................... $1 ii.Call Centres ..................................................................................................................................................... $1 iii.%ata Wareho!sin1 ........................................................................................................................................... $$ iv.%ata Minin1 and =A2P .................................................................................................................................... $$ v.=A2P B=nline 2nalyti#al Pro#essin1C6 .............................................................................................................. $$ vi.%e#ision "!**ort and Re*ortin1 Tools ............................................................................................................ $$ $

vii.Ele#troni# *oint of "ale BEP="C ...................................................................................................................... $$ "i@ EDs of e8CRM..................................................................................................................................................... $$ 1.Ele#troni# #hannels4 ......................................................................................................................................... $3 $.Enter*rise4 ....................................................................................................................................................... $3 3.Em*o'erment4 ................................................................................................................................................. $3 4.E#onomi#s4 ...................................................................................................................................................... $3 +.Eval!ation4 ....................................................................................................................................................... $3 ..Evol!tion4.......................................................................................................................................................... $3 !siness %rivers for e8CRM4................................................................................................................................... $3 Peo*le .................................................................................................................................................................... $4 Pro#ess................................................................................................................................................................... $4 Call Centres < 2r#hite#t!re......................................................................................................................................... $+

What Is CRM?
CRM is acronym for Customer Relationship Management. CRM entails all aspects of interaction a company has with its customer, be it sales or service. CRM , is a means to gain trust from customers by meeting the needs of each customer in a more personalized way in order to increase sales. CRM, is a company-wide business strategy designed to reduce costs and increase profitability by solidifying customer loyalty. It's a strategy used to learn more about customers' needs and behaviors in order to develop stronger relationships with them. fter all, good customer relationships enable business success.

Key Elements of CRM

CRM or Customer Relationship Management is a strategy composed of applications, technology and products that fulfill three essential re!uirements" #. $o give the enterprise a %&'( view of each customer for consistent and unified contact with that customer whenever anyone anywhere in the enterprise deals with that customer. $his )nowledge increases the opportunities for sales and the effectiveness of customer service.
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*. $o enable your customer to have a consistent view of your enterprise, regardless of the way the customer contacts you. $his improves customer satisfaction and customer retention. %. $o enable front office staff to perform sales, service and mar)eting tas)s more efficiently as a team, increasing e+pertise and reducing costs

Why CRM?
, , , It costs si+ times more to sell to new customer than to sell to an e+isting one. typical dissatisfied customer will tell --#' people .'/ of the complaining customers will remain loyal if problem is solved

0sing CRM, a business can"

1. Provide Better Customer Service

CRM systems give businesses many strategic advantages such as the ability to personalize relationships with customers regardless of who has serviced them in the past. 0sing CRM, a repository can be maintained on customer profiles, thereby treating each client as an individual and not as a group.$his way, every employee can be better informed about each customer's specific needs and transaction profile.

2. Increase Revenues
0sing CRM data, mar)eting campaigns can be co-ordinated more effectively by ensuring that promotions do not target customers who have already purchased that particular products. It also ensures higher customer retention by introducing loyalty programs.

3. Discover New Customers

CRM systems help the organisation in identifying potential customers. 1y )eeping a trac) of the profiles of their e+isting clientele, the business can easily come up with a strategy to determine the )ind of people they should target such that it returns them ma+imum clientage. 2or e+ample, if several students in a university sign up for a particular mobile service provider, the business can come up with a strategy to target rest of the community in the college3university.

4. "Cross Sell" and "U Sell" Products !ore "##ectivel$

CRM systems facilitate cross-selling 4offering customers complimentary products based on their previous purchases5 and up-selling 4offering customers premium products in the same category5. It helps them to gain a better understanding of customers and anticipate their purchases 4e.g. someone who purchases grass seed in the spring will need fertilizer later in the season5.

%. &el Sales Sta## Close Deals 'aster

CRM helps the businesses in closing deals faster, through !uic)er and more efficient responses to customer leads and customer information. $he turnaround time has decreased drastically for organisations that have been able to implement CRM systems effectively.

(. !a)e Call Centers !ore "##icient

6ith each employee having access to customer details and order histories, targeting clients becomes easier. CRM helps the organisation's wor)force in )nowing how to deal with each individual customer depending upon the customer's archives available through CRM. $he information can be accessed instantly from anywhere within the company.

*. Sim li#$ !ar)etin+ ,nd Sales Processes

CRM helps in developing better communication channels. Interactive 7oice Response 8ystem, web sites, etc. have made life easy both for the organisation and also for its sales representatives. It allows the business to give its customers the option of choosing how they want to communicate with the organisation.

Types of CRM
6hen it comes to application of CRM, three broad classifications are there and these are" #. 9perational CRM *. nalytical CRM

%. Collaborative CRM
1.

- erational CR! . $he operational application of CRM enables effective interaction with customers. 2or
this purpose various tools are used. $hese tools are aimed to provide customers with a consistent interface across all communication channels.$o achieve this, relevant customer data is collected and also displayed at all customer touch points. $his is the customer master data. nother set of data where employees' contact with customers is also logged3 recorded. $his has information li)e topics discussed, customer re!uirements, soft customer data li)e hobbies, preferences, interests, details about children and other minor stuffs.

$.

,nal$tical CR! . $he data collected in operational management is analyzed to segment customers. $he
valuable information thus obtained is used to satisfy customers. nalytical CRM is composed of" :attern discovery component :roduct and customer analysis component Multitude component 8orting and customer fractionation component
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 Customer value evaluation component nalytical solutions provided for most companies are integrated view of customer across all channels and applications, campaign performance analysis, customer profitability analysis, cross-selling and up selling. $he analytical solutions help answer !uestions li)e" 6ho are their best customers; 6hom they are li)ely to loose; <ow to retain them; <ow to attract new customers; <ow to improve profitability of customers;
3.

Colla/orative CR! .$he various departments of company li)e the sales, technical support, and mar)eting,
share the information they collect about customers. $he ob=ective is to improve the !uality of customer service and increase customer loyalty. It allows the company to synchronize and manage efficient, productive interaction with customers, prospects, partners, and internal associates across all communication channels. $he customers' viewpoint is ta)en care of at every transaction level thus enabling better service to the customer. Collaborative CRM also reduces web service costs by enabling web collaboration.

Goal of CRM?
$he idea of CRM is that it helps businesses use technology and human resources to gain insight into the behavior of customers and the value of those customers. If it wor)s as e+pected, a business can" :rovide better customer service Ma)e call centers more efficient Cross sell products more effectively <elp sales staff close deals faster 8implify mar)eting and sales processes >iscover new customers Increase revenues 9nce thought of as a type of software, CRM has evolved into a customer-centric philosophy that permeates the entire organization. $here are three :eople
.

key elements to a successful CRM initiative"

 :rocess and $echnology. It's a strategy used to learn more about customers' needs and behaviors in order to develop stronger relationships with them. $here are many technological components to CRM, but thin)ing about CRM in primarily technological terms is not correct. It would be better to thin) about CRM as a process that will help bring together lots of information about customers, sales, mar)eting effectiveness, responsiveness and mar)et trends. CRM may be viewed as an Integrated system of 6eb enabled software tools and databases accomplishing a variety of Customer-focused business that support tools.

01e t1ree 1ases o# t1e relations1i /etween t1e /usiness and its customers are.
#. c!uire *. ?nhance %. Retain
1. Acquire :

business relies on CRM software tools and databases to help it ac!uire new customers by doing a superior =ob of contact management, sales prospecting , selling ,direct mar)eting and fulfillment. $he goal of the CRM function is to help Customers perceive the value of a superior product offered by the company. customers happy by supporting superior service from a responsive networ)ed team of sales and service specialists and business partners.

$. Enhance :6eb-enabled CRM account management and customer service and support tools help )eep

3. Retain : CRM analytical software and databases help a Company proactively identify and reward its

most loyal and profitable customers to retain and e+pand their business via targeted mar)eting and relationship mar)eting programs.

21at are t1e 3e$ factors for successful CRM implementation?

1rea) your CRM pro=ect down into manageable pieces by setting up pilot programs and short-term milestones.
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 8tarting with a pilot pro=ect that incorporates all the necessary departments and groups that gets pro=ects rolling !uic)ly but is small enough and fle+ible enough to allow tin)ering along the way. Ma)e sure your CRM plans include a scalable architecture framewor). >on't underestimate how much data you might collect 4there will be @9$85 and ma)e sure that if you need to e+pand systems you'll be able to do that. 1e thoughtful about what data is collected and stored. $he impulse will be to grab and then store ?7?RA piece of data you can, but there is often no reason to store data. 8toring useless data wastes time and money. Recognize the individuality of customers and respond appropriately. CRM system should, for e+ample, have built- in pricing fle+ibility.

CRM Architecture
CRM rchitecture depends on the )ind of re!uirement the company has , accordingly, the company will invest in this venture.

So4 /e#ore investin+ in a CR! a

Its features

lication4

it is necessary to consider several aspects such as"

8upport for e+isting and emerging technologies Initial cost ?ase of use Integration with other applications etc. Beeping these factors in view , a well-designed architecture is re!uired that can ta)e care of present needs accommodate future growth and adapt to business changes without affecting the performance of the application or re!uiring an e+haustive Cre-implementation.D

01e main #eatures o# CR! s1ould /e .

Customizability daptability

:ortability 8calability, and

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01ese are t1e /asic #unctions o# an$ CR! arc1itecture.

In todayEs scenario, we cannot e+pect any CRM that is not 6eb 1ased. $herefore before deciding about the CRM one must ensure that it has fully integrated Internet architecture that provides online" ccess

Rapid deployment :rocess automation Interaction through multiple business channels. Customer Interaction38atisfaction" Customer satisfaction is the )ey and is always sub=ective. It drives the organization to continue to provide goods and services to meet the re!uirements and try and satisfy the customer. It may not be possible for the organization to satisfy the customer at all times. $here are times when it seems that you =ust canEt please the customer. Fo matter how hard you try, it is very difficult to please a particular client. $he following are

'ive sim le4 time5 roven tec1ni6ues to 1el $ou wit1 $our " ro/lem" customers.
!" Customer complainin# an$ soun$in# confuse$:
Solution. i. ii. iii. 8etup proper communication with your clients so that they )now whom to contact in case of any problem. Beep updating your client about the progress of the problem3complaint he made. In case the money is involved in the transaction 4if the company is into 2inancial 8ervices5, then the money is being handled must be e+plicitly made clear. $he point is Client must be given full information about the product3services he is getting from the company.

%!" &or the inattenti'e clients (ho say one thin# )ut claim to ha'e meant somethin# entirely $ifferent:
Solution. i. ii. :lay bac) their words to them by repeating what they said in your own words. s) them G>id I understand you correctly;G $his will prompt the client to confirm what he or she =ust said. $his will ensure that you understood the clientEs wishes and ma)e a later denial less li)ely.
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*!" +ou,'e alrea$y sol$ the pro$uct or pro'i$e$ the ser'ice an$ no( the customer claims it is not (hat they thou#ht it (oul$ )e:
Solution i. ii. 6e cause them to soften from the often firm positions they feel forced to defend. It ma)es it all right for them to compromise. $he !uestion G6hat do you feel is the best solution;G often causes disgruntled people to become much more pliable and easy to wor) with.

-!" The customer,s attitu$e to(ar$s the transaction is really #ettin# to you:
Solution. i. ii. iii. Bnow your aim. 2ocusing on the finish line--- the wor) you wish to accomplish, the e+perience you want to ac!uire etc. will help to decrease the e+tent to which your clientEs behavior will aggravate you. Remember that itEs not you. If you find yourself dealing with someone who tends to be agitated, impatient, or demanding all the time, then change your approach3attitude. Chances are that his or her unpleasant behavior may be because of something unrelated to you. 6or) with difficult people or avoid them as you see fit, but along the way, practice choosing to be content.

.!" +ou kno( you are ri#ht/ )ut are tempte$ to #i'e a(ay the pro$uct or ser'ice to a'oi$ strife:
Solution. i. ii. iii. ?very business for which you are a part entitles you to get paid for your goods and services and ma)e a profit. If you )now you are right, you should get paid and not give any discounts. 1eing mistreated will upset you, but being mistreated and underpaid will really tee you off and is simply unfair. t some point, it is no longer worth playing the game. If the dissonance between you and a client is so great that it interferes with you achieving your aim, consider terminating the agreement. $herefore Regardless of what business you are in - you are really in the business of satisfying customers.

Customer Satis#action Salient oints

$he degree of customer satis#action you deliver determines the level of long-term success you will achieve in business. <ere are Some Salient oints" 1. !a)e Customer Satis#action 7our 0o Priorit$.

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>on't =ust ma)e sales. Create customers - satisfied customers. In addition to the immediate profit they provide on the first sale, satisfied customers help you build your business in * other important ways" i. $hey become a reservoir of repeat buyers. 2or some businesses that means repeat buyers for more of the same product or service. 2or every business, it means buyers for additional products and services. ii. $hey automatically refer more business to you from their friends and business contacts. $his is highly profitable business for you because it doesn't cost you any time or money to get it. *. Never Promise !ore 01an 7ou Deliver Fever ma)e any promises you can't 4or won't5 )eep. Fothing alienates customers faster than getting something less than they e+pect from a business transaction. $hey won't do business with you again. nd they will tell everybody they )now about their unhappy e+perience - causing you to lose future customers. $ip" <andle customer complaints !uic)ly and with a positive attitude. 8trive to preserve your relationship with the complaining customer instead of your immediate profit from them. $hey will reward you later with more sales and referrals. %. ,lwa$s 8ive Customers !ore 01an 01e$ "9 ect G9ver deliverG on !uality and service. lways e+ceed your customers' e+pectations. Aou will win their long term loyalty. It also ma)es it difficult for competitors to steal customers from you - even if they have lower prices. Customers will not ris) an uncertain e+perience with a competitor when they )now they will get more than they e+pect from you. $ip" 8urprise your customers with une+pected value. If you sell products, include an Gunadvertised bonusG with every order. If you sell services, get into the habit of doing something e+tra for every customer or client without charging for it. H. :et customers )now 1ow muc1 $ou value t1em. @et your customers )now you are always thin)ing about them. Communicate with them regularly. 2or e+ample, create some special deals =ust for your e+isting customers. nd announce new products or services to them before you announce them to the general mar)et. $ip" Convert your customers into publicity agents. >evelop an incentive for them to tell associates and friends about the value of your products or services. n endorsement from them is more effective than any amount of advertising - and it is much cheaper.

Some !otivational #actors are.

Changes in the 1usiness ?nvironment Customers becoming more demanding Mar)ets are saturated
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 >atabases today are huge >atabases are growing at an unprecedented rate >ecisions must be made rapidly >ecisions must be made with ma+imum )nowledge

0usiness 0enefits of CRM

:rofessional Customer Relationship Management 4CRM5 is a decisive factor for the success of your business. $o realize full benefit of CRM, you should chec) the current status of your customer relationships and determine what benefits you e+pect from a CRM solution in all areas with direct customer contact e.g. 8ales, Mar)eting and 8ervice. @et us see each one of them"

Sales
I Customer orientation becomes strategy $he sales department in any company is its Cstore windowD. $hatEs why a close loo) at your sales strategy is so important" , <ow can you give even better support to your dealings with customers; , <ow can you ta)e more advantage of your customer potential; , re your decisions with respect to products, customers, sales channels and the timing of analytical research; , Can you combine your different sales channels and analyze them; $ry and nalyse all the time I - <ow valuable are your customers to you; - >o you pay attention to your customer relationships and consolidate them systematically; - >o you )eep in mind that that winning a new customer costs si+ times as much as )eeping an old one happy. - >o you really )now what your customers are worth; activities based on solid

!ar)etin+
I Individualized customer contacts for more mar)eting success 6ith Customer Relationship Management you can strengthen your position in the mar)et through" , efficient and effective mar)eting
1$

, creating and analyzing multi-channel strategies , targeted campaign management

Service
I Customer satisfaction as a basic value $o create a Cwe are always there for youD feeling, you must be accessible to your customers I and )now what moves them. Aou can improve the !uality of your customer service by satisfying the following prere!uisites" , 0p-to-date information about the customerEs details3situation , ?arly problem detection , Jualified complaint management , Round-the-cloc) accessibility

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Conclusion CR! /ene#its

$hus to conclude - <ow CRM benefits your business, you should have "

1. !ore )nowled+e .
#. $he latest data about customers and mar)ets *. Information about the effects of investments in sales and service channels

2. !ore o

ortunities

6in new customers more efficiently $a)e advantage of your e+isting customer :otential with targeted cross-selling, 0p-selling and e+tending the customer @ife cycle 9pen up new sales channels

3. Increase ro#ita/ilit$
8ave costs through more efficient processes 2ocus on profitable customers

0usiness Challen#es of CRM

8ome of the Challenges that are being faced by organizations are"

1. 0o )ee customer in#ormation or+ani;ed4 u 5to5date4 and readil$ availa/le

8uggestion" $o ta)e care of this, a centralized database must be created 3developed and that should be shared throughout the organization, and which should be easy to organize and update. 6ithout a centralized database, all your customer information and records of customer interactions are probably in the hands of your salespeople I on their des)tops, laptops, and :> s. 6hat's more, much of the customer information they've gained is simply stored in their minds. $hat means when one salesperson leaves, your company loses the )nowledge and e+perience they accumulated.

2. 0o secure customer lo$alt$ in t1e #ace o# increased com etition

8uggestion" Improved customer communications3 customer service.
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Aou're not =ust competing for the ne+t sale I you're competing for a lifetime of sales. Customers today have diverse options for almost every product and service imaginable, and their loyalty. $he mar)eting-revenue relationship is simple. $he more personalized and customized your communications with customers, the higher your revenue. Fo matter what product or service you sell, it's the relationship you build with your customer that )eeps them coming bac), even when there are other tempting options available.

3. Structure mar)etin+ cam ai+ns to +et t1e /est results #rom t1e ri+1t tar+et +rou <
8uggestion" :ersonalized mar)eting campaigns based on accurate, in-depth customer insights. $oday's sophisticated customers simply ignore communications that aren't personalized and tailored to their interests and needs. In order to find new customers and ma+imize the value of current customers 4through referrals and increased spending5, truly effective mar)eting campaigns are re!uired so as to ma)e each customer purchase, repeat purchase, and references.

4. 0o turn otential sales into actual sales = and revent lost o

8uggestion" 8tandardized opportunity management. Maintaining a steady stream of opportunities I and turning those opportunities into sales

ortunities<

I is a consistent challenge for your business. It's the )ey to your profitability, stability, and longevity.

%. 0o +et current customers to s end more mone$ wit1 $our /usiness<

8uggestion" Bnowledge of )ey customer triggers. Aour business relies on a steady stream of customer spending - and as your competition grows, so does your need for customer. In fact, greater competition means that you need to ma+imize the value of every customer you have, and every interaction you have with them.
Which $i'ision shoul$ run the CRM pro1ect?

$he biggest returns come from aligning business, CRM and I$ strategies across all departments and not =ust leaving it for one group to run.
What causes CRM pro1ects to fail?

Many things, 2rom the beginning, lac) of a communication between everyone in the customer relationship chain can lead to an incomplete picture of the customer. :oor communication can lead to technology being implemented without proper support or buy-in from users.
What in$ustries are lea$in# the (ay in CRM implementations?

s in most leading-edge technology implementations, the financial services and telecommunications industries set the pace in CRM. 9ther industries are on the CRM bandwagon include consumer goods ma)ers and retailers and high tech firms.
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Impact of e2Commerce on CRM

"5C-!!"RC"
6hat is e-Commerce; n 9verview ?-commerce 4electronic commerce or ?C5 is the buying and selling of goods and services on the Internet. In practice, this term and a newer term, e-business, are often used interchangeably. 2or online retail selling, the term e-tailing is sometimes used. e-Commerce is the term for electronic business transactions, commerce or Internet trade. e-Commerce or e-business, therefore, refers to the business transactions between" 1*1 - 1usinesses to 1usiness 1*C I 1usiness to Customers C*C - Consumer to Consumer 1*K3K*1 - Kovernment 3 Kovernment to 1usiness that are wholly or partially conducted over the Internet or similar public or private computer networ)s. ?lectronic Commerce means different things to different people. 9riginally, the term meant selling things online. $he term has evolved to mean conducting business online 4which may include customer Relations3 8ervice functions, 8ales, Mar)eting, dvertising, and much more5. ?-Commerce means commerce with anyone , anywhere, any time. It emphasizes new business opportunities that result in greater efficiency and more effective transaction. ?lectronic commerce enables organizations of all sizes and in all mar)et sectors to improve their competitiveness. It cuts across geographic boundaries and time zones to save time and costs, to open up new mar)et opportunities and enable even the smallest of companies to compete on a globally. G?lectronic commerce covers any form of business or administrative transaction or information e+change that is e+ecuted using any information and communication technology 4IC$5.G It covers following areas of activities, which are" 1usiness to 1usiness 41 to 15 1usiness to Consumer 41 to C5 , and 1usiness to Kovernment 41 to K5 Consumer to Consumer 4C to C5 $hough people use e-Commerce and e-1usiness interchangeably, but there is thin difference between the two.

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?-Commerce is what we discussed above, but e-1usiness means connecting business systems directly to critical constituents e.g. Customers, 8uppliers etc. and those who are involved with the business.

Drivers o# e5Commerce.
Di+ital Conver+ence" $he digital revolution has made it possible for almost all digital devices to communicate with each other. $he InternetEs massive growth and reach during the past #' years has enabled e-Commerce to come to this level. F.1." 6ith convergence >ata, 7oice, >ocuments, 7ideo etc. can be merged and stored in the central database. ny $ime , ny 6here , ny 9ne" e-Commerce is available to anyone, any time ,anywhere i.e. *H3. 4 *H hours a day and . days a wee)5 C1an+es in -r+ani;ations. It enables employees to have improvement in the !uality of their wor). 1etter utilization of their time to have improved productivity. Demand #or Customi;ed Products and Services. CustomerEs are becoming more and more demanding. $hey want better products and services, delivery at a much lower cost. Mass customization puts pressure on firms to handle customized re!uests on a mass scale. It is predicted that those who cannot cope with such demanding situation, may ultimately out of the business.

Bene#its o# "5commerce
8ome of the 1enefits are" $he mar)et for a 6eb based business is not bound by any geographical constraints. $his means lesser or FI@ growth inhibitors due to various restrictions e+isting in different geographical regions. $he transaction costs go down tremendously in a well set up site. $he company saves on the costs of the people needed to interact with the customers, demonstrate the wares time and again, and ta)e orders. ll this gets automated online. 1etter, more inviting, convenient and comprehensive presentation of goods is conducive to greater sales. 2or instance, if you are at mazon, you can ta)e a loo) at what other people who ordered a boo) also purchased. 2acilities such as being able to compare costs of several stores at the same time, )eep a tab on your selections, the fle+ibility of being able to add, remove, and even come bac) later to carry on choosing instead of closing the deal in one online session itself are !uite convenient to a customer. $he 6eb business can be integrated into the regular business cycle and give customers more information than ever before. 2or instance, customers at >ell can see e+actly at what stage their order is, at any given point of time.

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 Improved customer interaction, at practically no cost, is a big asset to the company. Beeping clients happy has now become much more economical for the companies through their websites. 1y putting information on fre!uently as)ed !uestions on their website, organizations are saving costs by reducing the number of customer service representatives. More convenient and easy business to business or G1*1G e-commerce where companies buy from each other. 2or instance, a garment wholesaler may sell to a chain of retail shops, or an automobile manufacturer may shop around for thousands of car parts from suppliers online. 8mall and large firms ali)e have the opportunity to set-up and conduct business on the internet. $he barriers to entry to the e-Commerce are miniscule. n ine+pensive advertising medium for organizations, it allows organizations an opportunity for publicizing their products and services at minimal cost.

<elps e+pand into new mar)ets by virtue of its global reach. 9pen your product and services to a new customer base and to maintain a leading edge technology position and image in the mar)et place and against your competitors.

E2Commerce 3 CRM
6hile e-Commerce is becoming popular , CRM is not far behind. In fact CRM too) the lead and companies have used3 e+ploited Internet to ma)e its for CRM. Call Centers or the Customer Care 9rganizations have been setup to handle this most sensitive area i.e. CRM $o ma)e e-Commerce effective, following >oEs and >onEt Es may be used in order to achieve success. ?-commerce 1est :ractice

D->s.
- >9 thin) about your e-business as a business, and apply the same discipline. - >9 use customer data to give each individual a personalized shopping e+perience. - >9 provide as many payment options as your customers need. ->9 ma)e your transaction process easy and smooth from home page to chec)out. 2ailed transactions are money in your competition's poc)et. ->9 be prepared to change your business rules and processes to meet emerging trends. - >9 integrate online and offline channels, ta)ing advantage of the best features of each.

D-N>0s.
- >9F'$ treat online customers as second-class citizens. $hey're not your warning system or guinea pigs. - >9F'$ rely on new technology as a panacea. $ools don't improve performance by themselvesL wise use of them does. ->9F'$ compete on price alone. Convenience and selection often have greater value than a coupon. - >9F'$ rely on automation and self-service e+clusively. 8ometimes, customers are people who need people.
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- >9F'$ wait for customers to find you. Mar)et wisely with targeted ads , search engine optimization, and search term placement.

E2CRM
6hat is e-CRM; GCRM is the business strategy that aims to understand, anticipate, manage and personalize the needs of an organization's current and potential customersG -- :6C Consulting $he term e-CRM relates to selling, serving, or communicating to customers via the 6eb. 6hile e-CRM is certainly a fast and cost-effective means for companies to personalize customer communications on a large scale, it should by no means occur in a vacuum. In fact , e-CRM is a subset of CRM, meaning that e-CRM is one channel through which a company can deploy its CRM strategy.

01e &istor$ o# CR!

2ollowing on from ?nterprise Resource :lanning or ?R: 4the business strategy that promised to automate the Cbac)officeD5, the term CRM was first coined in the mid-#MM's. CRM in those days referred to the software used to help businesses manage their customer relationships. 2rom sales force automation software 482 5 that focused on customer contact management to integrated )nowledge management solutions, these were the early foundations of CRM. $he last couple of years have seen the term broaden to encompass a more strategic approach and the investment of billions of dollars worldwide into e-CRM solutions and services has followed. 'irst 01in+s 'irst 8uccessful CRM always starts with a business strategy, which drives change in the organization and wor) processes, enabled by technology. $he reverse rarely wor)s. $he )ey here is to create a truly Customer-Centric philosophy that touches every point and more importantly every person in the company. 2rom C8R 4Customer 8upport Representative5 to C?9 everyone must live and breathe customer focus for all of this to wor). 01e Ri+1t 0ec1nolo+$ It is estimated that the global mar)et for CRM services and solutions is currently worth N#H- billion. $hat means a lot of choice when selecting your technology - from web-based solutions aimed at small businesses with less than #' employees to solutions suitable for multi-national enterprises with millions of customers. $he right technology will enable the organization to ta)e care of si+ )ey mar)et domains, not =ust the traditional customer mar)et.
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01e Si9 mar)ets are.

#. Customer Mar)ets I ?+isting and prospective customers as well as intermediaries. *. Referral Mar)ets I ?+isting Customers who recommend to other prospects, and referral sources or multipliers such as doctors who refer patients to a hospital %. Influence Mar)ets I Kovernment, consumer groups, business press and financial analysts. H. Recruitment Mar)ets I 2or attracting the right employees to the organization O. 8upplier Mar)ets I 8uppliers of raw materials, components, services etc. &. Internal Mar)ets I $he organization including internal departments and staff.

Some Salient oints t1at 1el

in develo in+ e5CR! met1odolo+$ are.

1. Use o# tec1nolo+$ in CR!

$he application of technology is the most e+citing, fastest growing and changing the way customers get information about products and services. $echnology includes <ardware, 8oftware, and communication infrastructure that organizations use to enable or improve their processes. $he most common tools are as under"

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4ales &orce Automation

$hese systems help in automating and optimizing sales processes to shorten the sales cycle and increases sales productivity. $hey enable the company to trac) and manage all !ualified leads, contacts and opportunities throughout the sales cycle including customer support. $hey improve the effectiveness of mar)eting communications programmes for generating !uality leads as well as greater accuracy in sales forecasting. $he Internet can be used by the company in imparting proper training to its sales force. In depth product information, specialized databases of solutions, sales force support !ueries, and a set of internal information on the Internet can improve the productivity of the sales force.

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Call Centres

Call Centre helps in automating the operations of in bound and outbound calls generated between company and its customers. $hese solutions integrate the voice switch of automated telephone systems with an agent host software allowing for automatic call routing to agents, auto display of relevant customer data, predictive dialing, self Iservice Interactive 7oice Response systems, etc. $hese 8ystems are useful in high volume segments li)e ban)ing, telecom and hospitality. $oday, more innovative channels of interacting with customers are emerging as a result of new technology, such as global telephone based call centers and the Internet. Companies are now focusing to offer solutions that leverage the internet in building comprehensive CRM systems allowing them to handle customer interactions in all forms.
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iii!

5ata Warehousin#

data warehouse is an implementation of an informational database used to store shareable data that originates in an operational database-of-record and in e+ternal mar)et data sources. It is typically a sub=ect database that allows users to tap into a companyEs vast store of operational data to trac) and respond to business trends and facilitates forecasting and planning efforts.

i'!

5ata Minin# an$ 67A8

>ata mining involves specialized software tools that allow users to sift through large amounts of data to uncover data content relationships and build models to predict customer behavior. >ata mining uses wellestablished statistical and machine learning techni!ues to build models that predict customer behavior.

'!

67A8 96nline Analytical 8rocessin#"/

lso )nown as multi-dimensional data analysis, offers advanced capabilities in !uerying and analyzing the information in a data warehouse. In some CRM initiatives, 9@ : plays a ma=or role in the secondary analysis that ta)es place after initial customer segmentation has occurred. 2or e+ample, in CRM I based campaign management systems, 9@ : is an e+cellent tool for analyzing the success or failure of the promotional campaigns.

'i!

5ecision 4upport an$ Reportin# Tools

6eb enabled reporting tools and e+ecutive information systems are used to deploy the business information that has been discovered. $his enhanced customer )nowledge is distributed to e+ecutive decision- ma)ers as well as to the operational customer contact points. pplications e!uipped with some of the same sophisticated modeling routines developed in the datamining phase are applied to individual contacts in real time.

'ii!

Electronic point of 4ale 9E864"

$he main benefit of ?:98 and retail scanner systems is the amount of timely and accurate information they deliver. dvances in the technology have significantly aided the scope for data analysis. In addition to the original scanner-related data on sales rate, stoc) levels, stoc) turn, price and margin, retailers now have information about the demographics, socio-economic and lifestyle characteristics of consumers.

Si9 "?s o# e5CR!

$he CeD in e-CRM not only stands for CelectronicD but also can be perceived to have many other connotations. $hough the core of e-CRM remains to be cross channel integration and organizationL the si+ Ce" in e-CRM can be used to frame alternative decisions of e-CRM based upon the channels which e-CRM utilizes, the issues which it impacts and other factorsL the si+ PeEs of e-CRM are as follows"

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! Electronic channels:
Few electronic channels such as the web and personalized e-messaging have become the medium for fast, interactive and economic communication, challenging companies to )eep pace with this increased velocity. e- CRM thrives on these electronic channels.

%! Enterprise:
$hrough e-CRM a company gains the means to touch and shape a customers e+perience through sales, services and corner offices-whose occupants need to understand and assess customer behavior.

*! Empo(erment:
e- CRM strategies must be structured to accommodate consumers who now have the power to decide when and how to communicate with the company through which channel, at what fre!uency. n e- CRM solution must be structured to deliver timely pertinent, valuable information that a consumer accepts in e+change for his or her attention.

-! Economics:
n e-CRM strategy ideally should concentrate on customer economics, which delivers smart asset-allocation decisions, directing efforts at individuals li)ely to provide the greatest return on customer Icommunication initiatives.

.! E'aluation:
0nderstanding customer economics relies on a companyEs ability to attribute customer behavior to mar)et programs, evaluate customer interactions along various customer touch point channels, and compare anticipated R9I against actual returns through customer analytic reporting.

:! E'olution:
1ased on various eEs that have been discussed, it is to thin) and plan how to proceed for the ne+t step. $he future plan will encompass all )inds of modifications in the strategy, so that whatever shortcomings have been e+perienced can be ta)en care of.

Business Drivers #or e5CR!.

a5 Krowing ?conomy b5 Krowing Competition c5 Resource vailability @et us now try to understand what technology is used in e-CRM $echni!ues" C>, I7R, C$ a5 utomatic Call >istribution 4 C>5 e5 f5 utomated In!uiry Q $ransactions utomated screen CpopD on agentEs screen d5 >emanding Customers e5 Cost ?ffective methods of doing business

b5 Incoming Call Jueuing c5 :erformance 8tatistics d5 Integrated 7oice Response 4I7R5

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g5 Integration with company legacy platforms h5 1illing Q Meter Reading

i5 >irect ccess to Customer >ata $echni!ues" 6?1 based application, e-mail processing" , , , , utomated product and service information 6?1 based sales and support through standard menus and automated help screens. 6?1 based training Reaching the global mar)et

$o have an effective e-CRM methodology, it has become necessary to maintain a close pro+imity with the Customers both the e+isting ones as well as the potential ones. $herefore the answer to meet this huge challenge was found in creating Call Centres. Call centres, therefore are a )ey enabling arm of Customer Relationship Management. well designed call centre will integrate people, process, and technology to improve operational efficiency and ma+imize the value of the customer relationship for both inbound and outbound contact.

Peo le
a5 ?+ternal customer b5 Internal customer c5 8ales 2orce $his will facilitate" - Customer data updates, - :urchase information @eads trac)ing update - Customer trac)ing updates - Call statistics and in!uiries, etc. d5 8upport team e5 1ac)-office f5 $echnical staff

Process
a5 Mar)eting 3 up-selling b5 $echnical support c5 :roduct support 01is will #acilitate . a5 Customer history b5 1illing, c5 :urchases
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d5 8ervice support e5 . + *H support

d5 7alue e5 :rofile f5 :roduct Q service information

g5 :ac)ages

h5 :rices etc.

Call Centres ; Architecture

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