ECRM: IntroductionECRM: Introduction

Dr. Hong- Mei ChenDr. Hong- Mei ChenDepartment of Information Technology Management Department of Information Technology Management

College of Business AdministrationCollege of Business Administration

University of HawaiiUniversity of Hawaii

Basic E-business Architecture & E-business TechnologyBasic E-business Architecture & E-business Technology

Internet;Telecom

Telecom

Data Mining

Information Management

Content/ KnowledgeManagement

webservers

payment gateway

applica-tion

servers

Storefront Systems

Web Catalogue

Billing &Payment

CRM:CustomerRelationshipManagement

Back officeSystems

SCMSupply ChainManagement

SFASales ForceAutomation

FinanceAccounting

HumanResourceMgmt

applica-tion

servers

applica-tion

servers

applica-tionservers

Customer

Customer

Customer

Supplier

Supplier

Supplier

c 2000, Hong-Mei Chen, College of Business Administration, University of Hawaii

Data Warehouse

Databases

ERPERP

EAIEAI

•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,

•Profitability•ROI•Market share•Growth•Branding•Social

•Demographics•Purchasing behavior•Pattern / profile•Perception •Attitudes•Motivation•Channel Preference•Interaction style•Transaction goals•Needs & wants•Communication Capabilities

•Strategies

•Culture Change

•Policy

•Industry characteristics

•Competency

•Governance

•Human agents

Loyalty

Satisfaction

Trust

c Dr. Hong-Mei Chen, University of Hawaii, 2001

What is ECRM? What is ECRM? Source:crmguru.comSource:crmguru.com

A business strategy to select and manage A business strategy to select and manage customer relationships to optimize long-term customer relationships to optimize long-term value to an enterprise. CRM requires a value to an enterprise. CRM requires a customer centric businesscustomer centric business philosophy and philosophy and cultureculture to support effective marketing, sales and to support effective marketing, sales and service processes across all direct and indirect service processes across all direct and indirect customer interaction channelscustomer interaction channels.. CRM CRM software software applicationsapplications can enable effective Customer can enable effective Customer Relationship Management provided that an Relationship Management provided that an enterprise has the enterprise has the right strategy, leadership and right strategy, leadership and culture.culture.

Why ECRM?Why ECRM? 3 Trends:3 Trends:

– The failure of ERP systems in integration of front officeThe failure of ERP systems in integration of front office– The product cycle has acceleratedThe product cycle has accelerated– Efficient pricing informationEfficient pricing information

Cheaper to retain customer than to acquire a new oneCheaper to retain customer than to acquire a new one

Customer service is a competitive advantageCustomer service is a competitive advantage

Why now?Why now? Volume of information collected Volume of information collected

Reduced costs and higher levels of performance Reduced costs and higher levels of performance for database management platforms for database management platforms

Advances in contact management technology and Advances in contact management technology and supporting infrastructure supporting infrastructure

Internet provides a new way for an enterprise to Internet provides a new way for an enterprise to interact with its customerinteract with its customer

CRM vs. eCRMCRM vs. eCRM

Categories of CRMCategories of CRM

Operational (transactional)Operational (transactional) Collaborative Collaborative AnalyticalAnalytical

Operational CRMOperational CRM– Marketing, SFA, and Customer ServiceMarketing, SFA, and Customer Service– Tracks customer activitiesTracks customer activities– Does not provide why customer behave they Does not provide why customer behave they

way they do.way they do.– Single view of customerSingle view of customer

Operational CRM Operational CRM Applications:Applications: Marketing automation and managementMarketing automation and management

– Two major functions: Two major functions: Campaign management, lead managementCampaign management, lead management demographic analysis (analytic)demographic analysis (analytic)

Sales force automation (SFA)Sales force automation (SFA)– Contact management, account managementContact management, account management

Customer serviceCustomer service– Call Center, field service dispatch, knowledge Call Center, field service dispatch, knowledge

repository.repository.

Collaborative CRMCollaborative CRM– Communication and interaction between Communication and interaction between

customer, staff and business partners across customer, staff and business partners across the customer life-cycle.the customer life-cycle. Engage, transact, fulfill and serviceEngage, transact, fulfill and service

– Voice, (web)conferencing, E-mail, Fax/Letter, Voice, (web)conferencing, E-mail, Fax/Letter, Direct Interaction.Direct Interaction.

– Establishing cooperative partner networks Establishing cooperative partner networks (affiliates, portals)(affiliates, portals)

Analytical CRMAnalytical CRM– capture, storage, extraction, processing, capture, storage, extraction, processing,

interpretation and reporting of customer datainterpretation and reporting of customer data– provide feedback from info gather from provide feedback from info gather from

operational CRM functionsoperational CRM functions– analyze customer behaves, provide context and analyze customer behaves, provide context and

insight and answer why they act certain way.insight and answer why they act certain way.– Data warehouse, data mart, data mining.Data warehouse, data mart, data mining.

Five Engine of eCRMFive Engine of eCRM

The Five Engines of eCRMThe Five Engines of eCRM

360 Degree Customer Info360 Degree Customer Info

Personalization EnginePersonalization Engine

Personalization through technologyPersonalization through technology– Low cost, scalable to serve large customer baseLow cost, scalable to serve large customer base

Customer Experience Personalization (CEP)Customer Experience Personalization (CEP)– Rule-based, collaborative filtering, inference Rule-based, collaborative filtering, inference

modelmodel– a unique experience for each customera unique experience for each customer

Creating subscription-based info & serviceCreating subscription-based info & service Breaking away from the Web Breaking away from the Web tailing tailing

– E-mail, voice mail, multi-channel, etc.E-mail, voice mail, multi-channel, etc.

Broadcast EngineBroadcast Engine

Broadcast engine enable 24/7 customer Broadcast engine enable 24/7 customer interaction via all communication devicesinteraction via all communication devices

Mutltimedia/multi-Channel (MMMC)Mutltimedia/multi-Channel (MMMC) Open Architecture & scalabilityOpen Architecture & scalability Benefits: Benefits:

– integrated channel strategyintegrated channel strategy– Increased switching costsIncreased switching costs– Speed to transactionSpeed to transaction

Transaction EngineTransaction Engine

Promotes info exchange between every Promotes info exchange between every customer and the enterprisecustomer and the enterprise

Maintains customer contact and transmits Maintains customer contact and transmits info to info store for later useinfo to info store for later use

Facilitates the value exchange and provides Facilitates the value exchange and provides a single interface to any set of information a single interface to any set of information sourcessources

Avoid inundation Avoid inundation Permission MarketingPermission Marketing

CRM processes and CRM processes and functionsfunctions

Types of eCRM productsTypes of eCRM products

eCRM Software (MLE)eCRM Software (MLE)

Applix (iCRM suite)Applix (iCRM suite) BroadvisionBroadvision(*personalization) (*personalization)

Chordiant (unified CRM)Chordiant (unified CRM) Clarify Clarify (eBusiness Solution)(eBusiness Solution)

eGaineGain (*call center) (*call center)

E.piphany E.piphany (e.5 system)(e.5 system)

EpicorEpicor (efrontOffice & Clientele)(efrontOffice & Clientele)

OnyxOnyx

Oracle Oracle (eBusiness Suite)(eBusiness Suite)

PeopleSoft PeopleSoft (PeopleSoft 8)(PeopleSoft 8)

Pivotal Pivotal (eRelationship 2000(eRelationship 2000

RightNow RightNow (RightNow web)(RightNow web)

SAP (mySAP)SAP (mySAP) Siebel Siebel (eBusiness 2000)(eBusiness 2000)

eCRM Software (SME)eCRM Software (SME)

Interact Commerce Corp. (ACT!2000): contact Interact Commerce Corp. (ACT!2000): contact managermanager

Front Range Solutions (Goldmine 5.5): SFAFront Range Solutions (Goldmine 5.5): SFA SuperOffice CRM 5: simple & user friendlySuperOffice CRM 5: simple & user friendly SalesLogix (Interact Commerce Corporation): mid-SalesLogix (Interact Commerce Corporation): mid-

market leadermarket leader Update.com software AG (marketing manger): Update.com software AG (marketing manger):

European CRM leaderEuropean CRM leader Upshot and Salesforce.com: CRM software for Upshot and Salesforce.com: CRM software for

rent; ASPrent; ASP

Marketing Automation ProductsMarketing Automation Products PrimeResponse: PrimeResponse:

– segmentation and integration across traditional, e-segmentation and integration across traditional, e-commerce and wireless channels.commerce and wireless channels.

Protagona WorldwideProtagona Worldwide– Support e-mail, direct mail, web-based dialogues, and Support e-mail, direct mail, web-based dialogues, and

planning MMMC.planning MMMC. Teradata: NCR’s CRM: analyzing and predicting Teradata: NCR’s CRM: analyzing and predicting

customer behavior. 6 family: Analysis, modeling, customer behavior. 6 family: Analysis, modeling, coummunication, personalization, optimization, and coummunication, personalization, optimization, and InteractionInteraction

Unica (Affinium Suite)Unica (Affinium Suite) Xchange: partner with SAS and MicroStrategyXchange: partner with SAS and MicroStrategy

CRM Business StrategyCRM Business Strategy

CSF for eCRM initiativeCSF for eCRM initiative

Accurately assess eCRM needsAccurately assess eCRM needs Understand customer requirementsUnderstand customer requirements Don’t view eCRM as a technology initiativeDon’t view eCRM as a technology initiative Quantify expected returns from eCRMQuantify expected returns from eCRM Make eCRM an enterprise-wide initiativeMake eCRM an enterprise-wide initiative Ensure integration across all distribution channelsEnsure integration across all distribution channels Employees will make or break eCRM effortsEmployees will make or break eCRM efforts Be willing to change business processesBe willing to change business processes Recognize eCRM is a change effortRecognize eCRM is a change effort

Enhancers and EnablersEnhancers and Enablers

Culture issue: Culture issue: embrace a new cultureembrace a new culture Speed issue: Speed issue: implement change in maximum speedimplement change in maximum speed Communication issue: Communication issue: real-time with customerreal-time with customer Prioritization issue: Prioritization issue: enterprise service standardenterprise service standard Motivation issue: Motivation issue: common goalscommon goals Resource issueResource issue Project overload issue: Project overload issue: many eCRM subprojectsmany eCRM subprojects People issuePeople issue CEO issue: CEO issue: commitment & leadershipcommitment & leadership

Where is CRM going?Where is CRM going?