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Customer relationship management (CRM) is about identifying a company’s best
customers and maximizing the value from them by satisfying and retaining them.

From the viewpoint of the Management, CRM can be defined as an organized approach
of developing, managing, and maintaining a profitable relationship with customers.

By equating the term with technology, the IT organizations define CRM as software that
assists marketing, merchandising, selling, and smooth service operations of a business.

Electronic customer relationship management (E-CRM) is the application of Internetbased technologies such as emails, websites, chat rooms, forums and other channels to achieve
CRM objectives. It is a well-structured and coordinated process of CRM that automates the
An effective E-CRM increases the efficiency of the processes as well as improves the
interactions with customers and enables businesses to customize products and services that meet
the customers’ individual needs.

The challenge hereby is to offer communication and information on the right topic. As we implement eCRM process. and at the right time that fits the customer’s specific needs. E-CRM can be defined as activities to manage customer relationships by using the Internet. one of the objectives of eCRM. email. plus they have an increase in customer retention. E-loyalty results in long-term profits for online retailers because they incur less costs of recruiting new customers. 2. many companies consider it as an opportunity to reduce customer-service costs. there are three steps life cycle 1.E-CRM IN RETAILING: As the Internet is becoming more and more important in business life. . Customer interaction : According to customer’s need. 3. where electronic methods were used to gather data and analyze customer information. tighten customer relationships and most important. company provides the proper feedback to them. Together with the creation of sales force automation (SFA). Data collection information for actively : About customers preference (answer knowledge) and passively (surfing record) ways via website. ECRM is being adopted by companies because it increases customer loyalty and customer retention by improving customer satisfaction. questionnaire. in the right amount. Data aggregation : Filter and analysis for firm’s specific needs to fulfill their customers. the trend of the upcoming Internet can be seen as the foundation of what we know as eCRM today. further personalize marketing messages and enable mass customization. web browsers or other electronic touch.

the processes in business should make customer’s need as first and seamlessly implement. there are three eCRM strategy components: 1. 2. Operational: Because of sharing information. different departments in company implement (intraorganizational) or work with business partners (intraorganizational) more efficiently by sharing information. This avoids multiple times to bother customers and redundant process.ECRM STRATEGY COMPONENTS: When enterprises integrate their customer information. 3. Analytical: Analysis helps company maintain a long-term relationship with customers. . Collaborative: Due to improved communication technology.

product configuration and customization as well as security/trust.DIFFERENT LEVELS OF ECRM: In defining the scope of eCRM. Self-services are becoming increasingly important in CRM activities. three different levels can be distinguished:  Foundational services: This includes the minimum necessary services such as web site effectiveness and responsiveness as well as order fulfillment. but to be aggressive and contact the customer himself in order to establish a dialogue and solve problems.  Customer-centered services: These services include order tracking. which provoked an outcry among its dealers network. Proactive service is where the manager has decided not to wait for the customer to contact the firm. . Reactive service is where the customer has a problem and contacts the company. A critical success factor is the integration of such activities into traditional channels. CRM activities are mainly of two different types. An example was Ford’s plan to sell cars directly to customers via its Web Site.  Value-added services: These are extra services such as online auctions and online training and education. The rise of the Internet and eCRM has boosted the options for self-service activities.

3. It increases customer loyalty and customer retention by improving customer satisfaction.STEPS TO ECRM SUCCESS: Many factors play a part in ensuring that the implementation any level of eCRM is successful. Redesigning workflow management systems 3. . 2. firms maintain relationships in two general categories B2B (business-to-business) and B2C (business-to-customer or business-to-consumer) so that implementation of CRM should come from respective view points. One obvious way it could be measured is by the ability for the system to add value to the existing business. desires and responsiveness to marketing. E-loyalty results in long-term profits for online retailers as they incur less cost of recruiting new customers. Re-engineering work processes 4. Companies can super profits by acknowledging that different group of customers vary widely in their behavior. Effectively managing differentiated relationships with all customers and communicating with them in an individual basis. Developing customer-centric strategies 2. To reinforce the reliance of the customers and create additional customer sources. 4. There are four suggested implementation steps that affect the viability of a project like this: 1. Supporting with the right technologies OBJECTIVES OF E-CRM: 1.

Methodologies for e-business initiative . purchase service plans. request service and support all in one place. phones and accessories. Improve quality of service while reducing cost Reduce number of calls to service centre 4 KEY FACTORS IN E-CRM PROCESS:     Find your customers Collect their information Build a relationship with them Commercialize their relationship STEPS IN E-CRM: 1. manage their accounts.WHY e-CRM? :  Due to the introduction of new technology  Due to globalization  Changing customer attitude and expectation  To gain competitive advantage  To measure . Setting the objectives of e-CRM 2. create and increase income for the business  To reduce cost GOALS OF E-CRM IMPLEMENTATION: Offer on efficient customer self-service where customers could learn about products.

Evaluating the performance of e-CRM system KEY OBJECTIVES OF E-CRM:  EFFICIENT MARKETING STRATIGES:  Organizations can create better. Processes 4. Partnership  IT service providers  Content management  Call carters 5. Knowledge management 7. organised and planned marketing strategies.3.  Can attract relevant customer range based on the product likings. Supply chain integration 6. .

leading to a single view of the multinational interactions.A major consideration in deciding which E-CRM system to adopt depends largely on the compact ability of the system. SUPERIOR QUALITY CUSTOMER SERVICE:  Creates a unified database of customers  Eliminates the long time gaps that can be created owing to lack of customer information  Services customers requirements at its best  INCREASED EFFICIENCYWITH CONTROLLED TOTAL COST OF OWNERSHIP:  Data mining brings forwards varied teams together to share information’s..  Leads to a reduction in the total cost factor  ENHANCED CUSTOMER RELIABILITY:  Facilitates easy communication between the organization and its customer..  Independent of the means of communication CONCLUSION: E-CRM application is actually integration with other points of contacts . .web based CRM applications provide integrated marketing sales.