Topic:

CRM AND e-CRM: A Comparative Study

Abstract:
The internet has changed the traditional business model of organization it has spawned many
new industries and forced organization to embrace organizational as well as operational changes.
E-CRM (Electronic Customer Relationship Management) expands the traditional CRM
techniques by integrating new electronic channels, such as Web, wireless, and voice technologies
and combines it with e-business applications into the overall enterprise CRM strategy. The goal
is to drive consistency within all channels relative to sales, customer service and marketing
initiatives to achieve a flawless customer experience and maximize customer satisfaction,
customer loyalty and revenue. E-CRM provides to companies a means to conduct interactive,
personalized and relevant communication with customers across both electronic and traditional
channels. Key Words: E-CRM, Marketing, Customer, electronic, technique

Authors Name: Leny Michael

(Research Scholar, Bharathiyar University, Coimbatore)
Institutions Name: Caarmel Engineering College
Address for communication: Assistant professor
Caarmel engineering college
Koonamkara post
Perunad ranni-689711
Mobile number: 09446804104
Email id: lenymichael@gmail.com

CRM AND e-CRM: A Comparative Study

Introduction
E-CRM (Electronic Customer Relationship Management) expands the traditional CRM
techniques by integrating new electronic channels, such as Web, wireless, and voice technologies
and combines it with e-business applications into the overall enterprise CRM strategy. The goal
is to drive consistency within all channels relative to sales, customer service and marketing
initiatives to achieve a flawless customer experience and maximize customer satisfaction,
customer loyalty and revenue. E-CRM provides to companies a means to conduct interactive,
personalized and relevant communication with customers across both electronic and traditional
channels. It synchronizes communication across joined customer-facing systems and adheres to
permission-based practices, respecting each individuals preferences regarding how and whether
they wish to communicate with the business firm.
The internet has changed the traditional business model of organization it has spawned many
new industries and forced organization to embrace organizational as well as operational changes.
The 1990 saw the emergence of new class of software called CRM (Customer Relationship
Management). The objectives of CRM were to help organization in their marketing sales
management, service and support function. Now customers demanding the same information via
internet, wireless, mobile and PDA technologies. Distinct difference in the technology of CRM
& e-CRM has been identified with the emergence of web based application. It is easy to assert
that using the internet of CRM is now a necessary strategy not a luxury.
This is the era of global completive. Every company making an endeavor to go ahead of its
competition in the market and to earn more and more revenue by capturing the larger share of
the market by using IT. The emergence of information technology and the use of computer in
every field of activities have created a new buzz in the field of marketing and that is the concept
of CRM and its importance is increasing day by day in all most all the organization. e-CRM
derive from CRM techniques which leveraged call centre and direct marketing technology to
market mass produced goods and services to small market sub-segment. e-CRM is essentially
the adaptation of CRM in e-commerce environment and helps build and sustain customer
relationship using the net. It is a net based business strategy that requires development of a set of
integrated software application to deal with all aspects of customer interaction like sales,
marketing field support and customer service. e-CRM exercise would mailing focus upon

acquiring new customer enhancing profitability of existing customer segment high value
customer and maximize life true value of profitable customer.

The concept of CRM and e-CRM

CRM (Customer Relationship Management)
CRM is a term that refers to practices, strategies and technologies that companies use to manage
and analyze customer interactions and data throughout the customer lifecycle, with the goal of
improving business relationships with customers, assisting in customer retention and driving
sales growth. CRM systems are designed to compile information on customers across different
channels or points of contact between the customer and the company which could include the
company's website, telephone, live chat, direct mail, marketing materials and social media. CRM
systems can also give customer-facing staff detailed information on customers' personal
information, purchase history, buying preferences and concerns.

Common features of CRM software include:

1. Marketing automation:
CRM tools with marketing automation capabilities can automate repetitive tasks to enhance
marketing efforts to customers at different points in the lifecycle. For example, as sales prospects
come into the system, the system might automatically send them marketing materials, typically
via email or social media, with the goal of turning a sales lead into a full-fledged customer.
2. Sales force automation:
It is also known as sales force management, sales force automation is meant to prevent duplicate
efforts between a salesperson and a customer. A CRM system can help achieve this by
automatically tracking all contact and follow-ups between both sides.
3. Contact center automation:
It is designed to reduce tedious aspects of a contact center agent's job, contact center automation
might include pre-recorded audio that assists in customer problem-solving and information
dissemination. Various software tools that integrate with the agent's desktop tools can handle
customer requests in order to cut down the time of calls and simplify customer service processes.
4. Geolocation technology, or location-based services:

Some CRM systems include technology that can create geographic marketing campaigns based
on customers' physical locations, sometimes integrating with popular location-based GPS apps.
Geolocation technology can also be used as a networking or contact management tool in order to
find sales prospects based on location.

CRM implementation
The following are the guidelines to follow before CRM is implemented at the company.
1

Develop corporate wide CRM engagement from key shareholders:

Many CRM projects fail because critical stakeholders are not involved in setting CRM
strategy, assessing requirements and selecting options.

Envision the companys CRM strategy:

CRM is more than just a software. It is also about selecting appropriate methodologies and
business practices to help your business enable better relationships with customers. Set some
high level customer relationship goals in areas such as increasing customer retention,
speeding problem resolution, closing a higher percentage of sales etc.
3. Determine and Prioritize CRM drivers and requirements:
Priorities such include solving problems in the areas such s functional areas that are causing
the most pain, cost and missed opportunity for the business, areas where employees are most

or least resistant to changing business, weaknesses compared with competitors, complexity

of each area that require addressing and identifying other systems with which it needs to
integrate.
4. Develop a CRM roadmap:
Develop a master plan consisting of several smaller steps and projects that will take you
towards achieving the corporate CRM vision. For each step spell out key outcomes and
metrics, roles and responsibilities, budgets and timeli:nes. Start with low-risk/high reward
projects to build momentum and success. Make sure all key stake holders in each project are
included up front in solution evaluation and implementation process toe ensure faster, higher
user adoption at the end.
5. Think Integration:
Determine how, where and when CRM tools need to integrate with one another and with
other applications. This includes evaluating the business processes flow, and identifying
process-related customer interactions and transaction that need to be integrated.
6. Do Your Homework and create a short list:
Check out prospective vendors financial and customer references. Talk to peers who have
more experience in the CRM area, search websites and pursue publications.
7. Apply the 80-20 rule in the selection process:
Compare how vendors stack up in terms of solution strengths and weaknesses. Have vendors
spell out terms and conditions, through document pricing, training, methodology, milestones
and metrics for successful deployment.
8. Keep everyone in the loop:
Once you have made a selection, err on the side of over communicating. Get internal
evangelists involved early, and encourages inputs along the way as you roll it out. Offer
flexible training options to help accommodate different schedules and learning preferences.
This will also speed adoption and produce benefits more quickly.
9. Learn, Adjust and Evolve:
Develop a mechanism to monitor use, get feedback and adopt the solution as necessary to
make sure its evolving with business and customer needs. Depending on the type of CRM

package deployed, you can use surveys, ongoing education, user groups and other venues to
stay on top of knowing how these needs are changing, as well as what types of adaptations
the solution will be needed over time.

e-CRM (Electronic Customer Relationship Mangement)

e-CRM is the customer focussed management of the whole e-business relationship with each
customer, in order to measure, create and increase income and reduce costs for each customer &
segment and thus to generate greater positive lifetime value. Simply it means CRM-database
access via the Web. It means Intranet access for internal users, extranet access for business
partners and customers and of course, Internet access for the market at large. It expands the
traditional CRM techniques by integrating new electronic channels, such as Web, wireless, and
voice technologies and combines it with e-business applications into the overall enterprise CRM
strategy. Online CRM implies an additional means of communication and level of interaction
with the customer where there is a real difference in the technology and its architecture, which
allows for ease and self service to customers. It is the customer facing Internet portion of CRM.
It includes capabilities like self-service knowledge bases, automated e-mail response,
personalization of Web content, online product bundling and pricing and so on. It is the concept
is derived from E-commerce. It also uses net environment i.e., intranet, extranet and internet.
Electronic CRM concerns all forms of managing relationships with customers making use of
Information Technology (IT).

Key Features of E-CRM

1. Focused on process-reduces the technology gap.
2. Driven by a Data warehouse
3. Focused on a multi-channel view of customer actions Across channels.
4. Based on consistent metrics to asses customer actions across channels.
5. Built to accommodate the new market dynamics that place the customer in control.
6. Structured to identify a customers profitability or profit potential and determine effective
investment allocation decisions accordingly
7. Scalable to meet growth and performance needs

Key Applications of e-CRM

1. Information integration application

An incomplete view of customers reduces their loyalty and trust
Consolidating customer data and information from different sources
To keep up with every customers interaction
2. Customer analysis application
Measures, predicts, and interprets customer behaviors
Predictive models to identify the customers most likely to perform a particular
activity
Online analytical processing, data mining and statistics
3. Real-time decision application
To coordinate and synchronize communications across disparate customer
An effective real-time decision application promotes information exchange
between the company and every customer
4. Personalized messaging application
Building customer profiles and enables customized product and service offerings
based on the information integration application

Success key factors in implementing e-CRM Strategy

According to Mohammadi (2003); implementing a successful strategy of CRM in a firm
depends on the three key factors:

Training the firms employees

In the field of interaction and contact with customers, employees must pass some specialized
and practical training courses in order to effectively communicate with customers and also gain
the ability to use new technologies.

Review the processes and design new processes

Firms without well and logical design of the processes cannot achieve to their goals. Firms must
define their business needs and goals first and then in order to achieve to these needs and gals
they must improve and develop the processes associated with CRM. Reengineering of the
business processes is one of efficient tools in this sector.

Implementation of new technologies

CRM implementation requires some changes in the organizations infrastructures and

implementing new technologies such as new business rules, databases, information technology,
etc.; these changes lead to useful and effective changes in the organization.

Similarities between CRM and e-CRM

e-CRM is enterprises using IT to integrate internal organization resources and external marketing
strategies to understand and fulfill their customers needs. Comparing with traditional CRM, the
integrated information for e-CRM intra-organizational collaboration can be more efficient to
communicate with customers.
Characteristics
Objective

CRM & E-CRM

They make the companies closer to the

Level of Interaction

customers
They provide the best interaction between

Usage

marketing, sales, service and support

They eliminate and reduce the disconnections

Focus

between customer and company relationships

They both improve upon reality and perception

Media

of personalization
Mail, telephone or in person or the common
customer touch points.

Difference Between CRM and e-CRM

Electronic commerce and the Internet contributed to a change in CRM and the relationship
between the customer and the business. From obtaining customer support to making a purchase
online, consumers wanted options to communicate with a business electronically over the
Internet. ECRM was forged to meet the growing needs of businesses wanting to build and

manage Web-based customer communications and support. The following diagram shows the
difference between CRM and e-CRM
Characteristics
Strategy

Customer Touch Points

Process

Priority of Goals

Emotional Dealings

CRM
It is a business strategy for

E-CRM
It is an extension which

acquiring and maintaining the

includes the electronic channel

right customer

also along with the traditional

Customer touch points or

channel of CRM.
Includes web enabled touch

contacts are through mail

points and fully integrates

telephone or in person.

with the other traditional

This is the manual process

touch points.
This is the menubased

where the human beings will

interaction where the

handle the customers and the

customers will interact

interaction will be direct.

through the applications. This

This is Company centric

communication is indirect.
This is customer centric

mechanism where the

mechanism where the

company objectives and the

customers and their

growth will have highest

satisfaction will have highest

priority.
Emotional dealings will be

priority.
Emotional dealings will be

more because the human

less. Because the machines

beings handle the customers.

and the applications cannot

The human frustrations or the

express their emotions. The

multiple dealings at the same

relationship will be stable.

time can affect the customer

Nature of Transaction

relationship.
Single transaction at a time.

Multiple transactions at the

Because the human being can

same time. Many customers

interact with only one

can log on at the same time

customer at a time. Due to this

and can enter into the dealings

reason the company may lose

with the organization without

the customers because of the

any confusion.

time delay or the frustrations

or may create errors in the

Mode of Communication

dealings
Single mode communication

Multi mode communication.

All the touch points are
accessed and the information
will go to the same data

Data Repository
Man Power

Data Pooling

Multiple data repository

Manpower requirement is

repository
Single data repository
Manpower requirement is very

more and the technical

less and the technical

requirement is less.

browsers, applications, DBMS

Customer data is maintained

requirements will be more.

Customer data is used for

only as a history, which is not

review purpose. The data will

utilized as a customer

be analyzed and the further

intelligence base.

sales pattern will be based on

the existing data. The
algorithms will analyze the
data and the sales models will

The transaction is limited by

be prepared automatically
The transaction can happen at

time geographical factors

any time from anywhere in

Emphasis

Emphasis on customer care

any way.
Emphasis on integration and

Return on

and customer satisfaction

Return on Investment is

better customer integration

Helps in calculating Return on

generally difficult to calculate.

Investment using customer

Less number of campaigns

lifetime value
More number of campaigns

possible.

possible

Constraints

Number of Campaigns

Conclusion
Today the internet is a significant economic and social force and e-mail is the predominant form
of written business communication. The new economy has brought more than just technological
change to business world. The internet has changed the traditional business model of
organization it has spawned many new industries and forced organization to embrace
organizational as well as operational changes. The emergence of CRM was to help organization

in their marketing sales management, service and support function. Through e-CRM, the
customers demanding the same information via internet, wireless, mobile and PDA technologies.
CRM implementation is costing and time consuming on the other hand e-CRM is very fast with
less operational cost

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