1.What is eCRM?
To understand what eCRM is, first we need to introduce what is CRM.
According to the definition, Customer Relationship Management (CRM) is the combination of guidelines, procedures, processes and strategies that enable the organization to track all consumer information, create and maintain relationships with consumers [1] & [4]. The goal of CRM is by tracking consumer information, define who is the valued consumer of the company, maximize and create long-term relationships with valued consumers by retaining and satisfy them [1].
Today many companies are achieving the CRM though using software applications and Internet technologies. Using software applications and Internet technology to implement CRM can be defined as electronic customer relationship management (eCRM) [2] & [3].
Many organizations today have implemented eCRM and has connected their eCRM system with social media, promote interaction with consumers and results in better sales. Besides, there are more organizations are developing eCRM and trying to connect themselves with the consumer through the internet. To 2030, with the development of internet and social media, to remain competitive in the market, all companies should apply eCRM and connected themselves with the social media.
2. Pitfalls for implement eCRM:
eCRM is facing two pitfalls: Data Integration challenge and High cost of software and hardware
1) Data Integration challenge:
When operating eCRM, to accurately define which consumers are the valued consumers require the company centralize consumer data from all channels and analyse the centralize consumer data (since consumers may be shopping cross different channels and having separate data in different channel ). Centralize all data required different channels is connected or have a centralized data warehouse that connected with all channels. But today many companies with multiple marketing channels do not have a centralized data base, and database of different channels is usually not connected. If eCRM system is not connected with all database, that may cause the eCRM system miss define the value of the consumers. To solve this problem, the company should well develop their information and technology infrastructures before they implement the eCRM system [2].
2) High cost of software and hardware
As introduced earlier, eCRM requires a data connection between different channels. From a technology point of view, to make all channels and departments connected needed the support of a variety of hardware, software applications and tools. Purchase hardware, software and tools may create a huge cost for the companies. So, companies must include the cost of software and hardware in their overall strategic planning, to see if implement eCRM is affordable for them or not [6].
3. Companies that have well applied eCRM systems.
1) Dell
Dell is one of the leading companies in the world that has well implemented electronic customer relationship management system. To facilitate their CRM system, Dell has applied three types of software, including marketing automation software; custom designed Web pages containing purchases data; and a system that benefits Dell's sales, marketing, finance, and management departments [4].
The marketing automation software helps Dell effectively target the right ad to the right consumer, promote marketing communications, and also help Dell monitoring customer and market trends in real-time.
The custom-designed Web pages enable the consumer to build and order their own PC from Dell. By allowing consumer build and order their own PC will allow Dell to create a direct relationship with the consumer and capture consumer's preference data from consumer's order.
Lastly, Dell has collaborated with an information system company to develop up a system to maximize their CRM. This system helped Dell centralized all sales and consumer data. By using this system, Dell staff can easily access to the detailed consumer information, consumer sales history and trade relationships, and then provide a better service to the consumer. By using this system, the marketing department can track consumer activities, product sales and marketing mixes, help the marketing department make new marketing plan [4].
2) Activision
Activision is a famous publisher in the American video game market. Activision is working on provide continued service to its buyers, in this way make the buyer remain satisfied long after they purchased the game from them. To enable the continued service, Activision has implemented two eCRM system: Marketing Cloud and Service Cloudthen. By using Marketing Cloud, Activision can monitor the conversation on the social media that related to their product, enable Activision to find out the problem about their product in the first time. Service Cloudthen would allow Activision to follow up those conversations about Activision on social media, also allow Activision to provide customer service to the consumer through social media. Activision found that after implement customer service on social media their annual customer service operating expenses have decreased by 25% [5].
3) Munchery
Munchery is a small food delivery company. The main business of Munchery is to deliver high-quality food created by talented chefs directly to the consumer. To retain current consumer and attract new consumers Munchery has developed a CRM system. The CRM system involved an integrated proprietary app mobile app that used by the delivery driver, make it possible for consumer make any last-minute change for their order, and in this way result in more stratify consumer and higher return. The CRM system also allows Munchery to monitor performance, check customer satisfaction, also share feedback with chefs [5].
4. How can we improve the efficiency of the eCRM further?
1) Make the CRM software easy to use for employees
Not all the employees inside the organization are computer and network professionals. If the CRM software is too complicated, that may decrease the performance of employee using use software. So, to improve the efficiency of the eCRM, organizations can modify the CRM software to make it easier to operate for the employee [8].
2) Teach employees how to utilize the CRM best
Make CRM software easy to use can be the first step. However, to consistently utilize the CRM effectively, the organization should provide eCRM training for all employees. Organizations can teach employees who is familiar with computer systems first about how to utilize the CRM best to get best results, and then let them show their colleagues how to utilize the CRM best [8].
5. Protect the privacy of consumer
As we mentioned earlier, organizations use eCRM systems to collect consumer data, but collecting consumer data may cause some privacy issues, and may limit the data collection [9]. However, to protect consumer's privacy company should not collect sensitive data from consumer without permission from the consumer, or give consumer data to the third party. Protecting consumer data may limit the data collection in the short run, but protect consumer data will help company building trust with the consumer, which will benefit organizations in the long run.
6. Conclusion:
Overall, implementing the eCRM can connect the company with the consumer, and make companies better understand consumer's requirements, and then allow the company to increase customer satisfaction and finally increase the profitability of the company [6]. Although protecting consumer privacy may limit the data collection, protecting consumer privacy will create trust between consumers and the organization, and benefit the organization in the long run.
In the next 20 years, internet and social media will be more developed, and eCRM will be a necessary tool that enables organizations to connect with the consumer on the internet, and make companies remain competitive in the market.
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