UNIT - IV

What is E-CRM?

E-CRM This concept is derived from E-commerce. It also

uses net environment i.e. internet. Electronic CRM
concerns all forms of managing relationships with
customers making use of Information Technology (IT). 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
 ECRM Features
General

Entirely web-based.

Through ECRM application Contact with customer is made through the phone and fax.
Besides, all the other traditional methods are used in addition to Internet, email, and
wireless technologies.

Geared more toward front end, which interacts with the back-end through use of ERP
systems, data warehouses, and data marts.

Personalized individual views based on purchase history and preferences. Individual has
ability to customize view.

System can be designed based on customer needs. Web application designed for
enterprise-wide use.

Reduction in time and cost. Implementation and maintenance can take place at one
location and on one server.
 Security
 Users can be defined with access to only certain options using a role based model.

 Options applicable to certain roles can be graphically configured and users defined as
fulfilling a given role.

 Pages can be encrypted using SSL and ECRM can be configured to only display pages
using SSL to ensure that all information passing over the internet is encrypted.

 Users can be defined to see only certain modules on the main menu - so menu options
that they will not have access to be not even displayed on screen.

 HTTP security can be configured over the top of the inbuilt security to provide two levels
of security the first to access the web-server at all and the second to actually get into web-
Based ERP.

 An audit trail of which users did what is retained and is automatically maintained based
on how long the information is required to be kept.
 Advantage of E-CRM

Increased customer loyalty

An effective ECRM system lets a company communicate

with its customers using a single and consistent voice,
regardless of the communication channel. This is
because, with ECRM software, everyone in an
organization has access to the same transaction history
and information about the customer. Information
captured by an ECRM system helps a company to
identify the actual costs of winning and retaining
individual customers. Having this data allows the firm to
focus its time and resources on its most profitable
customers
More effective marketing

Having detailed customer information from an ECRM system allows a

company to predict the kind of products that a customer is likely to buy
as well as the timing of purchases. In the short to medium term, this
information helps an organization create more effective and focused
marketing/sales campaigns designed to attract the desired customer
audience. ECRM allows for more targeted campaigns and tracking of
campaign effectiveness. Customer data can be analyzed from multiple
perspective to discover which elements of a marketing campaign had
the greatest impact on sales and profitability
Improved customer service and support

An ECRM system provides a single repository of customer information.

This enables a company to serve customer needs quickly and efficiently at
all potential contact points, eliminating the customer’s frustrating and
time-consuming “hunt” for help. ECRM-enabling technologies include
search engines, live help,e-mail management, news feeds/content
management and multi-language support. Withan ECRM system in place, a
company can:

 •more accurately receive, update and close orders remotely

 •log materials, expenses and time associated with service orders
 •view customer service agreements
 •search for proven solutions and best practices
 •subscribe to product-related information and software patches
 •access knowledge tools useful in completing service orders
 Greater efficiency and cost reduction

Data mining, which is the analysis of data for

exploring possible relationships between sets of data,
can save valuable human resources. Integrating
customer data into a single database allows
marketing teams, sales forces, and other
departments within a company to share information
and work toward common corporate objectives using
the same underlying statistics
 Voice Portal

A voice portal (sometimes called a vortal) is a Web portal that

can be accessed entirely by voice. Ideally, any type of
information, service, or transaction found on the Internet
could be accessed through a voice portal.
A mobile user with a cellular telephone might dial in to a voice
portal Web site and request information using voice or
Touchtone keys and receive the requested information from a
special voice-producing program at the Web site.
Voice portal interaction may involve audible speech, speech
recognition or a telephone keypad interface.
There are two major categories: A consumer voice portal
provides general access to information; an enterprise voice
portal provides customized access to customer support.
 Virtual Customer Representative

In customer relationship management (CRM), a virtual agent

(sometimes called an intelligent virtual agent, virtual rep or v-rep)
is a chatterbot program that serves as an online customer service
representative for an organization. Because virtual agents have a
human appearance and respond appropriately to customer
questions, they lend automated interactions a semblance of
personal service. Combining artificial intelligence with a graphical
representation, virtual agents are increasingly used in CRM to help
people perform tasks such as locating information or placing orders
and making reservations.
Customer response to the use of virtual agents has been largely
positive. Typically, people talk to a virtual agent longer than they do
to an actual person, perhaps because talking to a responsive,
personalized computer program is a novelty. Virtual agents are
usually scripted to respond to a wide variety of questions and
remarks.
 Functional Component Of CRM

CRM applications are a convergence of functional components, advanced technologies

and channels. Functional components and channels are described below:

Sales applications
Common applications include calendar and scheduling, contact and account
management; compensation; opportunity and pipeline management; sales forecasting;
proposal generation and management; pricing; territory assignment and management;
and expense reporting.

Marketing applications
These include web based and traditional marketing campaign planning, execution, and
analysis; list generation and management; budgeting and forecasting and marketing
materials management.

Customer service and support applications.

These include customer care; incident, defect and order tracking; field service; problem
and solution database; repair scheduling and dispatching; service agreements and
contracts; and service request management.
 Database Management System (DBMS)
A database management system (DBMS) is a collection of program
that enables you to store, modify, and extract information from a
database. There are many different types of DBMSs, ranging from
small system that run on personal computer to huge systems that
run on mainframes. The following are examples of database
application:

 computerized library systems

 automated teller machines
 flight reservation systems
 computerized parts
 inventory systems

Some DBMS examples include MySQL, Microsoft Access, SQL

Server, Oracle, RDBMS, and FoxPro etc.
 Database Construction

 A good database is designed for a specific use and is

constructed with the possibility of growth.

Like web sites, "one size fits all" only ensures that
our database may not have the flexibility we need.
Our database may fail to collect the information that
we want and need for our business; or it may fail to
provide our customers all the information they need
to made a purchasing decision.
 Definition of Data Warehouse

The electronic storage of a large amount of

information by a business. Warehoused data must be
stored in a manner that is secure, reliable, easy to
retrieve and easy to manage. The concept of data
warehousing originated in 1988 with the work of
IBM researchers Barry Devlin and Paul Murphy. The
need to warehouse data evolved as computer systems
became more complex and handled increasing
amounts of data.
 The Data Warehouse Architecture

The architecture consists of various interconnected

elements:

 Operational and external database layer – the source

data for the DW

 Information access layer – the tools the end user access

to extract and analyze the data

 Data access layer – the interface between the

operational and information access layers

 Metadata layer – the data directory or repository of

metadata information
Components of the Data Warehouse Architecture
 The Data Warehouse Architecture

Additional layers are:

 Process management layer – the scheduler or job

controller
 Application messaging layer – the “middleware” that
transports information around the firm
 Physical data warehouse layer – where the actual data
used in the DSS are located
 Data staging layer – all of the processes necessary to
select, edit, summarize and load warehouse data from the
operational and external data bases
 Data Mining

Process of semi-automatically analyzing large

databases to find patterns that are:

 valid: hold on new data with some certainty

 novel: non-obvious to the system
 useful: should be possible to act on the item
 understandable: humans should be able to interpret the
pattern

Also known as Knowledge Discovery in Databases (KDD)

 Characteristics Of A Data Mining System

 Large quantities of data

The volume of data so great it has to be analyzed by automated

techniques e.g. satellite information, credit card transactions
etc.
 Noisy, incomplete data

Inexact data is the characteristic of all data collection.

 Complex data structure

conventional statistical analysis not possible

 Heterogeneous data stored in legacy systems
 DATA MINING TOOLS

Most data mining tools can be classified into one of

three categories:

1. Traditional data mining

2. Dashboards
3. Text-mining
Traditional Data Mining Tools.

Traditional data mining programs help companies establish data patterns and
trends by using a number of complex algorithms and techniques.

Dashboards

Installed in computers to monitor information in a database, dashboards reflect

data changes and updates onscreen — often in the form of a chart or table —
enabling the user to see how the business is performing.

Text-mining Tools

The third type of data mining tool sometimes is called a text-mining tool because of
its ability to mine data from different kinds of text — from Microsoft Word and
Acrobat PDF documents to simple text files, for example. These tools scan content
and convert the selected data into a format that is compatible with the tool's
database, thus providing users with an easy and convenient way of accessing data
without the need to open different applications.
 DATA MINING TECHNIQUES

In addition to using a particular data mining tool,

internal auditors can choose from a variety of data
mining techniques.

 Artificial neural networks

 Decision trees
 Nearest-neighbor method.
Artificial neural networks

Neural networks have been used to solve a wide variety of tasks that
are hard to solve using ordinary rule-based programming, including
computer vision and speech recognition.

Decision trees

It is tree-shaped structures that represent decision sets. These

decisions generate rules, which then are used to classify data.
Auditors can use them to assess, for example, whether the
organization is using an appropriate cost-effective marketing
strategy that is based on the assigned value of the customer, such as
profit
The Nearest- neighbour Method

This Method classifies dataset records based on

similar data in a historical dataset. Auditors can use
this approach to define a document that is
interesting to them and ask the system to search for
similar items.
 Significance of Data Mining

1. Significance of Data Mining In today’s competitive world,

every business has to fight huge competition to achieve
success. So it is necessary for every business organization to
collect large amount of information like employee’s data,
Sales data, customer’s information, market analysis reports,
etc

2. Sales and transactions, detection of beneficial patterns,

minimizing risk and increasing ROI [Return on Invesment]
and understanding clear business problems and goals
 Call Center

Telephone service facility set up to handle a large

number of (usually) both inbound and outbound
calls. Some firms, however, specialize only in calls
that are inbound (for assistance, help, or ordering) or
outbound (for sales promotion or other messages).
Most telephone orders are handled by call centres
and not by the manufacturers or suppliers of goods
or services.
 Multimedia Contact
Center

Allowing customers to choose the contact method

most convenient for them - phone, e-mail, fax, SMS,
chat or web – provides an overall improved customer
experience.
 Important CRM Software's

 FOR SEE CUSTOMER NEEDS

 DETAILS OF A CUSTOMER
 GROUPING CUSTOMERS
 ACQUIRING NEW CUSTOMERS
 COST EFFECTIVE
 HANDY DETAILS
 CUSTOMER SATISFACTION
 CUSTOMER LOYALTY
 Web Phones

 It is also known as Internet Protocol telephony. Web

phone technology supports voice communication
over the internet, obviating the need for the
telephone network. this allow a fuller integration of
voice and textual data. several companies including
3Com,Cisco and Mitel are experimenting with IP
telephony system that can be applied to CRM