Page 191 - DMGT308_CUSTOMER_RELATIONSHIP_MANAGEMENT

Customer Relationship Management

Notes rarely connect to each other thus precluding the sharing of information between channels
and preventing meaningful cross-channel connections for a customer. For example, a call
centre agent may be careless to a complaint that a customer registered that day through
e-mail. Nor would the agent be aware of customer behaviour on the Website.
To further complicate the problem each touch point application has its own terminology
or ID numbers assigned to offers available to customers. While it is a desirable goal to
synchronies customer communications across channels, disparate applications and the
lack of standard identifiers for offers and messages make it difficult to track “who received
what and when” and how they responded. In the end, companies have created an
environment with conflicting business processes for customer communications.

Notes An e-CRM solution must have applications that coordinate or synchronies customer
communications across channels and do so in real-time. These applications must be able
to capture customer transactions across disparate touch points and store that information
in a temporary data store for immediate assessment and response. In addition, these
applications must feed information captured from those touch points into the data
warehouse, to broaden the customer profiles obtained from back-end transactional systems
and external sources.

4. Measurement driven: Today, many companies spend millions of dollars communicating
with customers, but spend little time and effort determining the effectiveness of those
campaigns. E-CRM provides the means to measure communications efforts.

The disparities between customer touch point systems can make the establishment of consistent
metrics difficult. Thus, cross-channel coordination becomes important for establishing a metrics
baseline. Effective measurement enables companies to target their customer investments in an
optimal fashion across all channels.
To identify potential value, e-CRM solution depends on certain process techniques, and extensive
customer profile within a data warehouse, and evaluation tools that can identify clues relevant
to a customer’s expansion potential. Targeted cross-sell and up-sell campaigns can then be
devised to optimize customer value.

ERP and CRM

ERP implementation is an expensive and long drawn affair that requires the best efforts of the
most competent team drawn from the middle and senior management of the company. Typical
team size is 60 to 70 from within the company and an equal number from the implementation
partner. Substantial time of top management is also a pre-requisite to ensure that quick decisions
are given for any bottleneck that may arise.
1. The typical time period for implementation is 24 to 30 months. This can be crashed to
some extend but not beyond a point.

2. The cost of software and the implementation partners’ fee together can be in the region of
` 50 to 70 crores. This is after excluding the cost of other resources such as new hardware,
additional office space, etc.
3. Why are we talking of ERP on a seminar on CRM. Because we feel that CRM cannot be
effective in a company that does not have a back office information setup.
4. Modern day ERP offerings have many features that closely resemble the best of CRM
software.

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