Customer Retention Strategies and CRM on the Internet
Uploaded by Doraemon on Jan 08, 2005
ECRM: CUSTOMER RELATIONSHIP MANAGEMENT IN THE INTERNET ERA
Abstract
Technology has helped fuel the growth of CRM strategies. The evolution of CRM is moving forward with e - business evolutions. eCRM is the new strategy of customer relationship management in the Internet era. This paper addresses the basics of CRM and what is eCRM, explains the relationship between technology and eCRM and introduces the 4 principles of eCRM.
Introduction
The growing waves of merger and acquisition in the international business arena, coupled with broader use of e - technologies, have contributed to increase in the scale of business relationships and also to exponential increase in customer data. It is obvious that who is able to use the data pro - actively, can make a dramatic difference. To exploit business opportunities, more and more companies are rapidly implementing integrated Customer Relationship Management (CRM) systems to make their business processes more customer - focused.
CRM is nothing but the evolution of the business processes. Moreover the definition of CRM will evolve and change over time. It will encompass new components with economy development.
Basics of Customer Relationship Management (CRM)
Defining CRM
CRM stands for Customer Relationship Management. It has been defined in a variety of different ways. For some, CRM is a way to identify, acquire, and retain customers. For others, it is a way of automating the front office functions of sales, marketing, and customer service. For some vendors, whatever their current product may be, that is CRM.
This diversity of definitions is a result of differences in perspectives. The first is based on a business perspective of increasing competition that is driving companies to focus on their customers. The second is based on the relatively new phenomenon of the integration of previously separate applications such as Sales Force Automation and Customer Service Support into Enterprise Applications. The third is a result of software vendors repositioning their information technology products and services under the CRM umbrella, to take advantage of the fast growth of the CRM market.
What is CRM?
"CRM is a comprehensive approach which provides seamless integration of every area of business that touches the customer - namely marketing, sales, customer service and field support - through the integration of people, process and technology, taking advantage of the revolutionary impact of the information technology. CRM creates a mutually beneficial relationship with your customers. It is fundamentally cross-functional, customer - focused business...