Question-1: Discuss the six E’s of eCRM.

Answer: The SIX “E’s” OF E-CRM

The “e” in E-CRM not only stands for electronic but also can be perceived to have

many other connotations. Though the core of E-CRM remains to be cross channel

integration and optimization. The six “e” in E-CRM can be used to frame alternative

definitions of E-CRM based upon the channels which E-CRM utilizes, the issues

which it impacts and other factors, the six “E’s” of E-CRM are briefly explained as

followed:

1. Electronic channels: New electronic channels such as the web and personalized e-

messaging have become the medium for fast, interactive and economic

communication, challenging companies to keep pace with this increased velocity. E-

CRM thrives on these electronic channels.

2. Enterprise: Through E-CRM a company gains the means to touch and a shape a

customer’s experience through sales, services and corner offices whose occupants

need to understand and assess customer behavior.

3. Empowerment: E-CRM strategies must be structured to accommodate consumers

who now have the power to decide when and how to communicate with the company.

Through, which channel, at what frequency? An E-CRM solution must be structured

to deliver timely pertinent, valuable information that a customer accepts in exchange

of his/her attention.

4. Economics: An E-CRM strategy ideally should concentrate on customer

economics, which drive smart asset-allocation decisions, directing efforts at

individuals likely to provide the greatest return on customer communication

initiatives.

5. Evaluation: Understanding customer economics relies on a company’s ability to

attribute customer behavior to market programs, evaluate customer interactions along

various customer touch point channel, and compare anticipated ROI against actual

returns through customer analytic reporting.

1

6. External information: The E-CRM solution should be able to gain leverage

information from such sources as third party information networks and web page

profiler application.

Question-2: What are the components of eCRM?

Answer: eCRM strategy components:

When enterprises integrate their customer information, there are three eCRM strategy

components:

1. Operational: Because of sharing information, the processes in business should

make customer’s need as first and seamlessly implement. This avoids multiple

times to bother customers and redundant process.

2. Analytical: Analysis helps company maintain a long-term relationship with

customers.

3. Collaborative: Due to improved communication technology, different

departments in company implement (intra-organizational) or work with business

partners (inter-organizational) more efficiently by sharing information.

2

Question-3: What are the Differences between CRM and eCRM?

Answer: Major differences between CRM and eCRM:

Subject CRM eCRM

Customer

contacts

Contact with customer made

through the retail store, phone,

and fax.

All of the traditional methods

are used in addition to Internet,

email, wireless, and PDA

technologies.

System interface

Implements the use of ERP

systems, emphasis is on the

back-end.

Geared more toward front end,

which interacts with the back-

end through use of ERP

systems, data warehouses, and

data marts.

System

overhead (client

computers)

The client must download

various applications to view the

web-enabled applications. They

would have to be rewritten for

different platform.

Does not have these

requirements because the client

uses the browser.

Customization

and

personalization

of information

Views differ based on the

audience, and personalized

views are not available.

Individual personalization

requires program changes.

Personalized individual views

based on purchase history and

preferences. Individual has

ability to customize view.

System focus

System (created for internal

use) designed based on job

function and products. Web

applications designed for a

single department or business

unit.

System (created for external

use) designed based on

customer needs. Web

application designed for

enterprise-wide use.

System

maintenance

and

modification

More time involved in

implementation and

maintenance is more expensive

because the system exists at

different locations and on

various servers.

Reduction in time and cost.

Implementation and

maintenance can take place at

one location and on one server.

3