Everything You Need To Know About eCRM
Using various techniques like data mining, companies extract buying trends, patterns, and activities of customers and make conclusions based on this data which helps them to make strategic marketing decisions, which further gives a boost to their business intelligence and marketing strategies.
This article will discuss how small to large businesses are using eCRM mainly in the eCommerce and the travel industries. The audit will identify the best practice actions in eCRM of an eCommerce brand Urbane Man (online store) and two major airline companies, Qantas and Emirates. Various theories of eCRM (like CPA, communication channels, CRM network, etc.) are taken into consideration while doing this analysis. In the end, the scope of improvements will be discussed, followed by recommendations on how to improve the eCRM system in these companies.
eCRM And The Travel Industry
The role of eCRM in the travel industry has been substantial and it is increasing with the growth of internet usage around the globe, with US$60.9 million in retail sales in 2005. This means that customers are visiting airline websites and making their purchases, like buying tickets online, booking hotels, tours, and trips. Many people are now using web searches to plan their holidays.
As per Retail Wire, the annual retail turnover in Australia from 2004 to 2019 has consistently gone up.
CPA (Customer Portfolio Analysis) In B2C
CPA is basically analyzing your target customer in segments. So, basically you make a portfolio of each customer segment or type and then analyze that portfolio using various tools. CPA requires some tools to analyze customers and to balance the value of maximum profitability and the customer perception of service.
The tool of market segmentation is a process to identify customers regarding homogenous characteristics of demand. It is important to segregate customers in different scenarios and with different attributes because it enables the company to have a deep analysis and to classify customers focusing on customer value. The use of customer scenarios provides organizations a guide on how to deliver value, support, and extend customer relationships with the organization.
Network Development In CRM
It is vital for companies to develop a network to deliver value to their customers. This network may include suppliers, owners/investors, partners, and employees. Keeping a successful relationship with all of them can work great for any business.
Relationships with suppliers are critical in order to deliver value to both the organizations and their customers, as suppliers can contribute directly and indirectly to their customers’ competitiveness by helping in product development, new product development, process improvement, and quality management programs.
Organizations have to appeal to investors for investments to implement CRM projects because CRM implementation requires a lot of money for technology, people, automation systems, data integration, and so on. To collect investments effectively for CRM, organizations need to educate them and attract the right kind of core owner.
Partners play an important role in CRM value creation. There are a number of different types of partners: joint venture or alliance partners, category teams, benchmarking groups, regulators, customer advocacy groups, and sponsors. In the airline industry, alliance partners have been very popular. These partnerships help customers as they can access more variety. With airlines, they can access more routes and more options are available to them.
Employees are a part of the network that organizations need to manage since employees can have a huge impact on the process of value creation and customer relationship management applications. Virgin Atlantic practiced this concept by creating a new department to take care of most of their sales calls. They recruited staff for a new sales environment with a bonus scheme measured by Key Performance Indicators and gave them intensive sales training. As it shows, the success of the firm’s employee management, after the implementation of new sales operations, caused the sales conversion rate to jump from 6% in 2002 to 9% in 2005. This resulted in an increase in revenue of 48%.
Communication Channels In eCRM
Unlike the old days, it has become much easier for companies to communicate with their clients via channels like websites, emails, chat, etc. Companies are implementing a variety of methods to increase the communication between their brand and customers. Big Data is helping large firms analyze their customers and reach them easily. Though analyzing Big Data has its own challenges, it has certainly helped large firms increase sales and customer loyalty.