Online Tutorial T1Electronic Customer Relationship Management (e-CRM)ContentT1.1 Introduction and DefinitionsT1.2 e-CRM ApplicationsT1.3 e-CRM Implementation IssuesT1.4 Resources for the TutorialT1.1 INTRODUCTION AND DEFINITIONSThis tutorial is dedicated to e-CRM. Prior knowledge of CRM is assumed.However, we will cover some aspects of traditional CRM in the tutorial. Werecommend that the student read the tutorial by Wailgum (2013) and readthe e-CRM and related entries in Wikipedia prior to reading this tutorial relationship management.CUSTOMER RELATIONSHIP MANAGEMENT DEFINEDCustomer relationship management (CRM) is an umbrella term for abusiness model and a set of operating practices of all aspects of theinteraction of a company with its customers. CRM is coordinated and alignedwith the company’s business processes to maximize revenue from targetedcustomers, while providing the best experiences. CRM is based on theassumption that customers are the core of a business and that a company’ssuccess depends on effectively managing its relationships with them. Theterm relationship is not clear. However, in this tutorial, a relationship is saidto exist if there are “a series of interactive episodes between two or moreparties over time” (Greenberg 2009).For 21 other different definitions by CRM experts, see Petersen (2012).E-CRM DEFINED

Most CRM programs, applications, and services today depend more heavilyon IT than in the past. These programs, software applications, and servicesconstitute part of what is known as electronic CRM (e-CRM).Electronic CRM (e-CRM) is electronically delivered or managed CRM.It covers all aspects of managing relationships with customers for caseswhen information technologies are used. It arises from the interaction oftraditional CRM with e-business applications and the Web. E-CRM deals withthe broad range of information technologies used to support a company'sCRM strategy (e.g., see Baran and Galka 2013). The overall goal iseffectively managing differentiated relationships with customers andcommunicating with them on an individual basis. Since almost all CRMpackages use some IT, the terms CRM and e-CRM are used interchangeablyby many.WIKIPEDIA COVERAGE OF CRM AND E-CRMWikipedia has a major, comprehensive entry entries at Wikipedia are: of CRM systems: evaluatesthe major CRM systems of the major vendors on several criteria CRM: includes on-demand and SaaSCRM, social CRM, Siebel CRM, and many other resources Systems: also, see siebelguide.comfor CRM tutorials (Siebel Systems is an Oracle company) relationship management:comprehensive coverage of CRM, including benefits, challenges, types,strategy, implementation, and more.THE TRANSITION TO SOCIAL CRMCRM and e-CRM are evolving into social CRM, as described in Chapter 7.

For the benefits of social CRM, its tools and procedures see Turban andStrauss (2014). Social CRM is driven by the social customer as describednext.The Social CustomerToday’s empowered customers are referred to as social customers. Theseare customers who are usually members of social networks, share opinionsabout products, services, and vendors, and do social shopping. They alsounderstand their rights as customers and how to use the wisdom and powerof crowds in communities for their benefit. The highlights of social customersare shown in Exhibit 1.9 in Chapter 1.The social customer exhibits unique behavior patterns. Socialcustomers choose how they interact with companies and companies’ brands.This poses challenges to enterprises such as handling increased datavolume, coordinating dynamic channels, and dealing with high customers’expectations. The customers' new behavior patterns require an innovativestrategy for both marketing communication and customer service. The socialcustomer is engaging and participatory, and has active involvement inbusiness, both as a buyer and as a products' evaluator and shoppinginfluencer. Individuals are influenced by friends, friends’ friends, etc.Merchants must understand how social consumers (and their numbers areincreasing exponentially) differ from conventional customers, and thereforeprovide them with appropriate customer service. For an extensive discussionof today’s social customer, see Metz (2011).E-CRM applications are offered by hundreds of software companies andthey appear in a large variety. One way to organize them is by the PatriciaSeybold Group classification.T1.2 E-CRM APPLICATIONSThe Patricia Seybold Group ( focuses on CRM and e-CRMfrom the customer’s point of view. A customer is interested in simplified,

straightforward, honest, consistent, interaction and relationships with acompany. Toward this end, the Patricia Seybold Group concentrates onapplications used to make it easy for a customer to do business with acompany. It distinguishes among customer-facing, customer-touching, andcustomer-centric intelligence CRM applications. It also includes onlinenetworking applications that enable customers to interact more closely withcompanies and other customers. Exhibit T1.1 shows these three categoriesof applications, as well as how customers interact with these applications(i.e., networking). Customer-facing applications. These include all the methods and areaswhere customers interact with the company: call centers (including help

desks), sales force automation, and field service automation. Such CRMapplications automate information flow or support employees in sales orservice while interacting with customers. Customer-touching applications. In this category, customers interactdirectly with the applications. Notable are self-service activities, such asFAQs, campaign management, self-configuration and design, andgeneral-purpose EC applications. Several applications in social networksbelong to this category. Customer-centric intelligence applications. These applicationsanalyze the results of operational processing and use the results of theanalysis to improve CRM applications. Web analytics and CRM analyticsare the major topics here. Online networking applications. Online networking refers to methodsthat provide the opportunity to build personal relationships with a widerange of people. These include chat rooms, blogs, wikis, discussion lists,and social network sites.These four categories of applications are used to organize ourpresentation of applications in the remainder of this section.CUSTOMER-FACING APPLICATIONSCustomer-facing applications are those where customers interact with acompany. The primary application is Web-based call centers, also known ascustomer interaction centers or customer centers, or customer service.Customer Interaction CentersA customer interaction center (CIC) is a comprehensive customerservice entity in which selling companies take care of customer serviceissues communicated to the CIC through various contact media. Amultichannel CIC works like this: (1) A customer makes contact via one ormore channels. (2) The system collects information from the customer andintegrates it with a database, then determines a service response. (3) The

system directs the customer to either a self-service or a human agent. (4)The service is provided to the customer (e.g., the customer’s problem isresolved or the question is answered).An example of a well-managed integrated call center is iRobot’scustomer support group. The center, which provides several cross-channelcustomer touch points, is detailed in Chapter 7. As the case shows, thepayoff from multichannel support is based on strong channel integration. Formore examples of CICs and call centers, see Response to E-Mail (Autoresponder)The most popular online customer service tool is e-mail. Inexpensive andfast, e-mail disseminates information and corresponds on many activities,including responses to customer inquiries.The ease of sending e-mail messages has resulted in a flood ofcustomer e-mails. Some companies receive tens of thousands of e-mails aweek, or even a day. Answering these e-mails manually would be expensiveand time-consuming. Customers want answers quickly, usually within 24hours (a policy of many organizations). Several vendors offer automated email reply systems known as autoresponders, which provide answers tocommonly asked questions. Autoresponders, also called infobots or e-mailon demand. They can be text files that are returned via e-mail, automaticallyon demand. They can relay standard information to support of customerservice, marketing, and promotions (for example, see companies do not provide actual answers in their automaticresponses, but only acknowledge that a query has been received. In thesecases, customer queries are classified in a decision-support repository until ahuman agent logs in and responds.AUTOMATED LIVE CHAT

Instead of using autoresponders (or in addition to them), companies can usean automated ‘Live Chat.’ There are several types; some are real-timeautoresponders. They allow you to choose a question from an FAQ menu andthe program provides you with the corresponding FAQ answer. Others allowyou to use natural language processing, such as the eGain system, to chatwith an avatar.Example. The eGain system ( looks for certain phrases orkeywords, such as complaint or information on a product, and then taps intoa knowledge base to generate a pre-programmed (canned) matchingresponse to standard questions. For messages that require human response,the message is assigned an ID number and passed along to an appropriatecustomer agent for a reply. Exhibit T1.2 shows this process. Note that theanswers and their relationships to problems (questions) are stored in aknowledge base, and are updated each time a human agent provides a newsolution. Such systems are known as e-mail response management (ERM)systems.

Sales Force AutomationSalespeople constitute one of the major contact points with customers (bothindividuals and businesses). The more computer support salespeople haveavailable, the better, quicker, and more accurate service they can provide tocustomers. Sales force automation (SFA) refers to computer applicationsthat support the selling efforts of a company’s sales force, helpingsalespeople to manage leads and prospects and assist customers throughoutthe purchasing process. An example of such an application is a wirelessdevice that allows instant communication with the corporate intranet. Forfurther discussion of SFA applications and issues, see Service AutomationField service employees, such as repair people, are moving all the time, andthey interact directly with the customers. Field service representativesinclude repair people or inspectors (e.g., from the telephone or electriccompany) who go to customers’ sites. Providing service employees withmobile devices can increase customer service. Field service automationapplications support the customer service efforts of field service reps andtheir managers. These applications manage customer service requests,service orders, service contracts, service schedules, and service calls. Theyprovide planning, scheduling, dispatching, and reporting features to fieldservice representatives. Examples are wireless devices, such as provided inSFA.CUSTOMER-TOUCHING APPLICATIONSCustomer-touching applications are those where customers use interactivecomputer programs rather than interacting with people. The following arepopular customer-touching applications.Personalized Web Pages

Many companies provide customers with tools to create their own individualWeb pages (e.g., MyYahoo!). Companies can efficiently deliver customizedinformation, such as product information and warranty information, whenthe customer logs on to their own personalized page. Not only can acustomer pull information from the vendor’s site, but the vendor can alsopush information to the consumer. In addition, these Web pages can recordcustomer purchases and preferences. Typical personalized Web pagesinclude those for bank accounts, stock portfolio accounts, credit cardaccounts, and so on. On such sites, users can see their balances, records ofall current and historical transactions, and more.Web Self-ServiceThe Web environment provides an opportunity for customers to servethemselves. Known as Web self-service, this strategy provides tools forusers to execute activities previously done by corporate customer servicepersonnel. Probably the best known and most frequently used Web selfservice systems are the package tracking systems provided by shippingcompanies such as FedEx and UPS. In the past, if FedEx, USPS, or UPScustomers wanted to know the whereabouts of a package, they had to call arepresentative, give the information about their shipment, and wait for ananswer. Today, customers can go to a website, insert their trackingnumbers, and view the status of their packages.Self-service applications can be used with customers and withemployees, suppliers, and any other business partners. This was illustratedin iRobot’s service support (Chapter 7). It is also exemplified by the selfservice provided by Canon’s customer support unit (see Consona 2008 and2009 for details).Customer self-service through FAQs. Most websites provide a“frequently asked questions” (FAQ) page. An FAQ page lists questions thatare frequently asked by customers along with the answers to those

questions. By making an FAQ page available, customers can quickly andeasily find answers to many of their questions, saving time and effort forboth the website owner and the customer. An effective FAQ page: Is easy to find the FAQs on the site and locate items there. Loads fast (which is why it’s usually text). Makes it simple to locate the questions (which are usually summarizedat the top). Answers questions from the customer’s perspective. Does not repeat information provided elsewhere. Provides an opportunity to easily ask a question not in the FAQ. Is frequently updated with new questions.Self-configuration and customization. One of the best ways tosatisfy customers is to provide them with the ability to customize productsand services. This is especially true for complex products with many options.This is why many build-to-order vendors, from Dell to Mattel, providecustomers with tools to self-configure products or services. In addition,social communities such as Polyvore facilitate self-configuration. Usually, theconfigured order is linked directly to production so that production activitiesare based on real customer demand.CUSTOMER-CENTRIC APPLICATIONSCustomer-centric applications appear in different types. An example is CRManalytics. CRM analytics refers to the use of business analytic techniquesand business intelligence such as data mining and online analytic processing(e.g. see Sharda et al. 2014) when they are applied to CRM situations.These programs can be used to analyze the issues and behaviors of thecompany’s customers.Analytics Tools

The main tools used in CRM analytics include reporting, online analyticalprocessing (OLAP), data mining, and Web analytics. For details, cs.CRM analytics lead to not only better and more productive customerrelations in terms of sales and service, but also to improvement in planningand analysis of advertising, marketing strategies, and supply chainmanagement (lower inventory and speedier delivery), and thus, lower costsand more competitive pricing.CRM analytics frequently include presentation and visualization (e.g.,using dashboards). For examples, search Google for ‘images of CRManalytics’.ONLINE NETWORKING AND OTHER APPLICATIONSOnline networking and other applications support communication andcollaboration among customers, business partners, and company employees.Notable are systems such as Twitter and communications via social networkcommunication facilities (see “Customer Service” in Chapter 7). See alsoLive Chat Software (2008).T1.3 CRM IMPLEMENTATION ISSUESAccording to Greenberg (2009), Buttle (2009), and Seybold (2008), inaddition to technology, factors such as culture, commitment of topmanagement, and communication lead to CRM success. This is why most ofthe critical steps in implementing an enterprise CRM revolve around internalprocesses and are centered on the customer. These steps include a focus onthe end customer—systems and business processes that are designed forease of use, the customer’s point of view, and the efforts to foster customerloyalty (a key requirement for profitable EC). Some of the major steps,which are shown next, are valid for B2C and B2B CRMs.Commented [J1]: ET: missing in Refs

1. Customer-centric strategy. A customer-centric strategy should beestablished first at the corporate level. The strategy must be based onand consistent with the overall corporate strategy and must becommunicated across the entire organization.2. Commitment from people. The more people across the corporation thatcommit to the transformation to CRM strategy, the more likely the CRMimplementation will succeed. For example, employees should be willing tolearn the necessary technological skills.3. Improved or redesigned processes. It may be difficult to identify andanalyze the processes that are included in CRM. It may then be necessaryto redesign some of the processes when implementing CRM.4. Software technology. CRM software can record business transactions,create operations-focused databases, facilitate data warehousing anddata mining, and provide decision-making support and marketingcampaign management tools. Companies should select the appropriateCRM packages to meet specific corporate CRM needs. The package alsoneed to beable to integrate with legacy enterprise applications, such asthe ERP system. Representative CRM vendors are Oracle, SAP,, Microsoft, and Infor. There are also a number of majorCRM consultants in the areas of: CRM strategy (e.g., McKinsey), businessconsulting (e.g., Accenture), application consulting (e.g., CGEY), technicalconsulting (e.g., IBM), and outsource providers (e.g., Acxiom).5. Infrastructure. Effective CRM implementation requires a suitablecorporate infrastructure. This infrastructure includes network setup,storage, data backup, computing platforms, and Web servers. However,only effective corporate infrastructure integration can provide solidsupport for CRM implementation.CRM FAILURES

There is evidence that many CRM projects are disappointing at the beginningof their use and require remediation mostly because companies do notmanage them properly. Greenberg (2009) offers an extensive methodologyon how to implement CRM. For a case study of failure in e-CRM, seeMcLaughlin (2009).INTEGRATING E-CRM INTO THE ENTERPRISESome CRM applications are independent of enterprise systems. However,many CRM applications must be integrated with other information systems.Let us see why.CRM lies primarily between the customers and the enterprise. Thecommunication between the two is done via the Internet, social networks,regular telephone, snail mail, and so on. However, to answer customerqueries, it is frequently necessary to access files and databases. In mediumand large sized corporations, these are usually part of a legacy systemand/or ERP system. Companies may check data relevant to a customer orderwith their manufacturing plants, transportation vendors, suppliers, or otherbusiness partners. Therefore, CRM needs to interface with the supply chain,and do so easily, inexpensively, and expeditiously. In addition, CRM must beintegrated with the data warehouse because it is easier to build applicationsusing data in the warehouse than using data residing in several internal andexternal databases. Finally, CRM itself collects customer and product data,including clickstream data. These need to be prepared for data mining andother types of analysis.The integration of ERP and CRM must include low-level datasynchronization as well as business process integration, so that the integrityof business roles can be maintained across systems, and workflow tasks canpass between the systems. Such integration also ensures that organizationscan use business intelligence across systems.ON-DEMAND CRM

Because of the difficulties associated with implementing a large-scale CRMsystem, many companies are turning to on-demand CRM. Like several otherenterprise systems, CRM can be delivered in two major models—on-premiseand on-demand (see Bright 2010). The traditional way to deliver suchsystems was on-premise—meaning users purchased the system andinstalled it on its premises. This was very expensive with a large upfrontpayment. Many small and medium-sized companies could not justify this,especially because most CRM benefits are intangible. The on-demandapproach is also known as CRM as a Service, and it is a part of cloudcomputing (Online Tutorial T2).The on-demand solution to the situation, which appears in severalvariations and is known by different names, is to lease the software.Initially, this was done by application service providers (ASPs), mostly forSMEs. Later, pioneered the concept for its several CRMproducts (including supporting salespeople) under the name of on-demandCRM, offering the software over the Internet. On-demand CRM is CRMhosted by an ASP or other vendor on the vendor’s premises, which is incontrast to the traditional practice of buying the software and using it onpremises. According to Hayes-Weier (2009), the hype surrounding hosted,on-demand CRM must be weighed against the following implementationpotential problems:1) Many ASPs filed for bankruptcy, leaving customerswithout service. 2) It is difficult, or even impossible, to modify hostedsoftware. 3) Upgrading could have become a problem, 4) relinquishingstrategic data to a hosting vendor could become a risk. Finally, 5)theintegration issues described previously maybe difficult since the vendor'simported application may not fit internal systems. The benefits are:improved cash flow due to savings from an up-front purchase, no need forcorporate software experts, ease of use, fast time-to-market, and the use ofvendors’ expertise.

CUSTOMER SERVICE AND E-CRMCustomer service and e-CRM can be provided in a number of different ways.For example, Lowe’s Companies, Inc. seeks to improve customer service onits website ( by providing a “do-it-yourself” information portal(e.g., offering information about how to install a ceiling fan or fix paintproblems). Such information may already be available online, since thecompany also uses it to train service personnel. EC-based banking sitesoften add customer value by lowering risks and providing informationrelating to the last successful log-on and the number of unsuccessful log-onattempts. Online prescription drug companies, such as Express Scripts(, proactively provide information on their websitesand via e-mail concerning prescription refills and drug recalls.Unfortunately, recent surveys of e-CRM applications have continued toshow mixed payoffs. Thus, only a few companies have demonstrated asignificantly positive ROI for their e-CRM investments. However, theintangible benefits can be significant, and not providing e-CRM can hurt thecompetitive position of a company.FUTURE DIRECTIONS OF CRMGreenberg (2009) and others point to the following future direction of CRM: The importance of customers will grow. Corporate strategies for CRMwill be structured around enriching customer experience. CRM ondemand and CRM as a service will be the major CRM technologies.Companies like SugarCRM ( will effectively competewith CRM as a Service (Hayes-Weier 2009). There will be better metrics and methods to justify CRM. CRM will be integrated more often with strategies for socialnetworking. Mobile CRM will grow exponentially.

T1.4 RESOURCES FOR THE TUTORIALVIDEOS1. What Is CRM? (7:20 minutes) BMtv6sbmdLc&feature related2. e-CRM Presentation Amr Selim (#1) (11:43 minutes) lJDkmMtmYVI3. The Business Value of CRM (8:14 minutes) Qtum-H5LcoQ&feature related4. Customer Relationship Management and Dynamics CRM Online (8:41minutes) mMXhmZWMINg&feature related5. E-mail Templates and Quick Campaigns in Dynamics CRM (4:18 minutes) mail templates and quick campaigns in dynamics crmBOOKS (in addition to the reference list)1. Finnegan, D., and L. P. Willcocks. Implementing CRM: From Technologyto Knowledge. Hoboken, NJ: Wiley Series in Information Systems 2007.2. Goldenberg, B. J. CRM in Real Time: Empowering Customer Relationships.Medford, NJ: Cyberage Books, Inc., 2008.3. Ratametha, T. CRM: Software as a Service versus On-Premise—Benefitsand Drawbacks. Saarbrücken, Germany: LAP Lambert AcademicPublishing, 2009.JOURNALS AND ONLINE RESOURCES1. International Journal of Electronic Customer Relationship Management(IJECRM) ijecrm2. CRM Daily crm-daily.com3. 1to1 Media : Customer strategy articles, trends andbest practices.

4. CustomerThink Articles, blogs, interviews, andnews.5. Good Experience Blog (by Mark Hurst)focusingon customers’ experiences with the Internet.ADDITIONAL RESOURCES1. A large number of tutorials, e-books,whitepapers (many free), CRM company directories, case studies, andmuch more.2. Download the free CRM guides.3. Download CRM: A BusinessImperative for Companies during the Global Economic Downturn, Whitepaper: Sage SalesLogix.4. E-book (free), from Unica (an IBM company): The Interactive MarketingeBook (2011).5. White paper: Connect and EmpowerMobile Salespeople, ORACLE.6. ResourceCenter: Many resources.7. ement(CRM)-Tutorial/a42p1: A CRM tutorial.8. : Search for PeopleSoft-enterprise and CRM.9. A comprehensive search for CRM topics.REFERENCESBaran, R.J., and R.J. Galka. CRM: The Foundation of ContemporaryMarketing Strategy, New York, NY: Routledge, 2013.Bright, M. “Know Who. Know How: Oracle CRM On Demand Turns CustomerKnowledge into Business Success.” Oracle Magazine, January/February2010. 0crm-086009.html (accessed April 2013).

Buttle, F. Customer Relationship Management 2nd ed. Burlington, MA:Taylor & Francis, 2008.Consona. “Canon Customers Get Great Service Thanks to Canon ITS andConsona.” Consona Knowledge Management A case study n-casestudy.pdf(accessed April 2013).Greenberg, P. CRM at the Speed of Light: Social CRM 2.0 Strategies, Tools,and Techniques for Engaging Your Customers, 4th ed. New York:McGraw-Hill, 2009.Hayes-Weier, M. “CRM as a Service Offered in New Options.”Informationweek, February 2, 2009.Live Chat Software 2008.McLaughlin, S. “The Imperatives of E-Business: Case Study of a FailedProject.” Journal of Business Strategy, 30 no. 1 (2009).Metz, A. The Social Customer: How Brands Can Use Social CRM to Acquire,Monetize, and Retain Fans, Friends, and Followers. New York: McGrawHill, 2011.Petersen, R. ”21 Experts Define CRM in Their Own Words and Pictures."BarnRaisers, June 9, 2012. rds-pictures (accessed April 2013).Seybold, P. “Rethinking CRM: Provide Customers the Information They CareAbout in a Seamless Fashion.” Patricia Seybold Group mless-fashion (accessed April2013).Sharda, R., et al. Business Intelligence, Upper Saddle River, NJ:Pearson/Prentice Hall, 2014.Turban, E., and J. Strauss. Social Commerce. Upper Saddle River, NJ:Pearson/Prentice Hall, 2014.Commented [J2]: ET: add please

Wailgum, T. “CRM Definition and Solutions.”, April Definition and Solutions, (accessedApril 2013).GLOSSARYautorespondersAutomated e-mail reply systems, which provide answers to commonly askedquestions.customer interaction center (CIC)A comprehensive service entity in which EC vendors address customerservice issues communicated through various contact channels.CRM analyticsApplying business analytic techniques and business intelligence such as datamining and online analytic processing as they apply to CRM applications.customer relationship management (CRM)An umbrella term for a business model and a set of operating practices of allaspects of the interaction of a company with its customers.electronic CRM (e-CRM)Electronically delivered or managed CRM.FAQ pageA Web page that lists questions that are frequently asked by customersalong with the answers to those questions.on-demand CRMCRM hosted by an ASP or other vendor on the vendor’s premises, which is incontrast to the traditional practice of buying the software and using it onpremises.sales force automation (SFA)

Computer applications that support the selling efforts of a company’s salesforce, helping salespeople to manage leads and prospects and assistcustomers throughout the purchasing customersCustomers who are usually members of social networks, share opinionsabout products, services, and vendors, do social shopping, and understandtheir rights and how to use the wisdom and power of the crowds andcommunity members to their benefit.Web self-serviceActivities conducted by users on the Web to find answers to their questions(e.g., tracking) or for product configuration.

Online Tutorial T1 Electronic Customer Relationship Management (e-CRM) Content T1.1 Introduction and Definitions T1.2 e-CRM Applications T1.3 e-CRM Implementation Issues T1.4 Resources for the Tutorial T1.1 INTRODUCTION AND DEFINITIONS This tutorial