The E-CRM Platform Design and Implementation - Coursework Example

?Running head: The E-CRM Platform Design and Implementation The e-CRM platform design and implementation Insert Insert Insert Instructor’s Name 25 September 2011 The e-CRM platform design and implementation Introduction The modern world is being characterized by use of computers to accomplish many functions and activities humans in different regions need to perform. As a result, information technology and specifically internet has become an aspect in the lives of many people that its absence would results in standstill of many activities. One of the products of information technology is online retailing, which today stand tall as one of the sectors gaining popularity around the world (Mould 2006). In many parts of the globe, use of internet or web-based sites to purchase or sell products or services is gaining momentum. For instance, there are many online retail businesses such as e-bookselling, e-tourism, e-fashion sale, and even e-transport. As the issue of online retailing becomes live in the 21st century, there is another issue of electronic customer relationship management (e-CRM) that key stakeholders have to grapple with. As a result, there is popular view that success of online retailing will result from effective establishment and implementation of e-CRM platform tools (Reponen 2003). Online retail industry Online retailing is a sector that many predictions points to its robust growth. The growth is associated with increasing use of computers in many aspects of the economy and the increasing social networking that is web-based. Heinemann and Schwarzl (2010) observe that the increasing utilization of the internet by many people across the world as an information portal and the subsequent movement of people to social relationships using the Web are likely to see growth of online retail. At the same time, in 2003, research by Forrester Research Group ascertained that, online retail was to grow from $95.7 million in 2003 to $229.9 billion by the year 2008 (Krishnamurthy, 2006). Further, online retail was to account for 10% of total USA retail sales by 2008, with recent figures indicating this figures have increased (Krishnamurthy 2006). As a result, e-CRM in online retailing has become an issue that stakeholders with future sustainability growth strategy cannot ignore or undervalue. As competition in online retail sector increase due to promising prospects and little start-up capital, the need for effective and functional e-CRM platforms and tools is important for stakeholders keen to build long-term growth strategy in the sector. Stakeholders in online retailing have to effectively serve the huge promising market base and it is from this, electronic CRM constitute an area companies in the sector need to invest heavily. In this sphere, there is need for stakeholders to initiate longer attention to its visitors and subsequently establish and foster positive relationship, which is likely to impact growth and revenues in the sector. Dissatisfaction in online retailing by customers has been identified to exist despite growth being witnessed (Krishnamurthy, 2006). Due to this, it has been established that some customers have being switching to other channels while others have drastically reduced their purchasing experiences online (Krishnamurthy, 2006). Dissatisfaction among customers has been associated with lack of transaction completion and the slow pace of companies to rectify this. More so, attention to customers and visitors is perceived to lack vigor and this has led to untimely meeting of customer needs, response to queries is poor and the larger feedback process is poorly managed. What online retail companies need to know is that customer retention and loyalty is paramount (Lee-Kelley, Gilbert and Mannicom, 2003), where the two aspects have been associated with influencing company revenues positively (Krishnamurthy, 2006). Customer loyalty arises from the aspect of customer experiencing value for the product or service consumed and satisfaction derived thereafter (Lee-Kelley, Gilbert and Mannicom, 2003). In this way, quality products and services are likely to attract attention of customers, influence their purchasing intention, and influence their repeat purchasing activities. When the customers are able to establish positive perception of the product or service, companies are supposed to identify it and subsequently ensure positive customer experience is maintained through continuous provision of such experience (Lee-Kelley, Gilbert, and Mannicom, 2003). Therefore, establishing quality services, increasing customer satisfaction, and eventually creating customer loyalty constitute key aspects that online retail companies irrespective of their activities need to cultivate and institute. To this end, it can be postulated that effective electronic customer relationship management (e-CRM) platform is critical for the success of online retail companies in creating and sustaining customer loyalty. Online retail e-CRM platform design and implementation It is evident that online retail business exhibits great potential of growth, and as a result electronic customer management strategy is necessary. As a result, there is need for creation and implementation of efficient and functional e-CRM strategies that possess capability of yielding positive results. Adoption of e-CRM strategy will provide opportunity for online retail stakeholders to create online customer community characterized by increased loyalty and repeat purchases hence important for online retail business activities. The e-CRM platform to be created is premised on strategic model and tactical model. i) Strategic model Strategic model to be developed will heavily be influenced by Porter’s value chain model (Porter 1998) and value discipline model by Treacy and Wiersema (Kincaid 2003). It can be established that success of online retailing require identification of business processes with regard to customer intimacy, operational excellence, product or service leadership (Treacy and Wiersema 1997), excellent design, production, delivery and subsequent market and how e-CRM can be enhanced in every process (Bischoff 2011). Online retail competitive strategies originate from establishing efficient customer information and data base systems. Hence, the model provides a meaningful pathway, which online retail companies can adopt to enhance customer satisfaction, thus increase customer loyalty. The e-CRM Strategic Model ii) Tactical model Understanding customer life cycle is important in creating competitive strength in online retailing (Charantimath, 2011, p.481). The tactical model looks at the need for online retail companies to establish tracking systems of their customers from the moment information enquiries are made, purchases made, and relationship start and sustained for a long period of time. Understanding points of contact involved is critical and this will enable online retail companies to realize quality improvement of services hence possibility of establishing a customer base that is loyal (Charantimath, 2011). The Tactical Model of e-CRM In order for online retailing companies to enhance their e-CRM strategy, it is recommended that online retailing company to design e-CRM tool known as Online-CustomerLink. This customized e-CRM tool will be customer information and response tool (system) that has capacity to collect, synthesize and analyze customer information for marketing and CRM purposes. In this way, online retail industry will be able to respond appropriately to consumer needs while relaying necessary information to consumers. Effectiveness of the tool will lead to creation of consumer community that is more satisfied, hence increasing customer loyalty in the online retail industry. SWOT Analysis of Online retail industry STRENGTHS -Technology adoption and use in economy sector across the world is increasing hence giving online retail industry future security of growth and sustainability. -Online retail when compared to physical stores tends to be cheap given their low construction cost, an aspect that will make online customer behavior to increase. -Kurtz and Boone (2008) observes that internet transactions have improved due to increasing convenience and improved security for transmitting credit card numbers and other financial information. This is likely to lead to increased online transactions. -Online retailing is steadily growing where today it stands at 10% in the overall USA total retail sales (Kurtz and Boone 2008). -30% of USA at the moment shop online and in near future it is estimated that about 50% of USA will shop online (Kurtz and Boone 2008). -It is estimated that many USA citizens do have increased access to large availability of wireless access through laptops, cell phones and smart phones, an aspect that is going to stimulate and motivate online retailing and shopping. WEAKNESSES -Virtual customer relationship management systems are yet to be effective and majority of them have been found to be defective prompting switch to other channels by customers. -Online security laws still address the issue of online transactions inadequately hence, many people are still not confident with online transactions. -Delivery systems of products or services to customers sometimes are defective an issue that sometimes lead to delay and unnecessary inconveniences to consumers (Kurtz and Boone 2008). OPPORTUNITIES -In 2003, it was estimated that online retail sales accounted for about $108 billion and this was associated to convenience by which majority of people are finding shopping online (Dolber 2003, p.15). -Given the above situation, numerous market segments have been identified that provide prospects and opportunity for growth of online retailing. They include; young people in universities and colleges in Europe, America, and Asia. Also Carrribean and Africa markets are growing. -Also increasing e-tourism and outsourcing in many businesses around the world, prospects for online retailing is likely to increase in these areas especially in booking, information search, and subsequent payments. THREATS -Major threats that still face online retailing have to do with privacy issues, since more people are unwilling to participate in online transactions that will expose their privacy with regard to information (Kurtz and Boone 2008). -At the same time, fraud and scams still characterize online businesses. This can be evidenced in increased activities of online robbery activities, auction frauds, internet crimes, phishing, and many more, which tend to scare large group of people from conducting online business activities (Kurtz and Boone 2008). -Physical stores (brick and mortar) still poses greatest threat to development and growth of online retailing stores. Conclusion Online retailing as a growing sector will need to establish and utilize effective e-CRM platforms that are superior in creating and sustaining a community of customers that is loyal hence promising for future repeat purchases. The proposed e-CRM strategy should have both marketing and communication aspects that combine to ensure the online retail industry attracts, retains, and sustains a loyal customer base. Achievement of all the above will lead the industry to increase revenues and profit margins while being able to create a customer base community that is loyal and critical for future growth. Reference List Bischoff, AL 2011, Porter's value chain and the REA analysis as an accounting information system, GRIN Verlag, Germany, viewed 25 September 2011, http://books.google.com/books?id=U_CvdZ3qiMEC&pg=PA3&dq=porter%27s+value+chain+model&hl=en&ei=bu6ATo4Fzar4Bru6jJIN&sa=X&oi=book_result&ct=result&resnum=2&ved=0CDQQ6AEwAQ#v=onepage&q=porter%27s%20value%20chain%20model&f=true. Charantimath, PM 2011, Total quality management, Pearson Publishing, New Delhi, viewed 25 September 2011, http://books.google.com/books?id=h7US1hlgV_IC&pg=PA481&dq=e-CRM+and+consumer+life+cycle&hl=en&ei=Mvh_TvjFL4WM-wa5ypySDQ&sa=X&oi=book_result&ct=result&resnum=2&ved=0CDYQ6AEwAQ#v=onepage&q&f=true. Dolber, R 2003, Opportunities in retailing careers, McGraw-Hill Professional, NY, viewed 25 September 2011, http://books.google.com/books?id=YH82asSIy2oC&pg=PA15&dq=opportunities+in+the+online+retailing+industry&hl=en&ei=xRaBTrKIIoia-wbRzq2_Dw&sa=X&oi=book_result&ct=result&resnum=2&ved=0CDwQ6AEwAQ#v=onepage&q=opportunities%20in%20the%20online%20retailing%20industry&f=false. Heinemann, G & Schwarzl, C 2010, New online retailing: Innovation and transformation, Gabler Verlag, Germany, viewed 25 September 2011, http://books.google.com/books?id=0J3J03BWNxEC&pg=PA65&dq=e-CRM+and+online+retailing&hl=en&ei=steATo-2B4Se-QaInomSDQ&sa=X&oi=book_result&ct=result&resnum=2&ved=0CDQQ6AEwAQ#v=onepage&q&f=false. Kincaid, JW 2003, Customer relationship management: getting it right! Prentice Hall Professional, NJ, viewed 25 September 2011, http://books.google.com/books?id=VsESmNFS__IC&pg=PA4&dq=value+discipline+of+Treacy+and+Wiersema+model&hl=en&ei=UgmBTtyZDIaFhQfc6sGWDw&sa=X&oi=book_result&ct=result&resnum=4&ved=0CD8Q6AEwAw#v=onepage&q=value%20discipline%20of%20Treacy%20and%20Wiersema%20model&f=false. Krishnamurthy, S 2006, Contemporary research in e-marketing, Idea Group Inc (IGI), PA, viewed 25 September 2011, http://books.google.com/books?id=_yG_xDu4fvQC&pg=PA120&dq=online+retailing+and+Electronic+Customer+Relationship+Management&hl=en&ei=uX1_TpbJOc2j-gb09piSDQ&sa=X&oi=book_result&ct=result&resnum=2&ved=0CDkQ6AEwAQ#v=onepage&q=online%20retailing%20and%20Electronic%20Customer%20Relationship%20Management&f=false. Kurtz, DL & Boone, LE 2008, Contemporary business 2009 update, Cengage Learning, OH, viewed 25 September 2011, http://books.google.com/books?id=1RQ53EH4pOAC&pg=PT273&dq=strengths+of+online+retail+industry&hl=en&ei=CRKBTuH_ENGXhQea0PXyDg&sa=X&oi=book_result&ct=result&resnum=4&ved=0CEMQ6AEwAw#v=onepage&q=strengths%20of%20online%20retail%20industry&f=false. Lee-Kelley, L, Gilbert, D & Mannicom, R 2003, ‘How e-CRM can enhance customer loyalty’, Journal of Marketing Intelligence & Planning, vol. 1, no. 4, pp. 239-248, viewed 25 September 2011, http://www.google.com/#sclient=psy-ab&hl=en&site=&source=hp&q=aMAZON.COM+sWOT+ANALYSIS&oq=aMAZON.COM+sWOT+ANALYSIS&aq=f&aqi=&aql=1&gs_sm=e&gs_upl=110622l124658l0l125859l24l12l0l0l0l0l2811l2811l9-1l10l0&bav=on.2,or.r_gc.r_pw.&fp=a1093bfe23d66e1b&biw=1016&bih=593. Mould, ME 2006, Online Bookselling: A practical guide with detailed explanations and insightful tips, Aardvark Publishing, NY, viewed 25 September 2011, http://books.google.com/books?id=lwrJ8aVetZ0C&pg=PA26&lpg=PA26&dq=growth+of+online+bookselling&source=bl&ots=D6l2QrnEjm&sig=_S2YSVhbz2iPmtGrFCGyhjVDze4&hl=en&ei=nIR_TqeIJ6mj0QXPvdXPCQ&sa=X&oi=book_result&ct=result&resnum=5&ved=0CEEQ6AEwBA#v=onepage&q=growth%20of%20online%20bookselling&f=false. Porter, ME 1998, Competitive advantage: creating and sustaining superior performance: with a new introduction, Simon and Schuster, NY, viewed 25 September 2011, http://books.google.com/books?id=H9ReAijCK8cC&printsec=frontcover&dq=Porter%27s+value+chain+model&hl=en&ei=zPV_Tt6rAsbrOfqf1NoP&sa=X&oi=book_result&ct=result&resnum=1&ved=0CC8Q6AEwAA#v=onepage&q&f=false. Reponen, T 2003, Information technology-enabled global customer service, Idea Group Inc (IGI), PA, viewed 25 September 2011, http://books.google.com/books?id=KUvcuOh74qoC&pg=PA14&dq=e-CRM+strategy&hl=en&ei=agCATpHzBoyVOsKqyOgP&sa=X&oi=book_result&ct=result&resnum=1&ved=0CDEQ6AEwAA#v=onepage&q&f=false. Treacy, M & Wiersema, F 1997, The discipline of market leaders: choose your customers, narrow your focus, dominate your market, Basic Books, NY, viewed 25 September 2011, http://books.google.com/books?id=IBhIRPcAyC8C&printsec=frontcover&dq=value+discipline+of+Treacy+and+Wiersema+model&hl=en&ei=UgmBTtyZDIaFhQfc6sGWDw&sa=X&oi=book_result&ct=result&resnum=1&ved=0CC8Q6AEwAA#v=onepage&q&f=false. Read More

 

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