Introduction
With the dynamic nature of the global business environment and increasing competitive pressure, organizations are shifting from product-focused strategy to consumer-focused strategy. With the advent of internet, consumers are becoming more knowledgeable and more aware of the various opportunities available to them. The internet has provided easy access to new products and access to more options leading to an expanded competitive advantage for the
consumers, greatly enhancing their choices, value and pricing flexibilities in many cases.
Customer retention and loyalty has become a nightmare to many organizations, and organizations are now involved in what can be termed “a relationship competition” between organizations and their clients, as customers can switch from one product to the other at the
click of the computer mouse. In order to counter this phenomenon organizations are investing heavily in technologies enabling a customer-focused relationship marketing strategy. With tremendous growth in e-business and web-based services, organizations are therefore shifting to an internet based customer relationship management, hence the birth of electronic customer
relationship management (E-CRM).
In this report a comprehensive analysis of how IBM uses electronic customer relationship management (ECRM) to gain insight and understanding of their customer’s needs and want is carried out and also how to improve customer’s relationship by satisfying those needs.
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Table of Contents
- Introduction
- E-CRM Backgrounds and Related Theory
- What is E-CRM?
- Elements of E-CRM
- Different Approaches to E-CRM
- Operational CRM
- Analytical CRM
- Collaborative CRM
- A Single View to Customer
- Introduction to IBM
- Problem Background
- Old Way of Interacting with Customers
- Understanding the Customers
- Re-engineering of customers relationship
- Impact of E-CRM on IBM Operations
- Conclusion
- Recommendation
- References
Objectives and Key Themes
This report aims to analyze how IBM utilized technology to improve its electronic customer relationship management (E-CRM). It examines IBM's transition from a deficient traditional CRM approach to a new, technology-driven system. The report explores the challenges IBM faced, the solutions implemented, and the impact on its operations.
- The evolution of customer relationship management (CRM) from traditional methods to E-CRM.
- The role of information technology in enhancing customer relationships and business processes.
- IBM's transformation of its CRM strategy through the implementation of a new system.
- The impact of E-CRM on customer satisfaction, loyalty, and retention.
- Analysis of the key elements and approaches within E-CRM.
Chapter Summaries
Introduction: This chapter sets the stage by highlighting the increasing importance of customer-centric strategies in today's competitive business landscape. The rise of e-business and the internet empowers customers with greater knowledge and choices, forcing organizations to focus on building strong customer relationships. The chapter introduces the concept of E-CRM as a response to this shift, emphasizing the need for effective strategies to manage and improve customer relationships using technology. The report will analyze IBM’s implementation of this system as a case study.
E-CRM Background and Related Theory: This section provides a theoretical foundation for understanding E-CRM. It defines CRM and E-CRM, highlighting the cost-effectiveness of retaining existing customers compared to acquiring new ones. The chapter explores the critical elements of E-CRM, such as customer interaction systems, integrated management channels, and analytical tools. These elements are presented as key components for creating, capturing, and leveraging knowledge to enhance customer relationships and ultimately improve business outcomes. The significant role of technology in enabling these processes and achieving the goals of enhanced customer experience is emphasized.
Introduction to IBM: This chapter focuses on IBM's experience with its CRM strategy. It details the problems associated with the company's traditional approach to customer management, leading to the loss of market share. The section describes how IBM sought to understand customer needs and wants more deeply, ultimately leading to a re-engineering of its customer relationship process using information technology. The implementation of a new E-CRM system (“inside IBM”) is introduced, aiming to present a unified and improved customer interaction. The chapter lays the groundwork for understanding the details of IBM’s transformation.
Keywords
Electronic Customer Relationship Management (E-CRM), Customer Relationship Management (CRM), IBM, Information Technology, Customer Retention, Customer Loyalty, Business-to-Customer Relationships, Knowledge Management, Customer Interaction, Integrated Channel Management, Analytical Tools.
IBM's E-CRM Transformation: Frequently Asked Questions
What is the main topic of this report?
This report analyzes how IBM improved its electronic customer relationship management (E-CRM) using technology. It examines IBM's transition from a traditional CRM approach to a new, technology-driven system, exploring the challenges, solutions, and impact on operations.
What are the key themes explored in the report?
The report explores the evolution of CRM from traditional methods to E-CRM; the role of IT in enhancing customer relationships; IBM's transformation of its CRM strategy; the impact of E-CRM on customer satisfaction, loyalty, and retention; and an analysis of key E-CRM elements and approaches.
What are the objectives of this report?
The report aims to analyze IBM's use of technology to improve its E-CRM, examining its transition to a new system, the challenges faced, solutions implemented, and the impact on its operations.
What is E-CRM, and how is it defined in this report?
E-CRM, or Electronic Customer Relationship Management, is defined as a strategic approach utilizing technology to manage and improve customer relationships. The report emphasizes its cost-effectiveness in retaining customers compared to acquisition, and highlights key elements like customer interaction systems, integrated management channels, and analytical tools.
What were some of the problems IBM faced with its traditional CRM approach?
The report details problems associated with IBM's traditional customer management approach, leading to a loss of market share. It highlights the need for a deeper understanding of customer needs and wants as a catalyst for change.
How did IBM’s approach to customer relationship management change?
IBM re-engineered its customer relationship process using information technology, implementing a new E-CRM system to create a unified and improved customer interaction. This involved a shift from a deficient traditional system to a technology-driven approach.
What are the key elements of E-CRM discussed in the report?
Key elements of E-CRM discussed include customer interaction systems, integrated management channels, and analytical tools. These elements are presented as crucial components for creating, capturing, and leveraging knowledge to enhance customer relationships and business outcomes.
What different approaches to E-CRM are mentioned?
The report discusses Operational CRM, Analytical CRM, and Collaborative CRM as different approaches to implementing E-CRM.
What is the structure of the report?
The report includes an introduction, a section on E-CRM backgrounds and related theory, a chapter introducing IBM's experience, a conclusion, recommendations, and a list of references.
What are the key takeaways from the report regarding IBM's E-CRM implementation?
The report highlights IBM’s successful transition to a technology-driven E-CRM system, emphasizing the importance of understanding customer needs, implementing integrated systems, and leveraging technology to improve customer relationships and business outcomes. The specifics of the implementation and its impact on IBM’s operations are analyzed in detail.
What keywords are associated with this report?
Keywords include Electronic Customer Relationship Management (E-CRM), Customer Relationship Management (CRM), IBM, Information Technology, Customer Retention, Customer Loyalty, Business-to-Customer Relationships, Knowledge Management, Customer Interaction, Integrated Channel Management, and Analytical Tools.
- Quote paper
- BA Christian Uwagwuna (Author), 2011, The IBM Model of Electronic Customer Relationship Management, Munich, GRIN Verlag, https://www.grin.com/document/170555
