Database Reference
In-Depth Information
also depends upon the speed of reply and action (which in turn is dependent upon the speed of
executing the corresponding business processes). More than the product itself, many a times, it is
the degree of responsive support and service received by a customer that decides between a loyal
customer and a lost customer.
1.2.5.2.1 Internet: The Web of Relationships
The Web is a key factor in the emergence of CRM as an important technology. The emergence of
Web, like only printing and telegraph earlier, has caused a fundamental change in the ease with
which people communicate with each other. The Web has enhanced by a quantum measure, the
ability of much more people to produce information and disseminate it to a much larger audi-
ence and that too at much lesser costs, much more easily. In some cases, the Web simply offers a
new and better way to perform existing services, such as checking an account balance. But other
Web applications offer novel products and services that are possible only through Web technology.
Customer self-service is the best example of the Web's enablement of customer relationships. It is
estimated that a typical banking transaction at a local branch costs about 50% by telephone, 30%
at an ATM, and only 1% on the web!
(See Chapter 9's note “Significance of the Internet”)
1.2.5.2.2 Customer Channel Integration
Once we have a proliferation of channels, the objective is to make the sales and market-
ing as efficient and effective as possible while also delivering rapid growth, reduced sales
expenses, and seamless services. Figure 1.8 illustrates how the strategy of channel integration
Engage
Transaction
Fulfill
Service
Face to face
$400
Partners
$250
Call center
$40
Electronic
$1
Transaction costs ($)
In-branch teller
3.00
0.80
ATM
Telephone
0.60
PC banking
0.50
0.05
Internet banking
Figure 1.8
Channel costs and channel integration.
