Turban- 3e
Instructor’s Manual
Appendix B –
ELECTRONIC CUSTOMER RELATIONSHIP
MANAGEMENT (E-CRM)
Learning Objectives
Upon completion of this chapter, you will be able to:
1. Distinguish customer relationship management (CRM) from electronic CRM.
3. Describe the basic building blocks of CRM.
5. Describe the various types of CRM analytics and the business arenas where they can
be applied.
7. Describe the key steps in a CRM implementation.
8. Discuss the move to on-demand CRM.
Content
B.1 Customer Relationship Management Defined
B.2 CRM Applications
B.3 CRM Implementation Issues
Managerial Issues
Closing Case: How Bank Austria Uses Data Mining to Identify Potential Customers
Appendix B
Page 2
Answers to Pause/Break Section Review Questions
Section B.1 Review
1. How do you define CRM? E-CRM?
2. What are some of the ways CRM increases a company’s revenues?
3. What is meant by the term customer lifetime value?
4. What are the basic activities of customer life-cycle management?
5. Describe the major components of CRM.
Section B.2 Review
1. Discuss key customer-facing CRM applications.
2. Describe customer-touching CRM applications, including Web self-service.
3. Describe the basic types of CRM analytics, giving examples of each.
Reporting – a summary of data from the CRM system. There are both standard reports
4. List the major types of online networking CRM applications.
• Forums
Section B.3 Review
1. What are some of the critical steps in implementing an enterprise CRM?
2. Describe some of the major enterprise systems with which a CRM needs to be
integrated.
3. What is on-demand CRM?
4. Why is it hard to justify a CRM?
5. What are some of the future directions of CRM?
Appendix B
Page 4
Answers to EC Application Case Questions
Case B.1 – IROBOT’S MULTICHANNEL SERVICE SUPPORT
1. What is meant by the term multi-channel service support? Cross-channel service
support?
2. Why was it necessary for iRobot to implement multi-channel service support?
3. Describe the benefits iRobot received from its multi-channel support system.
Case B.2 – SELF-SERVICE FOR CANON CUSTOMERS
1. What type of customer support is provided by Canon ITS?
2. What problem was CITS trying to solve by implementing a centralized support
repository?
3. What steps did CITS use in rolling out customer self-service?
4. Describe the benefits that CITS received from its self-service repository.
Appendix B
Page 5
Answers to Individual Discussion Questions
1. Many question the short-term return on investment of CRM tools. Explain why.
2. How would you convince a CEO to invest in Web self-services? With what issues
could the CEO counter your advice?
3. Discuss how CRM can increase the profitability of a business.
4. Discuss when on-demand CRM is more beneficial than in-house CRM (see Patton
and Wailgum 2006, and Overby 2006).
Answers to Class Discussion Questions
1. Discuss the different types of CRM analytics.
• Reporting – a summary of data from the CRM system. There are both standard reports
2. Select a few online retailers and describe how they could use CRM analytics to
improve their product presentations and customer service.
Student responses will vary.
Appendix B
Page 6
Internet Exercises
(Note: URLs may change over time; please check the Internet Exercises on the
1. Enter support.dell.com and examine all the services available. Examine the tracking
services Dell provides to its customers. Write a report about customer service at Dell.
Student reports will vary based on perceptions and date of retrieval.
2. Go to inquira.com. Download the white paper titled “Smart CRM.” What do they
mean by the term? What role does knowledge management play in CRM? What are the
key benefits that a company obtains by using knowledge management for customer
support and service?
3. Enter oracle.com/siebel and crmondemand.com. Find what each offers in its CRM
OnDemand product. Why does Siebel collaborate with IBM’s OnDemand program?
Team Assignments and Role Playing
1. Each team should select an overnight delivery service company
(FedEx,UPS,U.S.Postal Service, and so on). The team will then identify all the online
customer service features offered by the company. Each team then will try to convince
the class that its company provides the best customer service.
Student reports will vary.
2. For most companies, the benefits of CRM are only realized by focusing on
maximizing a customer’s lifetime value (LTV). Using Hughes (2009) as a reference,
how is LTV calculated and how does it differ from ROI and profitability?
Student reports will vary. LTV is calculated by examining the net benefit (margin) of a
3. Each team is assigned a CRM software company (e.g., Oracle, Salesforce,
SAP,Microsoft, or Infor). Find the company’s leading products and prepare a
presentation of their capabilities.
Student reports will vary.
4. Go to sugarcrm.com. Run the demo on the site. Prepare a report describing the types
of CRM products it offers, what makes its products unique, and what are some of the
benefits and limitations of this type of CRM product line.
Student reports will vary. SugarCRM is a web-based CRM system (SaaS) that can be
Closing Case Questions: HOW BANK AUSTRIA USES DATA
MINING TO IDENTIFY POTENTIAL CUSTOMERS
1. Why was BA-CA interested in implementing data mining?
2. Describe how the BA-CA data mining system works.
3. What were the major benefits of the BA-CA data mining system?