Crm Hicss 2003 Presentation
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This document presents an integrated framework for implementing electronic customer relationship management (eCRM) systems based on principles of usability and resistance. It discusses key factors for eCRM such as retaining customers, improving service and targeting valuable vs. invaluable customers. The framework incorporates principles of usability design and resistance to implementation. Case studies are presented of both successful and unsuccessful eCRM implementations, highlighting reasons such as focusing on users, iterative testing and addressing people-related resistance factors. The conclusions emphasize that successful eCRM requires minimizing resistance by focusing on users and involving them in the design process through methods like pilot programs.
Crm Hicss 2003 Presentation
- 1. An Integrative Implementation Framework for Electronic Customer Relationship Management: Revisiting the General Principles of Usability and Resistance Jerry Fjermestad NJIT Nicholas C. Romano, Jr. Oklahoma State University
- 2. What is eCRM eCRM is about: retaining customers improving customer service attracting and keeping economically valuable customers repelling and eliminating economically invaluable ones
- 3. Market growth for eCRM $20.4 billion 2002 $46 billion by 2003 to $125 billion by 2004
- 4. Problems with eCRM More than half of all eCRM projects are not expected to produce a measurable ROI 19% of CRM users decided to stop funding their eCRM projects
- 5. Objective of this paper To analyze the secondary data available in published sources business trade magazines academic journals In the context of the basic usability and resistance principles
- 6. Outline Introduction to eCRM General usability and resistance principles Build an integrative framework Present our analysis Conclusions & Recommendations for successful eCRM implementations
- 7. Basic principles of usability design: Gould and Lewis, 1985 Early focus on users and tasks Empirical measurement Iterative design
- 8. Basic principles of usability design: Nielsen, 1992 Pre- Design Design Post- Design
- 9. Basic principles of resistance: Markus, 1983 People determined Technology determined Interaction theory
- 10. Integrative Framework Resistance | Usability Pre-design Know the users Competitive analysis Setting usability goals Design Participatory design Coordinated design Guidelines & heuristic analysis Prototyping & empirical testing Iterative design Post-design Collect feedback from users People Determined . System champion . Train users . Educate users . Change people . Job rotation . Coerce users . User participation to gain commitment . Restructure user incentives . Add users & modules slowly . Pilot projects . Work closely with teams . Create credibility . Develop long term plans System Determined . Understand the technology . Improve systems efficiency . Improve data entry . Improve human factors . Understand and simplify organizational procedures & processes .Iterative, incremental implementations Interaction Theory . Integrate with existing technology . Use cross functional teams . Use positive users in pilots . Build systems for valid business reasons . Fix organizational problems . Restructure relationships . Assign a system champion
- 11. Example eCRM Implementations Paper Company Details of Problem Patton, 2001 The Truth about CRM Monster.com Initial failure resulted in millions of dollars in added expenses and months of effort to re-implement the system. Rolled out a high-end software package to provide its telephone sales representatives with instant information on prospective customers Telecommunications company Launched a CRM to 1,000 sales reps at a cost of &10,000 per user. 1 year later only 10% were using the system. Barclay Global Investors A successful implementation . Deck, 2001 CRM Made Simple Hewlett-Packard HP was not using the web effectively. There was no central program or strategy for e-mail marketing. Student Connections Developed a CRM project to better understand how its products were being used and to maximize ROI.
- 13. Reasons for eCRM Success Company Resistance | Usability Pre-design Design Post-Design Barclays People- Determined System- Determined . Survey the technology 2 years ahead of time . Iterative, incremental Interaction Theory . Found a solution that works with existing software Fingerhut People- Determined System- Determined . Pilot tested the system on 10% of its customers for 1 year . Looked fore pieces instead of trying to fit into one solution. Interaction Theory Radio Shack People- Determined . Plans to add sales force gradually . Guarded approach based on past struggles failure reports . System- Determined . Pilot projects . 20 people in first roll out. . Past success were completed in “bite-size pieces .” Interaction Theory . Developing multiple small CRM projects Tipper Tie People- Determined . Soft sell to management . Interviewed sales reps . Interviewed call center staff . Interview consultants to find the best fit . Worked closely with consultants . Team members work the system then made presentations to other users System- Determined Interaction Theory . Piloted the systems with “positive upbeat” people . Semiweekly progress updates . Cross functional pilot teams- the key to success
- 14. Reasons for limited eCRM success People Determined (Examples) . Field reps locked out of the system . Inexperienced consultants . The company did not articulate its needs . Sales force refused to use the system
- 15. Reasons for limited eCRM success System Determined . Slow systems, reps were unable to help customers . Slow access to system by remote sales people . Data unavailable for the sales reps
- 16. Reasons for limited eCRM success Interaction theory (second time around) . Required sales people to use the system . Iterative and prototype development
- 17. Reasons for eCRM Success People determined . Soft sell to management . Interviewed sales reps . Interviewed call center staff . Interview consultants to find the best fit
- 18. Reasons for eCRM Success System Determined . Pilot tested the system on 10% of its customers for 1 year . Looked for pieces instead of trying to fit into one solution . Controlled project
- 19. Reasons for eCRM Success Interaction theory . Learned from one Implementation and applied to the next . Implementing the next technology based upon a successful implementation
- 20. Conclusions The integrated eCRM framework provides guidelines for systems designers and the corresponding management team to improve usability and reduce resistance focusing on usability can reduce resistance (training and educating users) focusing on resistance can improve usability (use of pilot programs and prototyping)
- 21. Conclusions organizations that experienced limited success in implementing eCRM did not initially realize how much of an effect people could have on system success Monster.com and Mshow did not design the systems around their primary customer contacts: field representatives sales force both implemented systems with inexperienced consultants. The second time around, people were given the primary focus; thus minimizing or eliminating resistance and involving people with the design.
- 22. Conclusions: key reasons for successful eCRM implementations focus on people iterative (small step) incremental approaches