Customer relationship management for rent

By Lori Mitchell , InfoWorld Test Center
June 23, 2000

 

E-CRM resources


A number of Web sites can help you stay current on CRM issues and trends as well as keep you updated on new e-CRM services and solutions.

CRMCommunity.com - www.crmcommunity.com

Digitrends.net - www.digitrends.net

Conference for Help Desk Professionals - www.helpdeskconference.com

The Customer Relationship Management Daily Report - www.realmarket.com

IT Support News - www.servicenews.com

SupportGate.com - www.supportgate.com

SupportIndustry.com - www.supportindustry.com

 

 

 

EVERY COMPANY THAT sells products or services needs to maintain good customer relationships, but nowhere is this more important than on the Web. With competitors just a few clicks away, every e-business must build customer loyalty in order to survive. At the same time, companies are finding that the increase in online sales and e-mail inquiries is overwhelming their current service staff and infrastructure. These companies need help with serving their customers, and they need it quick.

Geared specifically for e-business, e-CRM (customer relationship management) solutions allow companies to boost service levels and brand loyalty (see our Test Center Analysis). E-CRM solutions give customers a variety of ways to contact service representatives, including e-mail, online chat, and even VOIP (voice over IP) calls; they reduce the load on service personnel by helping customers help themselves and by automating customer support procedures.

An e-CRM solution can help any company, large or small; a brick-and-mortar moving online; or a brand-new dot-com. Although e-CRM products are not as difficult or costly to install and manage as traditional CRM solutions from vendors such as Siebel Systems and Baan, they nevertheless require investment in infrastructure, significant IT resources, and precious time to deploy. Companies wanting to improve online customer service immediately with minimal start-up costs should consider an outsourced solution.

In-house solutions raise the roof

The high cost of implementing an in-house solution ranges anywhere from $50,000 to $500,000 plus the cost of maintaining a full-time customer service staff; therefore, many companies are turning to an outsourced solution. In-house solutions also can take months to deploy. According to a survey conducted by SupportIndustry.com, 66 percent of companies surveyed without Web-based self-service planned to spend up to $250,000 to implement such a solution, and 19 percent of the companies were allotting $250,000 to $500,000.

On the other hand, deploying a serviced application is much quicker and far less expensive, taking anywhere from a few days to weeks to start up and costing an average of $1,000 to $5,000 for setup plus a monthly service fee.

However, both setup charges and monthly fees vary depending on the hosted company's requirements. Service solutions offer variations of customer support, from supplementing help desk call centers with online customer support knowledge bases to instant messaging for real-time chat, as well as e-mail management for high volumes of customer inquires.

For each of these methods of service, monthly fees are often based on volume or seats. For example, monthly hosting fees for eGain Mail, eGain Communications' e-mail management solution, start at$2,800 based on 5,000 incoming e-mail messages. The company charges $900 per month for each additional 10,000 messages.

Service options

Hosted or outsourced options range from services as minimal as adding a chat screen to your Web site to full-fledged solutions that combine e-mail management, Web collaboration, VOIP support, and even rented CSRs (customer service representatives) to handle frontline customer support.

Like their licensed counterparts, hosted e-CRM solutions track the who, what, when, and why of customer calls or requests, sharing the history of customer contacts with each service representative and allowing business managers to leverage information gathered from each customer for marketing campaigns. E-CRM services also can track and categorize customer requests and issues; many knowledge bases or FAQs can be posted automatically from these inquiries. Many of these solutions can be integrated throughout a company's back end and with call centers from vendors such as Siebel.

Should you outsource?

In 1999 Jupiter Communications found that 46 percent of highly rated Web sites took longer than five days to respond to inbound e-mail, never replied, or did not bother to list e-mail contact information on their Web site. They also found that 51 percent of the top 125 e-commerce sites did not accept e-mail or respond to e-mail received. Forrester Research found that 63 percent of Web site visitors would make an online purchase if they had more information available to them.

If these scenarios sound familiar, it is time for you to consider a Web-based customer service solution, which will enhance your Web site, increase sales, reduce call center load and e-mail backlog, increase order abandonment, and increase response time. All in all, you'll improve customer retention.

How far you want to go with one of these solutions can be determined by how much you want to implement, your staff resources, and how much you are willing to spend. Browsing the Web sites of the vendors listed under "Who can help with customer service?," (see list below), can help you determine what to look for in a solution. You need to consider the cost of having CSRs around-the-clock; it might be more feasible to rent representatives full time or just for off-peak hours.

Give customers knowledge

By supplying your visitors with searchable knowledge bases and FAQs, you provide them with the ability to find the information they require without their having to get offline (if using the same line) and call your support center. You also free up your call center to handle more complex issues instead of answering repeat inquires. Many companies such as Software 911 and RightNow Technologies offer automated self-help agents, or Web robots, that walk visitors through a series of questions to give them the information to solve their problem or answer their question.

By posting this useful information directly to your Web site, customers can ask questions any time and retrieve answers at their convenience; thus you provide one aspect of around-the-clock support. If the customer still needs more information or assistance, many solutions such as Facetime, eGain, and Brightware offer instant messaging capabilities so that the customer can speak to a representative immediately.

For those companies that need to expand their support staff but can't afford an around-the-clock staff, CSRs can be rented or hired through some of these complete outsourced solutions. Hiring outsourced CSRs can be a cost-effective means of providing after-hours service. For example, by using the eReps at PeopleSupport for your off-peak hours, you pay only for the calls that are placed to the reps instead of an hourly employee rate. Fees are based on a per-transaction basis.

Let there be e-mail

E-mail is such a convenient form of communication that we are all inundated with messages we can't possibly respond to. However, e-mail from customers needs to be handled and responded to in a timely fashion. E-mail management solutions from vendors such as Mustang.com and Talisma are available to handle high volumes of e-mail, automatically routing messages to appropriate representatives and/or automatically responding to common inquiries.

In the end, support managers and Web developers will want to track the progress of the Web site and how well the support center is responding to issues. Therefore, it is important to have tools available for reporting and tracking problems.

E-businesses struggling to keep up with customer e-mail should consider outsourcing a Web-based CRM solution. The quicker deployment and lower start-up costs will lessen the burden of customer calls and increase customer retention.





Senior Analyst Lori Mitchell (lori_mitchell@infoworld.com) covers online customer service and other Web-based technologies for the InfoWorld Test Center.

Outsourcing e-CRM


Follow this five-point strategy to successfully implement a hosted e-CRM solution.

1. Set realistic goals. Determine how you want to strengthen and maintain customer relationships and develop a sound strategy to achieve them. Creating customer satisfaction at all "touch points" requires support from all levels of management.

2. Involve all departments. Implementing e-CRM can and will have an impact on multiple departments in your organization. Secure department cooperation during the planning stages.

3. Let your strategy drive the technology. E-CRM is a process, not a product. Do your homework to find which ASP (application service provider) offers the services you need to implement your plan.

4. Consider an incremental rollout. Roll out your e-CRM strategy in managed stages and have each stage of implementation build on the previous one.

5. Solicit feedback. Once your plan is implemented, keep employees in the loop. Encourage their input on how your strategy is working and make changes if it is not working.

Who can help with customer service?


ASPs have entered the CRM arena in droves. Some services are based on their vendors' own software, and others combine software solutions from multiple sources.

Ask Jeeves - www.corporate.ask.com

AudioTalk Networks - www.audiotalk.com

Brightware - www.brightware.com

Continuity - www.continuity.com

eAssist.com - www.eassist.com

eFusion - www.efusion.com

eGain Communications - www.egain.com

e-help (formerly Blue Sky Software) - www.ehelp.com

eLoyalty - www.eloyaltyco.com

eShare Technologies - www.eshare.com

eSupportNow (eSN) - www.esupportnow.com

FaceTime Communications - www.facetime.com

Inter-Tel - www.inter-tel.com

Island Data - www.islanddata.com

Kana Communications - www.kana.com

Lipstream Networks - www.lipstream.com

LiveAssistance - www.liveassistance.com

LivePerson - www.liveperson.com

Matranet - www.matranet.com

Mustang.com - www.mustang.com

Net2Phone - www.net2phone.com

NetCustomer.com - www.netcustomer.com

NetEffects Systems - www.neteffects.com

PeopleLink - www.peoplelink.com

PeopleSupport - www.peoplesupport.com

Pipelive.com - www.pipelive.com

RightNow Technologies - www.rightnowtech.com

ServiceSoft Technologies - www.servicesoft.com

Software 911 - www.software911.com

Talisma - www.talisma.com

E-CRM servicesAn outsourced e-CRM solution can help your company improve customer service and build customer loyalty without investing in hardware and software or allocating scarce IT resources. Outsourced e-CRM solutions can be deployed more quickly at lower initial cost than licensed solutions. Like licensed e-CRM solutions, outsourced solutions typically provide searchable knowledge bases, e-mail management, Web collaboration, issue tracking, and workflow routing. They also can be integrated with traditional CRM solutions and call centers.

  • No need to purchase software and hardware
  •  
  • Requires no IT resources
  •  
  • Fast and easy to deploy
  •  
  • Data security is in the hands of a third party
  •  
  • Less control over training and performance of service reps
  •  


  BOTTOM LINE

E-CRM services
BUSINESS CASE
An outsourced e-CRM solution can help your company improve customer service and build customer loyalty without investing in hardware and software or allocating scarce IT resources. Outsourced e-CRM solutions can be deployed more quickly at lower initial cost than licensed solutions.

TECHNOLOGY CASE
Like licensed e-CRM solutions, outsourced solutions typically provide searchable knowledge bases, e-mail management, Web collaboration, issue tracking, and workflow routing. They also can be integrated with traditional CRM solutions and call centers.

 


PROS

+ No need to purchase software and hardware

+ Requires no IT resources

+ Fast and easy to deploy


CONS

- Data security is in the hands of a third party

- Less control over training and performance of service reps