e-CRM
for Increased Revenues
E-commerce enables organizations to enter new markets, both
geographical markets and new segments, which were previously uneconomical to
enter with traditional channels. Web selling also makes it feasible to sell
low-margin products in mature markets and still retain a healthy profit. In
2000, IBM sold US $12.3 billion in goods and services over the Web, up from US
$3 billion in 1998.
Sales force productivity can be improved by publishing information
and by providing commerce online. IBM's experience shows that 15 to 25 per cent
of face-to-face time could be returned to its distributors by using the Web in
this way. This efficiency could be used to enable the sales force to sell higher
margin solutions, or to lower costs by reducing the sales force.
Web-based interactive marketing produces response rates five
to six times higher than classic direct marketing. SKF, the Swedish
manufacturing conglomerate, has achieved a 25 per cent increase in
service-related revenue from using its e-CRM systems. In the same way, Quick and
Reilly, a financial services company, achieved a 50 per cent improvement in lead
conversion, 67 per cent increase in average revenue per sales person, 10 per
cent increase in customer retention and 5 per cent improvement in
cross-selling.