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.