EUROMED JOURNAL OF BUSINESS

Volume 1, No 2, October 2006, Pages 5-14

AN e-CRM APPLICATION IN THE TELECOMMUNICATIONS SECTOR:

A CASE STUDY FROM GREECE Evangelia K. Blery and ichalis G. ichalakopoulos

Evangelia K. Blery
Technology Park NCSR Demokritos Athens, Greece and

ichalis G. ichalakopoulos
Technical Studies Department National Printing House Athens, Greece

Keywords
Electronic Customer Relationship Management; Telecommunications e-CRM;

Abstract
CRM (Customer Relationship Management), is a strategy that can help companies to build long lasting relationships with their customers and increase profits through the correct management system and the application of customer focused strategies. Nowadays, the penetration of the Internet has dramatically changed the situation because the Internet is suitable for the incorporation of CRM applications. Thus, it has changed into electronic-CRM or e-CRM. In this study the implementation of e-CRM in the Greek Telecommunications Organization is examined and the benefits and problems as well as the success and failure factors are analyzed and presented. This study was based on the case study approach, since its fundamental characteristic is the focus on a particular setting or event. The results showed that the Organization had gained a lot of benefits from e-CRM implementation, since it significantly helped the information flow in the Organization as well as relationships with customers.

Introduction
There is a relative lack of literature in the area of e-CRM. Kotorov (2002) defined e-CRM as the application of information and communication technology to increase the scale and scope of customer service. Another definition of e-CRM presented by Kelley et al., (2003) is that e-CRM refers to the marketing activities, tools and techniques delivered over the Internet (using technologies such as web sites and e-mail, data-capture, warehousing and mining) with a specific aim to locate, build and improve long-term customer relationships to enhance their individual potential. The aim of this research is to examine an e-CRM application in a constantly developing sector such as the Greek
ISSN 1450-2194

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Telecommunications sector and to analyze the implementation of e-CRM in the Greek Telecommunications Organization. Thus, it examines the situation in the Organization before e-CRM implementation and analyzes the reasons this need emerged. Then it examines the situation after the implementation and identifies the benefits and the problems, as well as the success and failure factors.

Literature Review The Importance of CRM

A literature review was conducted and issues concerning e-CRM, its aims, its strategic importance, its implementation, as well as the benefits and problems and the success and failure factors of e-CRM applications, were examined and discussed below. According to Peppers et al., (1999) the original focus of CRM was to forge closer and deeper relationships with customers by being willing and able to change companys behavior toward an individual customer based on what the customer tells them and what else the company knows about the customer, the premise being that existing customers are more profitable than new customers; that it is less expensive to sell an incremental product to an existing customer; that customer retention would be maximized by matching products and levels of service more closely to customer expectations and that attracting new customers is expensive. The central objective of CRM is to maximise the lifetime value of a customer to the organization (Peppard, 2000). As the consulting company Gartner noted, CRM can be defined as a business strategy which can bring results such as increased revenues and profits through customer satisfaction (Thompson and Moscardini, 2002). The CRM market emerged nine or ten years ago. The first systems were designed to support only one division of the company. During the second stage of development more integrated solutions were developed (ritikou and Rachoutis, 2003). Later the introduction of the Internet changed the situation because it is appropriate for the integration of CRM solutions, thus, CRM became electronic-CRM or e-CRM (e-Epichirin, 2004). The International market of CRM is showing a continuous growth. Research conducted by Forrester Research showed that the revenues from CRM will increase to $73.8 billion in 2007. The increase of this industry is foreseen at 10-15% each year (outsiouris, 2003). The Greek CRM market follows the international market. According to an online research conducted in 2001, a rapid increase is expected for CRM in Greece and 58% of the Greek top executives mentioned that they believe it is very important for their companies to adopt it. However, the percentage of Greek companies having even one CRM application was only 21% (CRM2day, 2001).

Implementation of e-CRM
E-CRM can use alternative channels such as e-mails, websites, wap sites, voice portals, interactive TV, SMS, MMS, WAP and IVR (Skouloudis, 2003). Attention should be paid to the implementation of e-CRM. Many companies set up ad hoc cross-functional teams for the implementation of e-CRM. However, in this way they speed-up its implementation, but once the teams are dissolved they can not ensure immediacy

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and continuity (Kotorov, 2002). The selection and the efficient implementation of eCRM requires a combination of skills (technical, operational, cultural, organizational etc.), and may require a team-based approach (Adebanjo, 2003).

Benefits from the Implementation

Organizations that adopt e-CRM solutions expect to improve their efficiency and create value. Value can be created in many ways: by reducing the cost of contacting customers (by making customer details readily available, customer contact personnel have better opportunities to resolve customer enquiries in less time, thereby freeing them for other productive work); by transferring some responsibility to the customer (e.g. product configuration, order tracking, online customer details collection, thereby reducing administrative and operational costs); by integrating e-CRM applications with back-office legacy systems such as production, finance and supply chains, workflow can improve and consequently the efficiency of the organisation, thereby delivering cost savings (Adebanjo, 2003). All e-CRM applications have the potential to deliver some form of value to the organization. They have the potential to improve sales by customer profiling, automated campaign management, e-mail marketing, etc. The challenge for organizations is to identify and quantify the impact that a prospective solution would deliver and use this information as a factor in the selection decision (Adebanjo, 2003). In such an analysis, an organization may use frameworks such as Porter's five forces (Porter, 2001) to identify the value from which they would most potentially benefit by adopting any e-CRM application. For example, in industries where there is strong competition, organizations should implement an e-CRM solution which improves efficiency or differentiates services. In industries with high barriers to entry (e.g. technology or aerospace), organizations should choose e-CRM applications which improve customer experience or enable the customer to participate in the design of the product (Adebanjo, 2003). A study conducted by Kelley et al., (2003) found that by embedding an e-CRM strategy into the business strategy of Internet companies, it is possible to gain a better understanding of customer needs and create a strong relationship with them to achieve customer loyalty and increased profitability. The US company Virgin Wines achieved a 12% customer conversion rate (the percentage of customer visits to its website that resulted in sales) compared to a 4% rate before adopting e-CRM (Stringfellow et al., 2004).

Causes of Failure for the System

Many researchers claimed that CRM applications fail to deliver the expected benefits. There are many causes of failure. Rheault and Sheridan (2002) mentioned the lack of robust implementation approaches and the selection and configuration of the e-CRM tools. The research of Peppard (2000), which was conducted in Financial Service Organizations, has highlighted a rather narrow view of e-CRM and, as such, benefits are limited. For some, it is seen as a technology solution rather than a strategy. Rigby et al., (2002) argued that the lack of strategy can be a serious cause of failure. In addition according to Peppard (2000), in some organizations the e-CRM project is driven by the requirements of one function rather than as part of an overall enterprise-

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wide customer-centric strategy. Bradshaw and Brash (2001) further noted that CRM applications must not only integrate functionally at the front office but also integrate with back office functions such as manufacturing and billing.

Research Methodology Case Study Approach

The present study was based on the case study approach, since its fundamental characteristic is the focus on a particular setting or event (Stake, 1995). Thus, since the objective was to examine the implementation of e-CRM in the Greek Telecommunications Organization, the case study approach was the most preferable one.

Sampling Method
Purposeful sampling seems to be the most appropriate, as far as the case study approach is concerned (Stake, 1995; Cresswell, 1998). Two particular versions of this type of sampling were used in combination, namely snowball sampling and the maximum variation sampling (Cresswell, 1998, Minichiello et al., 1990; Patton, 1990). In the first case, a gatekeeper is used in order to bring the researcher in contact with other participants within the Organization (Stake, 1995), especially when the researcher has limited knowledge concerning the Organizations operations (Mason, 1996). In the second case, the aim is to gather data from a wide range of informants that are located in different positions within the Organization (Cresswell, 1998; Patton, 1990). The manager of the Programs department was used as the gatekeeper, since the researchers had limited familiarity with the Organizations procedures and operations. As soon as he agreed to participate in the study, he suggested seven more people within the Organization who could be interviewed for the purposes of this research. The maximum variation was achieved, since these people came from different organizational levels. In particular, four in-depth interviews were conducted with the managers of the Programs, Information Technologies (IT), Marketing and Customer Service departments. Another two interviews were conducted with the assistant managers of the IT and Marketing departments and two more with two executives of the Customer Service department, who are in direct contact with customers and can have a better insight on the customers point of view concerning the Organization.

Data Collection Methods

Several authors have suggested that it might be useful to gather data from multiple sources when conducting qualitative research (Patton, 1990; Mason, 1996; Lincoln and Guba, 1985). This phenomenon is called triangulation (Cresswell, 1998; Maycut and Morehouse, 1997) and is also necessary when undertaking a case study (Cresswell, 1998; Minichiello et al., 1990). In the present study three methods were employed in order to collect the appropriate data. In particular, eight in-depth interviews were conducted with the Organizations medium and senior executives and secondary and visual data concerning general information about the Organizations operations and organizational structure were gathered through press articles, the Organizations leaflets, newsletters and monthly reports and the website.

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As far as the in-depth interviews were concerned, these were based on a questionnaire which was developed around a list of topics regarding e-CRM. The questionnaire was focused on those issues that were central to the research objectives and the questions were open so as to allow for greater flexibility (Minichiello et al., 1990). The same questions were put to all the interviewees. Furthermore, the funnelling process of questioning was used, where the initial questions are designed simply to start the informant thinking about the issue in general terms. Then, the interviewer guides the informants view toward more specific issues by using questions that narrow the area, while at the end the interviewer begins to ask specific questions directly about the issue being examined (Minichiello et al., 1990). Moreover, during the interviews some probing questions were used in order to elicit information more fully from the respondents (Stewart and Cash, 1988), while an effort was made to avoid influencing answers. The summation of responses was based on the content analysis method (Stake, 1995; Kent, 1999). The main objective of this analysis is to understand the meanings of what each respondent says and to try to work out the implications of these meanings. This goal can be achieved by going beyond what people say and not accept their comments at face value (Patton, 1990).

e-CRM Application in the Greek Telecommunications Organization General Information

The Greek Telecommunications Organization was established in 1949, and since January 2001 it is operating in a free Telecommunication market. Starting from 1996 the Greek state gradually reduced its shares and today it owns only 33.7%. The turnover of the Organization in 2004 arrived at 5,181 million and the net profit at 132.6 million. It has 17,000 employees and offers integrated solutions of fixed telephony and specialized services such as business telecommunications networks. The Organization is following a flexible and customer centric strategy and focuses on the following: high quality and competitive prices, packages and products for all customer categories, a complete line of products and innovative services, ability to comply immediately and effectively the new competitive environment. The Organizations vision is to be the first choice for its customers in all their communication needs.

The Situation before CRM Implementation

Since the Organization lost the monopoly and is now operating in a free market, it should become competitive and operate as a private company. However, due to its bureaucracy the decision of the implementation of an e-CRM system was a difficult task and a very important step for the Organizations business process reengineering. The implementation of the system should be decided after the agreement of the general management and the departments. The aim was to offer better services to the customers, to improve communication and to establish good relationships with them. Before the implementation of e-CRM, the Organization could not utilize the existing customer information. There were many different legacy systems, which were not able to communicate, and the result was a delay in transactions and the absence of a complete

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view of customers. These systems could offer only specific services (main stream features) and were not adapted to the individual needs of customers (customization).

The Organizations Vision concerning e-CRM and the Design of the System
The Organization considers the system to be everything that can improve the relationships with customers. It is not a choice but a need, since it can support the adaptation to the constantly changing market. According to the Organizations vision, anything that influences customers is CRM, because the aim is to improve relationships with customers. A characteristic comment was: we see the organization though the glasses of CRM. The Information Technology department undertook the implementation of e-CRM and developed a master plan. There was very good collaboration with the users that helped the team to achieve its objectives. The organization is trying to expand the system and makes efforts to improve it on the basis of its experience and the mistakes of the past, and the management fully supports the system. The contribution of the employees and the existing knowledge in the Organization, supported the success and the profitability of the system.

Description of e-CRM
The Oracle solution (Oracle E-business Suite), and in particular CRM11i Suite, was preferred because it could be integrated in the future with the already installed legacy systems. It was very important to integrate e-CRM with the existing legacy systems such as the Genesys Call Center. The Oracle E-Business Suite is used for the ERP, HCM and SCM systems and for the CRM of the Organizations business customers. The Oracle modules that have been used were: Oracle Marketing Online (OMO), Marketing Encyclopaedia, Telesales, Scripting and Order Capture. Oracle successfully analyzed and designed the appropriate interface since there was no other solution available in the market for the collaboration of e-CRM with Genesys. The interface should be installed on the PCs of the employees, but the communication between a desktop application such as Genesys with client software philosophy and a server based application, such as the Oracle solutions, should be achieved. The system is used for the submission of customers orders, requests and complaints. Employees requests are also entered and analysed. In addition, customers claims concerning damages are registered, and as previously mentioned, the system is integrated with the Call Center. Another application of the system is Contact Management to improve the level of communication from and to the customer, by better organizing the information concerning customers. The system is also used to organize the Points of Sales network. Furthermore, the system has corporate customers applications and can support market segmentation.

Problems and Challenges during the Implementation of the System

The management has mentioned various problems concerning the system because due to the size of the Organization it is difficult to have a complete picture of the system. The general situation of the Organization is also a problem (social profile, political

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choices, bureaucratic structures, hierarchy, lack of flexibility and reorganization) and causes a kind of inertia. Starting to use the system was a difficult task for the Organization, because agreement had to be achieved between all users. The implementation of the system was not easy and needed teamwork, collaboration, devotion to the target and managers with knowledge and vision. In addition, many technologically old legacy systems existed and there were problems in the creation of interfaces. The implementation of e-CRM started in the beginning of 2001 and lasted about four months. It revealed technological challenges and needed changes in mentality and in the organizational structure as well as in the processes, taking into consideration the bureaucratic and composite environment of the Organization.

Results after the Implementation of the System

After the implementation of the system the Organization was able to serve its customers better and to acquire new customers, because e-CRM significantly helped the information flow in the Organization. E-CRM has a perfect reporting system, which offers a lot of information when it is necessary and in the way users want it. Customer Care Division conducts a significant number of inbound and outbound telemarketing campaigns. By improving reporting a better control of telemarketing campaigns was achieved as well as accuracy of measurements concerning the achievement of certain indices which were set as targets. In addition, the system gave the necessary support to the Telesales Agents to improve business reporting and allow closed loop marketing. Furthermore, the relationships with customers improved, e.g. the monthly statement, because customers are made aware of what they should pay and the relationship with them is clear. All users made positive comments about the system; only in the Project Management department is the system still not performing as it should, thus some problems occur such as delays in the management and synchronization of human and financial resources and materials. This is due to a lack of instruction and the coaching of appropriate attitudes from employees in the department. In general, the system has the ability to resolve the problems and for this reason, it is considered successful. There is true commitment from all the users of the system and a lot of customer information is gathered. However, it is important that the transition to CRM is done by the whole organization because otherwise it can result in failure. In addition, employees should be well educated and trained and possess the right mentality. E-CRM needs new people with diverse education and experience; it is innovative and requires both vision and implementation skills. Nowadays, the Organization must offer complex services to satisfy its customers. Thus, there is a need for additional and more complete information about them, and only in this way can the competition be defeated. E-CRM is the best solution but if this system is adopted first by its competitors then the customer base of the Organization could be in danger.

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Conclusions
In todays very competitive and constantly changing Telecommunications market, the Greek Telecommunications Organization considers the implementation of e-CRM very important and is trying to expand the system. Before its implementation, delays occurred in transactions, the Organization could not utilize the existing customer information and did not have a complete view of its customers. The implementation of the system was not easy because of the bureaucratic structures of the Organization since teamwork and collaboration were needed and many technologically old legacy systems existed. There were also problems in the creation of interfaces. However, e-CRM significantly helped the information flow within the Organization as well as improving its relationships with customers. All users made positive comments concerning the system and it is considered successful. Nevertheless, according to the findings, for the successful implementation of the system, vision and commitment from the management are needed. Strategic priority should be given, which should embrace the whole Organization and its implementation aims should be completely defined. This finding is in accordance with Adebanjo (2003) and Rigby et al., (2002) as mentioned in the literature review. In addition, the project team should be carefully selected and a time-table decided. It is important to use the right personnel to support the project as also mentioned by Kotorov (2002). The users should have the appropriate technological background to understand the operation of the system. Furthermore, it is important to offer the right training to all users. Employees should use the system regularly and enter all the information available. This is in accordance with Peppard (2000), who mentioned that an e-CRM system can succeed only if it is recognized as necessary by the whole company. This study achieved its main research objectives to examine e-CRM implementation in the Greek Telecommunications Organization and analyze the situation within it before e-CRM implementation; to identify the reasons why this need emerged; to examine the situation after its implementation, and to present the benefits and problems, as well as the success and failure factors of the system. These findings can become a useful marketing tool for the managers of the Telecommunications Organizations in Greece and in other countries. Academically, further research based on these findings can add to the present pool of knowledge by further examining e-CRM issues in other Telecommunications Organizations.

Practical/Theoretical Implications
The sample used was designed using a combination of snowball sampling and the maximum variation sampling. Employees from different departments within the Organizations were interviewed and data from a wide range of informants in different positions within the Organization were gathered. However, the sample size could have been larger because the organization has a great number of employees. In addition, many problems were encountered when approaching the directors of the different departments because they had heavy time schedules and difficulties. Interviews took a long time to arrange and they had to be postponed in many cases. In the process of conducting this study no other important or unexpected complications were encountered.

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The Contribution of this Study

This study has contributed to the marketing literature by shedding some light on eCRM issues, which have not been widely examined in the literature. In addition, it has contributed to the Telecommunications sector literature, where little investigation has taken place on issues concerning e-CRM in Telecommunications Organizations.

References
Adebanjo, D. (2003), Classifying and Selecting e-CRM Applications: An AnalysisBased Proposal, Management Decision, Vol. 41, No. 6, pp. 570-577. Bradshaw, D. and Brash, C. (2001), Managing Customer Relationships in the e-Business World: How to Personalize Computer Relationships for Increased Profitability, International Journal of Retail & Distribution Management, Vol. 29, No.12, pp. 520-530. Cresswell, J.W. (1998), Qualitative Inquiry and Research Design: Choosing among Five Traditions, Newbury Park: CA Sage. CRM2day (2001), The First Research in Greece for CRM: A New Market Emerges for the Greek Enterprises, Available: [http://www.crm2day.com/survey-zone/survey.shtml] accessed 15 October 2001. e-pichirin (2004), The Internet and its Applications on CRM, Available [http://www.goonline.gr/ebusiness/specials/article.html?article_id=140], accessed 3 October 2004. Kelley, L.L., Gilbert, D. and Mannicom, R. (2003), How e-CRM Can Enhance Customer Loyalty, Marketing Intelligence and Planning, Vol. 21, No. 4, pp. 239-248. Kent, R.A. (1999), Marketing Research: Measurement, Method and Application, London: International Thompson Business Press. Kotorov, R. (2002), Ubiquitous Organization: Organizational Design for e-CRM, Business Process Management Journal, Vol. 8, No. 3, pp. 218-232. Koutsiouris, . (2003), Customer Relationship Management, unpublished MSc dissertation in Information systems, Economic University of Athens. ritikou, . and Rachoutis, Th. (2003), Customer Relationship Management-CRM, unpublished MSc dissertation in Information systems, Economic University of Athens. Lincoln, Y.S. and Guba, E.G. (1985), Naturalistic Inquiry, Newbury Park: CA Sage. Mason, J. (1996), Qualitative Researching, London: CA Sage. Maycut, P. and Morehouse, R. (1997), Beginning Qualitative Research, Third Edition, London: Falmer Press. Minichiello, V., Aroni, R., Timewell, E. and Alexander, L. (1990), In-depth Interviewing: Researching People, Melbourne: Longman Creshire. Patton, M.Q. (1990), Qualitative Evaluation and Research Methods, Second Edition, Newbury Park: CA Sage. Peppard, J. (2000), Customer Relationship Management (CRM) in Financial Services European Management Journal, Vol. 18, No. 3, pp. 312-327. Peppers, D., Rogers, M. and Dorf, R. (1999), Is Your Company Ready for One-toOne Marketing?, Harvard Business Review, JanFeb, pp. 151-160. Porter, M. (2001), Strategy and the Internet, Harvard Business Review, March, pp. 63-78. Rheault, D. and Sheridan, S. (2002), Reconstruct your Business Around Customers,

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The Journal of Business Strategy, Vol. 23, No. 2, pp. 38-42. Rigby, D.K., Reichheld, F.F. and Schefter, P. (2002), Avoiding the Four Perils of CRM, Harvard Business Review, Vol. 80, No. 2, pp. 101-109. Skouloudis, M. (2003), e-CRM vs CRM, Magazine Ne.O, October, pp. 32-33. Stake, R. (1995), The Art of Case Study Research, Newbury Park: CA Sage. Stringfellow, A., Winter N. and Bowen, D. (2004), CRM: Profiting from Understanding Customer Needs, Business Horizons, Vol. 47, No. 5, September-October, pp. 45-52. Stewart, C.J. and Cash, J.W.B. (1988), Interviewing: Principles and Practices, Dubuque, Iowa: Wm.C. Brown Publishers. Thompson, E. and Moscardini, N. (2002), Gartners CRM Vision: A Roadmap for Customer-Centric Transformation, Garthner Symposium ITXPO, San Diego, California, April 2002.

About the Authors

Evangelia Blery has a PhD in Marketing and an MBA (area of research work in Marketing) from the University of Surrey in the UK. She is currently working in the area of marketing of innovative technologies in the Liaison Office of the Attika Technology Park Leukippos in the NCSR Demokritos. In parallel she has participated in EU projects conducting market studies and marketing and exploitation plans. Her previous experience includes PLANET - ERNST and YOUNG S.A., as a consultant in the Strategy Management Department, on marketing and management issues and the Institute of Technology of Athens, as a part-time assistant professor. Her areas of research interest include: Consumer Behavior, Customer Loyalty and Customer Relationship Management. Michael Michalakopoulos has an MBA (area of research work in Marketing), from the Athens University of Economics and Business, an MSc in Quality Assurance from the Hellenic Open University and a degree in Mechanical Engineering from the National Technical University of Athens. He is currently working in the Studies Department of the National Printing House of Greece. His previous experience includes Hellenic Aerospace Industry (HAI) in the Division of Quality Assurance and the Institute of Technology of Chalkis, as a part-time assistant professor. His areas of research interest include: Customer Relationship Management (CRM), and Quality Assurance.