Customer Relationship Management (CRM)
• Customer relationship management (CRM) is the combination of practices,
strategies and technologies that companies use to manage and analyze customer
interactions and data throughout the customer lifecycle.
• The goal is to improve customer service relationships and assist in customer
retention and drive sales growth.
• Customer relationship management (CRM) is crucial for e-commerce businesses
as it allows them to build strong relationships with customers, increase customer
loyalty, and generate repeat business.
Types of CRM
CRM can be divided not only into different areas, but also into four components,
each used by each department as required. These components are:
Analytical CRM (Data-Driven Insights)
• Uses AI and analytics to understand customer behavior and preferences.
• Example: Google Analytics helps track user interactions on e-commerce websites.
Operational CRM(Automation of Business Processes)
The task of operational CRM is to translate the findings of analytical CRM into concrete
measures. Among other things, this includes sorting customers into different categories.
• Focuses on sales, marketing, and customer service automation.
• Example: HubSpot CRM automates email marketing and customer intercations.
Collaborative CRM (Integration Across Departments)
• Enhances communication between sales, marketing, and customer support teams.
• Example: Slack and Microsoft Teams for internal coordination.
Strategic CRM (Customer-Centric Approach)
◦ Focuses on long-term customer engagement rather than just transactions.
◦ Example: Amazon Prime’s loyalty program builds long-term relationships.
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Here are some key considerations for implementing CRM in e-commerce: (Advantages)
1. Personalization: E-commerce businesses must provide personalized experiences to
customers by collecting data on their preferences, browsing history, and purchase behavior.
They can then use this data to offer personalized product recommendations, targeted
marketing campaigns, and customized communication.
2. Multi-channel communication: E-commerce businesses must be available to customers
through multiple channels, including email, social media, chatbots, and phone. This allows
customers to reach out to the business through their preferred channels, improving their
overall experience.
3. Order tracking and customer service: E-commerce businesses must have efficient
systems in place for order tracking and customer service. This includes providing
customers with real-time updates on their orders and responding to customer inquiries and
complaints promptly.
4. Loyalty programs and incentives: E-commerce businesses can encourage customer
loyalty by offering incentives such as discounts, rewards, and loyalty programs. This not
only increases customer retention but also encourages customers to refer the business to
their friends and family.
5. Data analysis: E-commerce businesses must track and analyze customer data to improve
their CRM strategies. This includes analyzing customer feedback, monitoring customer
behavior, and using predictive analytics to anticipate customer needs.
Benefits of CRM to organization, customers and market
The benefits of doing so include:
• Better client relationships. The more you know, and remember, about clients (or customers)
the more your clients know you care about them. This enables you to forge a much
stronger connection and a deeper relationship with your clients.
• Improved ability to cross-sell. The more you know about your clients' needs and wants the
better able you are to provide the solution to their next problem.
• Improved efficiency in serving clients. Again, the more you know about clients, the better able
you are to serve them. If everyone is using the CRM to record their customer
interactions, EVERY client interaction, then others' are able to serve the client with the
knowledge of what has been previously discussed with the client.
• Greater staff satisfaction. The more knowledge your employees have the more empowered
and engaged they are. Having an accurate and up-to-date CRM that everyone uses and
has access, to helps employees solve client problems. Doing so makes employees and
clients happy.
• Cost saving
• Less client attrition
