Electronic customer relationship management definition
Electronic customer relationship management is the combination of strategies, technologies, and processes used by companies to manage and improve their relationships with customers online. e-CRM is meant to optimize customer interactions through webpages, emails, social media, and other digital channels.
e-CRM systems collect data about the users’ online interactions, compiling a comprehensive view of the customer journey. With the right analytical tools, businesses can use this data to better understand their customers’ behaviors, preferences, and needs and then personalize customer experiences based on these insights.
See also: digital footprint, digital identity, digital information
History of electronic customer relationship management
As the internet proliferated in the late 1990s and early 2000s, businesses recognized the potential of using the digital world to improve their relationships with their customers. So e-CRM was born. Its importance has grown exponentially with the surge in online shopping, digital communication, and social media engagement.
e-CRM advantages
- Enables businesses to tailor marketing campaigns and communications based on customer preferences.
- Provides insights from comprehensive data analytics, improving strategic decision-making.
- Allows real-time customer interaction and support through live chats and social media.
e-CRM disadvantages
- Storing large amounts of customer data poses significant security risks.
- Existing systems and databases might not integrate smoothly with new e-CRM platforms.
- Implementing and maintaining robust e-CRM systems can be expensive.
- Without proper training, users could find e-CRM systems challenging to navigate.
