The market had changed very dramatically during these past decades and we are now reaching to the consumer power era. Couple decades ago, customers will not mind to purchase any car as long as it had four wheels and could operate well. In this era, however, customers have hundreds to thousands choices of vehicles available in market varying in models, quality, color and price. Customers therefore possess the more powerful position in the market today.
“CRM (Customer Relationship Management) is an approach that recognizes that customers are the core of the business and that the company’s success depends on effectively managing relationships with them” [1].
CRM perceives customers as an important asset of the organization and maintaining customer relationship is the core process of a business. A business that succeeded in retaining its customers is five times more profitable on average [2]. Some techniques for maintaining good relationship with customers are recommended below.
A good website design
What will be more frustrating to a customer other than complicated, un-user friendly websites? A customer may arrive to your website directed by search engines or led by links from other websites. Once customers disappointed with your site and could not find what they were expecting for, it is very likely that they will not return again in the future. For more information on how to design a good website, please refer to What makes a good website.
Permission marketing
To build a good relationship with customers, it is recommended that we should firstly ask for their permission before we offer more information about our products. One good example is by using opt-in email. In opt-in email, interested customers give permission to the company before the company sends them emails consisting information on certain products.
Database marketing
Every customer likes to feel being respected or valued by the organization. This kind of service can be provided by e-business by using a technology called database marketing. In database marketing, the company collects data from customers and profiled them under the company’s database [2]. This information will then be used for building a good relationship with customers. For example, Amazon.com uses its customer profile to recommend books that are considered suitable for its customers. The recommendations are made based on the information provided by its customers suggesting what their book preferences are.
Online community [3]
Relationship is a two way communications [2], customers like to be heard as much as they have heard from the company. Online community, such as web blog or forums, allows customer to freely share their opinions and suggestions that are very critical for business improvement. When customers feel being heard and respected, they will be more likely to return to your site again in the future.
Other related topics:
What is E-Business?
How does E-business differ from traditional business?
The 2008 Australian Website Competition
What makes a good website?
Optimizing your e-business with SEO
How does search engine work?
[1] Turban, E., Leidner, D., McLean, E. and James Wehtherbe (2006). Information Technology For Management: Transforming Organizations in the Digital Economy. 6thEd. John Wiley Sons
[2] Smith, PR. and Dave Chaffey (2002). EMarketing Excellence: The Heart of EBusiness. Butterworth-Heinemann. Oxford.
[3] Chaffey, D (2002). E-Business and E-Commerce Management. Perason Education
Filed under: CRM, E-Business, Selling on internet | Tagged: CRM, Customer Relationship Management, Database marketing, E-Business, E-Commerce, ebusiness, ecommerce, Internet MArketing, Online community, Permission marketing, Relationship management, selling, Selling on the web
Hey Lena, good article, you work hard on this……I should learn from you….
BTW, I think you gave you the wrong blog address, could you please kindly change the link on your site. Many thanks
http://biblenme.blogspot.com/
Not really related, but I believe this one has something to do with CRM:
http://positivesharing.com/2008/03/top-5-reasons-why-the-customer-is-always-right-is-wrong/
CRM is like a system to nourish company relationship with its customers. Because actually it’s easier and cheaper to maintain a good relationship with current customers than to get a new customer.
that’s what going on nowadays… tight competition enforce company to think more about its target and current customers.. customization and personalization become common.. customer becomes more and more satisfied..
however, the next question is who will be charge for the cost of that strategy? customer or company? if it goes to customer, then will it reduce the satisfaction of customer?
^^
PS: anyway, nice blog!
Nice blog, e-business could surely affect crm – due to its speed and flexibility …
->anindya
It’s a very resonable assumption… Indeed, database marketing is a very expensive technology that only big organisation such as amazon can afford. However, this company (amazon) still can offer its products with amazing special prices. The company’s large economic scale may have played an important role here.