CRM Methods In E-Commerce- If you’re one of those businesses whose success in increasing sales depends mainly on the Internet, customer care is a crucial, important focus. But, of course, acquiring new customers and using suitable marketing measures are also the focus of your everyday business.
If you consider customer retention much more cost-effective in the long term than acquiring new customers, the question arises as to which horse you should back in a long time. This article explains the different CRM methods, their differences, and their advantages.
The Difference Between CRM And Methods In E-Commerce
Customer relationship management (CRM) is not software but a strategic approach by a company to respond more to the wishes and needs of customers. e -CRM (Electronic Customer Relationship Management) is much younger than CRM, and experts still have no consensus regarding the term’s meaning. On the other hand, e-CRM solutions analyze and display customer data and their integration from different customer groups and use the design of customer relationship measures via various communication channels.
The Analytical CRM
The transparent processing and evaluation of the collected data, especially data about customer reactions, is understood as analytical CRM to build more customer knowledge and the associated customer profits about the individual customer relationship phases.
Analytical E-CRM – The Technical Side
These are combined in a database (from various sources), revised, and cleaned up—the storage and analysis of your customer-related data.
Examples of such data:
- Customer master data
- purchase history
- Potential (or customer value)
- sales figures
For example, a model crate from this data recognizes which products purchase and in what quantity. The name of this procedure is OLAP (Online Analytical Processing). It noted that an evaluation is only possible if the data is directly related to one another, in our example: time of purchase, number of sales, and product type. Other software solutions are available for processing the data differently, for instance, converting the collected information into various graphic formats.
Another widely used analysis method is the so-called clustering. Groups of property values start here. Whether customer or product groups can be assigned individually doesn’t matter. In this way, you can, for example, assign new customers to a specific cluster to make you the right offers from the outset.
Data Mining CRM Methods In E-Commerce
Data mining is also one of the possible analysis methods. The aim is to apply the statistical methods concerning an extensive database systematically. The goal is to recognize new patterns. However, data mining describes more of an analysis step, while the whole process is more commonly known as ” knowledge discovery in databases. ”
The Operational CRM Methods In E-Commerce
The operative level in CRM describes the closing of new customer contacts, the qualitative acquisition of customer information, and the maintenance of this information—the basis for supporting your employees in direct customer contact. The focus is on call center solutions and workflow automation. Operational CRM systems primarily use in sales, marketing, and service.
The Communicative CRM
A part of the operative CRM is the communicative CRM. It involves integrating multi-channel management, using all communication channels between the company and potential new or existing customers. Noteworthy is the active and topic-relevant contact, which should strengthen the connection between the company and the customer.
Multi-Channel Management As The Core Of Communicative CRM
Controlling all existing communication channels helps to decide which communication channels impact the company’s success best. These according to various questions, such as whether the respective platform or channel has a good image and constant functionality, how profitable the channel-specific communication processes are, how flexible the medium use and the reach of the track, the number of Your target group that you want to reach with the way.
Web 2.0 or Social CRM as an interactive platform
The most well-known platforms for the “participatory web” are Wikipedia, YouTube, and Facebook. However, Web 2.0 is now being used more and more and replaced by social media.
Advantages of the so-called Social CRM:
- Good overview of the reputation of certain products (for B2C target group)
- Possibility to react quickly to dissatisfied customers/users at short notice
- Immediate response possible to newly discovered customer needs
But there are also disadvantages:
- A lot of time wasted on conception and maintenance
- The company must be able to react flexibly
- A great affinity with social media requires for use
- High data protection requirements when integrating into companies
For example, a social CRM allows you to evaluate customer discussions. You may get answers to the following questions:
- When and how often is our company/product discussed?
- What does our target group perceive as particularly positive or negative?
This way, you can determine what your end users think of your service and range of products. It, in turn, allows you to optimize precisely these construction sites. You can also participate in discussions or react directly to unjustified allegations if necessary. Some social CRM systems also offer forums or chats. We are also planning some features from the social CRM area to provide our customers with an all-in-one platform more and more.
The collaborative CRM Methods In E-Commerce
This CRM variant offers you in the company the cooperation of employees, customers, partners, or suppliers to improve customer orientation. By integrating new technologies and optimizing interaction within the company and across the board, you get the basis of all CRM methods to stand out from your competition. Communicative, operational, and analytical CRM only build on collaborative CRM.
On the other hand, e-CRM solutions analyze and display customer data and their integration from different customer groups and use the design of customer relationship measures via various communication channels. It noted that an evaluation is only possible if the data is directly related to one another, in our example: time of purchase, number of sales, and product type. It involves integrating multi-channel management, using all communication channels between the company and potential new or existing customers. For example, a social CRM allows you to evaluate customer discussions.
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