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CRM and E-Business:

With the advent of the Internet, customers are now well informed about an organization's products and services as well as its competitors' offerings. Customers of the 21st century are more demanding about the services they get. The demand for improved customer service has led to the evolution of e-CRM. E-CRM is a combination of customer relationship management processes and related technologies and it enables organizations to understand the needs and preferences of their customers better. E-CRM can be used as an effective tool to achieve competitive advantage. In this chapter, we discuss in detail about how to develop a sound application framework for e-CRM and how an organization's marketing and information systems function have to be redefined to support the e-business environment.


Customer relationship management or CRM have all aspects of interaction (including sales, customer service and marketing) of an organization with its customers. Managing customer relationships electronically, mainly through the Internet, by organizations is popularly called as e-CRM. Various factors including high cost of acquiring new customers, cut-throat competition, high customer churn rate, and globalization have led to e-CRM initiatives by organizations. Organizations are looking for several ways to personalize online experiences of customers through e-CRM tools such as e-mail manage, help-desk software, and web development applications.

Using Customer Information to Provide Better Service

The information collected by organizations about customers must be used effectively to provide better service to customers. Customers' requests for information about any product/service and for sales support must be attended immediately. The e-CRM tools help in prompt handling of all aspects related to customer service.

Creating Customer Value and Loyalty

Organizations may make customer loyalty by personalizing and customizing their products/services to take customer needs. Personalization may be achieved by e-CRM tools like inference lied and rules based software. Inference based software is usually used for cross-selling. It tracks customer behavior and sets together customers who have similar behavior. Rules based personalization is needed for selling specific products and services. The software saves track of the products/services that an online visitor has browsed for. This could enable company to offer customized products/services to the visitors.

Implementing Integrated CRM Solution Strategy

Organizations must focus on reliable and convenient customer communication. This needs an integrated e-CRM application development strategy which adds integration of software related to marketing, sales and servicing functions. Organizations that fail to integrate e-CRM solutions into their front-end business methods are at a competitive disadvantage.

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