Importance of CRM in eCommerce BusinessMayank Gulati
It’s no secret that strong customer relationships are essential to business success. To help businesses, especially eCommerce businesses improve their relationships and stay organized, a CRM or Customer Relationship Management solution is quite essential. eCommerce businesses always have a diverse audience- sometimes they are interacting with a middle man, other times they’re talking with the person in charge of purchasing, people are always at different points in the sales funnel, etc. It can get very complex while keeping it all straight and managing the identities, this is where a CRM solution for eCommerce companies can come into play.
A CRM solution can assist you with managing the company’s interaction with not only the current customers but also future or prospective customers. Its a technology-based platform which becomes the backbone for all your customer related functions – may it be organizing, automating and synchronizing sales, marketing, customer service, and technical support.
Common challenges eCommerce businesses face today include;
Tracking customer loyalty
Being an online shop with no physical presence makes it difficult to track customer visits and customer purchases to identify the most frequent visitors. Commonly used methods to generate repeat business include a loyalty system where you can reward the customers with points they can use in future purchases.
It gets very difficult to track every customer’s communication with you- such as complaints, question, comments- so that you can use that data to determine the best way to communicate with them. It becomes very essential for a customer-centric business where every customer wants to feel heard and there are limited points of contact.
Create target messaging
One of the challenges eCommerce companies face is tracking and searching the purchase behavior to discover the customer’s favorite product. This is done by sending targeted emails recommending products which are highly relevant to the customer, such as a product that will complement a recent purchase.
Measuring customer life cycle
Another major hurdle in this business is customer retention. There are numerous options customer can get, which are just one click away. They tend to drift away without regular, relevant engagement. Having records of how long they continue using your online business helps in determining when you need to send follow-up communication to retain them or to win them back if their loyalty has lapsed.
Identifying high-value customers
In this business you need to categorize customers according to their purchase frequency, average spend and more, to identify your valuable customers.
Storing customer information
It is required and essential to store records of customers like customer’s payment and shipping details for their convenience and streamlining the buying process for future purchases.
Make strategic decisions
All of this information helps you to analyze and extract valuable insights into your customers. Knowing which products are selling to which customers and building targeted campaigns which will resonate with the customers and give a strong ROI.