Importance of customer relationship management in e-Commerce

Importance of customer relationship management in e-Commerce

The art of keeping customers happy is fundamental for any business to succeed, but it goes far deeper than that. Proper Customer Relationship Management (CRM) is a strategy (plan) used to manage interactions with existing and prospective customers. CRM helps businesses streamline processes, build customer relationships, increase sales, improve customer service, and increase profitability.

As with a traditional business that has a physical store, e-commerce selling is competitive and building customer confidence and loyalty in your brand, product or service requires your focused attention. The good news is that CRM does not have to be complicated and there are steps that can be taken now, to start putting the right practices in place. Once your business expands to a point where you need a more automated approach, you can consider investing in CRM software and a service provider to help manage this for you in the long term.

There are many methods available such as websites, social media, telephone calls, chat, email and various other marketing materials that can all be integrated into a CRM solution. These are all readily accessible and it really comes down to keeping records and keeping your fingers on the pulse of all communications.

There are several matters to consider: How are you selling online, have you set up your own website, or are you using social media, WhatsApp or a seller portal such as Takealot, Bidorbuy, Loot or any others to promote your products/services?

Regardless of which e-commerce channel you have chosen, some key points to consider include:

• Knowing your customer and what their needs are.
• How you reach your customers.
• How your customers communicate with you and how you respond.
• Knowing your customers buying patterns, what they buy and why.
• What plan is in place to find new customers and keep the existing ones.
• Knowing how customers feel about your product or service.

Whether you have the answers to these points or not, now is the perfect time to start giving this some serious thought. Think about how best to start recording information and planning your customer communication, if you are not already using a CRM software. A simple Excel spreadsheet or other electronic format can work quite efficiently in the early stages of your CRM.

Putting a CRM Plan Together

Provided below are some ideas and tips to consider when compiling a CRM plan.  This is by no means an exhaustive list and thought should be given to the unique nature of your business, market and customers:

​1. Have a marketing plan. You need to find customers and continue marketing your product or service constantly. Think carefully about what your marketing message says, when you plan to send them, and how it showcases the benefits of your product. Since your customer is not able to have a tactile shopping experience, think about how you can appeal to their other senses through the platform.

2. Track what each customer is buying, the quantity, the price and if any of the products are related i.e. what are the trends. This helps to target your marketing, promote specials on the products they like or even cross sell (bundle similar products) and upsell (new or limited-edition products).

3. Segment your customers, determine the ‘top’ customers (regulars buying in quantity) versus ‘average’ customers (purchase from time to time) versus ‘once off’ customers (purchase once and never again). It is advisable to consider a customer loyalty system, be it points, vouchers or discounts. These can be scaled based on the ‘level’ of your customers i.e. reward your top customers more, and these can also entice ‘average’ or ‘once off’ customers to buy more.

5. Have a proper compliments, complaints or ratings process in place. People always remember how they feel about things. In handling complaints, it is best to keep the emotion out of the response, get to the bottom of the issue and find a way to fix it. People are more likely to share bad experiences with friends, colleagues and family, than good ones. A survey conducted by Dimensional Research found that 62% of B2B and 42% of B2C customers purchased more after a good experience, while 66% and 52% respectively stopped making purchases after a bad experience. In addition to this, the success rate of selling to an existing customer is between 60-70%, as opposed to selling to a new customer which is around 5 to 20%.

6. Keep tabs on any social media comments and be sure to respond as mentioned in point (5).

7. Where possible try to personalize communication to customers, as opposed to standard/ general responses.

For each of these suggestions, consider what resources are needed to put them in place i.e. the systems, processes, technology and people. The insights into customers’ behavior is priceless, since the ultimate goal is to entice and retain customers.

It is highly recommended to automate CRM plans and processes as far as possible, continue to review whether they are working regularly and adjust them where required.

There are many CRM solutions suitable for small and growing businesses on the market.  Many are sold as a service (known as SAAS, or software as a service) where a monthly or annual premium is paid per user.  There may be different levels or service plans which must be chosen according to your needs and budget.  Generally it is easy to change from one service plan to another.  Access to a credit card for payment will be a prerequisite to purchasing this type of service.  Discounts are often offered for paying upfront for 12 months.

References

https://www.salesforce.com/eu/?ir=1

https://www.forbes.com/sites/forbesagencycouncil/2017/10/24/why-is-customer-relationship-management-so-important/#4ef7aaa17dac

https://www.marketingcharts.com/digital-28628

https://www.outboundengine.com/blog/customer-retention-marketing-vs-customer-acquisition-marketing/