International Journal of Scientific & Engineering Research Volume 2, Issue 8, August-2011 1
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The Role of E-Commerce in Electronic Customer Relationship Management (ECRM) and the Factors Affecting It
Mohammad Mojtaba Keikhayfarzaneh, Dr.Ahmad Reza Keikhayfarzaneh, Dr.Javad Khalatbari, Mohammad Sourizaei
Abstract— The emerging of new technologies have been primary and tremendous effects on different facets of commercial organizations in today’s world. One of the facets of this matter is customer satisfaction and trust through this way.The senior organization and company’s managers evidently know that the success and also their survival depended upon their customer’s satisfaction. Customer satisfaction is also a key for them which are also so sensitive. ECRM or customer relationship management electronically has managed to help organizations in this field. In article, the contents, aims and the benefits of CRM and ECRM have been considered. Their considerations as recognizing the behavioral types of customers to customize and increase customer’s loyalties to organizations have also been emphasized.
Index Terms— E-commerce, Customer Relationship Management (CRM), Electronic Customer Relationship Management
(ECRM).
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N commercial world today, management formally re- cognizes the principle that customers is the main basis of commerce and that the organization’s success de-
pends on the management relationship improvement[1]. CRM is key factor in succeeding many of the business atmospheres, including the tourism industry as one of the new strategies in customer attraction. The aim of CRM is to establish closer and deeper relationship with customers and the capability and inclination of change of behaviors of organizations towards the interests and personal needs of every customer [2].
Customer attraction management is the set of the processes and strategies related to customers which is supported by specific software in order to increase the customer’s loyalties and finally organizations profitabili- ty. Of the necessities are suitable customer attractions, creating a suitable suggestion for values, internalizing the best processes, enhancing the employee’s motivation and learning customer’s maintenance [3].
The new version of CRM, or ECRM, is principally emerged from CRM, but its emphasis is more on persona- lization, direct marketing technologies for selling and providing distinct services to small parts of the market.
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Department of Psychology, Young Researcher Club, Zahedan Branch
,Islamic Azad University, Zahedan, Iran.PH-+989389384191. E.mail
Assistant Professor of Persian Language and Literature, University of
Sistan and Baluchestan, Zahedan, Iran.
Department of Psychology, Islamic Azad University, Tonekabon Branch, Tonekabon, Iran.
Department of Electronics, Young Researcher Club, Zabol Branch, Islam-
ic Azad University, Zabol, Iran.
ECRM provides the kind of opportunities to reveal his/her potentials as a customer through establishing an effective relationship with the company, in order to both the company and customer benefit from this relationship [4].
Because there are severe competitions in the commercial world today, it is required for the companies to have enough recognition of their customer’s behavior, especial- ly the customers to which the company’s survival de- pends on them. Customer relationship management (CRM) managed to help the organizations through pre- senting effective and suitable theories, and also ECRM managed to provide the competition benefits in today’s competitive world arena for the companies through pre- senting theoretical models and its application in a suitable way to establish it.
Customer relationship management or CRM consists of three main parts as customer, relationship and manage- ment.
Customer: a person or a party which is inclined to employ the product or a result of an operation [5].
Relationship: creating a more faithful and suitable cus-
tomer through intelligent relationship.
Management: directing a business and customer attrac-
tion in placing the customer in the center of the compa-
ny’s processes.
The objectives of CRM can be as follows:
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Recognizing the new opportunities.
Reducing the lost opportunities
Reducing the customer’s flee
Improving the services to customers
Improving the company’s esteem
Saving the company’s data
Reducing marketing reworking [6]
Customer’s relationship management can help the companies sublimate their capabilities for interaction to customer. Not only these people can help improve the quality of the company, but accelerate the buyer’s needs response [7].
Customer relationship management creates the possi- bility that the distance between the customers and com- panies is decreased, and the company’s success will be increased by customer’s loyalty, a superior service, a bet- ter collecting dada and organizational education. The aim of customer relationship management simply under- stands the customer and a better behavior towards them for increasing the loyalty and company’s interests [8].
Not only customer relationship management can elevate the customer’s satisfaction, but express the strategic inte- raction emergence between a company and its customers with the aim of maximizing customer’s lifetime value.
The companies are searching the ways to outreach their competitors. CRM has partly managed to help the com- panies reach their objectives, but using the IT or E- commerce has greatly helped to this issue
The main requests of the leading organizations is firstly to focus on their customers personally and present their services to them (that is, personally, not generally), and secondly, have a long-time relationship ( that is, they should concentrate their focus on creating relationship, not merely trading), and thirdly, make themselves free from all the obstacles and harmful things concerning the middlemen who are between the supplier and customer and do not have added value ( not intermediate or direct selling to customer). These objectives are possible in a digital atmosphere and through E-communication or ECRM [9].
IT or E-commerce experiments has been considered as
one of the important facets of CRM.
E-commerce aspect of CRM is undoubtedly is its main aspect. There are three types of communication: one of
them is that of chat rooms, message board, etc. Another type is email, fax, telephone and website and the other type is the software that order and list the products.
The essential infrastructure of CRM, that is the com- munication networks, data banks, computer servers and the clients, should cooperate with each other [10].
One of the instruments the company can employ for increasing customer’s loyalty is personalization [11]. In this respect, customer relationship management software can create soma data and records for the customer in every time, which is gained from different sources such as customer data bank or transaction system. Transaction system is the type of system that records the previous transaction data of customers. In every e-purchase per- formed by customer, this software makes the best sugges- tion based on the previous recognition of him. Whether the customer accepts the suggestion or rejects it, the per- sonalization motor of the system adds the new informa- tion to his records. These records are updated and again applied in deciding and presenting new suggestions [12].
However, some important points are to be considered as follows:
We should have a comprehensive knowledge of the per- sonality traits of our customers. For example, how the product is to be vended to irritable and angry customers? How should we behave towards the customers who have not much stability and easily change their mood from cold to warm behavior? Not only has the seller much pa- tience, but know the techniques of selling to these types of customers, and he/she must know that the base of the personality traits of this people is fear. However, a suc- cessful network marketer and seller should arm him/herself to “customer epistemology”. What can be effective for the seller so far cannot be necessarily success- ful for enhancing the selling in the future [13].
By reviewing of what mentioned above, we found out that the use of the new methods like CRM and also its implementation in E-commerce in ECRM type should be enhanced by increasing the competition and many of the market’s saturation and permanent change in company’s markets and commercial organizations. Every customer has his/her own characteristics today and inevitably, the issue of personalization must be more focused. This issue should be performed by the most economical way and that is E-commerce. The customer marketing value in the internet is 6.8 $, while the new customer attraction is 34 $ [14]. The first principle of customer attraction is his/her gaining trust, and afterwards, the customer will be loyal to the seller. This issue is not achieved unless we have a comprehensive knowledge of our customers [13].
It is suggested that an experiment be performed concern-
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ing risk factors in CRM and ECRM, as well in order the problems and challenges facing this issue to be consi- dered. Inevitably, the risk factors of these issues are also one of the most important issues, which the CRM and ECRM projects may be collapsed without ignoring those issues.
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