Difference between CRM and e-CRM

Today the internet is a significant economic and social force and has brought more than just technological change to the business world. The internet has changed the traditional business model of organisation and forced the organisation to embrace operational changes. Difference between CRM and e-CRM is that e-CRM refers to electronic customer relationship management or simpler CRM that is more web-based.
Keywords: CRM; e-CRM; e-Commerce; Web2.0; Information technology

The concept of CRM is defined as “It is the process of acquiring retaining and growing profitable customer.” It requires a clear focus on the service attributes that represent value to the customer and creates loyalty. It is a comprehensive sales and marketing approach to building long term customer relationship management and improving business performance.

In order to be successful organisation need to better understand consumer needs. It is important for the organisation to understand these needs and be in a position to act quickly. CRM is about attracting developing and maintaining a profitable customer relationship over time. This focus is critical where a customer may change the provider with a click of a mouse. Simply CRM is a strategy to identify and satisfy the customer and as a result, will lead to a stronger relationship.

e-CRM the adaptation of CRM in a e-commerce environment

e-CRM derive from CRM techniques which leveraged call centre and direct marketing technology to market mass-produced goods and services to small market sub-segment. e-CRM is essentially the adaptation of CRM in an e-commerce environment and helps build and sustain customer relationship using the net. It is a net-based business strategy that requires the development of a set of an integrated software application to deal with all aspects of customer interaction like sales, marketing field support and customer service. e-CRM exercise would mailing focus upon acquiring new customer enhancing profitability of existing customer segment high-value customer and maximise life true value of profitable customer.

CRM is a business strategy for acquiring and maintaining the right customer over the long term within this framework a number of channels exist for interacting with customer one of these channels is electronic and has been labelled e-commerce or e-business. This electronic channel does not replace the sales force, call centre or ever the fax. It is simply another extension.

Difference between CRM and e-CRM

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e-CRM systems are able to capture data in one place and integrate it seamlessly throughout various departments and processes. Ideally, e-CRM allows an organisation to tailor its products and services to each customer’s satisfaction. CRM may be used to create a personalised one-to-one experience that will give the individual customer a sense of being cared for thus opening up new marketing opportunities based on the performance and history of the customer.

CRM is a customer focus business strategy that aims to increase customer satisfaction and customer loyalty by offering service to each customer. With the movement of business applications to the internet, CRM has enhanced organisations’ capabilities by providing access to its customers and supplier via the web. This web experience and communication through the wireless web is called e-CRM.

Web2.0 is advancing e-CRM providing features that are attractive to customer

The internet is advancing e-CRM. It provides features that are attractive to customers and business organisations. For example, many e-CRM systems provide the customer with a self-service browser-based window to place an order check order status review purchase history request additional information about products send e-mail and engage in a host of other activities. These capabilities provide customers with freedom in terms of place and time. The customer no longer is limited to contacting an organisation during regular business hours and the organisation does not have to provide a live contact on the other end for customer enquiries and requests.

CRM applications are designed around products and job functions. The applications are designed for the corporate department or the individual employee to access his customer-related intelligence and to provide customer service more effectively. In e-CRM, on the other hand, all applications are designed for the entire enterprise including all customers, suppliers and partners.

e-CRM refers to electronic customer relationship management or simpler CRM that is more web-based. The main difference between CRM and e-CRM are that in CRM customer contact is initiated through the traditional mean of telephone, retail store or fax whereas e-CRM in addition to telephone customer contact can initiate through the internet, email, wireless and the latest technologies.

Technological difference between CRM and e CRM

Table 1 highlights some of the differences between CRM and eCRM based on certain criteria.

Criterian CRM e-CRM
One Tow Three
System interface Work with back end application through ERP system Design for front end application which in turn interface with back end application through ERP system data ware house and data mart.
Customer contact Customer contact initiated through traditional means of retail store telephone and fax. In addition to telephone contact also initiated to internet e-mail wireless mobile & PDA technologies.
System overhead (client computers) Web enabled applications required a Pc client to download various application. No such requirements the browser is the customer portal to E-CRM.
customisation & personalization of information personalised view for difference audience are not possible. Individual customisation required programmed of changes. Highly individualized dynamic & personalised view based on purchases & preferences are possible. Each audience individually customizes the views.
System focus System is designed around products and job function. System is designed around customer needs.
System modification and maintenance Implementation is longer and management is costly because the system is situated at various locations and on several servers. Reduced time and cost. System implementation & expansion can be managed in one location on one server.

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Distinct differences in the technology of CRM & e-CRM have been identified with the emergence of a web-based application. It is easy to assert that using the internet of CRM is now a necessary strategy, not a luxury.

The internet revolution is really about the people, customers and the fundamental shift of market power from seller to buyer. The realisation that the customers are the key to profitability to business success has driven the need to create a customer-centric organisation to operate with a single seamless view of the customer to the continued strength and nurture a long-term relationship on the net the competition is really only a mouse click away. The companies need a new approach e-CRM to leverage the internet’s unique strength for capturing customers. CRM implementation is costing and time-consuming on the other hand e-CRM is very fast with less operational cost.

Original Article written by:
Department of Commerce & Business Studies, Jamia Millia Islamia (Central University), New Delhi-110025.
Department of Commerce & Business Studies, Jamia Millia Islamia (Central University), New Delhi-110025
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