CRM – Importance For E-Commerce Business

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CRM stands for Customer Relationship Management, and as the name suggests, it is a mechanism for managing, developing and keeping track of your relationship with your customers. As we all know, your customer is your king, and CRM is perhaps the most important key in ensuring that he feels that way.

CRM consists of several strategies, technologies and tools which are used for tracking potential customers, managing communication with them, increasing customer loyalty, and increasing overall profits and revenue of your business.

Now, the question is, why is CRM important for your E-commerce business? Is it something you need to invest in? Is it the the industry norm?

Yes!

CRM softwares and tools are used by companies in all facets of the E-commerce industry, and their usage has become a necessity to maximise profits. In fact, a report by Gartnerwhich was published in 2017 found that CRM software revenues have now overtaken database management systems to become the largest of all the software markets!

What are the benefits of CRM?

  1. Lead Management: Identifying and categorising leads can be done in a matter of seconds by using the right CRM tool. You can recognize authentic leads immediately, and reach out to them through a variety of marketing and sales tactics and monitor how well each individual tactic is doing.
  2. Customer Data: By learning more about individual customers, their interests and spending habits through a CRM tool which helps you to do just that, you can then target your marketing strategies (like online ads) in a way which will present your customers with services that will be the most attractive to them!
  3. Important Statistics: How many people visited your e-commerce site? How many of them added products to your cart? How many of them actually bought these products, and how many of them left the website without paying? Keep a track of all these relevant numbers and data, and take measures to increase client conversion rates and increase sales! According to a study by Baymard, the average cart abandonment rate is an astounding 68.81%! Employ a CRM tool to convert these potential customers into loyal shoppers.
  4. Track Communication: On several occasions it becomes exasperating to keep a track of all your customer complaints, comments, suggestions and queries. An efficient CRM tool can help you manage your communication and data to make your response time faster and much more efficient.
  5. Streamline Social Media: Merge all your contact points into one tool. Centralise your communication with your customers via various social media channels and your website, and manage all of them efficiently through a CRM system.
  6. Order Management: For an e-commerce business, order management is perhaps one of the most imperative features that a CRM tool can boast of. You can manage and keep track of orders placed, delivery status, shipment tracking, feedback received, orders cancelled and complaints lodged.
  7. Make well-informed decisions: Using a CRM tool brings along with it a wealth of data and insightful numbers. Keep a track of which products are performing well, which campaigns are directly increasing profits, and how your target audience is responding to your services and digital presence. Make well-informed strategies and targeted endeavours using an efficient system.

Thus, the benefits of using a CRM tool, especially for an e-commerce business, are myriad. The question is not whether your business needs a CRM system, but which one so you can maximise your efficiency and streamline most processes. The result will not only increase revenues, but also add to your overall brand value manifold!