Electronic Customer Relationship Management (E-CRM)

Last updated: December 28, 2016

What Does Electronic Customer Relationship Management (E-CRM) Mean?

Electronic customer relationship management (E-CRM) is the application of Internet-based technologies such as emails, websites, chat rooms, forums and other channels to achieve CRM objectives. It is a well-structured and coordinated process of CRM that automates the processes in marketing, sales and customer service.

An effective E-CRM increases the efficiency of the processes as well as improves the interactions with customers and enables businesses to customize products and services that meet the customers’ individual needs.


Techopedia Explains Electronic Customer Relationship Management (E-CRM)

Electronic customer relationship management provides an avenue for interactions between a business, its customers and its employees through Web-based technologies. The process combines software, hardware, processes and management’s commitments geared toward supporting enterprise-wide CRM business strategies.

Electronic customer relationship management is motivated by easy Internet access through various platforms and devices such as laptops, mobile devices, desktop PCs and TV sets. It is not software, however, but rather the utilization of Web-based technologies to interact, understand and ensure customer satisfaction.

An effective E-CRM system tracks a customer’s history through multiple channels in real time, creates and maintains an analytical database, and optimizes a customer’s relation in the three aspects of attraction, expansion and maintenance.

A typical E-CRM strategy involves collecting customer information, transaction history and product information, click stream and contents information. It then analyzes the customer characteristics to give a transactional analysis consisting of the customer's profile and transactional history, and an activity analysis consisting of exploratory activities showing the customer's navigation, shopping cart, shopping pattern and more.

The benefits of E-CRM include the following:

  • Improved customer relations, service and support
  • Matching the customers' behavior with suitable offers
  • Increased customer satisfaction and loyalty
  • Greater efficiency and cost reduction
  • Increased business revenue

Businesses that strategize and implement an E-CRM solution are able to align their processes around technology to effectively deliver seamless, high-quality customer experience across all channels. Customers have the power to help themselves through online personalized services that are made available on demand. The Internet provides a simple and ideal medium where customers can get information from websites, buy products and find answers using FAQ sections, forums or chat rooms.


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