Important Benefits of CRM for E-commerce & Retail Businesses
One of the great innovations of the Internet age has been that many entrepreneurial ventures can now be run entirely online – in the form of e-commerce businesses.
Even for businesses that are not entirely web-based, however, there are a wide variety of ways in which it’s important for those businesses to effectively utilize their web presence and take advantage of the sophisticated digital tools that exist today.
For e-commerce businesses in particular – and retail businesses more broadly – using a good Customer Relationship Management system, also known as a CRM, can be a game-changer for boosting efficiency, marketing effectively, and maintaining fruitful customer relationships in the long term, and much more besides.
Here’s a look at some of the important benefits of CRM for e-commerce and retail businesses.
Firstly, What is CRM?
- CRM is a term that can have a couple of different meanings.
- On the one hand, CRM can refer to customer relationship management as a general strategy. All the things that a business does to maintain a good standing relationship with their current customers and increase customer retention and lead conversion.
- Examples of “Customer Relationship Management,” in this sense of the term, could include ensuring a high level of after-sales care following every purchase. It could also involve things like periodic newsletter updates containing promotional info and discount codes.
- Often, though, the term CRM Is used to refer to the specific tools and technologies used to streamline the process of managing customer relations. CRM tools will collect and manage data on current leads and customers and organize various metrics and keep them together in one place.
- A CRM tool will also streamline and automate a lot of the processes involved in reaching out to customers, such as sending out periodic emails or reminding you of when it’s time to re-establish contact with them.
Three Best CRM Tools
Benefits of CRM tools
Here are some of the specific benefits of Utilising a CRM tool.
They facilitate more consistent engagement with customers.
- One truism of good customer relations is that it is necessary to nurture customer relationships consistently to experience the benefits truly over a prolonged period of time.
- Brand loyalty is something that is extremely highly prized among companies spanning all sorts of different industries. If you can carve out an exact and dedicated niche for yourself in the e-commerce space, you will be head and shoulders above the competition in a variety of different ways.
- That being said, creating a loyal customer base isn’t something that you can achieve overnight, and it isn’t even something that you can achieve simply by having one excellent and appealing product or service.
- Companies who fail to back up the quality of their product or service with attention to good customer service, consistent brand messaging, and all the rest will typically tend to polarize and drive away from the audience they hope to convert to a loyal customer base.
- One thing that customers routinely look for when shaping their opinion on a brand is consistent engagement.
- Without a dedicated CRM tool, it can be challenging to track your different customers and remember when you should be reaching out. One of the great benefits of CRM is that it helps you engage with your customers more consistently.
They reduce a lot of the chaos present in running a business and allow you to focus on your core competencies.
- Many e-commerce businesses are entrepreneurial ventures run by a small, focused team. In fact, a very substantial number of e-commerce businesses are actually run by lone “solopreneurs.”
- One consequence of this is that people in the e-commerce space need to optimize for efficiency and find ways to reduce the variety of things they have to dedicate time and energy to daily.
- The Pareto Principle – also known as the “80/20 Rule” – is a popular concept in the business world. It refers to the idea that approximately 80% of your positive results will come from only 20% of your actions in any given business venture. In contrast, the remaining 80% of your actions will be largely inefficient and redundant and will be subject to the law of diminishing returns.
- To keep your business efficient and ensure that you are always able to offer the best possible service to your customers and clients, you need to focus most of your time and energy on your “core competencies” rather than trying to micromanage everything.
- A major part of a good CRM tool’s genius is that it automates a lot of the granular processes involved in customer management, therefore freeing you up both time and energy.
They make your marketing more relevant and useful to your customers and clients.
- Customers and prospective customers who are marketed to in a way that is irrelevant to them frequently grow to resent it and to develop a poor opinion of the business in question.
- A good CRM tool will capture a broad array of relevant data on assorted subjects, ranging from customer demographics to past and future marketing campaigns. All of this means that you will be able to craft your marketing more effectively and target it appropriately.
- As a well-established saying goes, “knowledge is power,” and in e-commerce business in particular – where everything is to be handled via digital communications and where there isn’t a physical storefront to stop by – the more data points you have at your disposal, the more effectively will likely be able to market.
- Of course, a fundamental point of effective online marketing is having a well structured, visually appealing, and responsive website for both prospective and repeat customers to visit.
We at Bright Vessel understand the importance of an active content plan. Contact us today to learn more about how a content marketing strategy can benefit your bottom line.