Implementing CRM Systems in Online Enterprises

Abstract

Companies are increasingly embracing customer relationship management (CRM) as a major element of corporate strategy, for two important reasons: new technologies now enable companies to target chosen market segments, microsegments, or individual customers more precisely; and new marketing thinking has recognised the limitations of traditional marketing and the potential of more customer-focused, process-oriented perspectives (Payne, 2002; Ragins, & Greco, 2003). The first CRM procedures were implemented to provide more efficient customer transactions. The gradual shift from transaction to interaction, as a long-term process, required the implementation of analytical marketing procedures, based on databases and data processing technology. Brobst and Rareyk (2004) outlined the evolution of analytical CRM, identifying five distinct stages (see Table 1). The interactive marketing stage is possible only using the Internet as a CRM strategic channel—which allows real-time, continuous collection, analysis, and use of data to adapt the company’s offer and communication to the individual profile and behaviour of the customer. The introduction and use of CRM in the online environment requires a complex process of planning, analysis, strategy design and implementation. This article presents a model for the implementation of a customer-centric strategy in online businesses, discussing the advantages and the challenges of this new system.