Abstract

Background

What is CRM?

Integration of Front and Back Office Systems

Integration of CRM Strategies with the Internet

Practical Examples of CRM Strategies on the Internet

Conclusion

References
 

 
The concept of Customer Relationship Marketing (CRM) has become relatively well known and talked about by traditional marketers. This paper briefly looks at CRM and how it is or should be applied on the Internet.

In many industries and companies, particularly those wishing to compete in the global economy, the future of business is online.  The Internet provides a platform for companies to successfully bridge the physical and virtual world.  For businesses to succeed in the global economy not only do they need to get connected and embrace the concept of CRM, they also need to integrate these strategies and technologies with the rest of their business.

CRM is a long-term strategy to drive profits based on reduced customer "churn" and maximising the lifetime value of a customer.  The basic foundation of CRM is "1 to 1" marketing, creating dialog and integrating business thinking with customer needs.  The Internet creates the unique opportunity for companies to communicate in real-time with their clients and collect data relevant to individual clients needs. 

In broad terms the business community on the Internet can be classified into two categories; Internet businesses that did not exist before the Internet boom and traditional brick and mortar companies with strong brands.

The start-up Internet businesses trade predominantly in services and/or products related to the IT industry.  They immediately understood the need for one-to-one marketing and creating customer dialog.  However, with the exception of companies such as Amazon, Yahoo, etc, they lack traditional marketing skills and often fail to differentiate their service offering or build their brand.

Traditional brick and mortar companies that have now evolved into "clicks and mortar" companies certainly do understand the concept of CRM.  However most battle to come to terms with the speed and interactivity provided by the Internet.

Overall most companies fail to integrate their Internet strategy with their front and back office systems.  Most companies see the Internet as an alternative distribution channel or focus on the delivery of their company profile and the mass distribution of email.

The real power of the Internet as a means of building lifetime value, improving customer retention and acquisition or creating a sustainable competitive advantage is lost.

Background..........