CUSTOMER RELATIONSHIP MANAGEMENT

EDB 20403

UNIVERSITI KUALA LUMPUR (BUSINESS SCHOOL)

CRM REVIEW PAPER

PREPARED BY:

NUR FARAH AISYAH BINTI AHMAD ROSLAN

62214122375

PREPARED FOR:

DR. FITRIYA ABD RAHIM

SUBMISSION DATE:

22nd December 2023

SECTION A: INTRODUCTION

i. What are E-CRM functions?

E-CRM, or electronic customer relationship management, is a technology-based solution

that enables businesses to manage their interactions and relationships with customers through
digital channels. It integrates various marketing, sales, and customer service functions into a
single platform, allowing for more efficient and effective customer engagement. According to a
report by Grand View Research, the global e-CRM market size was valued at USD 11.2 billion
in 2021 and is expected to grow at a compound annual growth rate (CAGR) of 12.9% from 2022
to 2030.
E-CRM systems typically include features such as email marketing, social media
management, online chat support, lead generation tools, and customer analytics. These tools help
businesses to better understand their customers' needs and preferences, personalize their
communications, and deliver a more seamless and satisfying customer experience.
E-CRM also allows for more targeted and measurable marketing campaigns, as
businesses can segment their audience based on various criteria such as demographics, behavior,
and purchase history. This enables them to deliver more relevant content and offers to each
customer, increasing the likelihood of conversion and repeat business.

ii. How is E-CRM performance being measured?

An e-CRM system's performance may be monitored using a variety of indicators, which

allow firms to assess the efficacy of their customer interaction tactics and suggest areas for
development.
First, client satisfaction. Customers' satisfaction with the company's total experience, including
the E-CRM system's user-friendliness, responsiveness, and service quality, is gauged by this
indicator.
 Apart from that, customer interaction. This indicator assesses how much the business
communicates and interacts with its clients using social media, email, and chat assistance, among
other digital channels.
Finally, customer interaction. This indicator assesses how much the business
communicates and interacts with its clients using social media, email, and chat assistance, among
other digital channels.

iii. How is it related to the topic chose?

It's interesting to investigate the relationship between technological delight and E-CRM
performance since it emphasizes how crucial user experience is to the implementation and use of
E-CRM systems.
E-CRM, or electronic customer relationship management, refers to the use of technology
to manage customer interactions and relationships through digital channels. The effectiveness of
E-CRM systems in achieving business goals such as customer satisfaction, engagement,
conversion rate, return on investment, and customer lifetime value depends on several factors,
including the user experience.
Technology enjoyment refers to the level of satisfaction and pleasure that users derive
from using technology. In the context of E-CRM, technology enjoyment refers to how much
customers enjoy interacting with the company through digital channels such as email, social
media, and chat support.
Studies have shown that there is a positive relationship between technology enjoyment
and E-CRM performance. Customers who enjoy using technology are more likely to engage with
the company through digital channels, provide feedback, and make repeat purchases. This leads
to higher levels of customer satisfaction, loyalty, and lifetime value.
On the other hand, customers who do not enjoy using technology may have a negative
experience with E-CRM systems, leading to lower levels of engagement, satisfaction, and
loyalty. This can result in lower conversion rates and lower returns on investment for the
company.
Therefore, it is crucial for companies implementing E-CRM systems to prioritize user
experience and technology enjoyment in their design and implementation strategies. By
providing a user-friendly and enjoyable digital experience for customers, companies can improve
E-CRM performance and achieve better business outcomes.
SECTION B: E-CRM Performance

i. Why it is important to organization

E-CRM (Electronic Customer Relationship Management) is becoming increasingly

important for design industry organizations for several reasons.
Firstly, increased competition. With the rise of digital platforms and globalization, design
industry organizations are facing intense competition. E-CRM helps these organizations to stand
out by providing personalized and efficient customer experiences.
Along with that, improved customer engagement. E-CRM allows organizations to
communicate with their customers through various digital channels such as email, social media,
and messaging apps. This helps to improve engagement and build stronger relationships with
customers.
Lastly, enhanced customer experience. E-CRM enables organizations to provide a
seamless and consistent customer experience across all touchpoints, whether online or offline.
This helps to improve customer satisfaction and loyalty.

ii. How is it related to customer satisfaction?

E-CRM (Electronic Customer Relationship Management) is directly related to customer

satisfaction as it helps organizations to provide a better customer experience, which ultimately
leads to higher levels of customer satisfaction.
Firstly, personalized experiences. E-CRM allows organizations to gather and analyze
customer data, which can be used to create personalized experiences for each customer. By
understanding individual preferences and behaviors, organizations can tailor their products,
services, and communications to meet each customer's unique needs.
Afterwards, consistent experiences. E-CRM enables organizations to provide a consistent
experience across all touch points, whether online or offline. This helps to build trust and loyalty
with customers, as they can rely on the same level of service and support no matter how they
interact with the organization.
 Finally, timely responses. E-CRM allows organizations to respond quickly and efficiently
to customer inquiries and requests, whether through email, social media, or other channels. This
helps to improve customer satisfaction by demonstrating that the organization values their time
and is committed to providing excellent service.

iii. Why it is important for customer loyalty?

E-Crm (Electronic Customer Relationship Management) is important for customer

loyalty for several reasons.
To start, personalization. E-Crm allows businesses to collect and analyze customer data,
which can be used to personalize marketing messages and offers. This helps to build a stronger
relationship with the customer, as they feel understood and valued.
Besides that, convenience. E-Crm enables businesses to communicate with customers
through multiple channels, including email, SMS, social media, and mobile apps. This
convenience makes it easier for customers to interact with the brand, which can lead to increased
loyalty.
Last but not least, timeliness. E-Crm allows businesses to send targeted and timely
messages based on customer behavior and preferences. This helps to keep the customer engaged
and informed, which can lead to higher satisfaction and loyalty.

iv. What happened if customer is dissatisfied?

If a customer is dissatisfied with the performance of an e-Crm (Electronic Customer

Relationship Management) system, there are several possible outcomes.
Firstly, loss of trust. If the customer feels that their data is being misused or mishandled, they
may lose trust in the brand and stop engaging with its marketing messages.
Next, unsubscribing. If the customer receives too many irrelevant or unwanted messages,
they may choose to unsubscribe from the brand's mailing list.
 Last but not least, negative word-of-mouth. If the customer has a poor experience with
the brand's e-Crm system, they may share their negative feedback with others, which can damage
the brand's reputation and lead to a loss of customers.

v. How to improve customer satisfaction and to ensure loyalty?

To improve customer satisfaction and ensure loyalty in e-Crm (Electronic Customer

Relationship Management) performance, here are some best practices.
One of the practices are understand your customers. Collect and analyze customer data to gain
insights into their preferences, behaviors, and pain points. This will help you to tailor your
marketing messages and offers to their specific needs.
After that, personalize your communications. Use the data you have collected to
personalize your marketing messages and offers. This will make your communications more
relevant and engaging for the customer, which can lead to higher satisfaction and loyalty.
Finally, be timely. Send targeted and timely messages based on customer behavior and
preferences. This will help to keep the customer engaged and informed, which can lead to higher
satisfaction and loyalty.
SECTION C: SUMMARY

In summary, today's discussion focused on e-Crm (Electronic Customer Relationship

Management), highlighting its benefits such as cost savings, faster response times, and improved
customer satisfaction. The importance of collecting and analyzing customer data for tailoring
marketing messages and offers was emphasized. Personalization and segmentation based on
customer preferences and behaviors were discussed as strategies to improve engagement and
satisfaction. Multi-channel communication was recommended to reach customers where they are
most active, with consistency in messaging and branding across all channels. Measuring e-Crm
performance through analytics and reporting tools was suggested to optimize performance. Risks
associated with e-Crm, such as loss of trust, unsubscribing, negative feedback, switching to
competitors, or legal action, were noted, and the importance of prioritizing customer privacy,
preferences, and satisfaction in e-Crm strategies was emphasized.