Customer Relationship Management and E-Business: More Than a Software Solution

By Ragins, Edna Johnson; Greco, Alan J. | Review of Business, Winter 2003 | Go to article overview

Customer Relationship Management and E-Business: More Than a Software Solution


Ragins, Edna Johnson, Greco, Alan J., Review of Business


Internet business-to-business sales will reach $1.3 trillion by 2003 and, by 2004, business-to-consumer sales will reach $100 billion. E-businesses today have reached a point where they are trying to move beyond a cursory view of their customers to engaging in rich customer relationships. Strategic customer relationship management and its relationship to e-business is the focus of this paper.

Introduction

Internet business-to-business sales will reach $1.3 trillion by 2003 and, by 2004, business-to-consumer sales will reach $100 billion (14). By 2005, U.S. companies will spend $63 billion annually on online advertising, promotions and Email Marketing (9). The Gartner Group estimates that 75 percent of all e-business ventures will fail due to lack of technological understanding and poor business planning (14). Despite the risks, the Internet challenge is intriguing. Successful e-businesses today have moved beyond an arm's length transactional view of their customers to forging rich customer relationships (15).

Effective e-business strategy requires that an organization provide customer value that is superior to that of the competition. To offer superior delivered value, marketing should directly influence three core business processes: product development management (PDM), supply chain management (SCM) and customer relationship management (CRM) (19). The goal of the PDM process is to create solutions that customers need and want. SCM processes comprise the acquisition of physical and informational inputs and the efficiency and effectiveness of transforming these inputs into customer solutions. The objectives of the CRM process are to shape customers' perceptions of the organization and its products through identifying customers, creating customer knowledge and building committed customer relationships. In essence, CRM "is a business strategy that attempts to ensure every customer interaction (whether for sales or service) is appropriate, relevant, and consistent -- regardless of the communication channel" [11:1]. C RM is a core business strategy for managing and optimizing all customer interactions across an organization's traditional and electronic interfaces (18). An effective web site, for example, can help build relationships between an organization and its stakeholders (20). Without a doubt, customers are the primary stakeholders of any organization. CRM can be used to gain clearer insight and more intimate understanding of customers' buying behaviors, thus helping to build an effective competitive advantage. Strategic CRM and its relationship to e-business is the focus of this paper.

The CRM/E-Business Connection

The Web promised customers personalization and customization; it promised marketers deeper insights into the habits, feelings, likes and dislikes of customers. But has it lived up to these promises? According to Don Peppers and Martha Rogers, authors of The One to One Future, among the "new rules of engagement governing business competition" were "initiating, maintaining, and improving dialogs with individual consumers, abandoning the old-fashioned advertising monologs of mass media" [1:1]. Weiss (20) argues that CRM drives relationships and purchases (both online and off) and drives brand loyalty by fostering trust. Sowaiskie (18) suggests that CRM is driven by three factors: 1) consumers empowered by information, technologies, choice, globalization and deregulation; 2) increased competition; and 3) the Internet and e-business, which facilitate the emergence of new distribution channels and enhance sales and marketing as well as service effectiveness and efficiency. Blue-chip companies are investing millions in software products from CRM leaders like Epiphany Kana Communications and Siebel (9).

Strategically effective CRM requires the intelligent application of technology. It must be remembered that effective CRM is more than a software solution; it is about how customer information is used to create an ongoing relationship with the customer.

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Customer Relationship Management and E-Business: More Than a Software Solution
Settings

Settings

Typeface
Text size Smaller Larger
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.