Answered! Question: What are the benefits of Customer relationship management systemsn. Is it important in e-commerce?…

Customer relationship management (CRM) system is very important in e-commerce because of the following benefits of CRM system:

1. Increased productivity in limited time – A Smart way of saving time is automation of self-service processes in ecommerce which can be done by well customized CRM. It also helps in saving the cost of sales such as paperwork, labur, etc.
2. Improvement in relations with customer – CRM system works in a way that all the tasks including servicing, marketing and selling of products are carried out in a proper systematic manner which helps in providing better services to the customer resulting in customer satisfaction.
3. Better communication – Working in a team requires a lot of positive communication leading to better understanding of customer requirements. The better the communication, the better is the understanding of customer’s issues as regular feedback is provided by the customer which results in increased loyalty from customer end.
4. Increase in revenues – CRM helps in understanding the sales and purchase of product in a more effective way which helps increasing the profit. As CRM helps to recognize the purchase history of the customer, this makes it easier to identify the product interest of the customer which further helps in providing special discounts, promotions, points and coupons to the customer which then increases the sales and revenues.
5. Optimize marketing – As CRM helps in better understanding of customer requirements, it also helps make people understand the use of the product to the public helping in better marketing. It helps to identify the customer group having requirement for that particular product at right time. In other words, CRM system helps to optimize the marketing strategies to target right customer group at right time.