What is eCRM? Benefits, Types, Components and Usage (2025)

Summary: eCRM tools are a great option to extract customer data from multiple channels and use this data to create sales and marketing campaigns. Let’s learn more about its usage in the article below.

Traditional CRMs are not enough to manage customer interactions at every touchpoint. These CRMs are mainly meant for tracking, storing, and managing customer data. However, with the coming of electronic CRM in business, it has become easier for businesses to manage customer interactions at every touchpoint to improve conversations and boost sales.

By leveraging technologies like social media marketing, email marketing, site cookies, etc., businesses can provide personalized customer service. The data gathered from these channels can be used to analyze customer behavior and purchase history. This information can then be used to create targeted marketing campaigns and provide a customized customer experience.

Let’s learn more about what exactly is eCRM below.

What are eCRM Solutions?

Electronic customer relationship management is a type of CRM that utilizes digital platforms like emails, websites, forums, chat rooms, social media and other channels to manage customer interactions at various touchpoints. The data generated from these touchpoints provides valuable insights into customer behavior to enhance marketing and sales strategies.

By digitizing customer data and automating procedures like communication and marketing, electronic CRM solutions help businesses save time and money and provide better customer service.

What are the Features of e-CRM?

E-CRM comes with a wide range of features that help you in improving customer interactions across several communication channels. Some of the essential features of electronic CRM are:

  • Contact Management: Digitally track the contact details of customers and leads along with their purchase history, behavior, preferences, etc.
  • Automate Marketing Campaigns: The software can be used to create and automate marketing campaigns across different channels and platforms. The campaigns can be created after analysing customer data.
  • Sales Tracking: Provides a 360-degree view of sales coming from various channels like emails, websites, online marketplaces, social media, etc. This data can be used to identify flaws in sales strategies and devise ways to overcome these flaws.
  • Case Management: Under this, customers’ complaints and queries are resolved. E-CRM tools fetch customer complaints from different channels to a centralized database that can be accessed by your customer support team to resolve queries.
  • Reporting and Analysis: This feature can help in analyzing different types of data like customer behavior, sales reports, campaign performance, customer queries, etc. The analysis can further be used to enhance sales and marketing strategies.

What is the Importance of Electronic Customer Relationship Management?

The main purpose of e-CRM is to facilitate and improve customer interactions across all possible communication channels. With it, businesses can easily analyze customer data from different channels like emails and social media.

After analyzing the data, you can effectively create sales and marketing strategies to boost sales, increase conversion rate, and enhance customer experience.

Examples of eCRM

Here are some examples of how eCRM applications are leveraged to create personalized customer experience:

  • Use of Emails: When a customer purchases any product from the website. The website stores the customer data like purchasing history, preferences, behavior, etc. This data is used by e-CRM to send emails to existing customers regarding the similar products, upcoming products, and discounts.
  • Use of Cookies: Many online stores like Amazon uses cookies to improve the shopping experience of their customers. Amazon asks its customers to accept the cookies on the website and use them to improve the customer experience.

Next time, when the visitor visits the website, he will be greeted with a greeting or a welcome back message. Further, cookies also recommend similar products based on their purchase history. All this is managed through an E-CRM.

  • Use of Loyalty Cards: Many businesses like Tesco offer loyalty cards or coupons to its customers. When the customers use them at the time of checkout, their data is fed in the electronic CRM to track purchase history. Based on this history, the company sends money saving coupons to customers to convince them to purchase more products.

Benefits of eCRM Software

What is eCRM? Benefits, Types, Components and Usage (2)

Using an E-CRM can help in reducing costs, achieving maximum output, and enhancing business performance. Some other benefits of electronic customer relationship management include:

  • It helps in reducing operational costs related to manual customer data management and customer segmentation.
  • Assists in reaching out to multiple customers through targeted marketing campaigns
  • Enables you to manage customer interactions across various channels
  • Helps in building customer loyalty in the long run
  • Provides real-time analytics based on customer interactions to gain valuable insights

Limitations of Electronic Customer Relationship Management

  • Organizations find it difficult to customize the eCRM structure for integrating it with their existing system.
  • Creating workflows in e-CRM requires technical expertise which leads to additional training costs.
  • Regular updates in e-CRM due to technical advancement might be a costly affair for businesses.

How to Implement E-CRM?

You can easily implement an e crm in business by following these simple steps:

  • Create objectives based on your target audience
  • Choose a proper electronic CRM solution that offers advanced features based on your requirements
  • Offer sufficient training to employees to easily use E-CRM
  • Configure security protocols to maintain data integrity
  • Integrate the software with other tools to match your business requirements

Challenges and Solution During Implementation of e CRM Applications

Businesses might face some challenges while implementing the eCRM. Here are some challenges faced by businesses and the necessary solutions that can help in overcoming these challenges.

  • Data Quality Management

Challenge: Optimizing the electronic CRM needs a considerable amount of data whose collection and management is cumbersome. Not managing the data appropriately may lead to incorrect insights.

Solution: To overcome this challenge, make sure you implement proper data management procedures for storing, collecting, and sharing data. You can also take help of data intelligence tools to gather precise and complete data.

  • Integration

Challenge: The major challenge faced by organizations is improper integration of eCRM with other types of software or systems. This hampers your organization’s operability especially when important data is at stake.

Solution: To properly integrate the electronic CRM with other systems like ERP, inventory management, etc., its open APIs should be considered. Also, the team must be competent enough to smoothly handle the integration process for better integration.

  • Change Management

Challenge: Using a new eCRM in business requires creating new workflows and providing proper training to employees. However, employees’ resistance to using the new CRM might make it difficult for organizations to implement eCRM solutions.

Solution: For this purpose, you must provide proper training for employees from the implementation stages of the new CRM. This will help with proper execution of ECRM and better proficiency of employees in using the software.

Conclusion

In traditional CRM software, customer satisfaction can be accessed via surveys, complaints, purchase experiences, etc. However, with the coming of e-CRM, organizations can grab feedback from multiple online platforms like social media, forums, when the user interacts with the platform.

Thereby, helping organizations to easily use the feedback data to create personalized customer interactions to boost sales and build customer loyalty.

FAQs Related to Electronic CRM

  1. What do you mean by eCRM?

    Electronic customer relationship management is the use of internet-based technologies like emails, websites, social media marketing, etc., to fulfill your customer relationship building activities.

  2. What is eCRM and its benefits?

    E-CRM includes the integration of various web channels into the business CRM strategy with the purpose of driving consistency across all channels related to customer service, sales, and marketing initiatives.

  3. What is the difference between CRM and eCRM?

    The key difference between CRM and eCRM is in the communication channels they use for customer interactions. With traditional CRM, you can interact with customers through phone, distribution channels, and fax. Whereas, with electronic CRM, you can connect via the Internet, e-mail, and other latest technologies.

  4. What are the examples of eCRM?

    Some of the best e-CRM software include Salesforce, Zoho CRM, NetHunt CRM, Snovio, etc.

What is eCRM? Benefits, Types, Components and Usage (2025)

FAQs

What is eCRM? Benefits, Types, Components and Usage? ›

It uses the internet and other electronic means to help the organization design, manage, and track customer relationships. An E-CRM system is a system that enables an organization to manage its relationship with its customers through the Internet, social media, and other electronic channels.

What are the components of E-CRM? ›

The components of eCRM strategy are operational, analytical, and collaborative. The main differences between CRM and eCRM are that eCRM utilizes additional channels like the internet and mobile, allows for more customization and personalization, and has lower system overhead and maintenance costs.

What is CRM and its components? ›

CRM (customer relationship management) is the combination of practices, strategies and technologies that companies use to manage and analyze customer interactions and data throughout the customer lifecycle. The goal is to improve customer service relationships and assist with customer retention and drive sales growth.

What is E-CRM and its benefits? ›

An E-CRM system is a system that enables an organization to manage its relationship with its customers through the Internet, social media, and other electronic channels. It includes online marketing, online customer support, online feedback collection, online customer retention, and built-in social media tools.

What is the difference between CRM and eCRM? ›

CRM – System (created for internal use) designed based on job function and products. Web applications designed for a single department or business unit. eCRM – System (created for external use) designed based on customer needs. Web application designed for enterprise-wide use.

What are the three types of CRM? ›

There are three main types of CRM systems: collaborative, analytical, and operational. Here's how to choose the best one for creating better conversational customer experiences for your customers. Building and maintaining great customer relationships is at the core of any good business model.

What is CRM with an example? ›

Customer relationship management (CRM) tools allow businesses to manage and track interactions with customers across all their platforms. These platforms have evolved over the years and now cover a range of features. We'll dive into some CRM examples to better understand how these tools actually help businesses.

What are the benefits of customer relationship management? ›

Advantages of Customer Relationship Management
  • Enhances Better Customer Service. ...
  • Facilitates discovery of new customers. ...
  • Increases customer revenues. ...
  • Helps the sales team close deals faster. ...
  • Enhances effective cross and upselling of products. ...
  • Simplifies the sales and marketing processes. ...
  • It makes call centers more efficient.
Mar 21, 2024

What are the 4 pillars of CRM? ›

To ensure that you implement your CRM well, you need to take into consideration the 4 pillars of CRMs: people, strategy, processes, and technology. Each one of these pillars is crucial to ensure that your CRM delivers what you need to help grow your business.

What is a CRM tool? ›

In short, CRM (Customer Relationship Management) systems serve as a hub for organizing and making sense of valuable audience data and insights, providing all the tools needed to collect and manage information about people who are important to your business.

What are the basic requirements of an E-CRM? ›

Integration and Extensibility

Good CRM platforms should provide integrations with accounting, BI software, business phone systems, CPQ, eCommerce, email marketing, ERP, G Suite, helpdesk systems, marketing automation and project management systems.

What does e-CRM do? ›

Electronic customer relationship management (e-CRM) involves the integration of Web channels into the overall enterprise CRM strategy with the goal of driving consistency within all channels relative to sales, customer service and support (CSS) and marketing initiatives.

What are the goals of e-CRM? ›

The Goals of ECRM Business Framework:

Identify the Potential Customer. Improved Customer satisfaction. Improve the Efficiency of Business. Expand Customer Base.

What is the e-CRM strategy? ›

An E-CRM strategy defines the goals for your CRM or social CRM programme and then creates a roadmap of the changes to process, tools and team needed to make it a reality.

What are the 5 E's of CRM? ›

CRM QUIZ 1. docx - The 5 Es of customer relationship are: Exploration enhancement experience emotions engagement Environment enhancement | Course Hero.

What is a key element of an E-CRM strategy? ›

Data management is a crucial component of eCRM. It involves collecting, storing, and organizing customer data from various sources, such as online interactions, purchases, and demographic information. Effective data management ensures that businesses have access to accurate and up-to-date customer information.

What are the 5 aspects of CRM? ›

5 Key Components of CRM
  • Contact Management. ...
  • Sales Force Automation. ...
  • Marketing Automation. ...
  • Customer Service and Support. ...
  • Analytics and Reporting. ...
  • Ease of Use. ...
  • Mobile Access. ...
  • Integration Capabilities.
Aug 18, 2023

What are the components of e readiness? ›

The common factors that are taken into consideration for measuring e-readiness of a country are:
  • Information and communications technology (ICT) infrastructure.
  • Degree of preparedness of a country's government, citizens, businesses and NGOs to use ICT for sustainable development.
  • Digital economy rankings.

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