The eCRM or electronic customer relationship management encompasses all standard CRM functions with the use of the net environment i.e., intranet, extranet and internet. Electronic CRM concerns all forms of managing relationships with customers through the use of information technology (IT).
eCRM processes include data collection, data aggregation, and customer interaction. Compared to traditional CRM, the integrated information for eCRM intraorganizational collaboration can be more efficient to communicate with customers.Reponen, Tapio(2003) Information Technology-Enabled Global Customer Service, p288
From RM to CRM
The concept of relationship marketing (RM) was established by marketing professor Leonard Berry in 1983. He considered it to consist of attracting, maintaining and enhancing customer relationships within organizations. In the years that followed, companies were engaging more and more in a meaningful dialogue with individual customers. In doing so, new organizational forms as well as technologies were used, eventually resulting in what we know as customer relationship management.
The main difference between CRM and e-CRM is that the first does not acknowledge the use of technology, where the latter uses information technology (IT) in implementing RM strategies.L. Ryals and A. Payne, "Customer relationship management in financial services: towards information-enabled relationship marketing," Journal of Strategic Marketing vol. 9 no. 1 (2001): 3-27.
The essence of CRM
The exact meaning of CRM is still subject of heavy discussions.T. Coltman, "Why build a customer relationship management capability?" Journal of Strategic Information Systems 16 (2007): 302. However, the overall goal can be seen as effectively managing differentiated relationships with all customers and communicating with them on an individual basis.C-H Park and Y-G Kim, "A framework for dynamic CRM: linking marketing with information strategy." Business Process Management Journal vol. 9 no. 5 (2003): 652-671. Underlying thought is that companies realize that they can supercharge profits by acknowledging that different groups of customers vary widely in their behavior, desires, and responsiveness to marketing.Valerie A. Zeithaml et al. "The Customer Pyramid: creating and serving profitable customers," California Management Review vol. 43 no. 4. (2001): 118.
Loyal customers can not only give operational companies sustained revenue but also advertise for new marketers. To reinforce the reliance of customers and create additional customer sources, firms utilize CRM to maintain the relationship as the general two categories B2B (business-to-business) and B2C (business-to-customer or business-to-consumer). Because of the needs and behaviors are different between B2B and B2C, the implementation of CRM should come from respective viewpoints.Clarke III, Irvine and Theresa B. Flaherty (eds) (2005), Advances in Electronic Marketing, p.336.
Differences from CRM Major differences between CRM and eCRM:Chandra, Satish, & Ted J. Strickland (2004) Technological differences between CRM and eCRM, Issues in Information Systems, 5 (2), 412. Retrieved from http://www.iacis.org/iis/2004_iis/PDFfiles/ChandraStrickland.pdf
Customer contacts CRM – Contact with customer made through the retail store, phone, and fax. eCRM – All of the traditional methods are used in addition to Internet, email, wireless, and PDA technologies.
System interface CRM – Implements the use of ERP systems, emphasis is on the back-end. eCRM – Geared more toward front end, which interacts with the back-end through use of ERP systems, data warehouses, and data marts.
System overhead (client computers) CRM – The client must download various applications to view the web-enabled applications. They would have to be rewritten for different platform. eCRM – Does not have these requirements because the client uses the browser.
Customization and personalization of information CRM – Views differ based on the audience, and personalized views are not available. Individual personalization requires program changes. eCRM – Personalized individual views based on purchase history and preferences. Individual has ability to customize view.
System focus 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.
System maintenance and modification CRM – More time involved in implementation and maintenance is more expensive because the system exists at different locations and on various servers. eCRM – Reduction in time and cost. Implementation and maintenance can take place at one location and on one server. by MalleBevax
eCRM As the Internet is becoming more and more important in business life, multiple companies consider it as an opportunity to reduce customer-service costs, tighten customer relationships and most important, further personalize marketing messages and enable mass customization.Lauren Keller Johnson, "New Views on Digital CRM," Sloan Management Review fall (2002): 10. ECRM is being adopted by companies because it increases customer loyalty and customer retention by improving customer satisfaction, one of the objectives of eCRM. E-loyalty results in long-term profits for online retailers because they incur less costs of recruiting new customers, plus they have an increase in customer retention. Together with the creation of sales force automation (SFA), where electronic methods were used to gather data and analyze customer information, the trend of the upcoming Internet can be seen as the foundation of what we know as eCRM today.
As we implement eCRM process, there are three steps life cycle:Shin, Namchul, (2005), Strategies for Generating E-Business Returns on Investment, p. 354. Data collection: About customers preference information for actively (answer knowledge) and passively (surfing record) ways via website, email, questionnaire. Data aggregation: Filter and analysis for firm's specific needs to fulfill their customers. Customer interaction: According to customer's need, company provide the proper feedback to them.
eCRM can be defined as activities to manage customer relationships by using the Internet, web browsers or other electronic touch points. The challenge hereby is to offer communication and information on the right topic, in the right amount, and at the right time that fits the customer's specific needs.Nenad Jukic et al., "Implementing Polyinstantiation as a Strategy for Electronic Commerce Customer Relationship Management," International Journal of Electronic Commerce vol. 7 no. 2 (2002-3): 10.
Strategy components When enterprises integrate their customer information, there are three eCRM strategy components:"Reponen, Tapio(2003) Information Technology-Enabled Global Customer Service, p288" Operational: Because of sharing information, the processes in business should make customer's need as first and seamlessly implement. This avoids multiple times to bother customers and redundant process. Analytical: Analysis helps company maintain a long-term relationship with customers. Collaborative: Due to improved communication technology, different departments in company implement (intraorganizational) or work with business partners (interorganizational) more efficiently by sharing information. (Nenad Jukic et al., 2003)
Implementing and integrating
Non-electronic solution Several CRM software packages exist that can help companies in deploying CRM activities. Besides choosing one of these packages, companies can also choose to design and build their own solutions. In order to implement CRM in an effective way, one needs to consider the following factors: Create a customer-focused culture in the organization. Adopt customer-based managers to assess satisfaction. Develop an end-to-end process to serve customers. Recommend questions to be asked to help a customer solve a problem. Track all aspects of selling to customers, as well as prospects.Turban et al., Information Technology for Management: Transforming Organizations in the Digital Economy, 6th ed. ( John Wiley & Sons, Inc., 2008), 335.
Furthermore, CRM solutions are more effective once they are being implemented in other information systems used by the company. Examples are transaction processing system (TPS) to process data real-time, which can then be sent to the sales and finance departments in order to recalculate inventory and financial position quick and accurately. Once this information is transferred back to the CRM software and services it could prevent customers from placing an order in the belief that an item is in stock while it is not.
Cloud solution Today, more and more enterprise CRM systems move to cloud computing solution, "up from 8 percent of the CRM market in 2005 to 20 percent of the market in 2008, according to Gartner".Bennett, Tricia (2010, Jan 12). Cloud CRM: Ready, Steady, Roll It Out. Retrieve from http://www.crmbuyer.com/story/69085.html?wlc=1289278204&wlc=1289626348 Moving managing system into cloud, companies can cost efficiently as pay-per-use on manage, maintain, and upgrade etc. system and connect with their customers streamlined in the cloud. In cloud based CRM system, transaction can be recorded via CRM database immediately.Raynore, Hasan: A Layperson's Guide to CRM and Cloud Computing.
Some enterprise CRM in cloud systems are web-based customers don't need to install an additional interface and the activities with businesses can be updated real-time. People may communicate on mobile devices to get the efficient services. Furthermore, customer/case experience and the interaction feedbacks are another way of CRM collaboration and integration information in corporate organization to improve businesses’ services.
Factors considered when selecting a cloud-based CRM system include organizational requirements, cost, trial availability, mobile compatibility, security controls, employee adoption, and vendor support.ZarinaCRM (2025, October 7). Put Cloud CRM to Work: A Practical Guide for Modern Enterprises. ZarinaCRM.ae. Published on October 7, 2025. Retrieved 7 November 2025. Assess your company's needs: some of enterprise CRM systems are featured Take advantage of free trials: comparison and familiarization each of the optional. Do the math: estimate the customer strategy for company budget. Consider mobile options: some system like Salesforce.com can be combined with other mobile device application. Ask about security: consider whether the cloud CRM solution provides as much protection as your own system. Make sure the sales team is on board: as the frontline of enterprise, the launched CRM system should be the help for sales. Know your exit strategy: understand the exit mechanism to keep flexibility.
vCRM Channels through which companies can communicate with its customers, are growing by the day, and as a result, their time and attention has turned into a challenge.Sinisalo, 773. One of the reasons eCRM is popular nowadays is that digital channels can create unique and positive experiences – not just transactions – for customers.Y. Wind et al. Convergence Marketing: Strategies for Reading the New Hybrid Consumer (Prentice-Hall, Englewood Cliffs, 2002).