Applied Research Skills - E commerce - Essay Example

In relation to customer relationship management (CRM), this study will first discuss e-commerce technology can be used in creating a good customer service followed by discussing how to use e-commerce in order to communicate effectively and be able to balance online and human interaction in order to maximize the clients’ trust and loyalty. Using e-commerce technology, the customer relationship management (CRM) combined with the use of e-loyalty programs help online businesses create a stronger long-term relationship with its target customers.

Business-to-business (B2B) or e-biz is an effective tool in the exchange of products, services, and information between business and consumers. Over the years, B2B has proven to be very effective in closing business transactions between the business owner and the customers. According to a study that was published back in early 2000, the profitability of using B2B has exceeded the ‘e-tailing’ by 10 to 1% and is expected to have an annual growth of 41% over the next few years (Jones, 2001).

In general, the tight competition web markets contribute to a lot of challenges in the Customer Relationship Management (CRM) and e-loyalty when it comes to maintaining brands online (Ragins & Greco, 2005). The most important challenge that online companies have is to build a solid customer loyalty rather than expanding the online channels of the company. Customer Relationship Management (CRM) is a ‘software’ that helps a business organization in managing its customers better (Anderson & Stang, 2000).

CRM software enables the sales people and service representatives to have a quick access over the information related to the customers. This allows the sales force of the company to immediately provide the customers with a more customized service according to the customers’ needs regarding the products and services the business is offering