eCRM systems for Small Businesses

Optimal e-CRM System for a Growing Business

Based on Our Town Photography's dual goal of tracking it clients' purchases while being able to automatically offer similar products and services that complement their purchases, the following overview and comparison of electronic customer relationship management (e-CRM) systems is provided, followed by a recommendation concerning the best system for the company's needs.

The advantages of an e-CRM system and why Our Town Photography would benefit from such a system

Simply stated, e-CRM systems take advantage of cloud-based technologies to offer companies an efficient means of tracking customer purchases and demographic data in ways that can facilitate marketing efforts. The definition provided by Turban (2012), "Electronic CRM (e-CRM) is the electronically delivered or managed subset of CRM. It concerns all forms of managing relationships with customers when using information technologies" (p. 37). While e-CRM is a subset of CRM, virtually all CRM systems use some type of information technologies and the terms are frequency used interchangeably (Turban, 2012).

According to Kapoulas and Ratkovic (2015), e-CRM systems provide a number of benefits for organizations of all sizes and types. In this regard, Kapoulas and Ratkovic (2015) report that, "Organizations that adopt e-CRM [can] reduce the cost of contacting customers [and] can put more resources into dealing with customer enquiries, which can lead to increased profitability" (p. 24). In addition, e-CRM systems make it possible for companies to provide faster service and response times to customer inquiries as well as making two-way interactive service relationships possible (Kapoulas & Ratkovic, 2015). Finally, Kapoulas and Ratkovic (2015) advise that, "In addition, e-CRM, increases consumers mobility amongst products and suppliers, customer satisfaction and service, online sales, website patronage, loyalty, retention and profitability" (p. 24). Taken together, these attributes make the acquisition of an e-CRM system for Old Town Photography a timely and valuable enterprise, but it is important to understand what type of data should be included in these systems and how this data should be managed as discussed further below.

Specific data that should be stored in the e-CRM system

While it is important to include as much relevant customer data as possible in an e-CRM system, it is also important to avoid appearances of intruding on customers' privacy. Some of the more readily available data that can be stored on Old Town Photography's e-CRM system include customer names, addresses and purchase histories that can be derived from their credit or debit card transactions. In addition, other customer data such as preferences and birthdates should also be included.

Comparison of two e-CRM systems

There are numerous e-CRM systems available for commercial purchase, each with its respective advantages and disadvantages as set forth in Table 1 below.

Vendor

Advantages

Disadvantages

Salesforce (https://www.salesforce. com)

Specifically designed for small businesses

Requires ongoing vulnerability testing

Fully mobile access

Pricing is on a "pay as you go" basis and rates may increase in the future without notice

Increased customer satisfaction

Faster integration of business apps

Upgrades are automatic

Free 30-day trial

Zoho (https://www.zoho. com/)

Proven ability to increase customer conversion rates by more than half

Terms of service subject to modification without prior notice

Currently being used by more than 50,000 companies

Paid subscription plan automatically renews unless specifically cancelled by users

Customizable

Fully mobile access

Can be integrated with Google apps, Wordpress, Mailchimp, Evernote and Unbounce.

While either of the two e-CRM system described in Table 1 above could satisfy Old Town Photography's needs, the application offered by Salesforce appears to be the superior product and Catherin should be advised to invest in this system.

References

Kapoulas, A. & Ratkovic, D. (2015, January 1). E-CRM dilemmas in developing markets: The case of a tourism company in Serbia. European Journal of Tourism Research, 9, 24-26.

Turban, E. (2012). Electronic commerce: A managerial and social networks perspective. New York: Pearson.