E-CRM Platform Design and Implementation Coursework

E-CRM Platform Design and Implementation - Coursework Example In many parts of the globe, use of internet or web-based sites to purchase or sell products or services is gaining momentum. For instance, there are many online retail businesses such as e-bookselling, e-tourism, e-fashion sale, and even e-transport. As the issue of online retailing becomes live in the 21st century, there is another issue of electronic customer relationship management (e-CRM) that key stakeholders have to grapple with. As a result, there is popular view that success of online retailing will result from effective establishment and implementation of e-CRM platform tools (Reponen 2003). Online retail industry Online retailing is a sector that many predictions points to its robust growth. The growth is associated with increasing use of computers in many aspects of the economy and the increasing social networking that is web-based. Heinemann and Schwarzl (2010) observe that the increasing utilization of the internet by many people across the world as an information portal and the subsequent movement of people to social relationships using the Web are likely to see growth of online retail. At the same time, in 2003, research by Forrester Research Group ascertained that, online retail was to grow from $95.7 million in 2003 to $229.9 billion by the year 2008 (Krishnamurthy, 2006). Further, online retail was to account for 10% of total USA retail sales by 2008, with recent figures indicating this figures have increased (Krishnamurthy 2006). As a result, e-CRM in online retailing has become an issue that stakeholders with future sustainability growth strategy cannot ignore or undervalue. As competition in online retail sector increase due to promising prospects and little start-up capital, the need for effective and functional e-CRM platforms and tools is important for stakeholders keen to build long-term growth strategy in the sector. Stakeholders in online retailing have to effectively serve the huge promising market base and it is from this, electroni c CRM constitute an area companies in the sector need to invest heavily. In this sphere, there is need for stakeholders to initiate longer attention to its visitors and subsequently establish and foster positive relationship, which is likely to impact growth and revenues in the sector. Dissatisfaction in online retailing by customers has been identified to exist despite growth being witnessed (Krishnamurthy, 2006). Due to this, it has been established that some customers have being switching to other channels while others have drastically reduced their purchasing experiences online (Krishnamurthy, 2006). Dissatisfaction among customers has been associated with lack of transaction completion and the slow pace of companies to rectify this. More so, attention to customers and visitors is perceived to lack vigor and this has led to untimely meeting of customer needs, response to queries is poor and the larger feedback process is poorly managed. What online retail companies need to know is that customer retention and loyalty is paramount (Lee-Kelley, Gilbert and Mannicom, 2003), where the two aspects have been associated with influencing company revenues positively (Krishnamurthy, 2006). Customer loyalty arises from the aspect of customer experiencing value for the product or service consumed and satisfaction derived thereafter (Lee-Kelley,