Write a 8 pages paper on e-loyalty and customer relationship management. A small business could take over the market share and the profitability of large companies by using e-loyalty programs. Many times, small businesses acts like consumers. Some sole proprietors use online programs in targeting nationwide and global customers by using accurate information regarding the business and the use consumer programs such as credit card reward programs as a strategy in keeping their loyal customers satisfied. It is common that these reward systems are tailored according to the needs and expectations of the 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)
Customer Relationship Management (CRM) is a ‘software’ that helps a business organization in managing its customers better. (Walsh, 2007) CRM software enables the salespeople and service representatives to have 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. (Williams, 2006)
According to Kumar and Reinartz (2006), CRM is defined as a strategic process of selecting the customers a firm can most profitably serve. It is also capable of shaping the interactions between a company and these customers with the goal of optimising the current and future value of the customers for the company. (Kumar and Reinartz 2006, 6) Based on the definition, CRM is a process of enterprise-wide that has the potential to affect decisions related to marketing communications, pricing, customisation of products and services, resource allocation across different customers or customer groups, and customer support services.