CRM vs eCRM: Difference Between CRM and eCRM for SMBs

CRM vs eCRM: Difference Between CRM and eCRM for SMBs-feature image
Reviewed By: Mohit Sharma  | 

Summary: When it comes to customer relationship management (CRM), two terms often come up: CRM and eCRM. While both aim to enhance customer satisfaction, there are key differences that make them suitable for SMBs. Let’s explore the difference between CRM and eCRM.

In today’s digitally driven business environment, customer relationship management (CRM) has become a vital angle of success for small and medium-sized businesses (SMBs).

However, with the rapid advancements in technology and the rise of online interactions, a new tool has emerged – electronic customer relationship management (eCRM). While both CRM and eCRM are designed to enhance customer satisfaction, increase sales, and improve overall efficiency, there are key differences between the two in terms of scope, focus, and etc.

For instance, traditional CRM mainly focuses on handling customer interactions and relationships through offline methods like in-person meetings, phone calls, and mail. Its main goal is to collect and analyze customer data to understand their preferences, behavior and purchase history.

However, E-CRM goes beyond the traditional one and uses digital landscape. It includes various online platforms such as social media, email, live chat, and mobile apps to interact with customers in a more prompt and dynamic manner.

In this article, we will explore the difference between CRM and e-CRM in order to help SMBs determine which approach aligns best with their organizational needs.

Define CRM

Now-a-days, customer satisfaction is paramount for business, and the term “CRM” often takes the center stage. CRM, or Customer Relationship Management, is a powerful tool that enables businesses to manage and nurture their relationships with customers.

It involves gathering, organizing, and analyzing customer data to better understand their needs and preferences. The primary goal of CRM software is to improve customer satisfaction and loyalty by providing personalized experiences.

Define E-CRM

eCRM, short form of electronic Customer Relationship Management, refers to the use of electronic channels and technologies to manage the relationship with customers. It involves collecting, analyzing, and utilizing customer data to enhance customer satisfaction and loyalty.

Unlike traditional CRM that mainly focuses on offline interactions, eCRM recognizes the growing importance of online platforms in customer engagement. By using digital tools such as email marketing, social media messaging, chatbots, and mobile applications, businesses can build personalized interactions with customers.

List of Difference Between CRM and eCRM

CRM (Customer Relationship Management) and eCRM (Electronic Customer Relationship Management) are software to manage and improve customer interactions, but they differ in many ways. Here are some key differences between CRM and E-CRM:

  • eCRM vs CRM: In terms of Scope

CRM helps with the entire customer relationship management process, including offline and online interactions. It includes sales, marketing, customer service, and other touch points throughout the customer journey.

On the other hand, eCRM specifically focuses on managing customer relationships through online channels such as websites, emails, social media platforms, online feedback, etc.

  • eCRM vs CRM: In terms of Communication Channels

CRM manages customer interactions across multiple channels such as in-person meetings, phone calls, mailings, and email. eCRM focuses primarily on digital channels like email marketing campaigns, social media engagement, online chat support, and website analytics.

  • CRM vs eCRM: Method of Data Collection

CRM collects data from various touch points such as sales transactions, customer inquiries, interactions with the customer support team. It then consolidates it into a central database for analysis and decision making. eCRM relies heavily on collecting data from online sources such as website visits, online purchases, email subscriptions, and user behavior tracking.

  • Difference Between CRM and eCRM in Terms of Data Types

CRM primarily deals with structured data, such as contact information, transaction history, and sales pipeline details. Apart from structured data, eCRM also handles unstructured data like social media interactions, online behavior, click-through rates, and website engagement.

  • CRM vs eCRM: Which Is Better in Accessibility

CRM systems can offer both online and offline accessibility to customer data. This means that data can be accessed and managed whether you are connected to the internet or not. eCRM, on the other hand, is digital by nature. So, provide data accessibility primarily through online means.

  • CRM vs eCRM: Which Is Easier to Implement?

CRM systems typically involve the integration of multiple departments and touchpoints within an organization. This can make the implementation process more challenging and time-consuming.

On the other hand, eCRM systems deal primarily with online interactions, which means they have a more specific online focus and often involve fewer touchpoints than broader CRM systems.

Similarities Between eCRM and CRM

Apart from the differences in terms of implementation, accessibility, and communication channels, both CRM and eCRM have some similarities as well. Firstly, both eCRM and CRM aim to centralize and manage customer data efficiently.

They provide a structured platform to gather and store important customer information such as contact details, purchase history, preferences, and demographics. This centralized approach simplifies data management and enables businesses to understand their customers better.

Secondly, both systems emphasize building strong relationships with customers. By tracking communication history and understanding customer behavior, eCRM and CRM provide valuable insights into individual customer needs and preferences. This enables businesses to deliver personalized interactions that strengthen customer loyalty.

Furthermore, both eCRM and CRM offer various tools for managing sales pipelines and improving customer service. From lead generation to automated follow-ups, these systems streamline sales processes and enhance the efficiency of customer support.

Does Business Need CRM and eCRM Both?

For small and medium-sized businesses (SMBs) looking to optimize their customer relationships, it is important to invest in CRM and eCRM both. These solutions can work together to provide a complete system for managing customer service, sales and marketing efforts.

By using both systems, businesses can ensure they provide customers with personalized experiences while maximizing efficiency.

For example, if your focus is solely on e-commerce business, an eCRM may be the ideal choice. With the right platform, you’ll have access to everything you need to manage relationships more effectively and build a stronger online presence.

FAQs on CRM vs eCRM

  1. What is the difference between CRM and eCRM?

    CRM helps businesses manage their interactions with customers and keep track of customer data through channels like phone calls, in-person meetings, etc. eCRM, on the other hand, utilizes digital platforms such as email and websites to improve customer relationships with personalized communication.

  2. What is the difference between e-CRM and e-SCM?

    e-CRM, also known as Electronic Customer Relationship Management, is centered around managing customer interactions and data. On the other hand, e-SCM, or Electronic Supply Chain Management, aims to enhance the flow of goods, services, and information within a supply chain through the use of digital technologies.

  3. What is the difference between CRM and ERP?

    CRM and eCRM difference: CRM focuses on effectively managing customer interactions and relationships with customers, while ERP integrates different business processes such as finance, HR, and operations to improve overall efficiency.

Published On: August 24, 2023

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