Page 226 - Electronic Commerce

Marketing on the Web

and potential customers gather information and make purchasing decisions. The
information that a Web site can gather about its visitors (which pages were viewed, how
long each page was viewed, the sequence, and similar data) is called a clickstream.
Technology-enabled relationship management is important when promoting and
selling on the Web. Technology-enabled relationship management occurs when a firm
obtains detailed information about a customer’s behavior, preferences, needs, and buying 201
patterns, and uses that information to set prices, negotiate terms, tailor promotions, add
product features, and otherwise customize its entire relationship with that customer.
Although companies can use technology-enabled relationship management concepts
to help manage relationships with vendors, employees, and other stakeholders, most
companies currently use these concepts to manage customer relationships. Thus,
technology-enabled relationship management is often called customer relationship
management (CRM), technology-enabled customer relationship management,or
electronic customer relationship management (eCRM). Figure 4-9 lists seven dimensions
of the customer interaction experience and shows how technology-enabled customer
relationship management differs from traditional seller-customer interactions in each of
those dimensions.

Technology-enabled
Customer Relationship Traditional Relationships
Dimensions Management with Customers
Advertising Provide information in “Push and sell” a uniform
response to specific message to all customers
customer inquiries

Targeting Identify and respond to Market segmentation
specific customer behaviors
and preferences
Promotions and Individually tailor to Same for all customers
discounts offered customer
Distribution channels Direct or through Through intermediaries
intermediaries; customer’s chosen by the seller
choice
Pricing of products or Negotiated with each Set by the seller for all
services customer customers

New product features Created in response to Determined by the seller
customer demands based on research and Learning
development
Cengage
Measurements used to Customer retention; total Market share; profit
manage the customer value of the individual
relationship customer relationship 2015
©
FIGURE 4-9 Technology-enabled relationship management and traditional customer relationships

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