What is CRM? Customer relationship management in e-commerce

Customer relationship management (CRM) combines technology, processes and data to help businesses build stronger relationships, enhance customer engagement and drive sales growth. Are CRM systems the right tool to use in the e-commerce industry? Read the article to learn how CRM technology helps organise customer and prospect information in your e-store, turning data into actionable insights.

Is it possible to run an e-commerce business with no CRM?

Alex is the proud owner of an online furniture shop he founded out of his passion for creating unique wood furniture. The business gradually grew, and the number of orders steadily increased. However, along with the expected growth, new challenges evolved.

Customer requests began flooding Alex's inbox. Updating the status of so many orders became problematic. The spreadsheet where Alex used to enter all the details was no longer sufficient. Relevant information started to mix with loose notes, and no one knew how to find their way around the mess anymore.

65% of companies start using CRM within five years of setting up their business.

One day, Alex noticed that regular clients had stopped returning and new clients were not completing transactions. He realised that he had stopped giving his clients as much attention as before, making many of them leave for the competitors. His business began to lose the reputation he had built up, as his customer relationship management was no longer there.

If his business had to grow further, Alex needed to find a remedy for his problems. One of his fellow entrepreneurs advised him to consider a CRM solution. This system helped him increase customer satisfaction and revenue.

What is CRM software, and how does it help online stores? Q&A

Alex wanted to know whether CRM would be the right solution for his company. He had booked a free consultation with a HappyTeam expert, who addressed his concerns on the pain points.

Q1: What exactly does a CRM system do for an e-commerce business?

A: A CRM system centralises customer data management, tracks interactions, and automates processes. These features improve customer experience and increase efficiency across service, sales and marketing teams.

Q2: How can CRM help boost sales in e-commerce?

A: CRM can help identify high-value leads, automate personalised offers, and track sales performance. Analysing customer behaviour enables upselling, cross-selling, and tailored recommendations to increase conversions.

Q3: Can a CRM tool improve our marketing campaigns?

A: Definitely. You can use a CRM to segment your audience based on behaviour, preferences, and past purchases. It automates personalised campaigns, tracks email performance, and helps optimise targeting for better ROI.

Q4: Can the CRM system integrate with our current e-commerce platform?

A: Yes, your CRM solution will integrate seamlessly with platforms like Shopify, WooCommerce, Magento, and others. This ensures smooth data flow between systems for a complex view of your customers.

Q5: Will CRM reduce abandoned carts?

A: Absolutely. A CRM application can integrate with e-commerce platforms and send automated emails or SMS reminders about abandoned carts. Messages can include personalised discounts to encourage customers to complete their purchases.

Q6: We’re a small business. Can we afford a CRM?

A: Modern CRMs are scalable and tailored to businesses of all sizes. You can order a custom configuration to save on unnecessary features.

Q7: How can CRM improve customer retention?

A: By tracking customer behaviours and preferences, a CRM program allows you to send timely, relevant offers, reminders, and rewards. Engaging customers with personalised communication fosters loyalty and encourages repeated purchases.

70% of sales reps say CRM system helps closing more deals.

How does a CRM system transform running an e-commerce business? Daily routine

With clear answers to his questions, Alex decided to transform managing customer interactions. He chose CRM software tailored to his company and got rid of chaotic spreadsheets and dozens of unanswered emails. A typical day at his company now looks as follows:

Morning: Daytime planning

Alex starts his working day by logging into a CRM tool. The customer relationship management software is integrated with his e-store. As a result, Alex can see on his dashboard real-time metrics of key insights:

• sales process performance over the last week,
• a list of long-standing customers with their latest interactions,
• a comparison of the most viewed and purchased products.

Using this data, Alex has essential customer information at his fingertips without manual tracking or tallying.

Midday: Contact with high-value customers

During the day, the CRM system reminds Alex to contact customers who inquire about custom orders. After chatting with them, Alex can complete the information in CRM with new insights and suggest products to match previous orders. People will feel treated uniquely, and a better customer experience will encourage them to choose Alex's e-commerce again.

Afternoon: Launching a marketing campaign

At the end of the working day, Alex uses the CRM tool to identify customers who recently abandoned their carts. In a few clicks, he segments these customers and sends an email with a coupon for a 10% discount, along with recommendations for similar products.

Alex sees the growing number of orders in his shop and expanding the customer base without extra effort.

61% of specialists say customer acquisition is their top objective when it comes to automation.

Debunking top myths about customer relationship management in e-commerce

Alex sees how a custom CRM solution helps him control sales management and the entire customer lifecycle. So now he recalls with a smile the myths he used to believe before using CRM technology.

Myth 1: CRM is too complex for small businesses

At first, Alex thought CRM was only for large enterprises with big teams. After further investigation, he learned this tool perfectly fits the needs of small businesses. Using CRM doesn't require lengthy training and multi-stage customisation. Plus, the entire software can grow with the company.

Myth 2: Basic tools on an e-commerce platform are enough

Alex was familiar with the sales tools available in his e-store. However, CRM provides better insights than even the most popular e-commerce platforms. Automation tools saving users time are an integral part of the customer relationship management system.

Myth 3: CRM is not helpful for sales

Alex was not convinced to invest in another software that wouldn't deliver benefits. However, with its options for segmenting customers, sending them follow-ups, and marketing automation, CRM has realistically increased profits in the e-store.

Myth 4: A good CRM system is too expensive for my budget

The prices of complex off-the-shelf CRM software solutions can be staggering. However, by choosing e-commerce software development and creating a tool with only the most necessary options, Alex achieved a product fitting his budget, which quickly began to pay back.

Myth 5: CRM implementation disrupts daily business operations

The final worry Alex had was the time and effort involved in implementing a CRM system. He didn't want his customers to wait even longer for a response or to experience delays. It turned out that the implementation and integration of the CRM tool with his e-commerce platform was performed swiftly, allowing his business to get back to routine quickly.

Boost your revenue and build loyalty with a well-fitting CRM platform

Alex noticed that CRM wasn't just another piece of software in his company but a productivity partner that reduced the time spent on repetitive tasks, increased repeat purchases and improved profitability through quick follow-ups and targeted campaigns. CRM also delivers a significant return on investment, with reports showing an average ROI of $8 for every dollar spent.

If you’re looking to grow your business and improve customer loyalty, a customised CRM can help you streamline processes and better meet your customers’ needs.

Let’s discuss how we can create a solution tailored to your goals. Book your free call with HappyTeam today!