Business customer relationship
E-business involves capitalizing on technologies to improve performance and creating a sustainable competitive advantage. Business modeling technique is a plan of how business operations will be carried on and how to make money in the targeted market. There are a number of e-business models that can be employed by a business. This includes: Electronic Order Taking(EOR) model; enables use of internet in conducting business electronically and taking of order/reservation through the company’s website but do not involve transfer of payment, Accepting Electronic Payment(AEP); this model is an extension of EOR model.
It provides for ability to accept online payment. Storefront Selection & Payment Automation (SSPA); allows for implementation of online payment, and utilization of online store front, Fully Integrated E-business Solution (FIES); this is a more complete model. It provides for placing orders by customers, and making payments. It is systems integration. (Strauss, El-Ansary, & Frost 2003 p 24; Zarona 2004). E-marketing involves integrating information technology in marketing strategy. Marketing on the other hand is concerned with identifying the needs of the customers and satisfying them profitably. (Zarona 2004).
Considering having a separate e-business and e-marketing strategy may be a good option for retailers. The e-marketing strategy will focus on identifying customers’ needs and satisfying them satisfactorily than the competitors. E-business will focus on enhancing sales through allowing online placement of orders, confirming orders, making payments and delivery arrangements of the goods. A retailer such as Wal-Mart may employ e-marketing to obtain information about customers’ tastes and preferences and make sure that this is meet online. The placement of orders and payment will then be elaborated through the e-business strategy.
(Zarona 2004; Sweeney 2001) Answer to question 2 A successful Customer Relationship Management strategy will seek, draw and win new customers. It will also maintain and foster good relationships with existing customers, draw back former customers and minimize costs of ensuring the relationship. Using digital media in customer relationship management offers a great opportunity. Internet is a world web of computers. Millions of people in the world are utilizing this facility. Thus a firm seeking to attract new customers may place its advertisements online where these potential customers can access them.
Former customers can also be invited back. Through the internet sales department can be sending information to the existing customers through emails and where possible conducting chats with the customers especially if there is need for clarification. (Gary 2008) Business should request relevant information from the customers e. g. email address, place of residence and any other relevant information that will help foster good business customer relationship. Business can keep the customers updated about new products and prices as well as discounts and offers. (Zarona 2004; Gary 2008)