Currently, customer relationship management is the most vital success formula of a business. As per stats, the value of the CRM market size is projected at $65.59 billion in 2023 and is expected to grow at a CAGR of 13.9% in the coming 6 years.
Despite these challenges, modern businesses have started hunting for fresh solutions as more and more challenges begin to arise. And that’s where ECRM, known as electronic Customer Relationship Management, comes into the picture. Read on to understand the difference between CRM and ECRM.
Also Read: 7 Strong Reasons Why Your Business Needs A CRM
CRM vs ECRM: Definition
CRM refers to a system that businesses use to manage interactions with the leads and customers. The primary goal of CRM is to improve customer service relationships.
ECRM is a subcategory of Customer Relationship Management (CRM) that focuses on managing customer relationships through electronic tools and technologies. It includes all activities involved in collecting, analyzing, and using the data in a single platform to improve user experience.
5 Key Differences Between CRM and ECRM
Even though both aim to strengthen relationships with customers, there are many striking differences between CRM and ECRM. Have a look at them:
1. Communication Mode
Traditional Customer Relationship Management mainly focuses on direct communication channels like in-person meetings or phone calls. However, ECRM uses electronic communication like online chat, social media campaign results, website analytics, etc., to connect with customers. Such an approach can give valuable data insights which leads to better contact management.
2. Accessibility
Since CRM relies on direct communication channels, data is also stored in the same way. As a result, the data is accessible in both online and offline mode providing the required flexibility. On the flip side, ECRM data is only stored in online mode as the interactions take place digitally. ECRM software tools allow managers to track business activities from anywhere at any time.
3. Scope
CRM covers the entire interaction process between customers and businesses, both online and offline. Therefore, you can see the entire customer journey, from initial point of contact to purchase, through a CRM software tool.
However, the scope of ECRM is limited to online communications through social media pages, websites, customer portals, etc. That means data from walk-in inquiries or offline sales interactions may not be under the purview of ECRM.
4. Cost
CRM software tools require integration between various departments as they have a broader scope. Moreover, the system is to be situated in various devices and servers which adds up to the total cost. On the other hand, as ECRM focuses just on online communications, the requirements are often less and maybe more pocket-friendly.
5. Security
Usually, there are no safety concerns for traditional CRMs as the data is often stored in an offline manner. However, the online data management of ECRMs makes them vulnerable to security threats like data breaches, attacks, phishing, etc. Companies need to take measures to set extra layers of protection for the data.
6. Type of Data Collection
CRM software has to collect data from almost all sources, from marketing to the helpdesk team. In this process, heavy manual data entry is needed, and the chances of errors are also much higher.
“ECRM tools automates the entire process of data entry and save valuable time.”
Modern ECRM tools can automate the entire process of data entry to save valuable time. In addition, the data is collected in real-time and processed more efficiently.
7. Analytics
Customer Relationship Management offers only basic reporting and analytics. Most probably, humans have to compile and draw inferences from the data, which could be subjective in nature.
ECRM platforms offer advanced data analytics, which gives deeper insights into customer behavior. With the help of Artificial Intelligence (AI), it can predict future trends and opportunities. As a result, managers can make better data-driven decisions.
CRM VS ECRM: Which One to Choose?
Why limit to just one when you can have the benefits of both? Using both CRM and ECRM simultaneously is better, especially if your business operates both online and offline. This dual approach helps you to provide a personalized experience as well as use the data to improve customer services.
Conclusion
No matter what type of CRM you choose, effective customer relationship management is vital to move your business forward. And that’s exactly where you need a trusted business software solution.
Onstro CRM is an all-in-one software that lets you track down all business activities from anywhere at any time. You can check out the journey of each customer and move them through each stage of conversion. You can even stay in touch with your business through an active notification system. Contact us now!
