Etsy: Case Review: Customer Relationship Management

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1. Explain to Mrs. Wen what CRM is and how CRM is different from traditional marketing. Customer Relationship Management (CRM) is a term that refers to practices, technologies, and strategies that organizations use to oversee and analyze customer interaction and information. This is done through use of the consumers’ lifecycles, with the objectives of enhancing business relationships with customers, helping with customer retention, and increasing profitability. It is basically a system created by the company to interact with its customers effectively and efficiently. CRM's framework is designed to assemble customer data through various channels incorporating company's website, mails, online networking, advertising, etc. It can also provide…show more content…
One of the finest examples of a company using CRM successfully is Etsy. Etsy is a marketplace where individuals around the world connect, both online and offline, to make, offer, and purchase hand crafted one-of-a-kind products. The mission statement of Etsy is: “We are building a human, authentic and community-centric global and local marketplace. We are committed to using the power of business to create a better world through our platform, our members, our employees and the communities we serve” , and it is evident that even this correlates to the features of CRM. It has over 1 million active shops and more than 60 million unique visitors every month. While Amazon and Ebay users go to the website to buy a standardized item, Etsy knew it right off the bat that its users come to explore, discover, and purchase new and novel products. To encourage this behavior, Etsy knew it needed to show fascinating items to viewers, to customize the client venture in a manner that the users view the products, which reverberate with…show more content…
Organizations understand that they must offer the way customers need to purchase. For example, sending personalized mails to customers. CRM ventures that don't incorporate customer touch points are bound to fail. Enterprise Resource Planning (ERP): The integration between CRM and different business enterprise applications is likewise a critical pattern as companies try to bind together frameworks into a durable one. Synchronization between the Back office ERP solutions which deals with an abundance of customer data and the front office CRM which would result in the delivery of the overall client relationship transparency across the organization. Therefore, it is evident that CRM is a journey, not a destination. References: • http://blog.act-on.com/2015/03/the-future-of-crm-is-customer-engagement/ • http://digitalmarketingmagazine.co.uk/articles/the-future-of-customer-relationship-management/1897 •
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