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How To Improve Customer Relationship Management in E-commerce Businesses

Customer satisfaction feedback, man giving five star reviews

It is no secret that customer relationship management (CRM) is the lifeline of any business. In today’s highly competitive e-commerce industry, the demand for building customer relationship management has increased over the years.

Brace yourself to learn some practical tips and strategies on how to improve customer relationship management such as collecting customer data, re-engaging customers, email marketing, and many others. These strategies are ideal for an e-commerce business to build stronger customer relationships.

This article will also discuss the different types of CRM and the key benefits they bring to your ecommerce business as well as the market share, size, and expected growth rate of the e-commerce market in the coming years.

Table of Contents
Overview of e-commerce business
What is customer relationship management?
How to improve customer relationship management in e-commerce business

Overview of e-commerce business

Global e-commerce market size growth

The e-commerce market has witnessed significant growth in recent years, the majority of which is put down to advancements in related technologies and the COVID-19 pandemic. The latter, for example, accelerated the e-commerce industry after more people began shopping online to avoid physical stores.

In 2020, the global e-commerce market size was valued at US $4.28 trillion, according to Statista Market Research. Its value is expected to reach US $6.38 trillion by 2028, with a compound annual growth rate (CAGR) of 14.7% until then, fueled in part by changing lifestyle habits.

Regionally, North America is the largest e-commerce market, followed by Asia-Pacific and Europe, reflecting these regions’ high internet penetration rates. Market penetration is an essential requirement for e-commerce growth, particularly in terms of advanced technologies such as online payment systems and delivery infrastructure, which are crucial to a smooth e-commerce experience.

What is customer relationship management?

Customer relationship management (CRM) refers to technologies and strategies that businesses use to manage and analyze customer interactions and relationships. These help to improve customer satisfaction, retention, support, and loyalty.

Using CRM systems, e-commerce businesses can collect and analyze customer data on customer tastes, behaviors, preferences, styles, and feedback. From these, they can create personalized experiences that meet customers’ unique preferences and needs, maintaining strong customer relations.

CRM also helps businesses to build lasting relationships with customers via virtual worlds. This can lead to increased customer satisfaction, repeat business, and positive reviews that in turn help to attract new customers.

How to improve customer relationship management in e-commerce business

Collecting customer data

Online customer service satisfaction survey

Collecting customer data is crucial for effective customer relationship management in e-commerce. It helps to understand customers’ tastes and preferences. With the collected data, e-commerce businesses can create personalized marketing strategies.

Data can be collected in numerous ways, including analyzing website traffic, browser history, purchase history, and search queries, as well as by conducting surveys and offering incentives to repeat customers. Using data collected through analytical CRM systems, businesses can leverage knowledge about their customers to understand their  preferences, behaviors, and buying patterns and identify opportunities to cross-sell products.

Re-engaging customers

Re-engaging customers encourages repeat business as well as profits for e-commerce businesses. Analytical CRM systems can track customer activity and then identify and re-engage inactive customers.

CRM systems also help to personalize communication, including through tailor-made recommendations based on their previous data and browsing history and offering incentives and discounts. Another strategy is to use retargeting ads to remind customers of products they have viewed previously or added to their cart.

Email marketing

Email marketing through subscription of newsletters

Email marketing improves customer engagement, retention, and sales. There are several practical strategies that can be used to improve CRM regarding email marketing. Some strategies include segmenting customers based on purchase history, needs, tastes, and behavior, which can help optimize email campaigns.

Personalizing emails with customers’ names, previous purchases, and personalized recommendations based on history can also improve customer engagement and CRM.

Time is another strategy for email marketing. Research when customers are most likely to open emails or messages so that they aren’t wasted or seen as an annoyance.

Analytics and planning

Analyzing customer data can provide insights into customers’ trends, tastes, preferences, and buying patterns. Using data analysis, e-commerce businesses can plan marketing campaigns and strategies to improve the effectiveness of their CRM efforts.

Segmenting customers into groups based on their needs and preferences helps to create targeted marketing campaigns. Analytical and planning strategies can be used to maximize customer data for insights and planning. Maximizing analytics and planning can also  improve customer engagement, retention, and sales, making it essential to e-commerce businesses’ CRM strategies.

Customer support

Customer support collecting feedback to help improve CRM

Developing a customer-centric culture and investing in customer support are essential to creating a successful e-commerce business. Techniques e-commerce businesses can adopt to improve customer support include collecting feedback to enhance customer satisfaction, personalizing support interactions based on customers’ previous purchases, and offering support through multiple channels, including email, chat, and social media. Using these strategies improves customer satisfaction and helps to respond quickly to customer inquiries.

Social media integration

Social media networks that can be integrated to improve CRM

Social media can be integrated into e-commerce businesses to improve CRM. By monitoring social media conversations and engaging with customers, businesses can provide personalized support and bolster the customer experience. Social media can also be used to promote products, run contests, and gather customer feedback.


In conclusion, effective customer relationship management is necessary for the success of an e-commerce business.

Businesses can build strong customer relationships by collecting data, re-engaging inactive customers, through email marketing, and by leveraging analytics and planning. E-commerce businesses should prioritize CRM strategies to increase customer satisfaction, retention, and maximize profits. Visit Alibaba.com to source the right products for your business needs.

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