Impact of The e-CRM on consumer loyalty in the British internet based

companiesCase of the e-retailers

Presented by: Edmond T. Compaore , Mohammed El Yakooby and Oussama Boumia .Supervised by: Miss Bouchra Kachoub

Outline

• Introduction • Background of the e-commerce/the e-retailing

in the UK.• Consumers decisions-making process online• Users and the most common set of product

sold online .• Key Factors determinig the consumer loyalty• Model -correlation between e-CRM ,loyalty and

price sentivity.• Views on e-CRM• Best practices for e- retailers• Conclusion.

Introduction

• Our purpose is to identify in which extent the e-CRM can enhance consumer loyalty and what are the best practices for e-retailers in the UK

Background of the e-commerce / the e-retailing in the UK.

• An increasingly number of internet based businesses

• A Revenue worth more than £1.8 Billions a year But Hides A troubling reality • Important number of business online failures

• Difficulty to meet the consumers expecattions

Consumers decisions-making process online

• intelligence phase = problem recognition and

information search

• Design = Evaluation product

• choice = purchase evaluation and

purchase

• Review phase = post-Evaluation

The most common set of product sold online and their users

• Rental of Books by Students.• Purchased of books by professionals of education

and adults and less by Students• CDs and DVDs by young people.• Console Games by adolescents • The Male gender users more than

female gender one.

Key factors determinig the consumer loyalty

• Security and trust

• Service-Quality attributes(speed and convenience)

• Product prices sensitivity

• Information provision.

• Profitability of the product or service

Model -correlation between e-CRM, loyalty and price sentivity.

e-Retailere-CRMEffort

Customer Perceived

e-CRM

Price Sensitivity

CustomerLoyalty

Figure 1 : Research model-linkage between e-CRM, loyalty and price sensitivity. Liz , David and Robert (2003).

Views on the e-CRM• Kalakota and Robinson (2001) stated that “Electronic consumer

relationship management arises from the consolidation of the traditional CRM with the e-business application market place”.

• « The lack of the organizational cooperation and coordination are the major obstacles to the e-CRM initiative » (Daniel, 2001).

• The e-CRM faces some problems in term of generating positive consumer attitude like consumer satisfaction.( Steven and Gary, 2002).

• A clear understanding of Consumer decision making process and the factor influcing his/her behaviour .

Implementation of the results in the e-CRM strategy

1 Best practices for e-Retailers

2 Best practices for e-Retailers

An effective and efficient management of their websites

through

increasing the speed of home

page loading

multiple languages Options

search engines

Speed transaction completion

offering multiple payment options

displaying security policies

more conspicuo

usly

Nabil, Murli and Rose (2003, pp.146-155)

Conclusion

The internet based retailers business should have a an efficient and efficient e-CRM strategy In order to:

have a better understanding of their customers Create and maintain a two-way relationships

Enhance consumer loyalty

References• Lee, L. K., David, G. and Robert, M., 2003. How e-CRM can enhance customer

loyalty. Marketing Intelligence & Planning. 21(4), pp.239-248.

• Nabil, T., Murli, R. and Rose, S., 2003.The state of online retailing. Internet Research. 13(3). pp.146-155.

• Peter, J.D., Isaac, W.W. and Robert, A. D., 2003. A Comparison of Online and Offline Consumer Brand Loyalty. Marketing Science. 22(4), pp.461-476.

• Rajiv, K., Sarv, D. and Adam, M., 2004. Understanding Determinants of Online Consumer Satisfaction: A Decision Process Perspective. Journal of Management Information Systems. 21(1).pp.115-135.

• Steven, A. T. and Gary, L.H., 2002. The impact of loyalty with e-CRM with software and e-services. International Journal of service Industry Management. 13(5), pp.452-472.