Ecommerce CRM Integration: Benefits + Drawbacks (2023)

Compared to running a physical store, owning an online business involves a lot of guesswork. If someone storms out of your store following a poor customer experience, you would know why.

But when someone abandons their cart after browsing your ecommerce store — or worse, they leave a two-star rating without writing a review — pinpointing the reason is not easy.

However, having the right data at your fingertips helps connect the dots. For example, the customer’s website activity might indicate that they browsed a few web pages, couldn’t find the item they wanted and sent an email that went unanswered for several days. By the time the customer received a response, the desired product was out of stock.

A customer relationship management (CRM) tool dispels some of the mystery behind cart abandonment and poor retention by storing a complete history of a customer’s interactions with your business in a central database. The software builds detailed user profiles of every lead, including their demographic data, browsing and purchasing habits and preferred contact channel.

Based on this customer segmentation, you can create automated workflows that are triggered by specific actions. For example, a first-time visitor to your website sees a pop-up offering a 10% discount as they’re about to leave, while a returning visitor receives personalized product recommendations.

Benefits of CRM Integration in Ecommerce

Integrating a CRM tool within your ecommerce site lets you collect data on all customer interactions on your website and social media channels to automatically send personalized offers, access up-to-date customer information and track each customer’s journey through the sales funnel.

Increase marketing and promotion.

CRM systems such as Salesforce, Magento and Zoho CRM can run marketing campaigns based on customer behavior. For example, a customer who purchased two items in the last six months might be flagged as a brand advocate. The system will automatically enroll them in your referral program so they can receive rewards for each successful referral.

Or, say a new lead has shown an interest in a particular product line. Create an email campaign to show them additional product recommendations or other offers tied to specific actions. Marketing automation enables you to send customers personalized offers to nudge their decision-making and shorten the sales cycle.

Better sales team performance.

Empower sales teams with customizable analytics dashboards that display the most important metrics for your ecommerce business. Standardize the sales process by building workflows that prompt your sales reps on what actions to take at each stage of the sales process.

By accessing the CRM platform’s file-sharing tool, sales reps can easily review and repurpose email templates and scripts for making cold calls.

An integrated CRM system will automatically store information on new leads from your website and social media channels so the sales team can follow up, qualify the lead and have better visibility over their sales pipelines.

Drive collaboration.

Every employee will have a singular view of the customer, which makes it easier for departments to collaborate.

For example, marketing teams can automatically hand off new leads to the sales team for follow-up. Similarly, sales teams can share forecast data with the inventory team to improve just-in-time inventory management.

(Video) 7 benefits of developing crm for ecommerce

Meanwhile, inventory teams can share turnover data with the marketing team to create campaigns to promote slow-moving inventory or adjust inventory levels for a new product launch.

Improve the customer experience.

Engage with customers in their preferred channels including email, telephone, SMS and social media apps — without ever leaving the CRM. All conversations and associated metadata will be stored in one place so you have complete context on each customer and can anticipate their needs when they contact you.

For example, if a customer asks about modifying an order, you can see which products they’ve purchased without asking for their account information.

Better inventory planning and forecasting.

Compiling a 360-degree view of your customer — their buying patterns, preferred payment methods, spending habits and more — helps you make informed decisions about which products to restock and which to discontinue.

The CRM also combines sales forecasts with inventory data to predict future inventory needs based on historical inventory turnover, current order levels, and expectations for future sales.

Limits losses and costs.

A CRM tool offers insights into each step of the customer journey so you never miss a new lead. For example, if someone initiated a chat on your website and abandoned the conversation midway through, the CRM tool will store their contact info and flag the conversation so you can follow up with them via email.

You can also detect pain points in the shopping experience by tracking the customer journey. For example, if your email open rate remains stubbornly low, perhaps your subject lines don’t intrigue your target audience. Or if your product pages have a high bounce rate, perhaps the user interface is unintuitive.

Gain a competitive edge.

CRM tools surface AI-generated data insights that would otherwise go undetected — allowing you to respond to new developments in real-time and cultivate an edge against your competitors.

For example, you might find that a certain user persona typically buys two related items together. The next time someone tries to purchase that item from your online store, you can recommend a bundle of related products to raise your average order value. CRM tools greatly boost lead generation as they capture customer information from all contact channels.

Strengthen your email marketing.

Having context on your customers lets you serve each person with more relevant offers.

For example, if your CRM system indicates that a once-loyal customer recently left a lukewarm review, you can reach out and offer to remedy the situation. Or, if demand for a certain product surges during the summer, you can run an email campaign to promote it in the spring.

Use CRM reporting to help your strategy.

CRM reporting tools provide marketing and sales teams with a compass to streamline their strategy and make adjustments based on real-time customer feedback. Integrating your CRM tool with other software programs — such as email marketing tools, website builders and order management software — provides rich insights into overall customer sentiment.

Drawbacks to CRM Integration

Getting the most mileage out of your CRM integration requires extensive planning and buy-in from your employees. The organization as a whole must commit to putting the customer first and using data to inform strategy-making. Failure to lay the proper groundwork for a CRM implementation can lead to buyer’s remorse.

(Video) The Benefit of CRM for E-commerce Sellers [Sellerscast Ep15]

Can minimize the human element.

While the main goal of a customer relationship management tool is to provide a personalized customer experience, it essentially reduces each customer to a data point. The inferences made from data, while statistically accurate, may not always translate to the real world.

AI algorithms routinely make what’s known as “spurious correlations” —a connection between two variables that appears to be causal but is not — so make sure you review recommendations made by your CRM tool to ensure they are suitable for your business.

Raises some security concerns.

Data integration can leave systems vulnerable to cyberattacks. Cloud-based CRM tools require security defenses to protect sensitive customer data. You’ll need a security framework to not only protect your CRM from phishing and malware attacks but to control the information that each user can access, limit file-sharing and authenticate users.

Requires employee training.

Employees will require training not only on CRM functionality but how to implement the tool in their daily workflow and use it to achieve business goals. Most importantly, this means cultivating a customer-centric culture and instilling the habit of using analytics for business decision-making.

Launch your Ecommerce Store

Create your own store and start selling today with our risk-free trial.

Start Your Free Trial

The Final Word

BigCommerce is an ecommerce platform that provides software-as-a-service (SasS) capabilities to retailers. The software makes it easy for people with no programming experience to build ecommerce websites using templates and drag-and-drop interfaces, integrate their website with online payment providers and use SEO tools to optimize site discoverability. The BigCommerce platform does, however, integrate with most CRM systems.

FAQs for Ecommerce CRM Integration

(Video) What Are The Benefits Of CRM And ERP Integration

Do I need to integrate CRM with my ecommerce platform?

Yes. A CRM ecommerce integration unlocks the power of all customer data captured on your website including each site visitor’s web activity. By combining this data with web analytics, marketing analytics and sales analytics, you can achieve a 360-degree view of your customer.

What are the most common mistakes made when integrating a CRM with your ecommerce platform?

The most common mistake business owners make is choosing a CRM software package with too many features. According to Martech Zone, 43% of users only utilize half of the features in their CRM.

Another mistake is failing to teach employees the benefits of using a CRM and provide proper software training — part of the reason why CRM features are often underutilized. Never implement an ecommerce CRM solution without defining your business processes and goals — otherwise, you’ll struggle to generate actionable insights from your data.

What is the best CRM for ecommerce?

The complexity of your CRM depends on your business needs. For example, if you’re a small business or startup and don’t offer a referral program and are only active on one or two social media channels, then social CRM features aren’t necessary.

When choosing a CRM solution, start by specifying your business requirements and learning curve. From there, you can better define the must-have features your team needs (eg: maybe you don’t need invoicing tools but you want email marketing capabilities), and narrow down your ideal providers.

The best ecommerce CRM software comes with a customer support team and software solutions training for employees.

(Video) You Need a CRM System! - Benefits of Customer Relationship Management

VIEW MORE

What is the difference between a CRM and an ERP?

An Enterprise Resource Planning (ERP) system is a relational database that stores and analyzes financial management and accounting data and is used by the finance team.

On the other hand, a CRM system is a relational database that stores and analyzes customer data used by sales, marketing and customer service teams. Some ERP systems include a CRM component; however, CRM systems do not have ERP features.

(Video) 7 Advantages of using a CRM platform

FAQs

What are the limitations of E CRM in e-commerce? ›

It doesn't always offer the best tools for your needs:

It can also be difficult to customize and may not be compatible with all businesses. CRM software can also be time-consuming to implement and manage, and it may require significant training for employees to use it effectively, which can prove to be expensive.

What are the disadvantages of e CRM? ›

A lack of commitment or resistance to cultural change from people within the company can cause major difficulties with the CRM implementation. Customer relationships may break down and result in loss of revenue, unless everyone in the business is committed to viewing their operations from the customers' perspective.

What are the benefits of CRM in e-commerce? ›

Key Advantages of CRM for Ecommerce Business

Acquire customer information. Boost conversion rates. Re-engage with customers through enhanced marketing. Email Marketing.

What is the best advantage of the integrated e CRM? ›

Having a single location for all information, there is no need to re-key information from one system to another. This becomes a major benefit of an integrated CRM system. Implementing automated workflow can reduced repetitive and mundane tasks, freeing you to spend more time on more important work.

What are three disadvantages of ecommerce? ›

Disadvantages of eCommerce
  • Customers have concerns about privacy and security. Some consumers are still wary about giving out personal information, especially credit and debit cards, to online sources. ...
  • Lack of in-store engagement with customers. ...
  • The added cost of operating an online store.
23 Mar 2021

What are 3 advantages and 3 disadvantages of e-commerce? ›

Comparison Table for Advantages and Disadvantages of E-Commerce
AdvantagesDisadvantages
Eliminates the operating cost.Lack of personal touch.
It helps in connecting with people all across the world.It doesn't give the luxury of trying before buying the item.
Retargets the customers.Long delivery period.
2 more rows
6 Jan 2022

What are the barriers of CRM? ›

5 Common Barriers to CRM Success and How to Overcome Them
  • Lack of business case with clear objectives. ...
  • Failing to see the real value in CRM. ...
  • Wrong perception about CRM suitability. ...
  • Changing business approach. ...
  • Workforce resistance to change. ...
  • Conclusion.
4 Dec 2014

What is the difference between CRM and E-CRM? ›

In CRM customer contact is initiated through retail store, telephone or fax. Along with telephone, in E-CRM customer contact is initiated through the internet, email, wireless, mobile and PDA technologies.

What are the benefits and challenges of CRM? ›

Benefits of CRM platforms

CRM platforms offer many benefits, such as personalized marketing, increased productivity and AI-powered forecasting. Personalization. Organizations with effective CX often tailor their customer service and marketing efforts to individual customers and customer segments.

What is the best CRM for eCommerce? ›

Our Picks: The 10 Best eCommerce CRM software
  • Klaviyo.
  • Pipedrive.
  • Capsule CRM.
  • Zoho CRM.
  • HubSpot CRM.
  • Salesforce Account Engagement.
  • Sendinblue.
  • Freshworks.
16 Nov 2022

What are the main advantages of integration? ›

ADVANTAGES OF SYSTEM INTEGRATION
  • Increased productivity. The most important advantage of system integration is that it boosts the company's productivity tremendously. ...
  • Better management and analysis. ...
  • Lower cost. ...
  • Improved customer satisfaction. ...
  • Security issues. ...
  • Complex upgrading. ...
  • High cost.
24 Jul 2019

What are the 10 benefits of CRM? ›

Here are 11 key benefits a CRM could provide.
  • Better customer service. ...
  • Increased sales. ...
  • Improved customer retention. ...
  • Detailed analytics. ...
  • Higher productivity and efficiency. ...
  • Centralized database of information. ...
  • Managed communications with prospective leads. ...
  • Improved customer segmentation.

What is CRM eCommerce? ›

So then, what are ecommerce CRM systems? A customer relationship management system is a central location or piece of software that you can use to store customer details, accounts, information, and leads that can then be leveraged for future sales opportunities.

What is a major disadvantage of eCommerce? ›

E-Commerce Disadvantages

It's all online, which means that customers can't touch or feel or try on your products before buying. Online transactions often feel less personal, which can make it harder to make a genuine connection with your customers to keep them coming back for more.

What is the biggest problem of eCommerce? ›

When it comes to eCommerce, one of the biggest challenges faced is security breaches. There is a lot of information/data that is involved while dealing with eCommerce and a technical issue with data can cause severe damage to the retailer's daily operations as well as brand image.

What is the negative impact of e-commerce? ›

The negative effects of online shopping are directly creating issues like the intrusion of customer privacy. When making payments online, there is a huge security issue, giving rise to problems like credit card fraud and identity theft.

What are the two technical disadvantages of e-commerce? ›

Technical Disadvantages

There can be lack of system security, reliability or standards owing to poor implementation of e-commerce. The software development industry is still evolving and keeps changing rapidly. In many countries, network bandwidth might cause an issue.

What are the 7 features of e-commerce? ›

Top 7 Ecommerce Website Features
  • User-Friendly Design. Perhaps the most important feature customers want in an ecommerce site is a good user experience. ...
  • Mobile-Friendly Features. ...
  • Multiple Payment Options. ...
  • 24/7 Customer Service. ...
  • User Reviews. ...
  • User Features and Discounts. ...
  • Extensive Product Information.
25 Jun 2021

What are the major challenges in implementation of e CRM? ›

CRM implementation challenges include convincing your colleagues to adopt the changes, handling data security, finding ways to protect user's from identity theft, moving away from old software, finding the right CRM for your business needs and budget, and so on.

What are the 5 keys to successful CRM implementation? ›

5 Key Ingredients for a Successful CRM Implementation
  • People and process first, software second. The best CRM software doesn't overcome process or people shortfalls. ...
  • Executive Sponsorship. ...
  • Define CRM Success. ...
  • Implement Gradually. ...
  • Actively Manage the Implementation.
12 Jan 2012

What are two key problem areas that cause CRM implementation to fail? ›

Let's go through the five most common reasons CRM projects fail.
  • Unclear goals for the new enterprise CRM. ...
  • Lack of end user involvement in the planning and design processes. ...
  • Lack of involvement from an executive sponsor. ...
  • Dirty data within the enterprise CRM. ...
  • Disregarded or dismissed IT implications.
17 Feb 2022

What are the 7 barriers to effective? ›

The Seven Barriers to Communication
  • Physical Barriers. ...
  • Perceptual Barriers. ...
  • Emotional Barriers. ...
  • Cultural Barriers. ...
  • Language Barriers. ...
  • Gender Barriers. ...
  • Interpersonal Barriers. ...
  • Break Through The Barriers.

What are the 5 common barriers? ›

Definition of Barriers

There are five key barriers that can occur within a company: language, cultural diversity, gender differences, status differences and physical separation.

What is SWOT analysis of CRM? ›

SWOT analysis is a short form used to describe the particular Strengths, Weaknesses, Opportunities, and Threats that are the strategic factors for a specific company.

What is E-CRM strategies? ›

An E-CRM strategy defines the goals for your CRM or social CRM programme and then creates a roadmap of the changes to process, tools and team needed to make it a reality. The failure rates of CRM projects have discredited CRM, but that doesn't mean the approach is flawed.

What are the benefits of CRM in retail industry? ›

Using a CRM will give you the chance to plot out your customers' buyer's journey and how they are responding in the post-purchase phase. Repeat customers provide you with valuable information as regards their interests, meaning you can target them with tailor-made campaigns that offer a more personalized experience.

What are the 4 components of CRM? ›

As mentioned previously, any implementation of CRM needs to consider these four core components: technology (applications and infrastructure), strategy (business goals and objectives), process (procedures and business rules) and people (organizational structure, skills, and incentives).

What are the 3 types of CRM? ›

The three types of CRM systems are operational, analytical and collaborative.

What are the 6 CRM skills? ›

What Are the Top 6 CRM Training Skills Needed?
  • Data Entry. You need to enter your customer data into the CRM software. ...
  • Lead Management. ...
  • Lead Qualification and Nurture. ...
  • Time Management. ...
  • Task Management. ...
  • Project Management.
21 Feb 2022

Do you need CRM for eCommerce? ›

Does eCommerce need CRM? CRM is an essential tool for any business, including e-commerce sites. It allows you to keep all your marketing, customer support, customer and order data streamlined and well-organized on one dashboard. This in turn helps you get an overview of your business performance in a comprehensive way.

What is the difference between CRM and eCommerce? ›

Customer Relationship Management (CRM) manages customer relationships. eCRM is an internet marketing technique. A CRM for eCommerce allows you to use customer data to increase sales, offer discounts, and promote your brand. It also helps organize and prioritize customer data.

Does Amazon have CRM? ›

AWS Managed Services (AMS) provides a customer relationship management (CRM) process to ensure that a well-defined relationship is established and maintained with you. The foundation of this relationship is based on AMS's insight into your business requirements.

What are the pros and cons of integration? ›

The advantages include increasing market share, reducing competition, and creating economies of scale. Disadvantages include regulatory scrutiny, less flexibility, and the potential to destroy value rather than create it.

What are the 4 benefits of system integration? ›

10 Unbelievable Benefits of Systems Integration
  • Better Data Access. ...
  • Real-Time Data. ...
  • Single Customer View. ...
  • More Sales. ...
  • Save Time and Money. ...
  • Improved Work Culture. ...
  • Avoid Costly IT Expenses. ...
  • Data Forecasting.

What are benefits of customer relation management? ›

7 Benefits of Customer Relationship Management
  • Customer Service and Retention. One of the main benefits of CRM is improved relationships with your customers. ...
  • Increased Sales. ...
  • Analytics. ...
  • Higher Productivity. ...
  • Cultivating New Leads. ...
  • Better Marketing. ...
  • Increased Profitability.
13 Sept 2021

What is E-CRM example? ›

Oracle CRM, a complete CRM that drive sales, marketing and loyalty. Oracle CRM is a cloud-based CRM system that simplifies customer relationship management for businesses of all types and sizes. From a marketing perspective, Oracle CRM offers mailing and e-mailing features.

Why is CRM so important for an e-commerce company explain with a minimum of 5 points? ›

CRM helps businesses streamline processes, build customer relationships, increase sales, improve customer service, and increase profitability.

What is the key limitations of e-commerce? ›

One of the main limitations of eCommerce is security. In most cases, people are hesitant to provide their personal and financial details in spite of advanced data encryption security systems in place. Moreover, there are some websites that do not have the capability and features installed to authenticate transactions.

What is e-commerce and its limitations? ›

E-Commerce or Electronic Commerce means buying and selling of goods, products, or services over the internet. E-commerce is also known as electronic commerce or internet commerce. These services provided online over the internet network. Transaction of money, funds, and data are also considered as E-commerce.

What are the two main limitation of e-commerce? ›

Technical Disadvantages

There can be lack of system security, reliability or standards owing to poor implementation of e-commerce. The software development industry is still evolving and keeps changing rapidly. In many countries, network bandwidth might cause an issue.

What are the challenges in implementing e-commerce? ›

The Most Common Ecommerce Challenges for Online Businesses & Their Solutions
  • The need for online identity verification.
  • Delivering an omnichannel customer experience.
  • Outshining the vast competition.
  • The need to revamp selling tactics.
  • Shopping cart abandonment.
  • Maintaining customer loyalty.
10 Oct 2021

What are the 10 advantages of e-commerce? ›

10 Key Benefits Of Ecommerce For Your Business
  • Low costs. A significant advantage of ecommerce is that launching an online store is much less costly than opening a physical store. ...
  • Speed & Flexibility. ...
  • Faster Buying Process. ...
  • Product Catalogue. ...
  • Wider Customer Base. ...
  • Customer Data Insights. ...
  • Scalability. ...
  • Reviews & Ratings.

Videos

1. Integrate your ERP with e commerce and no limitations - Alumio
(Alumio)
2. How to choose CRM software for an e-commerce business.
(MerchantAccounts.ca)
3. What to Look for in a CRM - Ecommerce Education
(Fulfillment.com)
4. Advantages of an Efficient CRM Software System
(BCS ProSoft)
5. eCommerce, EDI and CRM Integration-How It Works
(ebridgesoftware)
6. What is e-commerce CRM?
(SAP Customer Experience)
Top Articles
Latest Posts
Article information

Author: Pres. Lawanda Wiegand

Last Updated: 12/06/2022

Views: 5591

Rating: 4 / 5 (51 voted)

Reviews: 82% of readers found this page helpful

Author information

Name: Pres. Lawanda Wiegand

Birthday: 1993-01-10

Address: Suite 391 6963 Ullrich Shore, Bellefort, WI 01350-7893

Phone: +6806610432415

Job: Dynamic Manufacturing Assistant

Hobby: amateur radio, Taekwondo, Wood carving, Parkour, Skateboarding, Running, Rafting

Introduction: My name is Pres. Lawanda Wiegand, I am a inquisitive, helpful, glamorous, cheerful, open, clever, innocent person who loves writing and wants to share my knowledge and understanding with you.