Internet/e-business Strategies And Business Models Management Essay

How e-commerce Strategies can Enhance Customer Relationship
Name
Institution
How e-commerce Strategies can Enhance Customer Relationship
Introduction
The rapid advancement of technology has brought about new challenges for business organizations. The 21st century is characterized by a myriad of challenges that business leaders have to address in order to be competitive and successful. Majority of these challenges emanate from the dynamic technological environment. In a world without the internet, businesses would rely on systems that have worked for decades. However, in the advent of the internet, organizations have to find and implement strategies that would help them remain competitive. Recognizing the importance of customers to any business organization is important. Customers form the foundation of the success of a business and keeping them satisfied is the primary goal of any organization in a competitive environment. The continued technological advancement that characterizes the modern business environment means that existing and potential customers are increasingly becoming connected to the internet. Technological advancements also mean that companies are increasingly trying to reach customers via the internet. These e-commerce businesses face the challenges of attracting and maintaining customers whose needs they must address to survive in the competitive environment. This study aims to explore how e-commerce strategies enhance customer relationship.
Background of the Study
A key challenge for contemporary businesses revolves around understanding technologies and customers (Salojärvi, Ritala, Sainio, &Saarenketo, 2015). A firm may focus on one aspect while neglecting another. As an example, several analysts argue that Nokia’s inability to understand the customer contributed to its downfall (Salojärvi, Ritala, Sainio, &Saarenketo, 2015). This underscores the significance of customers in the success of e-commerce businesses. While an organization may focus on developing technologies, it may find itself neglecting arguably the most important asset of the business; the customers. It is imperative that an e-commerce firm finds the right balance between focusing on technology and customers. Given the immense role customers play in the success of e-commerce business, it is significantly important that organizations seek to improve relationships with them. An improvement of the relationship with customers brings the aspect of loyalty. Fostering loyalty is considered an integral objective for e-commerce businesses (Carter, Wright, Thatcher, & Klein, 2014). With loyal customers, the continuity of business operations is guaranteed. According to Salojärvi, Ritala, Sainio, &Saarenketo (2015), organizations that foster customer relationship consider customers as a strategic asset just like another intangible asset that the firm possesses. The authors also point out that there is a high level of mutual value that is created between the seller and the buyer in such relationships. In such organizations, there is a high focus by the management on retaining customers and treating them in a differentiated manner in order to maximize their value. It is also through the relationship with the ...