At traditional stores, good salesmen know their customers’ preferences, remember what they bought earlier and won’t miss the chance to recommend items that would be of interest whenever the customers make repeat visits to the shops.
Now, how do online retailers, which have no salesmen, do the same thing?
Well, there is no reason to worry as smart e-commerce software can help them achieve something similar, and perhaps even more.
“Since every customer action can be logged and studied, e-commerce is almost the best channel to implement customer relationship management (CRM),” says Davy Ma, managing director of Media Explorer Ltd. (ME), a Hong Kong-based firm involved in web design and software development.
Understanding customers’ purchasing habits can help business owners boost their revenue and profit, predict future sales pattern, as well as adjust the product mix and inventory.
Most customers appreciate useful recommendations when they browse through stores. This is where information technology can help online vendors devise proper promotion campaigns and keep their shoppers happy, Ma says.
A good e-commerce system, for instance, allows operators to discover the shopping pattern more easily, say by creating a customer list based on demographic profile and transaction data, such as the number of purchases, the amount spent and the product category over a certain period.
Such systems also allow operators more flexibility in devising promotional campaigns by bundling products, offering discounts, cash dollar schemes or free gifts. MagicCart under ME is one of the relatively advanced e-shop software service providers.
Online vendors can also create multiple membership levels depending on clients’ patronage and differentiate the rewards accordingly.
Another advantage of using e-commerce technology is the quick feedback. Since it is easy to measure sales performance by various criteria, operators can tweak and refine the product offerings and promotion terms constantly based on the market response.
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