It must be understood that there are tools existing today that allow us to build and execute campaigns electronically besides tracking consumer response up to the last individual.

I know this may seem like Greek to many. So let me try explaining what I mean with an example:

Let us see how a typical e-campaign works. Initially, database management tools allow us to extract data from the electronic data warehouse according to a pre-determined set of campaign parameters. For example, if you were to send a marketing note for free service to all your clients over 25 years of age who bought product X within the last 3 months, your database management software would cull this data out of your database and present it to you as a neat mailing list - in less than a minute. Next, personalized bulk mailing software would then automatically send individual, personalized mails to each of these selected clients with a single click of the button. It is important to note that each message could be a highly personalized message, which would never indicate that this in fact was a bulk campaign. Your entire marketing campaign is executed in a highly personalized manner with pinpoint accuracy and in just a few minutes AND at next to zero cost!!

But the party is just beginning. Technology equips you with tools which can help you track how your marketing campaign actually performed at an individual level. From tracking the recipients who actually read your mail to how they responded to the offer, individually, is available to you on a real time basis. Such kind of accuracy in tracking would have any advertiser drooling over. As a prominent advertiser once said. "I know that half of my advertising money is wasted, but I don't know which half". This is what technology serves to change.

The above example clearly highlights 2 very important factors:

1. The whole process of CRM can be very economical and effective if the primary channel of communication is electronic, that is email. Read why email marketing
   
   

2. Migrating CRM to e-CRM results not only in dramatic cost-savings but also speed and accuracy in measurement of results.

With these powerful advantages, it is only a matter of time before businesses move their interactions and activities almost entirely through electronic methods. This will be a major tool for competitive advantage.

Web based ventures

The Internet ventures are in a unique position to be the natural leaders of the e-CRM wave. Their entire database is electronic and there are no efforts involved in converting physical data to an electronic form. Moreover theirs is a low cost channel of customer communication as almost the entire correspondence is done through email. As a result they can conduct low cost marketing with maximum results.

Moreover, the database of these online ventures is very attractive to large offline consumer companies. Why? Because the online database provides an opportunity for these offline companies to test market their advertising campaigns before launching an all-out expensive campaign in the expensive off-line media.

What these web ventures need are effective tools for database management, email management and campaign management. That's it and they are ready to enjoy the fruits of e-CRM.

Offline ventures

Offline ventures should start converting and cataloging their entire database in electronic form. The path to success is copious data, yet extremely efficient management of this data. This calls for electronic database management systems. Communication should be migrated to the extent possible into electronic form - possibly by giving incentives. Where this is not possible, there should be an efficient system in place to transfer data so procured into electronic form from time to time.

Further innovative approaches will be required to "recognize" the customer in the offline model thereby enhancing individual customer delight.