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Importance of E-commerce in Customer Relationship Management - B&M Company

University: UK College of Business and Computing

  • Unit No: 2
  • Level: Diploma
  • Pages: 7 / Words 1719
  • Paper Type: Dissertation
  • Course Code: BGN201
  • Downloads: 416
Question :

This research is based on analyzing importance of E-commerce in CRM activities within an organisation. These kind of investigation will assist B&M company to analyze strategic direction for their firm through which they can gain desired profitability.

  •    Clearly state background of this research as well as discuss research aim and question.
  •    Demonstrate relevant information by evaluating secondary sources in the literature review section.
  •    Discuss different methods of research and state a timeline of this investigation.
Answer :
Organization Selected : B&M Company

Background of the study

Digitalisation has helped businesses in getting over new insights of operating business activities and as such, success is achieved in an effective way. The opportunities provided by digital technology had been wonderful for the organisation in carrying out operations in the best possible manner and ensuring goals are accomplished with much ease. It is viable for firm as several benefits have been imparted such as improvement in business processes, deploying effective business models etc. In according to the study, nearly 91 % of employees' wants changing processes to digitised way so that work may be streamlined quite effectually. In relation to this, E-commerce has revolved around organisation which means conducting activities through usage of internet basically on electronic network (Bharadwaj, El Sawy, Pavlou and Venkatraman, 2013). Thus, it is important for business to implement such technology as more and more customers are making payments and purchasing goods electronically. One of the industry that is retail is much influenced by digital technology as all departments are interlinked to each other and perform activities. Present study is based on B&M Company which is engaged in retail business and sells quality goods to customers. In relation to organisation, importance of E-commerce on firm will be highlighted in the research and as such, various objectives and aim will be formulated to gain clear understanding of research. 

Aim: To analyse significance of E-commerce in CRM (Customer Relationship Management) in context to B&M Company


  • To analyse meaning and concept of E-commerce driving success for business
  • To assess relationship between CRM and E-commerce on B&M Company
  • To assess significance of E-commerce in CRM
  • To recommend and implement well-structured strategies of E-commerce for CRM

Research Questions

  • What is the meaning and concept of the term E-commerce initiated as unfolding digital technology?
  • What relationship exists between E-commerce and digital technology on  B&M Company
  • What is the significance of E-commerce in CRM for organisation?


The rationale behind taking this research is to provide useful insight of digital technology that is providing business a way to achieve stated objectives in the best possible manner. For effectively reaching to end of the research, retail sector is being studied thoroughly. The benefits carried out by the research is that I'm able to assess kinds of modern digitised technologies which are directly benefiting firm. Books, journals, literature and published articles are taken into account for extracting information regarding secondary research quite effectively. 

Literature Review

It is formulated to analyse the impact of E-commerce on the business. Moreover, methods have been deployed for implicating E-commerce for initiating processes or organisation.

Meaning and concept of E-commerce as unfolding technology

E-commerce is helping organisation in achieving goals in effective way. According to Brinkmann (2014), various retailers are present in the industry which are accelerating growth of business by deploying digitalised technology for attaining profits in the best possible manner. Digital experiences are provided to customers which are achievable because of transforming normal business operations in streamlined process by using digital techniques. Orders are made by consumers and as such, they are based on digitalisation which helps to manage business process by effectively handling orders with much ease. As per the views of Buckingham (2013), E-commerce is buying and selling goods on the internet and helping firm to raise marketing of goods and services and as such, business is able to sell off items and services by using electronic network in effectual manner. The transactions are made by utilising digitalised technology and as such, commodities are sold quite effectively.

As per the views of Fichman, Dos Santos and Zheng (2014), E-commerce is useful as it imparts two benefits such as cost-effective goods and availability of large quantum of goods. In relation to this, B&M Company has been continuously updating its techniques and achieving new insights and success is accomplished by implementing modern technology in the business. It is enhancing relationship with customers by initiating marketing and promoting goods. According to Fitzgerald, Kruschwitz, Bonnet and Welch (2014), applications and E-commerce websites are increasing day-by-day which are helping to inject sales by selling goods electronically. Modern technology is benefiting organisation by imparting diversified channels such as E-commerce, E-marketing and related channels for garnering sales with much ease. The way of doing business is also transformed by firm and as such, it is adopting new and efficient methods and channels to enhance its customers' base and attaining revenue quite easily. Delivery of goods are also getting faster because E-commerce solutions are helping organisation to accomplish new orders and garnering profits.

Relationship between CRM and E-commerce

As per the views of Haight, Quan-Haase and Corbett, (2014), E-commerce has made drastic change in the retail sector and providing new insights to business and helping in accomplishing stated goals and objectives. E-commerce is useful for organisation as goods are sold through use of internet, thereby saving costs of operating physical stores quite easily. Neuman (2013), says that revenue has been increasing up to a high extent for the business as it is adopting digital technology and to build brand identity in front of customers with much ease. CRM is broad term which is essential modern business activity helping organisation to enhance sales and maximising brand value by effectively maintaining relationship with new and potential customers leading to broaden customer base.

However, Pagani (2013) says that business was benefited by E-commerce through virtual selling but it had inculcated certain bad consequences and viewpoints by customers. It is evident from the fact that customers were not at all happy with virtual shopping experiences due to longer traffic found on websites leading to crashing, more time required to deliver products are some of the main consequences of E-commerce leading to decline. The retailers are competing with one another leading to decreased profits as new tactics are adopted by organisation leading to more costs to garner customers in effective way. The online platform is used by implementing extra customer support services for resolving queries of consumers, imparting hefty discounts adding to overall costs and thereby reducing profits. However, customers prefer online shopping as it saves time for purchasing goods and as such, firm gets benefit out of the same.

Significance of E-commerce in CRM

As per the views of Lewis (2015), E-commerce has changed way of doing business and as such, organisation is required that modern technique should be implemented to get desired results in the best possible manner. B&M Company is also under pressure to effectively use such technology so that goods may be differentiated from that of rivals and as a result, sales may be injected quite effectually. In order to accomplish this, proper and adequate research needs to be conducted, competitors' analysis need to be made and solutions of E-commerce are needed as well. This technology is benefiting organisation to drive towards success and good quantum of profits are attained quite effectually. The retail sector is attaining sales and injecting overall growth of country. According to Miller (2012), CRM will be improved because of implementation of E-commerce helping to strive for strengthening and maintaining relationship with customers in effective way. Moreover, it is helping to retain dedicated and hard working employees with much ease.

In opinion of Smith and Wynne, (2017), E-commerce is helping organisation which were accomplishing daily activities as per traditional methods incurring more costs and lesser benefits. For retail organisation, it is required that it should provide user friendly experience on the websites and helping customers' to buy goods by staying at their homes. B&M Company should provide 24 hours service to customers to enhance their shopping experiences. Moreover, E-commerce allows effectively to expand business operations of firm. Furthermore, applications and websites are required to provide better user experience to customers. Thus, E-commerce has been helping in maintaining relationship with consumers in effective way so that overall customers may be satisfied and increased profits are attained by company.

Research Methodology

  • Research Philosophy

The research philosophy is required in order to conduct research in the best possible manner. It will be required by researcher to complete research and finding out conclusion by taking appropriate data and applying certain vital concepts quite effectually (Research Philosophy. 2018). Appropriate data will be collected by scholar to attain useful insight about the study in hand. In relation to this, positivism and interpretivism will be used to evaluate research in effective way.  This is required to have proper understanding of the research topic of impact of digital technology in business activities.

  • Research Design

It is also important part of the research so that appropriate design may be adopted to provide concrete results in effectual manner. Research design will be helpful for attaining useful insight of current study on B&M Company. There are basically two types of such design namely exploratory and descriptive research. The exploratory type of research design is helpful in attaining new insights about what is happening in the current scenario and as such, it provides solution to research questions posed and study can be easily evaluated with much ease. Descriptive method is used to provide clarity in relation to business situations (Wang and et.al, 2017). The descriptive research will be utilised by researcher to analyse impact of E-commerce on success of firm.

Related:-Research Project

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