E-commerce - Cape Peninsula University of Technology

Chapter 2: Uterature review Page 25
figuratively), with all employees having a direct electronic link. Such customer
led approaches, according to Siegel (2000), involve listening to customers in
a strategic way, deepening relationships and loyalty. E-retailers are reminded
that the benefits of e-commerce are not just faster ordering from bigger
catalogues, but better service and a closer relationship with a more 'faithful'
customer.
Newe" (2000) highlighted that companies must leverage customer
information for the effective management of customer relationships on the
Internet. Seybold and Marshak (1998) made similar points, again focusing on
the need for customer-focused strategies that engage customers and build
communities of loyal customers. Such strategies suggest something much
more radical than the basic e-commercelbrochure-ware approach adopted by
many businesses at the moment. It calls for a re-engineering of processes
and structures focused around key customer groups, rather than product or
service divisions. It also implies cross-functional, team working. As Siegel
(2000: 107) puts it:
"[a] customer-led company has a broad interface across which all
employees can get to know their customers. Employees invite
customers in to collaborate on new products, support systems, and
methodologies. Facilitating those interactions will take new
communication skills, new tools, and the ability to move people in and
out ofproduct teams easily".
In addition, most e-retail businesses today are not prepared to create truly
unique and special offers for individual customers based on customer profile
information (Siegel, 2000). Infact, most companies are still only capable of
offering relatively simple solutions based on customer preference data.
Siegel (2000) further explain that creating uniquely customised product offers
to target customers, requires better data not just about the customer's
preferences, but about the products as well.