Amazon: Customer Relationship Management

Group 7- Section C

Akhil Jain - 170201012

Arkendra Nath Tagore - 170201026

Ellora Chanda - 170201041

Intekhab Aslam – 170201056

Mukund Priyadarshi - 170201071

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What is Customer Relationship Management (CRM) ?

 Strategy that companies can use technology to provide a unified view of each customer

 Allows them to create loyalty and reduce organizational costs

 With effective CRM strategy, businesses can increase revenues by:

 Providing services and products that customers want

 Offering better customer service

 Helping sales staff close deals faster

 Retaining existing customers and discovering new ones

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Why CRM ?

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About Amazon.com

 Founded by Jeff Bezos in 1994

 Started out as an online bookstore

 Quickly diversified into online business including DVDs, music, video games,
electronics and clothing

 “Customer Obsessed”

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 Remote computing service that provides  Currently more than 80 million users
cloud-computing infrastructure

 Storage, bandwidth and customized  Next day free delivery service

support for application programming
interfaces (API)
 Access to Kindle ebook library
 Organizations to pay only for what they
use  Unlimited ad free streaming of movies
and videos
 Organizations can leverage Amazon’s
more than fifteen years of experience
 Works on all devices
 Organizations can quickly add and
subtract AWS resources to their  Access to exclusive amazon shows
applications

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Amazon’s Customer Relationship Strategy

• Invest according to customer value

• Optimize the whole customer relationship

• Be true to the brand and its positioning

• Service each customer community appropriately

• Create enduring value first, tactical worth second

• Manage the relationship at all appropriate touchpoints

• Bring imagination to the customer experience

• Measure and Learn

• Use technology like an artist

• Make it good for everyone

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How does Amazon implement CRM ?

 Customer Selection – diversified target market

 Customer Acquisition
 Customer Account – database storing information of the customer
 Wish List, review system – Favorite items can be added to the wish list by the
customer. Product reviews help customers to make better purchase decisions

 Customer Retention – Satisfy customers through good service and effective

communication

 Customer Extension – Better customer service, trust factor and brand value

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CODAR Analysis

• Objective of giving experience to the recipient through product trials, images that stimulates a
rich experience and creates value

• Influencing ideas, associations and beliefs about the brand, company or product

• Creating emotional connections, objective is a feeling of being practically connected with the
brand

• Objective is to provide required perceived help, service or support in the form of information
about the product or policy or help in a process

• Objective is to get an intentional and behavioural change for eg. sales activation, sales enquiry

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CODAR Analysis

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Operating Profit Margin, Income from Operations and Net Sales

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Survey

Amazon users
4.7%

Yes
No

95.3%

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 Experience with Amazon
100%

90% Bad

80%
Average
70%

60% Good

50% 48.2%
Extremely
40% Good

29.4% N/A
30%

20% 16.5%

10%
3.5% 2.4%
0%
Bad Average Good
Extremely Good
N/A
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 Delivery timeline

2.4%

7.1%

35.3%
Before Estimated Time
On Time
Late Delivered
N/A

55.2%

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 Quality of Product
100%
90%
81.2%
80%
Far below
70% expectation
60% Below expectation
50%
Met expectation
40%
30% Exceeded
20% expectation
9.4% Far exceeded
10% 3.5% 3.5%
1.2% 1.2% expectation
0%

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Problems resolved satisfactorily by Amazon customer
care

36.5%

49.4% Yes
No
N/A

14.1%

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 Days taken to return / replace the product
45
41
40

35

30
0-2
25 2-4
4-6
20 >6
16 N/A
N/A
15
12
10 9
7
5

0
0 2 4 6 >6
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 Amazon’s effort with improving customer relationship
100%
90%
80%
70%
60%
48.2%
50%
Dissatisfied
40% 31.8% Neutral
30% Satisfied
20% Extremely Satisfied
7.1% 8.2%
10% 4.7% N/A
0%

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 Recommend Amazon to others

3.5%

25.9%

Yes
Maybe
No

70.6%

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Recommendations

 Quality

 Refund / Replacement process

 Delivery

 Customer discounts

 Exclusive Amazon customer benefits

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