SlideShare uma empresa Scribd logo
1 de 3
Baixar para ler offline
A STUDY ON AMAZON: CRM
In order to gain customer satisfaction and loyalty amazon use Customer Relationship
Management system (CRM). CRM system follows the following application to collect
information of the customer.
All personal information of customers their credit card record, transaction record, order record,
profile, their past purchase history are collected in the database.
The order processing system takes care of the transaction record with secured transaction
method
and it delivers instruction to the delivery system for the execution of shipment.
Through customer feedback, customer interest, wish list, product reviews web page system
Collect customer information.
Automated communication is ensured with customers through e-mail and massage systems and
order information systems. (Jenkinson, 2005; Hottovy, 2011) With the CRM system amazon
successfully integrates customer sales, services and communication. (Jenkinson 2005;
Manjoon
2011)
Customer Relation Management Strategy:
When a customer first enter into Amazon.com he/she is provided “Featured Product‟ by the
website, But when the customer visit for the second time the recommender system
automatically provide products by studying customer interests and personality.
Customer acquisition and retention has been the most priority to Amazon.com‟s strategy.
Through web site Amazon maintain sophisticated communication that automates the process
of creating value for the customer.
Jakinson and sain provided 3 ideas called as Jeff Bezos 3 big idea as listed below:-
1.Limitless inventory
2. Customer Care
3. High margin, lowest price.
Limitless Inventory:
When amazon started offered books to the customers. But over the period it increased its
products from books to music, movie, cloud storage, gaming and many more. Poter
mentioned
three district sources-
1. Serving few needs of many customer
2. Serving broad needs of few customer
3. Serving broad needs of many customers.
Initially amazon was followed first source of serving with few products. But it changed its
strategy over time and now it fits into third sources.
Customer Care:
“If you do build a great experience, customer tells each other about that. Word to mouth is
very
powerful” - Jeffry p. Bezos
One of the success factors of amazon.com is word of mouth. Because of excellent customer
service customers trusted Amazon. They used to talk about Amazon.com to other. This
spread
rapidly by creating increasing traffic on the web site
High Margin, Lowest Price:
Amazon.com provides products significantly cheaper than its competitors. One of the main
visions of Amazon.com is based on the long term plan. (1997 Stockholder report) This makes
easier for amazon to take risk of low profit in order to succeed in future.
An estimate shows how it is possible for amazon to become profitable with lowest price. A
product on average gets sold in 33 days through amazon.com. On the other side it
competitors
like best buy took 70 day to sell the product. (FAVERNOVEL)
Amazon keeps the best-selling product to its own stock and longer tail items to third party
sellers
stock. This gives an advantage to the company.
How amazon implement CRM:
Amazon has extensive implementation of customer relationship management. Each and every
customers are taken in account in amazon.com. it include
2.1 Customer Selection:
Customer selection part through Amazon.com website has given amazon a extra benefit in order to
boost
their business. Amazon uses numerous methods to select customer by knowing their customer
behavior.
Amazon‟s early target was people who love books. But days its target market is vast and challenging.
Customer Acquisition:
2.2.1 Customer account:
Every customer buying through amazon.com has his/her profile in amazon website.
Amazon.com creates a database to store the account, information of the customer, credit/debit
account.
Through the customer account amazon knows about the customer, their personality and last
of all
can satisfy them.
2.2.2 Wish List,reviewsystem:
Amazon always encourage customer to add favorite items to the wish list. This helps amazon
to know better about the customer. Product review by customer not only be help customers to
find and select product but also acts as direct marketing event for amazon.com. Amazon allows
making connection in between the customer, communicating and viewing their interest help to
amazon to gain customer trust and initiate world of mouth.
In the first 3 month of 2000, amazon acquired 3 million new customers without any investment.
To satisfy customer amazon uses information acquired through customer account, wish list etc.
Amazon brought number of system to satisfy customer. 1-click ordering has been an excellent
system innovated by amazon which revenue less than 20 sec to enable purchase.

Mais conteúdo relacionado

Mais procurados

Amazon ppt
Amazon pptAmazon ppt
Amazon pptaftabssm
 
Ethics in Service marketing,,!!
Ethics in Service marketing,,!!Ethics in Service marketing,,!!
Ethics in Service marketing,,!!Arihant Zunjarvad
 
Pizza tracker - online ordering at dominos
Pizza tracker - online ordering at dominosPizza tracker - online ordering at dominos
Pizza tracker - online ordering at dominosArshit Agarwal
 
BEHAVIOR,ROLE PERCEPTION, AND SATISFACTION OF SALES FORCE
BEHAVIOR,ROLE PERCEPTION, AND SATISFACTION OF SALES FORCE BEHAVIOR,ROLE PERCEPTION, AND SATISFACTION OF SALES FORCE
BEHAVIOR,ROLE PERCEPTION, AND SATISFACTION OF SALES FORCE Waqaruddin Siddiqui, MBA
 
Mc donald's customer loyalty programs and customer relationship management
Mc donald's customer loyalty programs and customer relationship managementMc donald's customer loyalty programs and customer relationship management
Mc donald's customer loyalty programs and customer relationship managementKartik Mehta
 
Domino's direct marketing campaign | IMC 616
Domino's direct marketing campaign | IMC 616Domino's direct marketing campaign | IMC 616
Domino's direct marketing campaign | IMC 616Kaitlyn Reeves
 
Amazon's Operational Strategy
Amazon's Operational StrategyAmazon's Operational Strategy
Amazon's Operational StrategyTalhaMTZ
 
Amazon India business strategy
Amazon India business strategyAmazon India business strategy
Amazon India business strategySarthak Rohatgi
 
Supply chain management of McDonalds
Supply chain management of McDonaldsSupply chain management of McDonalds
Supply chain management of McDonaldsSaravanan rulez
 
Service Marketing: Gap model analysis of online delivery services
Service Marketing: Gap model analysis of online delivery servicesService Marketing: Gap model analysis of online delivery services
Service Marketing: Gap model analysis of online delivery servicesZaheer Sayyed
 
CUSTOMER RELATIONSHIP MANAGEMENT
CUSTOMER RELATIONSHIP MANAGEMENTCUSTOMER RELATIONSHIP MANAGEMENT
CUSTOMER RELATIONSHIP MANAGEMENTAnurag jain
 
MNCs in India & Nestle International marketing
MNCs in India & Nestle International marketingMNCs in India & Nestle International marketing
MNCs in India & Nestle International marketingsurabhi agarwal
 
Chapter 7. customer relationship management
Chapter 7. customer relationship managementChapter 7. customer relationship management
Chapter 7. customer relationship managementJags Jagdish
 

Mais procurados (20)

7ps of amazon
7ps of amazon7ps of amazon
7ps of amazon
 
Amazon ppt
Amazon pptAmazon ppt
Amazon ppt
 
Amazon Supply Chain
Amazon Supply ChainAmazon Supply Chain
Amazon Supply Chain
 
Ethics in Service marketing,,!!
Ethics in Service marketing,,!!Ethics in Service marketing,,!!
Ethics in Service marketing,,!!
 
Pizza tracker - online ordering at dominos
Pizza tracker - online ordering at dominosPizza tracker - online ordering at dominos
Pizza tracker - online ordering at dominos
 
BEHAVIOR,ROLE PERCEPTION, AND SATISFACTION OF SALES FORCE
BEHAVIOR,ROLE PERCEPTION, AND SATISFACTION OF SALES FORCE BEHAVIOR,ROLE PERCEPTION, AND SATISFACTION OF SALES FORCE
BEHAVIOR,ROLE PERCEPTION, AND SATISFACTION OF SALES FORCE
 
Mc donald's customer loyalty programs and customer relationship management
Mc donald's customer loyalty programs and customer relationship managementMc donald's customer loyalty programs and customer relationship management
Mc donald's customer loyalty programs and customer relationship management
 
Domino's direct marketing campaign | IMC 616
Domino's direct marketing campaign | IMC 616Domino's direct marketing campaign | IMC 616
Domino's direct marketing campaign | IMC 616
 
Amazon's Operational Strategy
Amazon's Operational StrategyAmazon's Operational Strategy
Amazon's Operational Strategy
 
Amazon India business strategy
Amazon India business strategyAmazon India business strategy
Amazon India business strategy
 
Supply chain management of McDonalds
Supply chain management of McDonaldsSupply chain management of McDonalds
Supply chain management of McDonalds
 
Marketing strategies of Amazon
Marketing strategies of AmazonMarketing strategies of Amazon
Marketing strategies of Amazon
 
Service Marketing: Gap model analysis of online delivery services
Service Marketing: Gap model analysis of online delivery servicesService Marketing: Gap model analysis of online delivery services
Service Marketing: Gap model analysis of online delivery services
 
Amazon Go
Amazon GoAmazon Go
Amazon Go
 
Amazon
AmazonAmazon
Amazon
 
CUSTOMER RELATIONSHIP MANAGEMENT
CUSTOMER RELATIONSHIP MANAGEMENTCUSTOMER RELATIONSHIP MANAGEMENT
CUSTOMER RELATIONSHIP MANAGEMENT
 
Report on marketing strategies of Amazon
Report on marketing strategies of AmazonReport on marketing strategies of Amazon
Report on marketing strategies of Amazon
 
Amazon
AmazonAmazon
Amazon
 
MNCs in India & Nestle International marketing
MNCs in India & Nestle International marketingMNCs in India & Nestle International marketing
MNCs in India & Nestle International marketing
 
Chapter 7. customer relationship management
Chapter 7. customer relationship managementChapter 7. customer relationship management
Chapter 7. customer relationship management
 

Destaque

Crm c 8_pgdm_2013-15
Crm c 8_pgdm_2013-15Crm c 8_pgdm_2013-15
Crm c 8_pgdm_2013-15blackbat999
 
E-CRM and Amazon
E-CRM and AmazonE-CRM and Amazon
E-CRM and AmazonCraymz18
 
Amazon: Strategic Management
Amazon: Strategic ManagementAmazon: Strategic Management
Amazon: Strategic ManagementFarhaad Sheikh
 
Customer Relationship Management (CRM)
Customer Relationship Management (CRM)Customer Relationship Management (CRM)
Customer Relationship Management (CRM)Jaiser Abbas
 
Social Media Authenticity - How to Brand Your Assets Individually with Scalin...
Social Media Authenticity - How to Brand Your Assets Individually with Scalin...Social Media Authenticity - How to Brand Your Assets Individually with Scalin...
Social Media Authenticity - How to Brand Your Assets Individually with Scalin...Nicole Mintiens
 
11 Quotes to inspire your Customer Experience Strategy
11 Quotes to inspire your Customer Experience Strategy11 Quotes to inspire your Customer Experience Strategy
11 Quotes to inspire your Customer Experience StrategyCloudcherry
 
CRM Policies: Comparing Walmart and Target
CRM Policies: Comparing Walmart and TargetCRM Policies: Comparing Walmart and Target
CRM Policies: Comparing Walmart and TargetKatelyn Jones
 
CRM - Customer Relationship Management
CRM - Customer Relationship Management CRM - Customer Relationship Management
CRM - Customer Relationship Management ICFAI Business School
 
Crm strategy by indigo & deccan
Crm strategy by indigo & deccanCrm strategy by indigo & deccan
Crm strategy by indigo & deccanrcsahoo11
 
Crm (2)
Crm (2)Crm (2)
Crm (2)min24
 
14649491 icici-bank
14649491 icici-bank14649491 icici-bank
14649491 icici-bankrowshanpatel
 
Tesco vs Reliance CRM Practices
Tesco vs Reliance CRM PracticesTesco vs Reliance CRM Practices
Tesco vs Reliance CRM PracticesSameer Kashyup
 
CRM at Tata Consultancy Services
CRM at Tata Consultancy ServicesCRM at Tata Consultancy Services
CRM at Tata Consultancy ServicesAacharya Aasman
 
CRM practices in Dell Inc.
CRM practices in Dell Inc.CRM practices in Dell Inc.
CRM practices in Dell Inc.Shray Jali
 
Project MS&S CRM of maruti suzuki
Project MS&S  CRM of maruti suzukiProject MS&S  CRM of maruti suzuki
Project MS&S CRM of maruti suzukiJiten Menghani
 
CRM in indigo airlines
CRM in indigo airlinesCRM in indigo airlines
CRM in indigo airlinesRomil Shukla
 

Destaque (20)

Crm c 8_pgdm_2013-15
Crm c 8_pgdm_2013-15Crm c 8_pgdm_2013-15
Crm c 8_pgdm_2013-15
 
E-CRM and Amazon
E-CRM and AmazonE-CRM and Amazon
E-CRM and Amazon
 
Amazon: Strategic Management
Amazon: Strategic ManagementAmazon: Strategic Management
Amazon: Strategic Management
 
Business strategy- Walmart
Business strategy- WalmartBusiness strategy- Walmart
Business strategy- Walmart
 
Customer Relationship Management (CRM)
Customer Relationship Management (CRM)Customer Relationship Management (CRM)
Customer Relationship Management (CRM)
 
Social Media Authenticity - How to Brand Your Assets Individually with Scalin...
Social Media Authenticity - How to Brand Your Assets Individually with Scalin...Social Media Authenticity - How to Brand Your Assets Individually with Scalin...
Social Media Authenticity - How to Brand Your Assets Individually with Scalin...
 
11 Quotes to inspire your Customer Experience Strategy
11 Quotes to inspire your Customer Experience Strategy11 Quotes to inspire your Customer Experience Strategy
11 Quotes to inspire your Customer Experience Strategy
 
CRM Policies: Comparing Walmart and Target
CRM Policies: Comparing Walmart and TargetCRM Policies: Comparing Walmart and Target
CRM Policies: Comparing Walmart and Target
 
CRM - Customer Relationship Management
CRM - Customer Relationship Management CRM - Customer Relationship Management
CRM - Customer Relationship Management
 
Crm strategy by indigo & deccan
Crm strategy by indigo & deccanCrm strategy by indigo & deccan
Crm strategy by indigo & deccan
 
Crm (2)
Crm (2)Crm (2)
Crm (2)
 
TCS CRM
TCS CRMTCS CRM
TCS CRM
 
Group 12 crm (maruti suzuki)
Group 12 crm (maruti suzuki)Group 12 crm (maruti suzuki)
Group 12 crm (maruti suzuki)
 
14649491 icici-bank
14649491 icici-bank14649491 icici-bank
14649491 icici-bank
 
Tesco vs Reliance CRM Practices
Tesco vs Reliance CRM PracticesTesco vs Reliance CRM Practices
Tesco vs Reliance CRM Practices
 
CRM at Tata Consultancy Services
CRM at Tata Consultancy ServicesCRM at Tata Consultancy Services
CRM at Tata Consultancy Services
 
CRM practices in Dell Inc.
CRM practices in Dell Inc.CRM practices in Dell Inc.
CRM practices in Dell Inc.
 
Project MS&S CRM of maruti suzuki
Project MS&S  CRM of maruti suzukiProject MS&S  CRM of maruti suzuki
Project MS&S CRM of maruti suzuki
 
CRM in indigo airlines
CRM in indigo airlinesCRM in indigo airlines
CRM in indigo airlines
 
MMS - Crm By HUL
MMS - Crm By HULMMS - Crm By HUL
MMS - Crm By HUL
 

Semelhante a A study on amazon system

Case study on amazon.com
Case study on amazon.comCase study on amazon.com
Case study on amazon.comKaushik Panta
 
Customer Relationship Management
Customer Relationship ManagementCustomer Relationship Management
Customer Relationship Managementravalhimani
 
Brand Management Study of Amazon
Brand Management Study of Amazon Brand Management Study of Amazon
Brand Management Study of Amazon Nikhil Narayan
 
Amazonwhitepaper
AmazonwhitepaperAmazonwhitepaper
AmazonwhitepaperEdmund FOng
 
Channel of Distribution of amazon
Channel of Distribution of amazonChannel of Distribution of amazon
Channel of Distribution of amazonkush mendiratta
 
Amazon Effect on B2B eCommerce: How to Keep Up
Amazon Effect on B2B eCommerce: How to Keep UpAmazon Effect on B2B eCommerce: How to Keep Up
Amazon Effect on B2B eCommerce: How to Keep UpHandshake
 
Final Business Model and Strategic Plan Paper_Graded 9
Final Business Model and Strategic Plan Paper_Graded 9Final Business Model and Strategic Plan Paper_Graded 9
Final Business Model and Strategic Plan Paper_Graded 9Michelle Broadbelt
 
Amazon bonding customers_with_integrated_service case study
Amazon bonding customers_with_integrated_service  case studyAmazon bonding customers_with_integrated_service  case study
Amazon bonding customers_with_integrated_service case studyAenuganti Babu Naidu
 
Amazon big success using big data analytics
Amazon big success using big data analyticsAmazon big success using big data analytics
Amazon big success using big data analyticsKovid Academy
 
Ecommerce Channel strategy.docx
Ecommerce Channel strategy.docxEcommerce Channel strategy.docx
Ecommerce Channel strategy.docxOmPrakash63906
 
CONSUMER SATISFICTION ON AMAZON ONLINE SHOPPING
CONSUMER SATISFICTION ON AMAZON ONLINE SHOPPINGCONSUMER SATISFICTION ON AMAZON ONLINE SHOPPING
CONSUMER SATISFICTION ON AMAZON ONLINE SHOPPINGAmit Sarkar
 
Amazon in light of e marketing
Amazon in light of e marketingAmazon in light of e marketing
Amazon in light of e marketingNasreen Ahmad
 

Semelhante a A study on amazon system (20)

Emkt final
Emkt finalEmkt final
Emkt final
 
Case study on amazon.com
Case study on amazon.comCase study on amazon.com
Case study on amazon.com
 
Customer Relationship Management
Customer Relationship ManagementCustomer Relationship Management
Customer Relationship Management
 
Manideep.amazon
Manideep.amazonManideep.amazon
Manideep.amazon
 
SM project on amazone
SM project on amazoneSM project on amazone
SM project on amazone
 
Amazon Best in Class Case Study
Amazon Best in Class Case StudyAmazon Best in Class Case Study
Amazon Best in Class Case Study
 
Amazon
AmazonAmazon
Amazon
 
Brand Management Study of Amazon
Brand Management Study of Amazon Brand Management Study of Amazon
Brand Management Study of Amazon
 
Project on amazon
Project on amazonProject on amazon
Project on amazon
 
Amazonwhitepaper
AmazonwhitepaperAmazonwhitepaper
Amazonwhitepaper
 
Channel of Distribution of amazon
Channel of Distribution of amazonChannel of Distribution of amazon
Channel of Distribution of amazon
 
Amazon Effect on B2B eCommerce: How to Keep Up
Amazon Effect on B2B eCommerce: How to Keep UpAmazon Effect on B2B eCommerce: How to Keep Up
Amazon Effect on B2B eCommerce: How to Keep Up
 
Final Business Model and Strategic Plan Paper_Graded 9
Final Business Model and Strategic Plan Paper_Graded 9Final Business Model and Strategic Plan Paper_Graded 9
Final Business Model and Strategic Plan Paper_Graded 9
 
Amazon bonding customers_with_integrated_service case study
Amazon bonding customers_with_integrated_service  case studyAmazon bonding customers_with_integrated_service  case study
Amazon bonding customers_with_integrated_service case study
 
Amazon big success using big data analytics
Amazon big success using big data analyticsAmazon big success using big data analytics
Amazon big success using big data analytics
 
Ecommerce Channel strategy.docx
Ecommerce Channel strategy.docxEcommerce Channel strategy.docx
Ecommerce Channel strategy.docx
 
Strategic Management And Amazon Essay
Strategic Management And Amazon EssayStrategic Management And Amazon Essay
Strategic Management And Amazon Essay
 
CONSUMER SATISFICTION ON AMAZON ONLINE SHOPPING
CONSUMER SATISFICTION ON AMAZON ONLINE SHOPPINGCONSUMER SATISFICTION ON AMAZON ONLINE SHOPPING
CONSUMER SATISFICTION ON AMAZON ONLINE SHOPPING
 
Amazon in light of e marketing
Amazon in light of e marketingAmazon in light of e marketing
Amazon in light of e marketing
 
Marketing Mix Of Amazon Essay
Marketing Mix Of Amazon EssayMarketing Mix Of Amazon Essay
Marketing Mix Of Amazon Essay
 

Mais de Manish Chaurasia

Top 5 divine pilgrim places to visit in india
Top 5 divine pilgrim places to  visit in indiaTop 5 divine pilgrim places to  visit in india
Top 5 divine pilgrim places to visit in indiaManish Chaurasia
 
Top 5 exotic aquariums in india
Top 5 exotic aquariums in  indiaTop 5 exotic aquariums in  india
Top 5 exotic aquariums in indiaManish Chaurasia
 
Top 5 not to miss museums in india
Top 5 not to miss museums in  indiaTop 5 not to miss museums in  india
Top 5 not to miss museums in indiaManish Chaurasia
 
Top 5 big and famous fairs in india.
Top 5 big and famous fairs in  india.Top 5 big and famous fairs in  india.
Top 5 big and famous fairs in india.Manish Chaurasia
 
Top 5 chilly places to visit in india !
Top 5 chilly places to visit in  india !Top 5 chilly places to visit in  india !
Top 5 chilly places to visit in india !Manish Chaurasia
 
Top 5 less crowded tourist places in india.
Top 5 less crowded tourist places  in india.Top 5 less crowded tourist places  in india.
Top 5 less crowded tourist places in india.Manish Chaurasia
 
Shortcut keys-for-windows-10
Shortcut keys-for-windows-10Shortcut keys-for-windows-10
Shortcut keys-for-windows-10Manish Chaurasia
 
porter Five force analysis
porter Five force analysisporter Five force analysis
porter Five force analysisManish Chaurasia
 
4 E of corporate strategy
4 E of corporate strategy 4 E of corporate strategy
4 E of corporate strategy Manish Chaurasia
 
General Packet Radio Service
General Packet Radio ServiceGeneral Packet Radio Service
General Packet Radio ServiceManish Chaurasia
 
What are policies procedures guidelines standards
What are policies procedures guidelines standardsWhat are policies procedures guidelines standards
What are policies procedures guidelines standardsManish Chaurasia
 
Synopsis on social networking
Synopsis on social networkingSynopsis on social networking
Synopsis on social networkingManish Chaurasia
 
Cost of-poor-quality - juran institute
Cost of-poor-quality - juran instituteCost of-poor-quality - juran institute
Cost of-poor-quality - juran instituteManish Chaurasia
 
defect tracking and management
defect tracking and management   defect tracking and management
defect tracking and management Manish Chaurasia
 

Mais de Manish Chaurasia (20)

Top 5 divine pilgrim places to visit in india
Top 5 divine pilgrim places to  visit in indiaTop 5 divine pilgrim places to  visit in india
Top 5 divine pilgrim places to visit in india
 
Top 5 exotic aquariums in india
Top 5 exotic aquariums in  indiaTop 5 exotic aquariums in  india
Top 5 exotic aquariums in india
 
Top 5 not to miss museums in india
Top 5 not to miss museums in  indiaTop 5 not to miss museums in  india
Top 5 not to miss museums in india
 
Top 5 beaches in india
Top 5 beaches in indiaTop 5 beaches in india
Top 5 beaches in india
 
Top 5 big and famous fairs in india.
Top 5 big and famous fairs in  india.Top 5 big and famous fairs in  india.
Top 5 big and famous fairs in india.
 
Top 5 chilly places to visit in india !
Top 5 chilly places to visit in  india !Top 5 chilly places to visit in  india !
Top 5 chilly places to visit in india !
 
Top 5 less crowded tourist places in india.
Top 5 less crowded tourist places  in india.Top 5 less crowded tourist places  in india.
Top 5 less crowded tourist places in india.
 
Shortcut keys-for-windows-10
Shortcut keys-for-windows-10Shortcut keys-for-windows-10
Shortcut keys-for-windows-10
 
It strategy lecture
It strategy lectureIt strategy lecture
It strategy lecture
 
Importance of IT
Importance of ITImportance of IT
Importance of IT
 
porter Five force analysis
porter Five force analysisporter Five force analysis
porter Five force analysis
 
4 E of corporate strategy
4 E of corporate strategy 4 E of corporate strategy
4 E of corporate strategy
 
Campus recruitmen book
Campus recruitmen bookCampus recruitmen book
Campus recruitmen book
 
General Packet Radio Service
General Packet Radio ServiceGeneral Packet Radio Service
General Packet Radio Service
 
What are policies procedures guidelines standards
What are policies procedures guidelines standardsWhat are policies procedures guidelines standards
What are policies procedures guidelines standards
 
Synopsis on social networking
Synopsis on social networkingSynopsis on social networking
Synopsis on social networking
 
Case study olx
Case study olxCase study olx
Case study olx
 
Cost of-poor-quality - juran institute
Cost of-poor-quality - juran instituteCost of-poor-quality - juran institute
Cost of-poor-quality - juran institute
 
introduction to quality
 introduction to quality introduction to quality
introduction to quality
 
defect tracking and management
defect tracking and management   defect tracking and management
defect tracking and management
 

A study on amazon system

  • 1. A STUDY ON AMAZON: CRM In order to gain customer satisfaction and loyalty amazon use Customer Relationship Management system (CRM). CRM system follows the following application to collect information of the customer. All personal information of customers their credit card record, transaction record, order record, profile, their past purchase history are collected in the database. The order processing system takes care of the transaction record with secured transaction method and it delivers instruction to the delivery system for the execution of shipment. Through customer feedback, customer interest, wish list, product reviews web page system Collect customer information. Automated communication is ensured with customers through e-mail and massage systems and order information systems. (Jenkinson, 2005; Hottovy, 2011) With the CRM system amazon successfully integrates customer sales, services and communication. (Jenkinson 2005; Manjoon 2011) Customer Relation Management Strategy: When a customer first enter into Amazon.com he/she is provided “Featured Product‟ by the website, But when the customer visit for the second time the recommender system automatically provide products by studying customer interests and personality. Customer acquisition and retention has been the most priority to Amazon.com‟s strategy. Through web site Amazon maintain sophisticated communication that automates the process of creating value for the customer. Jakinson and sain provided 3 ideas called as Jeff Bezos 3 big idea as listed below:- 1.Limitless inventory 2. Customer Care 3. High margin, lowest price.
  • 2. Limitless Inventory: When amazon started offered books to the customers. But over the period it increased its products from books to music, movie, cloud storage, gaming and many more. Poter mentioned three district sources- 1. Serving few needs of many customer 2. Serving broad needs of few customer 3. Serving broad needs of many customers. Initially amazon was followed first source of serving with few products. But it changed its strategy over time and now it fits into third sources. Customer Care: “If you do build a great experience, customer tells each other about that. Word to mouth is very powerful” - Jeffry p. Bezos One of the success factors of amazon.com is word of mouth. Because of excellent customer service customers trusted Amazon. They used to talk about Amazon.com to other. This spread rapidly by creating increasing traffic on the web site High Margin, Lowest Price: Amazon.com provides products significantly cheaper than its competitors. One of the main visions of Amazon.com is based on the long term plan. (1997 Stockholder report) This makes easier for amazon to take risk of low profit in order to succeed in future. An estimate shows how it is possible for amazon to become profitable with lowest price. A product on average gets sold in 33 days through amazon.com. On the other side it competitors like best buy took 70 day to sell the product. (FAVERNOVEL) Amazon keeps the best-selling product to its own stock and longer tail items to third party sellers stock. This gives an advantage to the company. How amazon implement CRM: Amazon has extensive implementation of customer relationship management. Each and every customers are taken in account in amazon.com. it include 2.1 Customer Selection: Customer selection part through Amazon.com website has given amazon a extra benefit in order to boost their business. Amazon uses numerous methods to select customer by knowing their customer behavior. Amazon‟s early target was people who love books. But days its target market is vast and challenging. Customer Acquisition: 2.2.1 Customer account: Every customer buying through amazon.com has his/her profile in amazon website. Amazon.com creates a database to store the account, information of the customer, credit/debit account.
  • 3. Through the customer account amazon knows about the customer, their personality and last of all can satisfy them. 2.2.2 Wish List,reviewsystem: Amazon always encourage customer to add favorite items to the wish list. This helps amazon to know better about the customer. Product review by customer not only be help customers to find and select product but also acts as direct marketing event for amazon.com. Amazon allows making connection in between the customer, communicating and viewing their interest help to amazon to gain customer trust and initiate world of mouth. In the first 3 month of 2000, amazon acquired 3 million new customers without any investment. To satisfy customer amazon uses information acquired through customer account, wish list etc. Amazon brought number of system to satisfy customer. 1-click ordering has been an excellent system innovated by amazon which revenue less than 20 sec to enable purchase.