Customer Relationship Management (CRM) is the approach that is undertaken by an organization that helps in managing the interaction of the customer with that of the potential customers. Amazon is the name of electronic commerce company based in America that has headquarters in Washington within the United States (Aboutamazon.eu., 2018). This essay discusses how the CRM of Amazon helps the company in retaining and providing satisfaction to the customers. The essay also states how CRM can help in ensuring Customer Lifetime Value (CLV) and how it can improve the service of the company. The essay also talks about how the CRM of Amazon can help in the elimination of the unprofitable customers.
Amazon has been able to manage successfully the relationship with the customers by providing various benefits to the customers. Amazon has been successful in retaining the customers as it has interface that can easily be used and the facility of one-click ordering makes it popular among the customers. Amazon has been able to retain customers as the company has come up with innovative products that can help in satisfying the demand of the modern age consumer (Kumar and Reinartz 2018). Amazon can provide satisfaction to the customers as Amazon recommends the products on the basis of earlier purchase of the customers. Clever use of that of customer data makes the customers feel valued and they feel that they are valued by the company. The CRM of Amazon tackles the queries of the customers that provides delight to the customers of the company (Soltani and Navimipour 2016).
Customer Lifetime Value refers to prediction of net profit which is attributed to that of future relationship with that of the customer. The CRM of Amazon helps in ensuring the aspect of customer lifetime value because customers can easily access order history that helps them in seeing the products that they had ordered at an earlier point of time. The return policy of Amazon takes care of the fact that the consumers have Customer Lifetime Value (Khodakarami and Chan 2014). The CRM of Amazon reduces need of customer service staff along with the costs that are associated with it. The CRM of Amazon helps in the aspect of data collection along with personal data storage. Amazon encourages the users to create the personal accounts that can help them in the aspect of future purchase and in keeping track of orders. The CRM of Amazon is instrumental in delivering superior service to the customers. Amazon eliminates the unprofitable customers by turning the ones that are unprofitable for the company into loyal customers of the brand. Amazon is involved in recommending the products that helps them in winning customers.
CRM helps an organization to manage interaction with potential consumers. Amazon can retain customers owing to its smooth interface that can easily be used by the consumers. The innovative products of Amazon helps in catering to needs of that of modern day customer. Amazon has return policy that ensures that customers possess Customer Lifetime Value. CRM of company takes care of the element of data collection that helps them in becoming popular among consumers. Amazon encourages users for creating personal accounts that helps customers in relation to the future purchase.
Aboutamazon.eu (2018). EU About Amazon Homepage. [online] EU About Amazon. Available at: https://www.aboutamazon.eu/ [Accessed 6 Dec. 2018].
Khodakarami, F. and Chan, Y.E., 2014. Exploring the role of customer relationship management (CRM) systems in customer knowledge creation. Information & Management, 51(1), pp.27-42.
Kumar, V. and Reinartz, W., 2018. Customer relationship management: Concept, strategy, and tools. Springer.
Soltani, Z. and Navimipour, N.J., 2016. Customer relationship management mechanisms: A systematic review of the state of the art literature and recommendations for future research. Computers in Human Behavior, 61, pp.667-688.