Question

List the pros and cons of Amazon’s customer relationship management (CRM) system from the company and from the customers’ perspective.

Answer 1

Amazon's CRM : Amazon has developed a CRM software in-house which is made to meet their own exact requirements. This software allows Amazon to capture customer data including location and previous purchases which inturn is used instantly customise a user's on-site experience.

Pros for the company:

• Amazon's CRM feature where recommendations of products are made to the customer based on previous purchases, customer continues to feel valued which leads to retaining and attracting customers.
• Amazon’s CRM addresses most of their customer queries before reaching the stage where human intervention is required.
• Amazon's feature of 'customers who bought this item also bought' feature is perfect for boosting sales without the customer feeling pressured into buying.
• Amazon Loyalty Program- Amazon Prime: When Customers have to spend a good amount currently to get Amazon Prime, they need to use Amazon frequently to get their money’s worth. This motivates them to buy more from Amazon and less from competitors. The increased purchase volume gives Amazon a chance to earn back the money lost on discounts and free shipping.

Cons for the Company:

• Although has a very old review system which help customers but most of the time it is sabotaged with fake positive reviews which further mislead the customer.
• Dependent delivery: Amazon's International delivery experience is completely based on courier services. It could have helped if it extended the models like DHL which takes the delivery in your behalf and then you can ask them to deliver it aboard.

Pros for the Customer:

• Ease of Purchase: With an account all payment, personal, and address details can be stored- allowing for quick and easy future purchases.
• Excellent Cusotmer Support and easy Return process: Most part of the returns on Amazon can entirely be done through online customer’s account. If there is an issue that does require a customer to speak with a customer service assistant over the phone, they will have access to the customer’s account and order details leading to any issues that can be dealt quickly and efficiently.
• As sense of being Valued: Whenever users are logged into their account, Amazon will recommend products they may be interested in based on past buying habits, this gives the customer a personalised experienece and a feeling of being valued.
• Loyalty Incentives: Amazon Prime is one of the world’s top loyalty programs with number of bonuses, faster and discounted shipping; unique and highly desirable content and early access to deals.
• Customer Protection: Amazon protects its customers from bad sellers and products and protects its customers. It creates a first-class ecommerce return policy leadind to Amazon’s success in customer relationship management.
• Reviews: Amazon was one of the first companies to even put a review system on their site, way back in 1995. Amazon’s reviews are universally known and helps their customers in a gret way.

Cons for the Customer:

• Recomedation Algorithims: While Amazon CRM takes pride for personalized product recommendation emails, many times the recommendations aren’t very accurate. Many a times their recommendation algorithm’s assumption is that a person will want more of the exact product type that they purchased.
• Dont have much knowledge on Postive reviews: While Amazon and its Marketplace sellers certainly solicit reviews but they don’t amplify that solicitation with incentives. 90% of negative reviews are unsolicited, while a person being satisfied with a product hardly write the review giving an incomplete information to the customer.
• Video Feature not present: Now a days customer wants a great visual experienece of reviews and products befire they buy, a feature video by seller using their products with direct links to product pages can boost sales and customer experinece which is currently missing.