Question

You have to identify and make at least THREE (3)Customer Relationship Management recommendations for Amazon. How does the organization manage any ethical issues originating from the collection of customer data for CRM

Answer 1

First let us understand what CRM (Customer relationship Management) is

CRM, is an umbrella term, which is broadly used to define how a company manages its relationships with their customers.

A CRM is a centralized database where all your customer information is collected and stored, which can then be analyzed to understand the needs and wants of a consumer, and hence you are able to serve them effectively

Now since we understand what CRM is, let us look at how the same can be applied at Amazon, which is an E-commerce goliath.

Following are the ways Amazon could leverage CRM

1) Tailor made offers and promotions

When you buy something on Amazon for the first time, Amazon asks you to set up an account. Why? Because it makes for a smoother and more personalised experience, as you’ll get recommendations based on your interests.

Now Amazon will tap back into what you like and sell to you on an ongoing basis, they will understand your preferences and then Amazon’s CRM brings you tailored offers and promotions based on your past purchases

2) Great Recommendations

Amazon can recommend products that might interest you based on your past purchases. You can also check out what people viewing an item also bought, and explore related products with ease. Offering these temptations without pressuring the customer is what’s helping Amazon turn over billions every year.

3) Personal data collection and storage

Amazon stores your personal and payment details when you create an account to buy something. which simply makes it that much easier for you to purchase again. You can order with one click, since your payment info is already stored with Amazon

An organization must deal with the ethical issues in the following way

Ethical companies ensure that sensitive information such as credit credit card numbers or medical histories are collected in a secure environment and transmitted back to the databases securely. During data collection, it is also critical to verify the identity of the customer and the accuracy of the information being submitted. High security for these functions is costly but ethically necessary.

Once the company has stored in the database, ethical companies should store it only after they have got a permission from the consumer, consumers should be allowed to view and change their data, and consumers should be able to withdraw their data whenever they feel like