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- Case Studies
10 CRM Case Studies From the World’s Biggest Brands 2023
- Category : Case Studies , CRM , Marketing
- Last updated on August 2, 2023
- By Viktor. A
- No Comments
It is no news that customers are constantly demanding deeper and more meaningful relationships with their chosen brands. That’s why organizations are currently leveraging CRM software to serve their customers better.
Today, we’ve put together useful CRM case studies from some of the world’s biggest brands. This article highlights CRM case studies uses and vital lessons you can replicate in your business.
Before we proceed, let’s look at the meaning of customer relationship management (CRM)
There are two main definitions of a CRM:
- It refers to a business’s principles and strategies to engage better and retain its customers.
- It refers to a software system that helps businesses to manage client relationships, leads, contacts and campaigns. Also, it allows companies to automate their processes and increases productivity.
Examples of CRM Software for lead generation, contact management, and automation are:
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Best CRM Case Studies
If you’ve ever looked at brands like Apple, McDonald’s, Amazon or even Zara and are wondering how they’re run such conglomerates and still efficient in customer service. Keep reading then; you’re about to find out.
Scott Cook said, Instead of focusing on the competition, focus on the customer. Most of these brands have no superpower. They’ve only learned to focus on only one thing – the customer.
When you’re obsessed with delighting your customers, you will devise creative ways of satisfying them. Let’s go right in.
1. Coca-Cola CRM
The Coca-Cola Company is one of the world’s oldest and most influential brands. With a presence in over 200 countries, Coca-cola started as a carbonated soft drink business. But today, they are a conglomerate with over 200 product lines servicing billions of customers globally.
Logically speaking, for them to exist across several decades and remain relevant and competitive says a lot about their customer service. That said, let’s examine their customer relationship management (CRM).
Coca-Cola CRM Case Study:
Coca-cola’s mission is “ to refresh the world in mind, body, and spirit, to inspire moments of optimism and happiness through our brands and actions, and to create value and make a difference .”
Inspiring optimism and happiness are at the core of Coca-Cola’s CRM strategy. This is evident in their marketing campaigns , billboards, brochures, commercials, store locations, and products.
We have billions of transactions a day on Salesforce. And everything is connected collaborative, and mobile.
– Ulrik Nehammer, Coca-Cola Germany, CEO.
Coca-Cola uses several enterprise CRM platforms to manage its clients’ relationships and stores globally. They use Salesforce and SAP primarily for contact management. System Applications and Products (SAP) is a strategic enterprise management platform. It’s quite robust and feature-rich.
While they use SAP globally, they use Salesforce on some of their country divisions to manage their business flow, connectivity, and contact management.
Read our complete Coca-Cola case study here.
2. Zara CRM
When you hear the word “Zara”, what comes to mind is clothing, luxury, and lifestyle. Established in 1975, Zara is a Spanish multi-national retail clothing chain.
They specialize in clothing accessories, beauty, shoes, and other lifestyle products. Zara’s phenomenal success in fashion and beauty is a testament to its solid CRM strategy. They effortlessly delight their customers in a way that leaves them returning for more.
Zara CRM Case Study:
Zara’s mission is to “ give customers what they want, and get it to them faster than anyone else .” Deducting from their mission statement, you can see a wordplay that puts royalty and kingship on their customers.
Zara’s CRM case study aims at elevating their customer’s needs above the company objectives. Zara leverages transparency, incentives and perks, support, personalization, swift check-out, and social media to achieve this.
The success of your business is based in principle on the idea of offering the latest fashions at low prices, in turn creating a formula for cutting costs: an integrated company in which it is manufactured, distributed and sold.
– Amancio Ortega – Founder, Zara Fashion Chain
Zara CRM starts with their website, which has a simple UI and is highly personalized to suit the user’s needs. Then, they’re massively present on social media and contribute to social issues affecting their clientele.
Lastly, Zara’s CRM is not complete without transparency and incentives. They’re transparent in all their dealings and usually deploy incentive programs to delight customers.
3. Unilever CRM
Unilever is a British multi-billion dollar conglomerate that deals primarily in consumer goods and consumables. They are arguably the largest producers of soap globally.
Brands like Unilever that have stood the test of time in quality, customer service, transparency, and consistency are worth emulating. With over 400 brands in about 190 countries, Unilever’s CRM strategy is paying off.
Unilever CRM Case Study:
Unilever’s mission statement is “ to add vitality to life. We meet everyday needs for nutrition, hygiene and personal care with brands that help people feel good, look good and get more out of life .”
Unilever’s CRM strategy focuses on elevating people’s well-being and helping them enjoy life to its fullest. This singular aim is the driving force behind their great customer experience initiatives, marketing campaigns, products, and positioning.
It’s about digitizing all the aspects of Unilever’s business to leverage the world of data and increase our digital capability in everything we do.
– Alan Jope, CEO at Unilever.
Another main Unilever’s CRM strategy is centred around Value-Based Procurement. They are keen on supporting their suppliers with upfront value. And they achieve this by empowering their suppliers and distributors with the tools to better relate with them.
They use Salesforce to support their business community and build solid relationships with their partners.
Bayerische Motoren Werke AG, known as BMW, is Germany’s leading automobile brand. They’re a luxury car brand and the fourteenth largest producer of motor vehicles . BMW cars are known for their standard, uniqueness, and luxury. Let’s examine BMW’s CRM strategy.
BMW CRM Case Study:
BMW’s mission is to “ become the world’s leading provider of premium products and services for individual mobility.” You’ll agree that BMW has become the world’s leading provider of premium automobile products. But the big question is, how did they get there?
BMW CRM case study is not too distant from the others. Firstly, the focus is on treating customers fairly, which is clearly stated in their Supplier Programme . Their suppliers and end-users are at the core of their CRM strategy, which has kept them going.
I promise our customers will never have to compromise between driving pleasure and sustainable mobility.
– Oliver Zipse, CEO BMW AG.
Secondly, BMW CRM is focused on producing premium cars to attract new customers and retain the existing ones. And fortunately, it works for them. I’ve seen a couple of folks switch car brands to BMW because their cars are more reliable and have the highest quality
5. Tesco CRM
Tesco PLC is one of the world’s leading grocery and general merchandise retailers. With operations in over 11 countries, Tesco is a hyper-growth company swiftly expanding across territories.
Although it started as a grocery store, it is now morphed into several industries such as banking, technology accessories, and a few others. Not just that, they’ve been named among the top customer-friendly organizations.
Tesco CRM Case Study:
Tesco’s mission statement is “What we make matters better, together. This statement encapsulates Tesco’s aim to serve customers across cultures and backgrounds.
Tesco is among the first multi-national brand to adopt CRM software. In 2009, Tesco announced that they were adopting the RightNow CRM (now acquired by Oracle).
The key to Tesco’s success is the customer-focused culture that has permeated the company.
– Jeremy Garlick, Partner, Insight Traction.
Tesco’s CRM was primarily used in their call centres to support their electronics division. Aside from that, they used it to amplify their omnichannel communication strategy by managing customer data and interactions across phone, chat and email.
Adopting a CRM helped Tesco be present at all times for their customer when needed across channels. Most importantly, they were able to win the hearts of their customers.
6. Uber CRM
With a presence in 72 countries, Uber redefines how we move and eat. Uber is an American mobility provider allowing people to move conveniently from one location to another. One of the things that makes Uber special is that they’re a mobility startup with no cars. That means they’re servicing two main customer bases: drivers and passengers.
As of the time of writing, Uber has a 72% market share for ride-sharing in the United States, with about 122 million monthly active users
Uber CRM Case Study:
Uber’s mission is “ Transportation as reliable as running water, everywhere for everyone .” In other words, they aim to make transportation accessible at any time.
The big question is, what CRM does Uber use? Uber uses LiveRamp as their CRM anonymizer. Essentially, they LiveRamp CRM to segment users into specific life-cycle stages. It allows them to craft personalized and targeted campaigns that resonate with the customers.
There is a high cost to a bad reputation… it really matters what people think of us, especially in a global business like ours, where actions in one part of the world can have serious consequences in another.”
– Dan Khosroshahi.
Furthermore, Uber uses CRM to gain deeper insights into how customers use their apps, the frequency, and overall interaction, and even sample their IDs. With these insights, Uber can better serve and delight its customers. More on Uber’s case study here.
7. McDonald’s CRM
As the name implies, McDonald’s is a fast-food conglomerate. They’re currently the leading food service organization operating over 30,000 restaurants in more than 100 countries. McDonald’s expansion strategy is bent on franchises and joint ventures. They also have some sister brands in the fast-fast industry doing incredibly well.
Mcdonald’s CRM Case Study:
McDonald’s mission statement is to be our customers’ favourite place and way to eat and drink. Their mission statements depict McDonald’s passion for differentiation, uniqueness, and class.
McDonald’s CRM case study is hinged on their passion for differentiation, which is evident in the architectural designs of their restaurants, food recipe and taste, service delivery, and mode of operation.
Our sustained performance gives us confidence that our strategy is working, as more customers are experiencing a better McDonald’s daily.
– Steve Easterbrook, CEO, McDonald’s.
McDonald’s uses PowerCenter CRM, which is powered by Astute Solutions. This CRM helps McDonald’s efficiently manage their huge volume of customer contacts, analyze data, and manage their store location.
The benefits of CRM software to a business are enormous, and McDonald’s is not left out. They’re equally using it to enhance their marketing efforts and close more deals.
8. British Airways CRM
British Airways is a UK-based carrier and one of the biggest airline groups in the world. They’ve built a reputable brand over the years, which has also given birth to several sister brands.
BA Group is the founding member of the Oneworld alliance. They have over 45,000 employees in 100 countries and assist about 40 million passengers annually. So how are they able to still maintain awesome customer service?
British Airways CRM Case Study:
British Airways’ mission statement is “ To ensure our customers fly confidently that together, we are acting responsibly to take care of the world we live in “. British Airways’ CRM case study is centred around “making their passengers feel confident.”
As we prepare for a safe return to travel, we remain focused on offering our customers the most convenient and affordable testing options to support and facilitate a seamless travel experience.
– Sean Doyle, CEO, British Airways
British Airways uses TCRM BA as its enterprise management solution. The company adopted it in 2002, and since then, they’ve been using it to do the following:
- Campaign management
- Management of loyalty programs
- Leisure database
- External requirements
- Cost savings
Best of all, they use this platform to efficiently manage and schedule all their marketing campaigns internally and externally. They also use for customer service across channels.
9. Amazon CRM
Amazon is an American conglomerate focusing on e-commerce, cloud computing, digital streaming, and artificial intelligence. They’re among the top 5 most valuable companies worldwide and one of America’s biggest employers.
Amazon, which started as an online book store, is currently dominating up to 7 industries. Not just that, they’re a customer-centric company famously known for their outstanding customer service.
Amazon CRM Case Study:
Amazon’s mission statement is “ to offer our customers the lowest possible prices, the best available selection, and the utmost convenience .” Amazon’s focus on the customer is truly remarkable.
Primarily, Amazon’s CRM case study follows these four guiding principles:
- Customer obsession rather than competitor focus
- Passion for invention
- Commitment to operational excellence
- Long-term thinking
We see our customers as guests at a party, and we are the hosts. It’s our job every day to make every important aspect of the customer experience a little bit better.
– Jeff Bezos, CEO of Amazon
In fact, they aim to become Earth’s most customer-centric company, Earth’s best employer, and Earth’s safest place to work. That drive to become the best led them to create innovative products like I-Click shopping, personalized recommendations, Amazon Echo, and Fire TV, to mention a few.
So, what CRM does Amazon use? Amazon developed its CRM in-house, which they use to manage its customer data across divisions, countries, languages, and products.
10. Apple CRM
Famously known for their slogan, think differently. Apple is a technology company specializing in consumer electronics, software and online services. Apple is the world’s most valuable company and the first to hit a trillion in market capitalization.
Apple CRM Case Study:
Apple’s mission is “ to bring the best user experience to its customers through innovative hardware, software, and services .” Like Amazon, Apple is a customer-centric company that is truly obsessed with its customers.
Apple is also obsessed with its product quality. Their products are highly standardized and unique. And it’s the reason why they enjoy a high level of brand loyalty. Apple’s customers are one of the most loyal sets of customers globally.
Apple CRM case study is centred around four cardinal points: Apple customer-centric outlets, understanding customer needs, Apple ID, & irresistible branding that works. I explained them in detail here .
Also, like Amazon, Apple uses an in-house CRM to manage its customer data, marketing campaigns, and customer relationships. Apple loves owning their processes, so most of its operations are usually in-house.
These case studies show us the efficacy and formidability of a CRM software. When out to efficient use, it can be a very powerful tool. And it doesn’t matter the size of your business, whether big or small. All you need to do is to pick a CRM that aligns with your business goals and run with it.
Looking for a CRM to start with? Here are our recommendations: Zendesk , Pipedrive , Hubspot , Zoho and Freshsales . Click on any one of them to claim your free trial.
Frequently Asked Questions
Customer relationship management use cases are real-life examples and applications of CRM software and strategies. Like the 10 use cases from big brands listed in this article.
There are tons of use cases for CRM systems, but here are three profound ones: CRM systems can serve as a contact management system, a pipeline system for attracting and converting them paying customers, and a workflow automation station.
Essentially, the main components of CRM are contact and database management, workflow automation, omnichannel marketing capability, and integration options.
Viktor. A is a writer and researcher with experience writing about various topics, including CRM software, SaaS, finance, and technology. When he's not writing, he's swimming and travelling
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CRM for Your Ecommerce World
What is Amazon CRM & How Does it Work?
If you’re selling on Amazon , you’re taking advantage of a widely used platform that comes with a state-of-the-art logistics infrastructure and an unrivaled shopper reach. For most merchants, Amazon is just one part of their selling strategy because they’re marketing their goods across multiple sales channels and marketplaces as well as their own website.
When it comes to getting to know the customers that filter in from across such broad spectrums, it’s essential to have an Amazon CRM in place that can help you build better relationships. Here’s what you need to know.
What is Amazon CRM?
Unlike what you may have learned about conventional CRMs, like SalesForce, Zoho and others , an Amazon CRM is entirely ecommerce focused. Instead of creating sales funnels and lead trackers, an Amazon CRM creates instant customer profiles based on the ecommerce order activity from across all your sales channels, not just Amazon. This gives you a way to remarket to your most valuable customers, learn about their habits, reduce returns and cart abandonment and improve relationships from the first order.
How Does Amazon CRM Work?
An Amazon CRM like ReadyCloud works by connecting to your Amazon store and other sales channels via something called an API. On your end, you’d just sign up and create your ReadyCloud account and follow the first steps into the ReadyCloud App Store. Once there, you could add Amazon and any other supported sales channels. To connect them, you’d just log into your sales channels like usual.
Once connected, ReadyCloud instantly imports all your customer and order data, creating beautifully detailed customer profiles. Each profile has a detailed order timeline, complete with order date and invoice, shipping and return information. You can even add notes to profiles, assign tasks to team members, set tags, schedule events, sort data and so much more.
Benefits of Amazon CRM
If you’re looking to consolidate cross-channel data and get a 360-degree view of the customer journey, you’ll need the right CRM. What’s more, if you’re looking to reduce cart abandonment, improve your returns process, save money on shipping and supercharge customer service, you’ll also need the right CRM. With features like filtering, tagging, email marketing, shipping, returns, order management, task and teams, notes, calendar and events, business intelligence and so much more, the right Amazon CRM can help you improve your operations from top to bottom.
Need even more tips? Get a complete breakdown of features, functions plugins and more by reading: The Ultimate Guide to Ecommerce CRM Software .
Don’t miss out on future sales, loyal customers that rave about you and long-term retention. Start your free trial of the ReadyCloud Suite today. Feature-rich Amazon CRM is included!
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What Amazon Teaches Us About CRM Strategy
Amazon is famous for its customer relationship management. Polls have ranked it as the most trusted online shopping site in America , and some have ranked Amazon Prime #1 among all loyalty programs . So how can a small ecommerce business compete with the mighty Amazon CRM strategy?
One should always learn from the best. Here’s how you can use Amazon’s methods for your own online business:
> Psst—looking for how to build a good CRM strategy as an Amazon seller instead? Read our guide to getting a great Amazon seller rating .
Last updated 4/17/2020.
1. Limit the Need for Customer Service
Oft-quoted CRM strategist Brent Leary once said he’d spent 17 years shopping on Amazon and never contacted customer service .
That’s the beauty of Amazon: it runs like a dream. I made my first purchase there in 2008 and have continued to buy there since, and not once have I ever seen the website go down, had difficulty making a payment, or gotten ripped off. Neither have I ever needed to ask anyone a pre-sales question.
This smooth operation has made Amazon a marketplace that buyers come back to again and again. But how do they pull it off?
Build an Easy-to-Understand User Interface
Anyone planning to create an online store can learn from Amazon’s user interface. It’s clean, easily searchable, and easy to understand. The most important things here are:
- High-quality images
- Accurate descriptions
- Plainly visible prices and ratings
- Neatly organized categories
- A clear checkout process
Shopping on Amazon is as easy as shopping in a grocery store—and I mean a traditional one, not one of those labyrinthine co-ops clearly designed to drive customers insane. Need flour? Every type of flour we sell is in the baking goods aisle. Ready to check out? Go to the front of the store. Buying on Amazon is as easy as that.
If your grandmother would get confused trying to find and buy something on your online store, it’s too complicated. Make it as easy as possible by making sure the above bullet points describe your site. Also, see our article on building your own ecommerce website for the easiest and cheapest ways to create a store with a clean and attractive layout.
Make Self-Help Easy
Amazon has an impressive help center : you can review your orders, manage your account, read FAQs, and contact customer service, all starting from one streamlined screen. You can also search for topics if the answer to your question isn’t readily visible.
Of course, beyond this screen, Amazon has libraries full of help articles. But they have made it exceedingly simple to find what you need.
It’s the same approach they take to the products they sell: you can search for something specific or just browse a category. Clear labels and easy navigation make all the difference.
With this vast array of self-help options, Amazon makes it easy to find solutions on one’s own. This saves customers a lot of time they would have spent waiting for answers from support. And because you have to go through the self-service options to contact Amazon, customers are encouraged to find the answer first, keeping wait times down for those who need a live agent's help.
If you want to do this on your own site, there are several CRM platforms that allow you to create a similarly advanced help center. Help Scout and Zendesk are two of our favorites (and both can even integrate with Amazon ).
2. Provide Human Support
Limiting the need for human support is wise. However, nothing is more frustrating than needing support and being unable to find a way to contact a real person.
While Amazon will try to direct you to their self-help options at first, it isn’t too hard to arrange a phone call or to contact them via email or live chat.
The amazing thing with their phone support is that if you jump through all the hoops, you can talk to an agent right away—and they’ll call you. That means no waiting on hold. Plus, with 24/7 support, you can get help whenever you need it.
One of the coolest innovations Amazon ever made in providing human support was Mayday for the Fire. With two taps, customers could get a live support agent on their device who could explain how to fix a problem, digitally draw on the screen to point something out, or even take over the device remotely when given permission. It was practically as good as in-person support and you didn’t even have to get off the couch.
Even more amazingly, Amazon promised to answer support calls in 15 seconds and managed an average of under 10 seconds . Mayday closed down in June 2018 , but it still stands in many users' minds as an astounding example of Amazon's support capabilities.
Most small businesses can’t provide a level of support anywhere near Mayday. However, if there’s anything you can learn from the Amazon CRM strategy, it’s that giving customers a way to talk to real humans when they need to is a fantastic way to keep them loyal.
Learn how to create a customer service strategy that makes optimal use of your support agents or read up on how to provide support for your ecommerce website .
3. Communicate Challenges
As we're updating this article during the COVID-19 pandemic, Amazon shoppers are experiencing all kinds of problems, including slow deliveries and refund delays of up to two weeks . Many items have become unavailable due to panic buying and Amazon's coronavirus restrictions for FBA sellers . Needless to say, it's not the experience customers are used to.
Amazon can't avoid these problems. That's why they've done the only thing they can: explain the situation to customers.
Banners across the Amazon website warn users to expect delays. Detailed articles explain the situation in depth. Existing help articles have been updated to explain what will work differently from normal—as well as what hasn't changed.
When a problem affects your service, communicate the problem to your customers. People are remarkably understanding when they know what's going on and what they should expect. They get upset fast when problems take them by surprise.
4. Create Loyalty Incentives
As mentioned at the beginning of this article, Amazon Prime is one of the world’s top loyalty programs. It features an enormous number of bonuses: faster, discounted shipping; unique and highly desirable content (TV, movie, and music streaming, Kindle book borrowing, free video games, and more); early access to deals; and even photo storage. And amazingly, they just keep adding more.
Customers have to spend about $120/year to get Amazon Prime. As a result, they need to use Amazon frequently to get their money’s worth, which 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.
Implementing some sort of loyalty program on your own site can provide you with the same advantages. If you decide to create one, learn from Amazon and provide incentives your customers really want like special discounts, free shipping, and/or highly desirable members-only content.
However, you should carefully weigh the costs against the benefits before diving in. Amazon has struggled to make any money from Prime and the same difficulties could be fatal to a small business. Decide whether the improvements to your customer relationships will be worth the potential costs.
5. Protect Your Customers
Above all, Amazon protects its customers. Third-party sellers who screw up orders get black marks against them and are required to provide refunds. And when Amazon itself makes the mistake, they immediately correct it.
One time, I ordered a keyboard that I badly needed for work. They sent it to the wrong address.
When I checked the tracking information and realized what had gone wrong, I contacted Amazon and explained my situation. They sent me a replacement right away, with expedited shipping, for exactly no money at all. They scarcely asked me a question about it.
I’ve been a loyal Amazon customer ever since.
Creating a first-class ecommerce return policy is easily the best way to imitate Amazon’s success in customer relationship management. You can bet that this devotion to making sure customers never get burned has played a huge role in making Amazon the most trusted shopping site on the web.
What Has the Amazon CRM Strategy Taught Us?
Amazon’s customer relationship management strategy is simple: make it easy to use your site, ensure your customers get their money’s worth, give them reasons to return, and provide the highest-quality and most efficient customer service you can . Do that for your customers and they will love you.
P.S. If you’re selling on Amazon and/or eBay in addition to your own ecommerce website, we can help you improve your customer service efficiency . Don’t let slow response times drag down your business!
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Apple, Amazon, and… your business? Join the ranks of the planet’s biggest brands, and find out how CRM is the secret to their success
How did a handful of ambitious thinkers take simple ideas and grow them into instantly recognisable brands, and… into companies worth hundreds of billions of pounds?
Well, they did it by retaining a firm focus on the customer. And they did that through the use of CRM (Customer Relationship Management) .
- A type of software (such as Maximizer or Salesforce ) that helps businesses manage leads, deals, and clients, and craft targeted marketing campaigns.
- The specific strategies via which a business engages and retains its existing customers.
With CRM , the Tescos and Amazons of this world were not only able to win new customers, clients, and users – they got lifetime value out of them. With targeted marketing campaigns , these brands hit the right people with the right offers, at exactly the right time.
So, what kind of lessons can you take from the best in the business? Is CRM the key with which you can unlock your own company’s potential, and fuel commercial growth on a scale that rivals the big guns? Let’s take a look at our top 11 CRM case studies from the world’s leading brands . Or, if you're just ready to get started with a CRM system yourself, check out our recommended partners below. 1. Tesco CRM Tesco is a truly global business. It’s one of the world’s top 10 retailers , with supermarkets across Asia, Europe, and North America. With more than 3,400 stores in the UK alone, you’ll probably know it as your first port of call for a spontaneous pint of milk, or for an indulgent £3 meal deal during your lunch hour. So, what’s the secret to Tesco’s success? Well, it boils down to one main factor: The Tesco Clubcard . Tesco CRM: Case Study The Tesco Clubcard is Tesco’s way of rewarding its most loyal customers. For every pound you spend online or in-store, you’ll get a point. These points, when accumulated, can be traded in for Tesco Clubcard ‘vouchers’ (for instance, 150 points gets you a £1.50 voucher). A voucher can then be traded in for rewards, such as an afternoon at Cineworld with the kids (a timeless experience), or an evening at Pizza Express (enjoy it while you can). Clubcard holders can also collect points at Tesco fuel stations, and by filling out feedback surveys online. What’s in it for Tesco? Returning customers that are invested in the brand, and whose opinion Tesco can leverage to continue improving its growing basket of offerings. 2. Apple CRM This one needs no introduction. Founded by visionary Steve Jobs in 1976, this instantly recognisable brand is the apple of many a tech-lover’s eye. Apple has given us the iPad, iPhone, iMac, and Apple TV. But anyone who’s ever used one of its slick, stylish products knows that Apple’s appeal goes far beyond its niftiest handheld devices… … because it’s how it treats its customers that’s the key to Apple’s success. Apple CRM: Case Study Let’s take Apple ID as an example. If you’ve ever used iTunes (Apple’s online music streaming service), you’ll have an Apple ID – and if you’ve ever used an Apple device, you’ll have had to register it using an Apple ID, too. These unique IDs synchronise across devices, remember music and film selections, and provide personalised recommendations based on what’s you've been watching or listening to. For the user, it offers convenience. And for Apple, it’s a constantly updating data set, telling the company exactly what its customers like and allowing for effortless, targeted marketing. It’s…. CRM, done well. 3. Uber CRM Uber arrived in 2009 to spearhead the ride-sharing revolution, and has quickly become a household name. But, with a huge host of new competitors driving costs down (not to mention a few other issues ), Uber’s monopoly over its 95 million worldwide monthly users could be under threat. Can Uber hold on? And what can help us understand how successful Uber has been thus far in retaining its enormous customer base? Uber CRM: Case Study Well, CRM is a good place to start – and for Uber, it’s industry-leading CRM software provider Salesforce that’s powering the ride-sharing giant’s strategy. Salesforce helps Uber extract data from people engaging with its brand on social media. With this system in place, Uber can reply with haste to customer complaints, and track all its interactions with the public from an intuitive dashboard. And, of course, it runs its own loyalty program. Uber Rewards lets you earn points every time you ride or eat with Uber, and redeem them across its increasing range of services. It’s a textbook example of how Uber is incentivising customers to keep relying on its brand, as it continues to branch out . 4. British Airways CRM In the hotly contested, heavily consumer-oriented aviation space, you’ve got to get your CRM strategy right. And, clearly, British Airways (BA) does – flying 145,000 people to more than 200 destinations every day . So, why do its customers keep coming back? The answer can be summed up in two words… Executive. Club. British Airways CRM: Case Study The British Airways Executive Club is an example of CRM loyalty schemes done right. Free to join and with no ongoing charges, the club allows customers to earn ‘Avios’ points through purchasing flights, hotel stays, holidays, or car rental through BA or its partners. Avios points can then be redeemed for discounts on travel or accommodation with (you guessed it!) BA. Customers can save their meal and seat preferences, making for a smoother, more seamless re-booking experience. And, as they continue to fly with BA, they’ll be able to progress through the levels of Executive Club membership – from blue to bronze, silver to gold, then (maybe one day) the elusive ‘Premier’ tier. To keep track of all this, BA has been been using a CRM solution called Teradata since 2002. It allows the airline to keep track of all the customers on its books, and re-engage them with offers and deals targeted to their level of membership and favourite destinations. 5. Nokia CRM Nokia has been around the block a few times. We’ve all owned one of its basic, ‘brick’ design mobiles at some point, and while these phones may seem a bit antiquated now, they’re still virtually indestructible – and perfect for a quick game of Snake while waiting for the bus. Despite iPhones and Galaxys hogging the plaudits more recently, Nokia’s brand is still ticking away. It's currently valued in the region of a whopping 10 billion USD – and Nokia stock is poised to make an unexpected comeback in 2021 . So, what’s its secret? CRM, of course! Nokia CRM: Case Study Nokia implemented Salesforce (that name again) to help manage the size and diversity of its client base. Salesforce allows Nokia to customise its product range and marketing to suit geo-specific locations. Nokia’s collaboration with CRM brought order to chaos, empowering marketing departments across countries and languages to organise customer data. Through the selecting and segmenting of data into specific target groups, Nokia’s team saw more effective lead generation – which probably helps explain why its brand is still thriving. 6. McDonald's Every day, McDonald’s serves almost four million customers in the UK alone – about the population of New Zealand. Worldwide, that figure’s more like 69 million – roughly the size of Great Britain’s own populace. So, with such a vast empire and super-sized customer database, how does this fast food giant ensure their customers keep lovin’ it? With an industry-leading CRM strategy, that’s how. McDonald's CRM: Case Study McDonald’s partners with Astute Solutions , allowing the restaurant chain greater insights into consumer feedback and satisfaction levels. Being able to assess restaurants by region, or even individually, means that McDonald's can quickly spot potential customer relationship issues, and resolve them before they become a serious problem. And, with Astute Solutions, McDonald’s can also: Provide both its franchisees and corporate managers with live access to customer information Integrate data from its dynamic network of restaurants into an effective CRM tool Increase the accuracy of its reporting, and inform more intelligent decision-making As Christopher Garrity, McDonald’s’ own Senior Director of Customer Satisfaction, espouses: “CRM [is a] critically important function for any large company. It’s clear that Astute understands the important role it plays, and meets the ever-changing needs of our prime customers through continued innovation.”
Prime customers… was the pun intended? We don't know.
What we can tell you, though, is that one too many Big Macs may leave you feeling bloated and unmanageable… but your SME’s customer database doesn’t have to be. Browse our guide to the best CRM systems for restaurants to learn more, or click below to start comparing CRM software quotes for your business.
7. Coca Cola CRM
While Coca-Cola’s iconic recipe has remained a secret since 1886, this global beverage giant has been less coy about the other secret of its success – a dedication to the customer. It came as no surprise when Coca-Cola’s German branch adopted Salesforce – but what role did CRM software play in engineering the soft drink goliath’s continued growth?
Coca-Cola CRM: Case Study
“We needed to get much faster, to work on collaboration, connectivity, and scalability — and all that in a mobile context. Salesforce has been a fantastic partner, and a great help for us.”
That’s Coca-Cola Germany’s CEO, Ulrik Nehammer. He’s happy, because his customer service team is happy. And they’re happy because CRM software allows them instant access to customer history – which, in turn, allows them to hit their targets, and deal more efficiently with complaints.
With Salesforce, Coca-Cola Germany’s team can easily log issues with customers or suppliers, and then respond by dispatching field service technicians in real time. The result? A sweet 30% increase in productivity . Refreshing!
8. Unilever CRM
Also known as Europe’s seventh most valuable company, Unilever’s products are available in almost 200 countries around the world. With brands like Lipton, Magnum, and Hellmann’s under its considerable belt, Unilever has its fingers in a lot of pies. But does it have its finger on the pulse when it comes to managing its customer relationships?
Unilever CRM: Case Study
If you guessed yes, then you’re absolutely right. With the help of SAP CRM , Unilever improved its call centre capabilities, and boosted the productivity of its consumer advisory representatives. Just ask one of its head honchos:
“[CRM] enables faster response time to queries and needs raised by consumers. It provides for effective maintenance of our customer database, and allows for easy access to customer information for analysis and strategy development.”
- Efren Samonte, Commercial Director – Unilever Philippines
And let’s face it, the proof of Unilever CRM’s effectiveness is, quite literally, in the pudding. Because if you’ve ever scoffed down a Magnum on a hot summer’s day, then you’ve witnessed first-hand the effectiveness of Unilever’s ability to keep customers coming back. Can you emulate them?
Hopefully! But to do so, you’ll need your own CRM first. While there are some free options you can go with, these are limited, not scalable, and certainly not fit for ambitious businesses.
Nope – your best bet is to complete our quick, free quote finding form , to browse CRM options for your SME. We’ll just ask a couple of quick questions, including how many people you need the software for, and what features you’ll need. It takes half a minute at most, and when you’re done, you’ll receive quotes tailored to your business’ specific needs .
9. Zara CRM
Leading European clothing brand Zara specialises in fast fashion at low(ish) prices, and the profits are also moving quickly – it made almost 19 billion USD last year. But is it the price point that keeps Zara’s customers coming back, or its relentless, CRM strategy-powered focus on the customer? We think the latter.
Zara CRM: Case Study
Zara was one of the first to pioneer the use of personal digital assistants (PDAs) to capture customer data in real time – not just on transactions, but on their customer’s preferences and habits. CRM software comes in when it’s time to use this data to sell, sell, sell, re-engaging existing buyers with fresh discounts and campaigns.
10. BMW CRM
Unless you’ve been living in a cave for the last hundred years, you’ll instantly recognise BMW’s iconic logo. Producing well over two million vehicles per year, and with its status as a film icon firmly cemented, BMW’s success shows no signs of slowing down. And though the cars may have changed a bit since the company was founded in 1916, its customer focus has remained just the same.
BMW CRM: Case Study
And again, a successful CRM strategy underpins it all. To execute it, BMW teamed up with Legacy Lifestyle to create a luxury loyalty scheme called – wait for it – ‘The Owner’s Circle’.
The Owner’s Circle lets BMW owners track their car’s financing and maintenance. Owners of new or old BMWs can also register their vehicles online. From here, they can check the status of a new car order, view the maintenance history of a used car, or get reminders about upcoming service milestones. There’s also an owner-to-owner chat box thrown in, for ultimate convenience.
All this serves to strengthen the post-purchase relationship between BMW and its customers, ensuring an enduring connection long after they’ve rolled their car out of the garage.
And, because any points earned through the Owner’s Circle can be used on a variety of luxury items, it strengthens BMW’s status as a luxury brand – and ensures it’ll be continuing to attract a lucrative clientele for many more years to come.
11. Amazon CRM
We could spend all day throwing statistics demonstrating Amazon’s popularity around, but let’s face it – we’re all familiar with Amazon. As the world’s leading online retailer, Amazon continues to go from strength to strength, led by its enigmatic founder and CEO Jeff Bezos. But how have Bezos and the gang been so good at winning, retaining, and consolidating users of their wildly popular online platform?
Amazon CRM: Case Study
By using CRM, that’s how. And if you’ve ever used Amazon (and the data says you probably have), you’ll know how hard its tailored offers, recommendations, and promotions – all based on your past purchases – can be to resist.
Plus, by asking its customers to register for an account, Amazon makes it extremely easy for customers to re-order. Cash-rich, time-poor consumers can pay with a click, and have their goods gracing their doorstep within 24 hours.
Want to know more? Check out our full Amazon CRM case study to read more about how this ecommerce behemoth is crushing the competition.
We’ve said it before, and we’ll say it again – customers are the most important part of your business. Without them, you wouldn’t have one!
With that in mind, then, ensuring you have at least some kind of CRM strategy is crucial. How will you draw in new leads, juggle unfolding deals, and manage prospects and client relationships? How will you keep your customers engaged, ensuring they continue to use your services while identifying with your brand and values?
If these big brand CRM case studies have shown us anything, it’s that CRM software is just as important as the strategic side – all of the big companies are using it to manage customer data, and extract key insights which can help improve customer experience. Here are some CRM systems that we can highly recommend for all types of businesses:
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Not sure which CRM software is right for your business? To find out, simply fill in our 30-second form . We’ll ask a couple of questions about your software needs, and you’ll receive tailored CRM quotes from leading UK providers . And who knows… give it a few years, and your business could be on this list!
Amazon CRM Case Study
Apple CRM Case Study
CRM Software and Systems
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The 10 Best CRM Strategy Examples in 2023
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The 4 Best Analytical CRM Software Solutions for Businesses in 2023
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A STUDY ON AMAZON: INFORMATION SYSTEMS, BUSINESS STRATEGIES AND e-CRM
This is a academic level case study on information systems, business strategies and e-CRM system used by Amazon for their online activities. Amazon for their e-commerce activities uses number of information systems in order to gain competitive advantage over its competitors.This case study indicates some of the system used by Amazon.
Amazon is the first large company that sells goods and services over the internet it was founded by jeff bezos in 1994. Amazon started out as an online book store then it grows quickly to add new items such as DVD’s, video games, electronics, clothing and more to the extent that the company logo symbolizes means that they sell all products from A to Z. Amazon.com try their best to get customer loyalty and trust. They offer state shipping service and they have many retail stores in different countries. It also purchases customer data and information to achieve customer needs and wants. Amazon is one of the first in the world to sell online and has many competitors like: ebay, rakuten and flipkart. Therefore, amazon has own over 40 subsidiaries includes: zappos, shopbop, IMDb, Amazon Prime, appstore, and amazon drive.
Information & Management
Electronic commerce or E-commerce allows consumers to electronically exchange goods and services with no barriers of time or distance. More customers moved from traditional purchase to e-commerce because it is often faster and cheaper. Besides, e-commerce offers more convenience and flexible for customization option of products and services.
case study of amazon e-commerce business model
Alexandru Gavrila , Delia Babeanu , BOLDEANU DANA
Electronic commerce (E-commerce) facilitates trading in products and services such as information services, financial and legal services, using computer technologies such as websites, internet and e-mail. E-commerce is the buying and selling of goods and services or the transmitting of funds or data over an electronic network. It is a contemporary business methodology which addresses the needs of organizations, merchants and consumers to cut costs, while improving the quality of goods and services along with increase in the speed of service delivery using computer network. Electronic commerce draws on technologies such as mobile commerce, electronic funds transfer, supply chain management, internet marketing, online transaction processing, electronic data interchange (EDI), inventory management systems and automated data collection systems. Modern electronic commerce typically uses the World Wide Web for at least one part of the transaction's life cycle, although it may also use other technologies such as e-mail. Moreover, E-commerce also facilitates the farmers about the up-to-date market information on prices for farm commodities, fertilizer and pesticide inputs, and consumer trends related to trading of farm produce using computer networks such as the internet and online shopping web sites. E-commerce system could also be developed for providing informed decisions about the public or industry requirement of particular crops and commodities as well as about best time for marketing of the farm produce. Architectural framework of E-commerce includes the synthesizing of various existing resources like DBMS, data repository, computer languages, software agent based transactions, monitors or communication protocols to facilitate the integration of data and software for better applications. E-commerce business models can generally be categorized into seven categories, i.e., Business-to-Business, Business-to-Consumer, Consumer-to-Consumer, Consumer-to-Business, Business-to-Government, Government-to-Business and Government-to-Citizen. Though E-commerce offers many advantages to customers, business, society and nation, there are still some areas of concern that need to be addressed. The limitations of E-commerce include security, lack of privacy, tax issue, product suitability, cultural obstacles, high labour cost, legal issues and huge technological cost. In this article, E-commerce architectural framework and models will be discussed with reference to present scenario to provide expert knowledge to the consumers, businessmen and farming community about the transmission of funds or data, buying and selling of goods and/or information and legal services over the network.
Canadian Journal of Administrative Sciences-revue Canadienne Des Sciences De L Administration
Amazon.com has been through several stages of development: first as a cyber-bookstore, then a cyber-market, and now an Application Service Provider (ASP). I apply the concept of “business ecosystem” to describe the evolution of Amazon.com, and highlight the role of web services in the shaping of its ecosystem. The company plays a central role in the ecosystem, working with a network of partners to bring products and services to customers. By continually trying to improve the health of its ecosystem, Amazon ensures its own survival and prosperity. The mechanisms through which Amazon has created its ecosystem are discussed and ideas for firms looking to create analogous business communities are advanced. Copyright © 2009 ASAC. Published by John Wiley & Sons, Ltd.Amazon.com a désormais deux visages: celui du E-Retailer que nous connaissons tous, et celui moins connu, d'Application Service Provider (ASP). Dans cet article, je présente le concept d'écosystème d'affaires et le rôle joué par les Web services dans la constitution de cet écosystème. L'activité d'ASP d'Amazon est récente et marque une nouvelle phase de développement de l'entreprise au cours de laquelle elle a constitué une véritable communauté d'affaires composée de très nombreux partenaires. Amazon occupe aujourd'hui une place centrale au sein de ce réseau de valeur. A travers cet article j'analyse le développement de l'écosystème d'affaires d'Amazon. J'espère, modestement, que lecture de cet article sera une source d'inspiration pour les entreprises souhaitant développer leur propre écosystème d'affaires. Copyright © 2009 ASAC. Published by John Wiley & Sons, Ltd.
Companies must have a strong competitive strategy in the market in meeting customer needs, it is necessary an information system that applies the method of customer relationship management. Target for this research were SMEs Tapis in Lampung Indonesia. Tapis Lampung is one of the clothes used in Lampung Indonesia culture. Tapis Lampung must be introduced and disseminated, not only in Indonesia, but in overseas. Problem in this study is product orders are still coming directly to the location and via telephone, as well as product marketing through Instagram media. Orders are recorded in the book, so that data processing is less effective and efficient. There is no consumer database to see the number of existing customers, do not yet have communication and service good to consumers. The purpose of this study is to produce an information system application program using web-based E-crm method which is a strategy to increase sales, expand marketing and improve services to consumers. The application of web-based CRM methods in Tapis Lampung SMEs is important so that they can open sales opportunities globally, and have a good relationship with consumers because they can provide services to consumers that are more effective and efficient.
Proceedings of the 35th Annual Hawaii International Conference on System Sciences
International Journal of Management Science and Operations Research
Sahar A. El_Rahman
International Journal of Tourism and Hospitality in Asia Pasific
Volume 6, Issue 2 (XXXXI) International Journal of Advance and Innovative Research
Abdulquadri A L O W O N L E Hassan
Proceedings of the 6th Global Conference on Business, Management, and Entrepreneurship (GCBME 2021)
Logistics Information Management
Muhammad Fakhrul razi
Charles Edward Andrew Lincoln IV
Arxiv preprint arXiv:1102.0706
International Journal of Information Technology and Management
Information Management & Computer Security
IJMSBR Open Access Journal
International Journal Of Artificial Intelligence Research
Muhamad Sigid Safarudin
Social, Managerial, and Organizational Dimensions of Enterprise Information Systems
Abbas Toloie Eshlaghy
Journal of Information …
Nor Hidayati Zakaria
… OOFF RREESSEEAARRCCHH IINN …
International Journal of Advanced Computer Science and Applications
leoncio cueva ruiz
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Salesforce on AWS
Salesforce, Inc. (Salesforce), a leading customer relationship management (CRM) company, chose Amazon Web Services (AWS) as its primary cloud provider in 2016. Today, Salesforce and AWS have a global strategic relationship focused on technical alignment and joint development. Building on AWS storage, compute, and artificial intelligence (AI) solutions, Salesforce innovates and deploys new business applications, such as virtual call centers that empower high-velocity sales teams with Amazon Connect and AWS AI and machine learning (ML) services. Its customers can leverage the cloud and extend their CRM capabilities by securely connecting data and workflows across Salesforce and AWS. Salesforce spins up new regions in weeks instead of months, saves on infrastructure costs, stores and processes exabytes of data in a data lake, and creates billions of 360-degree customer profiles using AWS.
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Amazon CRM Systems Case Study Essay" (46 Characters)
Discuss about the Amazon CRM Systems Case Study.
Amazon provides all kinds of products customer needs in one place and the purchase process on website is made easy by the company through features like one-click purchase and card storing for future purchases. Other benefits that add to the user experience on Amazon website include product recommendations based on buying patterns, giveaways, kindle services like Prime and library and so on. Such innovative features and ideas that are capable of capturing the audience attention and increase their retention on the website actually result from analysis of the CRM data.
In the background, Amazon uses a very high end advanced CRM system that captures customer data including their personal details and previous purchases so that their experience can be tailored to their preferences to engage them on website. This paper explores how Amazon makes use of the CRM system to formulate marketing strategies and how the customers are affected by these. Based on the study certain general recommendations can be made for any organization for the successful usage of CRM for increasing user engagement and retention in a business.
Amazon CRM system takes care of some key functions in an organization including customer support, marketing, executive information, ERP integration, data synchronization, sales management and time management.
Jeff Bezos found Amazon.com in 1995 with a vision to build a virtual book store at start. Initially, Amazon sold books directly and by 2000, it became a platform for reseller of different products. Now Amazon.com provides platform to four types of customers including sellers, content creators, organizations and individual customers. It now provides many more services in addition to the bookstore that include music, video products, games and other products are sold on the portal by resellers (Celep, et al., 2013).
Amazon uses an interactive technology on its website such that whenever a user comes online, a direct marketing principle is used for recognition of the customer through the information saved in cookies of the user machine. Based on this data, Amazon customizes recommendations for users using calculations done on sophisticated statistical software running in the background. Every product listed on the website carries information about the category they belong to and when this information is matched with data found in cookies, automatic recommendations can be made by the software tool such that customers are provided recommendations based on his or her interests. Besides this, customers also receive communication from Amazon through emails including purchase recommendations tailored to their personal characteristics or information. Amazon also allows customers purchasing from their website to put reviews on products which allow users to interact with each other. Amazon also gives special rewards to customers who provide valuable reviews.
Amazon was one of the first retailers to adopt data efficiency and highest level of customer services through optimization of product information on the portal pages. This information included product details, inventory status, price comparisons, delivery and payment options, promotional offers, fulfilment options, user reviews, cross-selling products, and more. All this information was provided through a single user interface that helped buyers take informed decisions. Amazon systems analyze the transaction details of customers and their product search histories to come up with personalized and optimized sales pages. Amazon uses Customer Relationship Management techniques for managing their customer expectations (CDW, 2009)
Initially Amazon has been using separate systems for order fulfilment and website management but in the year 2000, Amazon invested $200 million to develop a new comprehensive system which included “Epiphany” analysis software, “manugistics” logistics solution, Oracle DBMS and Excelon B2B integration system. Amazon had its own cloud solution called Amazon Web Service (AWS) which it used for managing information about its customers and products. It also builds a SAS (Smart Analysis Search) for tracking the frauds in the ecommerce space which works through analysis of the patterns of the user behaviour they display. This makes it possible for the organization to measure customer usage patterns and personalize their experience for providing better services.
Amazon runs its operations over a Service Oriented Architecture (SOA) based decentralized information system that is both robust and scalable. The information system of Amazon includes:
Transaction Processing System: For ordering products, Amazon makes a visitor create an account on the website which starts the process of collection of the customer data. Based on this data, a personalized experience in provide while using features like shipping cart, wish list, and single click ordering are used. Moreover, the CRM data is also utilized for promotional purposes in which email communications are send to customers. Registered users can also store their payment and credit card details to later use for fast purchases reducing the time lag between the intension to purchase and checkout and thus increasing the probability of a purchase and reducing probability of change of decision.
Recommendation System: Based on the behaviour of a consumer over the website including their search and purchase patters, a recommender system, which involves linking and data mining procedures, is triggered which comes up with product purchase recommendations. For instance, in case a person is buying a fiction book, the recommender system would through recommendations on related books. This makes Amazon appear like an interactive platform and increases customer engagement and satisfaction from experience.
Amazon Information System
Supply Chain Management: Amazon runs an automated warehousing and supply chain management system which is linked with the CRM system.
Enterprise Resource planning: Oracle ERP systems are used by Amazon for storing customer and other organization related data. This system allows execution of an automated order management process in which the system searches for nearest distribution centre, the moment a product is ordered by a customer and triggers the logistics processes for distribution. Because of automation in order processing system, human errors are avoided and these least instances of wrong deliveries or other order related issues.
Customer Relationship Management: The CRM system maintains a database in which a huge amount of data about customers and their usage patterns is stored including payment card details, transaction records and histories, order histories, personal profile, browsing history, customer feedback, wish list, product reviews, . Order processing systems makes use of the transaction records stored in the CRM databases to process orders and execute triggers delivery applications for initiating shipment. Further, the CRM data is also used for triggering automatic communication with customers through email or direct messages. Customer services, sales systems and communication management systems are integrated through this CRM system which is used by the three as a common database to work with.
CRM is not just about the implementation of a technological solution but also about developing strategic relationships and analyzing CRM data to understand customers. Amazon uses a 10 step CRM strategy that includes following steps:
Investment: Amazon makes investments into its operations based on the value created for customers. It has invested $200 million to build its CRM system and also uses other technologies that are integrated with the system including warehousing systems, order processing, ERP, recommender system and more.
Relationship: The customer relationships are optimized by Amazon in various ways.
Reputation: While creating marketing messages, Amazon appropriately communicates its value and positioning
Relevance: Every customer community is provided services in appropriate ways. The recommender system makes use of the CRM data to come up purchase recommendations having list of products that are most relevant for a specific customer profile.
Values: A value that is enduring is created for customers of Amazon. The CRM system of Amazon works on three main ideas for value creation that include limitless inventory, high margin at lowest price and excellent customer care.
Touchpoints: Relationships between different kinds of consumer touchpoints are identified and managed by employees of the organization. The company uses various touchpoints to connect with the customers including cart, emails, checkout, mobile application, social media, call centre, registration, search and so on . For instance, an area containing cart and surrounding area is called as a “ready to buy” area by Amazon as it is the point at which the customer is ready for a purchase. At this point Amazon communicates with the customers through some assurance messages like “You can always cancel”, additional purchase options and other information such as related products, other products, bundled offers, delivery details and so on.
Imagination: Imagination is used to provide a unique customer experience. Promotions offers like Best Buy, Today’s deals, lightening deals, Amazon Prime and more are able to help retain customers on website.
Learning: Amazon captures data about consumers and analysis the same to learn something useful for the company from customers. For instance, Amazon allows users to add items they like to purchase in future in their wish lists that helps company understand the interests of users. This information can be used while doing direct marketing such that customers about communicated about offers based on their interests in various products (IMRAN, 2014).
Technology: Amazon uses sophisticated technology for managing CRM. On the first entry on the website, featured products are the first to see but after a registration already happens, subsequent visits are responses by messages coming from recommender system based on the customer interest and understanding of personality.
Stakeholders: While managing CRM, key stakeholders who can be affected are also considered (Jenkinson & Sain, 2005). When Amazon gets reviews from customers on various books sold over the platform, the same is also shared with its other shareholders including authors and publishers which can help the organization to make more profits (Dalfard, et al., 2012).
Amazon runs a loyalty program which delivers additional benefits to its customers through a Prime membership. On the website, A Prime Explainer page in maintained that clearly communicates the benefits those customers would receive from the membership. These benefits are decided on the basis of mapping done between customer preferences and Amazon’s capabilities. Some of these benefits include free two day shipping which is the most preferred speed at which customers would like to receive their products. Amazon also provides some add on services to its customers through third parties like Apple Music and Netflix.
With the loyalty schemes running on Amazon, many of the first time purchasers come back for a repurchase and the investment that the company has to make for repeat customers is lesser. For instance, for book purchasers, the average earning for Amazon is $50 per book for first time purchase and $40 per visit after that (Srivastava, 2001).
The loyalty program is build by anticipating the needs of customers, stimulating the same and providing them assistance in searching for the items they needs. Amazon also provides them information on products and recommendations on the basis of their search so that they can evaluate product and takes a decision on purchase. Once a customer goes in to purchase area, the assurance messages and additional information is also provided as the system us optimized. Post purchase, Amazon had additional offers and communication for engaging them.
For running the loyalty scheme, Amazon makes use of several strategies such as:
- A 0.16 cents system on Amazon.com in which customers are returned with a cash back of 0.16 cents if the price of an item falls after making a purchase. The amount promised is very small for Amazon but it does create a feeling of having integrity in the customer bringing in more loyalty.
- Amazon Prime targets the customer pain points and solves them in the membership program by adding them as benefits such as free shipping, lower priced items, and free kindle books and so on.
- Amazon is likely to face fierce competition from other ecommerce players such as EBay and Flipkart and thus, the company should keep monitoring their competitive strategies and respond to them to stay ahead in the competition. This would include an understanding of how competition is responding to marketing strategies adopted by Amazon as they may also affect the position of the company. For instance, in response to the reading library feature of Amazon, Flipkart also came up with a books library. Offer zone has become a common functionality now for most nig ecommerce retailers.
Conclusions & Recommendations
The paper explored the case study of Amazon and made an attempt to understand how they use their CRM systems for managing customers. It was found that the company uses a highly sophisticated CRM system which is integrated with its other information systems including ERP, Order Processing system, and Warehousing system. It also runs a recommender system in which the data about registered customers is used to understand their preferences to make recommendations on products that have highest possibility to making a sale for specific customer as the recommendations are personalized. The CRM data is also used for the purpose of marketing and direct promotion such that based on the customer buying and search patterns on the website, customized communication is sent to them over emails.
Based on the study, certain recommendations can be made for Amazon to improve its CRM systems and processes such as:
- Improving customer loyalty: Customers feel satisfied when they get what is expected but when they receive more than that then they become loyal. Based on the consumer buying patterns and understanding of their interest and preferences, Amazon can come up with special offers or other forms of benefits that can help them improve customer loyalty.
- Free Shipment: Free shipment is something all customers look for when purchasing a product online but Amazon does not provide free shipping on every product and thus, if the company could increase the number of products that get free shipping then it can encourage customers more into buying. Often for products that are low priced, shipping charges can actually discourage customers. For instance, if Amazon comes up with a 60% sale on books and as a result, a book price is brought down to only Rs. 90 then if there is 50 of delivery charges then the book purchase or sale would not make much benefit for the customer and thus, a customer may choose to leave the deal.
- Improve Prime Service: The membership is focused on getting more purchases from regular users as the benefits are tailored for them. This can bring in more loyalty from customers who are frequent purchasers but does not take into account the occasional customers. The membership is paid after a month which would further discourage occasional customers to get into Prime. Prime can be made more engaging even for these occasional customers such that they can be turned into regular purchasers. Prime program accumulates points for customers but this is done through third parties like AMEX and CHASE which can create confusion in customers on how these points are maintained and can benefit them.
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