role of Amazon Prime as a customer relationship management tool ?
Customer Relationship Management or “CRM”
is the strategy used for many different companies where the focus or strategy
is on the existing and new relationships and interactions. Organisation’s that
use this strategy, usually show an improvement in their profitability (Salesforce, 2000-2018).
CRM empowers company’s relationships
with each individual people. It does not matter whether they are customers,
service users, colleagues or even suppliers. Research has shown increase in
productivity in organisations that apply CRM as a sales and marketing tool into
their business strategy, HR, customer service and supply chain (Salesforce, 2000-2018).
CRM tool helps with many different
departments, such as:
· Contact management.
· Sales management.
· Workflow processes.
· Human Resources.
The importance of Customer Relationship Management:
· Produce real results.
· Direct improvements
in the overall.
· Increase sales.
· Forecasting more
· Identify and
· Increase referrals
from existing customers.
· Product and services
· Cloud-based CRM
One of the principal benefits of CRM system is that
can assist the organisation to spot and create new leads simple and faster. It
has the ability to create response templates to shorten down the response time.
With a centralized hold of the information about clients and projects, sales
team can focus on successful clients and earn competitive advantage (Salesforce, 2000-2018).
Understanding clients in order to cross-sell and/or
up-sell will increase new business from the existing ones. According to a study
33% of customers that are happy with the service will repeat and increase their
spending (Salesforce, 2000-2018).
Choosing the right strategy is crucial for a long-run business
success. Allocating specific targets to sales, business objectives and
profitability will endure a more profitable business cycle. Making sure
business is up to date on accurate and reliable information regarding the
progress towards the business goals for clearer visibility. Transforming the
incoming data from different teams into business information to help business
strategy to succeed (Salesforce, 2000-2018).
Using Customer Relationship Management provides
businesses a wide overview of customers within one single tool/place. This system
is usually used to provide the organisation with customer’s history, feedback,
feelings and more, for example:
· Order Status.
· Customer Service
CRM was traditionally used in Marketing, nowadays, it
has been proven that it helps the entire business, including Customer Service
departments, as the technology has improved. It allows customers a more private
communication with the organisation, opening inquiries within the tool without
losing track and providing metrics to the business on the overall performance (Salesforce, 2000-2018).
Another benefit can be found on the cost, CRM reduces
costs and at the same time is easy to implement. Cloud-based system offers
automatic software updates, the skill of working from anywhere, scalability,
increase in collaboration, keeping IT costs low and a faster deployment (Salesforce, 2000-2018).
“How you gather, manage, and use information will
determine whether you win or lose.”
Amazon Prime has 3
different options to sign-up and a 30-day free trial:
Prime Video: Unlimited movies
& TV shows.
Prime Monthly: Unlimited one day
delivery, movies & TV shows, photo storage, early lightning deals,
streaming songs and playlists without ads.
Prime Annual: All the benefits
from the monthly + best annual value.
Coming back to Jeff Bezoz vision “We obsess over the customer, we start with the customer and work back.”
Amazon’s objective with Prime is to be on top of
customers, providing and excellent customer service, user friendly platform,
customer experience, fast & unlimited deliveries and more (Carr, 2017).
Amazon’s prime customers have to pay a membership
worth in general $100. This encourage customers to spend more as they have to
get their investment back. Increase in purchases will provide Amazon the
opportunity to recover the money spent on discount and free shipping (Carr, 2017).
Based on some statistics released in 2015, Amazon
Prime was ranked as the best loyalty programs within e-commerce platforms (Carter, 2015). This provides more
context into what Amazon is trying to accomplish with the overall usage of
Prime. Even though it might seem crazy to give customers free shipping and
more, the company is receiving that money back in other ways, such as: More
traffic, purchases, investors, associates and plenty more (Channelreply, 2016).