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Amazon CRM Case Study

Over the past 20 years, Amazon has consistently proven it is capable of running a world-class CRM strategy.

For its millions of loyal customers, Amazon has remained their preferred online shopping destination amid mass competition. A well-managed and efficient CRM strategy has been a crucial aspect of their success.

Amazon have a reputation for providing customers with everything that they need, all in one place. What has since become known as 'the Amazon Effect', the company have successfully managed relations with millions of customers without ever meeting them face-to-face. Brent Leary, President of CRM Essentials, agrees:

"I can do so much with Amazon without talking to anybody, that for as long as they continue providing a good experience, I will continue buying from them."

The process of purchasing with Amazon is easy. It has a simple, easy-to-use interface, one-click ordering, and stored personal and card details, all of which make it possible to purchase smoothly and quickly.

Customers benefit from recommendations of products based on previous purchases, a concept that has worked well both on site and on its kindle devices. This clever use of customer data ensures that customers continue to feel valued, while allowing Amazon to keep coming up with innovative ways of retaining and attracting customers.

The Secret to CRM Success

CRM is the basis behind all of these useful features. Amazon have built their own CRM software in-house, meaning it is tailored to their own exact requirements. Their software allows Amazon to capture customer data, such as location and previous purchases, and use that to instantly customise a user's on-site experience.

Amazon’s CRM also deals with most of their customer queries before reaching the stage where human intervention is required. For example, each customer can access their own order history, which allows them to see what they have ordered, where in the delivery process it is, and how much they spent on it. Their returns policy is similarly automated, vastly reducing their need for customer service staff and the costs associated with them.

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Top 5 Ways Amazon use CRM

Data collection

Amazon encourages all users to create accounts to make it easier for them to make future purchases. These accounts also give Amazon a targeted marketing method as customers can be emailed with offers and promotions based on their past purchases.

Personal data storage

One way in which creating an Amazon account benefits the customer is ease of purchase. With an account all payment, personal, and address details can be stored- allowing for quick and easy future purchases.

Recommendations

Amazon pioneered the recommended products feature. Whenever users are logged into their account, Amazon will recommend products they may be interested in based on past buying habits. More recently, Amazon introduced the 'customers who bought this item also bought' feature. These recommendations are perfect for boosting sales without the customer feeling pressured into buying.

Customer support

Amazon’s returns process is dealt with entirely online through a 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, meaning that any issues can be dealt with quickly and efficiently.

Kindle Marketplace

From personal accounts, to storage, payments and recommendations, the Kindle products and experience would not be the same without CRM.

About Amazon

Established in the US, Amazon is an ecommerce company which sells products to millions of customers all over the world.

It originally started as a books retailer but now sells an extensive range of products through its own store as well as through extensive online marketplaces.

Amazon are also the creator of the Kindle device, an electronic reader and the most popular product of its kind.

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