Question 2 Amazon was established in the US and is an e-commerce giant which sells products to millions of customers all over the world. It initially started as a books retailer but now sells an extensive array of products through its own store along with extensive online marketplaces. Amazon is also the creator of the Kindle device, an electronic reader and the most popular product of its kind. Customer Relationship Management (CRM) is the basis behind all of these useful features. Amazon has built its own CRM software in-house, meaning it is tailored to its own exact requirements and needs. Their software allows Amazon to encapsulate customer data, such as previous purchases and location, and use that to instantly modify and customize a user's overall on-site experience. Amazon's CRM also tackles most of their customer queries before reaching the stage where human involvement is required. For example, each customer can easily access their order history, which allows them to see which products they have ordered, current status in the delivery process, and how much they have spent on it Their returns policy is similarly automatic, significantly reducing their need for customer service staff and the costs associated with them. Amazon uses CRM in five ways: i. Data collection - Amazon encourages all of its users to create personal accounts to make it easier for them to make future purchases and keep track of their orders. These customer accounts also give Amazon a targeted marketing mechanism as customers can be communicated with via emails with offers and promotions based on their previous purchases. ii. Personal data storage - One way in which creating an Amazon account benefits the customer is ease of purchase. With a personal account all personal, payment and address details can be stored- allowing for swift, quick and easy future purchases. iii. 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. iv. 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. V. Kindle Marketplace - From storage to personal accounts, payments and recommendations, without CRM the Kindle products and experience would not be the same. (Source: hups://www.linkedin.com/pulse/amazons-customer-relationship-management-strategy- and-chakrawarry) (a) Why Amazon does not employ third party CRM system solutions? (b) What has Amazon CRM achieved? (c) What software platform do you think is behind Amazon CRM system? Why? (d) List THREE benefits of Amazon CRM system. (e) Discuss the positive influence of CRM to Amazon