Question 2: Relationship marketing (35 marks, 300 words)

One of the foundations of Amazons success is the companys intelligent use of CRM (Customer Relationship Management). Amazons CRM software captures customer data at the point of purchase, which it uses to instantly customize its users online experience.

Amazons interface is simple and easy to use. Customers can view their own order history and how much theyve been spending. Returns are handled easily through the system. Re-ordering is a breeze and purchases can be tracked through every state of the delivery process.

CRM software allows Amazon to collect personal and payment details and makes it very easy to customers to buy products again. It sends tailored offers, promotions and recommendations to customers based on their past purchases and interests.

Customers can deal with almost every issue they might have through their accounts. And if theres something that does require a customer to speak with a customer service assistant: CRM to the rescue again. Amazon staff have customer details, meaning quick and efficient resolution to all problems and more satisfied customers.

Amazons use of CRM has been influential in the growth of its services. With these smart and automated practices, its not hard to see why Amazon are crushing the competition.

Required:

A. Discuss what is meant by relationship marketing and discuss at least four of its benefits for Amazon. (25 marks)

B. Discuss the relationship between relationship marketing, customer lifetime value, satisfaction and loyalty and profit. (10 marks)