Amazon CRM Strategy: The Blueprint Behind The E-commerce Giant

Amazon CRM Strategy

Amazon, the world’s largest online retailing store, was founded by Jeff Bezos on July 5, 1994, under the name” Cadabra” (as in abracadabra) in Bellevue, Washington. After realizing the Internet’s potential, he quit his job and decided to build his own online company, like the famous Google, Microsoft, and Apple, from his garage.

The entrepreneur later changed the company’s name to Amazon. Amazon has recorded magnificent business success throughout the years. Their yearly net sales increased from $510,000 in 1995 to $600 million in 1998 and from more than $19.1 billion in 2008 to almost $233 billion in 2018. Today, they have over 30 product categories and are available in 131 countries worldwide.

How did Amazon get here? Amazon’s customer relationship management software is effective and productive.

“We’re not competitor-based; we’re customer-obsessed. We start with what the customer needs and work backward. Focusing on the customer makes a company more resilient.” – Jeff Bezos

Amazon Timeline

1994

Amazon is founded

1997

Amazon IPOs at $18.00/ share

1998,May 27

Acquires IMDB

1999

zShops launches

2002

Lawsuit against Barnes and Noble

2003

A9.com is launched

2004

Acquires Joyo

2005, Feb

Amazon Prime is launched

2005, Nov

Amazon Mechanical Turk

2006, Mar

Amazon S3 is launched

2006, Aug 25

Amazon Elastic Compute Cloud is launched

2006,Nov 19

Amazon Kindle is launched, which will turn out to be an important milestone in Amazon's history timeline

2007, Aug

Amazon Fresh is launched

2007, Sept 25

Amazon Music is launched

2008

Acquires Audible

2009

Acquires Zappos

2010

Kindle e-books outsell hardcover books on Amazon by almost 50%

2011, Feb

Amazon instant video is launched

2011, May 2

Amazon App Store is launched

2012

Acquires Kiva Systems

2013, March

Acquires GoodReads

2013, June

Amazon launches in India

2014, July 25

Kindle Fire is launched

2014, Aug 25

Acquires Twitch

2015, Aug 26

Amazon Underground is launched

2015, Nov 2

1st physical store in the history of Amazon

2016

Amazon Prime Air is launched

2017, June

Acquires whole foods

2017, Sept 7

Amazon announces search for second headquarters

2018, Jun 1

Acquires pill pack

2018, Sept 4

$1 trillion market cap reached

2018, Oct 2

Minimum wage raised to $15/h

2018, Nov

NY and Virginia to become Amazon HQ2

2019, Feb 1

NY HQ plans scarped

2019, July 5

25th Anniversary

2019, Sept 24

Amazon Care is launched

2021, Jul 5

Jeff Bezos steps down as CEO

2022, Mar 17

Amazon acquires MGM

2023, Nov 27

Amazon surpasses FedEx and UPS to become the 1 delivery company in the US

2024, Jan 29

Amazon Prime launches new tier supported by ads

Amazon CRM Case Study: Ways Amazon uses Customer Relationship Management.

d9fce044789ca5ccd17c841cAmazon

1. Putting Customer Service First

Amazon has been customer-centric from the beginning. It is their goal always to satisfy customers through their services; Jeff Bezos once said, “The best customer service is if the customer doesn’t need to talk to you. It just works”. This philosophy has been at the heart of Amazon’s operations from day one. On their customer service page, you can choose a category of many to suit your inquiry best.

Amazon’s interface is simple and easy to use. Customers can find their recent orders and track their packages on the Order page. The Return policy makes it easy for customers to get all the information they need, plus it establishes trust with new customers.

By focusing on the customer, Amazon has gleaned unwavering loyalty, which translates to consistent growth.

2. Amazon Product Review

Do you know one of the primary reasons why Amazon’s website receives such a large number of visits? Well, it’s because they display customer feedback. Yes, this feedback enables potential clients to assess the usefulness of a purchase based on other clients’ opinions and customers’ perceptions of the brand.

In February 2022, Amazon. Com had over 2.2 billion visits from mobile phones and desktops. Offering this service without pressuring the customer is helping Amazon turn over billions annually. This is why CRM is an indispensable tool in marketing strategy. Social proof is a powerful tactic that consistently boosts Amazon sales.

Amazon Product Review

3. Personal Data Collection and Storage

Customers can order with one click, knowing that their data is protected by Amazon’s industry-leading fraud prevention tools, and have their items arrive the next day. Amazon stores its customers’ personal and payment details when they create an account to buy something.

These accounts provide Amazon with an opportunity for target marketing, meaning customers can be emailed with offers and promotions based on past purchases. This benefits customers with shopping.

This makes sense now; it’s much easier for customers to purchase items again without hassle. Anyone who uses Amazon regularly will notice that you don’t need to open another account if you’re buying for the second time; because it saves your initial data. 

4. Personalization & Recommendation

Another special feature of Amazon’s CRM is the recommended product features. When logged in, Amazon recommends products that might interest you based on your purchase history. Customers can easily explore related items and check what other people viewing an item also bought.

Product Recommendation

This directly increases sales. The recommendations are personalized to make ” offers that are likely to not only increase sales but also satisfy the customer and lead to repeat purchases in the future, thereby securing a greater market share for the company.

What CRM Does Amazon Use In 2024?

The Best Overall

Pipedrive

A sales-focused CRM that leverages AI to automate sales, lead & demand generation. 

Best Budget Choice

Freshsales

Freshsales automates your sales process, and helps drives sustainable business growth.

Best for Workflows

Zendesk

Customize your workflows to track all aspects of the sales cycle, from lead gen to post-sale support.

Amazon relies on its in-house CRM to manage customer relationships, which is tailored to meet the comprehensive needs of shoppers and sellers. Do you know why Amazon relies on its tech?

Thus, it can’t risk relying on third-party solutions that might not work as well as they should. Moreover, Amazon has a relationship with Salesforce, which is used for innovative cloud platform solutions on Amazon web services.

Conclusion

Amazon’s success story over the years is based on its CRM strategy. It is a study of customer relationship optimization mastery, helping Amazon retain customers repeatedly. As a result, Amazon is one of the world’s most successful companies.

In my opinion, Salesforce is the closest CRM for replicating Amazon’s success, as it offers SMEs the ability to create the same world-class experience. To build a scalable business, it’s best to emulate the strategies used by Amazon.

Frequently Asked Questions

Amazon is known for its efficiency. It is able to get products to its customers quickly and efficiently. Amazon has also been able to create a streamlined checkout process that makes it easy for customers to purchase items on its website.

Amazon’s mission is to be Earth’s most customer-centric company. This is what unites Amazonians across teams and geographies as we are all striving to delight our customers and make their lives easier, one innovative product, service, and idea at a time.

Amazon’s core business strategy prioritizes the customer experience above all else. This is reflected in initiatives such as Amazon Prime, personalized recommendations, and one-day delivery, which aim to make shopping on Amazon as easy and convenient as possible.

Leave a Reply

Your email address will not be published. Required fields are marked *

Multiplier HR: 70% OFF Deal

Employ in 150+ Countries Within Hours Without Breaking the Bank.

Table of Contents

Pipedrive CRM Featured img

Hey! Before you leave…

Take advantage of an exclusive 34% discount on Pipedrive CRM to streamline and optimize your sales processes, from lead generation to deal closure.