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.

“We’ve had three big ideas at Amazon that we’ve stuck with for 18 years, and they’re the reason we’re successful: put the customer first. Invent. and be patient.”

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. That’s massive. Today, they have over 30 product categories and are available in 131 countries worldwide.

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

In this Amazon case study, you’ll learn about the incredible strategy behind their unimaginable success. 

“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

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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 Appstore 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

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Amazon CRM Case Study: 4 ways Amazon uses Customer Relationship Management (CRM)

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. The reason they provide swift service is to :

  • Maximise lifetime value
  • Ensure customer loyalty
  • Build sterling reputation
  • Delight the customer

 

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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.

 

20200108 Feedback Vs Reviews 400 1

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.

 

Fig8 Archdiagram

4. 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.

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?

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.

 

It’s a Wrap

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 Efficient

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 prioritises the customer experience above all else. This is reflected in initiatives such as Amazon Prime, personalised recommendations, and one-day delivery, which aim to make shopping on Amazon as easy and convenient as possible.
 

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