|← High-Quality Writing||Amazon.com →|
Momentous developments in information technology are rapidly changing the role of managing customers and marketing. In the wake of frequent innovations, businesses are employing the use of sophisticated databases facilitated by electronic commerce through the use of point-of-sale gadgets, ATMs, among other touch points for customers have made purchasing and managing of sales and customers especially online an easy undertaking. One of such tools in demand today is CRM, a solution for custom relationship management. This paper will discuss how Amazon.com has employed the use of CRM for improving t business operations. The far-reaching discussion will explore such areas like primary objective for using the tool, uses of the tool, data mining technology, and challenges encountered in using CRM.
Amazon.com a multinational electronic commerce firm based in the United States of America and with headquarters in Seattle (Washington). This is biggest online retailer in America which commenced as an online bookstore but later expanded to sell other items such as video games, DVDs, MP3 downloads food, furniture, toys, electronics, apparel and CDs. The company has a large customer base around the world, a fact that necessitates its need for employing modern information technology strategy to manage its interaction with clients, customers and sales prospects.
Customer Relationship Management (CRM) is a “strategic posture that calls for iterative processes designed to turn customer data into customer relationships through active use of, and learning from, the information collected” (Swift, 2000). Through the use of CRM, modern firms can transform to relationship based from transaction based ones due to its being a major element to the mass customization concept, a philosophy that enables each customer to feel personally catered for. Returning customers are very important to any particular business and it is more costly gaining new customers than it is to maintain existing ones. This is one of the main reasons that encouraged Amazon.com adopt CRM because is a valuable tool as far as nurturing ever-profitable lasting customers is concerned.