J D BIRLA INSTITUTE

(Department of Management)
(AFFILIATED TO JADAVPUR UNIVERSITY)
‘A’ GRADE BY NAAC (SINCE 2010)
1, Moira Street Kolkata - 700 017

NAME: Harsh Mittal

Year: 3rd Year (5th Sem)
SECTION: B
ROLL No.: 081
SUBJECT: (MAN 504)- Marketing of Services

Question
In the first quarter of 2021, Amazon reported net sales of $108.518 billion, a
43.8% increase from $75.452 billion in the same quarter in 2020. Net service
sales, which include Amazon’s fulfilment services for sellers on its
marketplaces, hit $51.027 billion, up 51.8% from the prior year’s $33.611
billion. Identify the major reason for such radical growth of Amazon from the
point of view of customer experience.

Answer
One reason that Amazon is so good at betting on good ideas to develop into
something bigger is because they aren't afraid of losing money or fail to see
the business side of things as taking the backseat. After all, there's nothing
wrong with trying something new if it can turn out to be very beneficial for
your business and you invest in doing it right.

One of the mantras at Amazon is failing fast and not giving up. We know that
stumbles happen and we're willing to lose time and energy for an idea that
hasn't worked yet – but we do not stop working on it! Even better: if we come
across information that helps us understand why our original idea didn't work,
we'll retool and try again because we want to develop a product without
taking short-cuts.

Identify the major reason for such radical growth of Amazon from the point of
view of customer experience are as follows-
Delivery Options  -. Beginning with free shipping - all customers who spend $25
or more are eligible for free shipping with Amazon, and for $119 a year,
Amazon Prime customers have the opportunity to get free shipping on
thousands of single possible. Recently, Amazon has also introduced Amazon
Lockers, which the company calls “self-service kiosks”, where a user can choose
to have a package delivered for easier access to a pickup.

Physical Options  - Amazon has entered the brick-and-mortar business by

creating Amazon Bookstores and Amazon-Go (a checkout-less grocery store),
and purchasing Whole Foods, in order to provide immediate access in key
markets for customers who are excited about the frictionless Amazon shopping
experience, but require faster access to goods. For those less inclined to shop at
a physical store, but still in need of goods quickly, Amazon also provides
“Amazon Fresh”, which allows for same day, or scheduled delivery of groceries
to your home, for an added fee, and “Amazon Restaurants” which provides
delivery of meals for same day ordering.

Ordering Options  - Amazon has pioneered systems such as one-click ordering

and “Dash” buttons. In one-click ordering, Amazon allows customers to
purchase an item using pre-set options (ex. credit cards and shipping
addresses), rather than having to take multiple clicks to purchase an item. With
“Dash” buttons, Amazon recognizes the need of some customers to re-order
certain items and allows customers to leverage the one-touch ordering options
at times when they need to re-stock. In order to meet the customers at every
touchpoint, Dash buttons are available on the web, in-app, using voice
activation through Alexa, as well as for purchase. For example, if you have a
Dash button for your Tide detergent, you can keep the button wherever you
keep your Tide, and as you see the bottle running low, push the button for a
quick order of new Tide.

Return Options  -. Amazon makes it easy for users to return items. Many
products come with a prepaid, printed return label, though those labels are
also accessible through the return’s portal online. Last year, Amazon also
started  partnering with Kohls  to put return kiosks in select locations, for
customers who would prefer to make the physical drop.

Digital Service Experience

Part of providing a great product experience is to consider the digital

experience for customers. As one of the first online retailers, Amazon created a
model that set the standards in e-commerce.

App  - One of the easiest ways to access Amazon and deals is through the
Amazon app, especially for Prime Day. With the app, Prime members are able
to set preview sale products and select to get notified when they become
available. They are also able to order products using traditional online
ordering, or Dash buttons, as well as access Amazon restaurants for same-day
meal delivery.

Social Media  - 72% of customers expect a response to a complaint in under an

hour. Today, Customer Service via social is imperative. Amazon monitors
the  @Amazon help Twitter handle seven days a week in seven languages.
What Amazon has been able to do whether, through its website, the app or
social media is to carry the experience through across multiple channels. They
understand that wherever you meet their brand, they need to make an
impression and provide the same customer experience that drives loyalty on
other channels.

Product Experience

Searchability  - Amazon combines a Google-like ability to search with an ability

to sort by Brand, Average Customer Review, Price, and availability, as well as
by categories specific to the brand. This morning, I was looking for a new
router to help speed up our at-home internet, and beyond the traditional
preferences, I was also able to sort by connectivity type (Wireless preferred),
computer type, and speed, which helps to make the best decision when it
comes to equipping my home.

Product Education  - To help you decide on a product, Amazon also provides

the ability to learn more about how the product meets your needs. Primarily
through reviews and ratings, which users can access to find out more about
how a product performs compared to the actual description provided. Amazon
also provides a handy recommender system to help users understand which
products might best fit their needs based on terms searched, or based on
products bought together by other users.

According to the second annual consumer survey from delivery management

solutions provider Convey, the top reason respondents shop at Amazon is fast,
free shipping (73%), followed by “I am an Amazon Prime member” (67%), easy
and convenient purchase process (58%), broad selection (49%), and easy
returns process (43%).