THE STATE BANK OF VIETNAM

HO CHI MINH CITY UNIVERSITY OF BANKING

GROUP RESULTS REPORT

Customer Relationship Management

Topic:
AMAZON'S CUSTOMER RELATIONSHIP
MANAGEMENT STRATEGY
Section class: MAG316_212_7_L14_TA
Instructor: DR. Pham Thi Hoa

Group members:

Tran Thi My Duyen (Leader) 050607190096

Vo Thi Thanh Tram 050607190569
Hoang Nguyen Minh Anh 050607190014
Nguyen Tuong Vien 050607190640
Ha Thi Thu Trang 050607190547
Bui Ngoc Cat Tuong 050607190617
Tran Nhat Linh 050607190235

Ho Chi Minh City, June 2022

 THANK YOU

First of all, our team would like to thank the Faculty of Business Administration of
Ho Chi Minh City University of Banking. In particular, I would like to express my
deep gratitude to DR. Pham Thi Hoa taught and imparted valuable knowledge so that
we could better understand the subject of Customer Relationship Management.

Through this report, we would like to present what we have learned about the
issues surrounding customer relationship management. Due to lack of experience as
well as limitations of professional knowledge, our report cannot avoid shortcomings.
We look forward to receiving your comments to improve the report.

I wish her good health, peace, happiness, and much success in her teaching work.

The team sincerely thanks!

Ho Chi Minh City, June 2022

Leader

Duyen
Tran Thi My Duyen

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 TEACHER’S COMMENT
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 TABLE OF CONTENT

THANK YOU...............................................................................................................1

TEACHER’S COMMENT.........................................................................................2

TABLE OF FIGURES.................................................................................................4

I. STRATEGY DEVELOPMENT PROCESS.......................................................5

1. Business strategy.....................................................................................................5

2. Customer strategy...................................................................................................8

II. VALUE CREATION PROCESS....................................................................15

1. Value customer receives........................................................................................15

2. Value organization receives..................................................................................16

3. Customer segment lifetime value analysis............................................................20

III. MULTI-CHANNEL INTEGRATION PROCESS........................................20

1. Physical................................................................................................................. 21

2. Virtual...................................................................................................................24

IV. PERFORMANCE ASSESSMENT PROCESS..............................................27

1. Shareholder results................................................................................................27

2. Performance monitoring........................................................................................33

V. INFORMATION MANAGEMENT PROCESS............................................37

1. IT systems.............................................................................................................39

2. Analysis tools........................................................................................................40

3. Front-office applications.......................................................................................41

4. Back Office Application........................................................................................41

REFERENCES..........................................................................................................42
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 TABLE OF FIGURES
Figure 1. U.S. customer sastisfaction with Amazon.com from 2000 to 2021.............................9
Figure 2. Amazon Prime...........................................................................................................10
Figure 3. I Am More Likely to Buy Products From Amazon Than Other E-Commerce Sites .
10 Figure 4. How Often Amazon Prime Members Buy Products Online.................................11
Figure 5. Where Consumers Start Their Search for New Products.........................................12
Figure 6. Where consumers go when they are ready to buy a specific product.......................12
Figure 7. Amazon Consumer Segmentation..............................................................................13
Figure 8. U.S. Amazon Prime Households from 2017 to 2021.................................................14
Figure 9. The number of age using Amazon.com.....................................................................15
Figure 10. Amazon Value Propositions....................................................................................15
Figure 11. Amazon's shareholders...........................................................................................31
Figure 12. Amazon earnings history.........................................................................................32
Figure 13. AI.............................................................................................................................39
Figure 14. Amazon feedback genius tool..................................................................................41
Figure 15. Amazon Pinpoint.....................................................................................................41

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I. Strategy development process
1. Business strategy
1.1. Business vision
Amazon’s corporate vision is “to become Earth’s Best Employer and Earth’s
Safest Place to Work.”
This vision statement underscores the aim of becoming the best e-commerce
company in the world, with emphasis on human resources and workplace safety. The
following characteristics are identified in Amazon’s corporate vision statement:
- Global reach
- Best employer
- Safest work place
The “global reach” component of Amazon’s vision statement is all about
international leadership in the market. For example, in stating the “Earth” as the
market, the company shows that it aims to continue expanding globally. A
corresponding strategic objective is international expansion through market
penetration and market development, which are included in Amazon.com’s generic
strategy and intensive growth strategies.
The employee-centeredness in Amazon’s corporate vision statement shows that the
company considers employees as among the most important stakeholders in the online
retail business. This consideration agrees with Amazon’s corporate social
responsibility strategy for its stakeholders.
In relation, the corporate vision’s emphasis on workplace safety indicates
continuing efforts to address the e-commerce firm’s workers’ needs. These efforts
contribute to business growth and to making Amazon’s services more attractive to
workers and, in turn, more attractive to target consumers based on corporate or brand
image.
1.2. Industry and competitive characteristics
Porter’s Five Forces Analysis of Amazon
- Threat of New Entrants
Amazon has a wide range of businesses. The most revenue-generating of them is
Online Video Streaming, e-commerce marketplace and Cloud Service provider, and
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hence this analysis will primarily focus on the major businesses. None of these
businesses has a significant effect of economies of scale on reducing the costs based
on mass production. Hence, this factor does not provide a significant entry barrier.
Customers might face switching costs since the streaming and AWS businesses
have one-time payment plans. However, there is no considerable switching cost for the
marketplace businesses and hence does not provide a significant entry barrier. Coming
to capital requirements, since the marketplace business is an aggregator business, there
is no primary capital requirement for starting on a small scale. However, the cloud
business needs upfront capital for setting up the storage and infrastructure
requirements. The same applies to the streaming business, which requires significant
upfront capital to buy movie rights and other licenses and set up the infrastructure.
Finally, Amazon and its major competitors like Walmart, Azure, etc. (for the
streaming business) provide an incumbent advantage of a well-built brand name. They
hence can provide a considerable entry barrier for any new entrant in the market.
- Threat of Substitutes
The e-commerce business faces medium to high threats in terms of the availability
of substitutes
Customers who prefer to try out the products before purchase may prefer offline
stores. Further, the customers may also prefer to buy from independent brand websites
which pull customers by providing exclusive site or app discounts. Coming to the
streaming business, the major substitutes include movies in theatres or any other mode
of entertainment for that matter and hence, it can be deduced that the threat of
substitutes is high.
Moreover, when it comes to the e-commerce business, there is no cost of switching
to a substitute if we ignore the minor transportation cost, they might accrue for
purchasing from offline stores. Similarly, for the streaming business as well, there are
multiple media potential customers can switch to as a source of entertainment with
minimal to no switching costs. Hence, largely the threat of substitutes is high in the
businesses Amazon is in.
- Bargaining Power of Customers

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 The bargaining power depends on a large number of factors like the concentration
and size of purchase, product differentiation, switching costs etc. We will look at
Amazon’s e-commerce, streaming and cloud service businesses from all these aspects.
In the e-commerce business, the customers can be widely varying. Due to the large
pool of products on the website, the size of purchase can be small to large. But due to
the large volume of customers, there is no major buying power and losing few
customers does not really cost them much. Furthermore, there are no switching costs if
the customer wants to opt for a substitute or a competitor. The products are largely
undifferentiated, and they do not offer in a niche category, which provides additional
buying power to the consumers. However, there is scope of backward integration as
well, i.e., consumers buying products directly from the sellers instead of using the
Amazon platform. Hence, overall the bargaining power of customers is a strong force
for the e-commerce business.
However, the AWS business is largely B2B and caters to large businesses and the
size of purchase can be in millions of dollars, and that too on a subscription basis.
Hence, the customers have considerable buying power in this regard.
- Bargaining Power of Suppliers
Looking at the streaming service, there are largely two suppliers, the streaming
infrastructure is built on top of AWS, which is an amazon subsidiary and hence no
bargaining power. However, the content is provided by a range of production houses,
and amazon might have to fight with competitors for streaming rights. A lot of content
is also original content, produced by Amazon, and hence in this case as well, the
bargaining power is limited but considerable.
Coming to the e-commerce platform, there are some big suppliers who might hold
considerable power over the company, by denying them rights to sell on their
platform, e.g., Apple. However, for majority of the other suppliers, there is almost no
bargaining power over Amazon.
- Competitive Rivalry
For the e-commerce business, Amazon faces considerable threat from giants like
Walmart, Alibaba etc. With the push towards omni-channel retailing, companies like
Walmart are integrating their brick-and-mortar stores with online shopping for an

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enhanced customer experience. Further, the number of direct and indirect competitors
is huge. The competitors can range from similar giant e-commerce businesses to small
brick and mortar stores and even small vending machines.
With a projected CAGR ranging from up to 15% in some middle-eastern countries
to as low as 4% in countries like UK and France, there is possibility of stiff
competition from rivals to capture market share in saturated markets.
For the streaming business, there is major threat from well-established competitors
like Netflix, Disney+, Hulu etc. Currently it is roughly 71 billion USD industry
worldwide. In the US market, Amazon Prime holds a market share of 25%, next only
to Netflix with a 30% market share. These companies face intense competition from
regional video streaming services like iflix and tencent video for market share.
There are exit barriers because of the intense infrastructure requirements and
upfront capital needed to source content for the services.
2. Customer strategy
2.1. General
Amazon was founded by Jeff Bezos on July 5, 1994, in Bellevue, Washington. The
company started out as an online distributor of books but later expanded to sell
electronics, software, video games, apparel, furniture, food, toys, and jewelry. Over
the course of Amazon's existence, they have come up with pretty clear customer
experience strategies. It should also come up with pretty clear concepts if you look at it
from all business perspectives and perspectives. All areas of products and services that
Amazon is providing are aimed at the enjoyable experience and comfort of customers
when using services from Amazon. Since then, they have used technology and human
resources to serve the customer service strategies they have set standard goals for both
now and in the future.
This focus on customer experience has positioned Amazon as an experiential
thought leader in the field of e-commerce. However, whether due to declining
customer service, ever-higher customer expectations, or a combination of the two,
caused by a global pandemic - notably, 2020 is the time Amazon's ACSI customer
satisfaction rating first dropped below 80 since launch. Furthermore, it has dropped
from 79 to 78 in 2021.

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 Figure 1. U.S. customer sastisfaction with Amazon.com from 2000 to 2021
Amazon has been at the forefront of innovating several of its purchases, with all its
options designed to get products from the company's warehouses to their customers'
doorsteps without spending a fortune. any effort to go buy the right item that serves
their desire. The main goal here is customer choice - whether the customer is making a
selection, deciding to buy or not, or wants to return a product, the experience of the
customer's shopping behavior is irrelevant. Too much effort, every purchase becomes
simpler – this is what customers are willing to give their loyalty in return.
2.2. Customer choice
Amazon has been at the forefront of innovating several of its purchases, with all its
options designed to get products from the company's warehouses to their customers'
doorsteps without spending a fortune. any effort to go buy the right item that serves
their desire. The main goal here is customer choice - whether the customer is making a
selection, deciding to buy or not, or wants to return a product, the experience of the
customer's shopping behavior is irrelevant. Too much effort, every purchase becomes
simpler – this is what customers are willing to give their loyalty in return.
Trends to buy products from Amazon
It is no secret that Amazon has changed the way consumers make purchasing
decisions, providing them with enjoyable shopping experiences and serving exactly
what they want. The form of research and choice research of consumers of the age of
the shopper that Amazon does with a single click. Many customers objectively
evaluate that they find Amazon's purchasing system very professional and convenient.
They don not even have to think about going back and forth checking order prices,
availability or shipping options, all the process is automated. As long as they like

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something, just buy it with one click, do a quick registration and that order will be
shipped the next day for free and the customer is real.” addicted” to this strategy of
Amazon. That is the strategy of “Amazon Prime” – an optimized ecosystem for
automated buying behavior.

Figure 2. Amazon Prime

The majority of consumers (89%) are more inclined to buy products from Amazon
than other e-commerce sites based on ninety-six percent of all Prime members
agreeing with this. This is an outstanding number in this step of Amazon. While many
other brands have come up with a compelling value proposition to entice customers to
shop directly on their website, most brands face a serious dilemma. if they treat
Amazon as a pure competitor. Amazon used to be mainly where customers went to
find some products for less than in-store purchases. Amazon is a convenient place to
shop because today they have familiar shipping addresses, payment methods and
search interfaces – it is a fascinating place to shop and despite all the controversy of
Amazon, it remains a trusted place to shop for most customers when shopping here.

Figure 3. I Am More Likely to Buy Products From Amazon Than Other E-Commerce Sites
Amazon Prime customers are loyal customers
The Feedvisor survey shows that of all Amazon Prime subscription-owned
consumers, nearly half (48%) of customers buy products online once a week or make
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purchases on a regular basis. more and nearly three-quarters (74%) shop online at least
once every few weeks. After a shopper has signed up for Prime, with the values and
benefits that Amazon Prime brings to customers, it is highly likely that this strategy
will bring them back to shopping on Amazon as a priority choice. head. The survey
shows that Prime eligibility provides purchasing decision information for the majority
of consumers. More than two-thirds (approximately 67%) of consumers say Prime
elements are an important factor when choosing products on Amazon, meaning the
majority of consumers filter individually for items. Prime when shopping on the
platform.

Figure 4. How Often Amazon Prime Members Buy Products Online

Amazon is indispensable during the shopping journey
Amazon is now the go-to place for consumers at all stages of their buying decision
– this is evident from research reviews and price tests to the purchase decision.
customer's end. Additionally, two-thirds of respondents (66%) typically start searching
for new products on Amazon, compared to one in five (20%) who start searching for
that product on a search engine like Google. , Bing,…

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 Figure 5. Where Consumers Start Their Search for New Products
And when consumers are ready to buy a particular product, about 74% go directly
to Amazon without going through any other website.

Figure 6. Where consumers go when they are ready to buy a specific product
Displaying products is now a familiar concept for retailers — and it is a pretty
important and highly promising step, shoppers can research products on the showroom
floor. Amazon's display when they were walking around and accidentally came across
their store. This is Amazon's brand presence, they hit the product layout more eye-
catching to reach some customers and this can increase sales through other channels.
2.3. Amazon customer characteristics
Everyone knows Amazon is one of the biggest players in the e-commerce market.
It is not surprising that they have segmented a large number of customers that are
relevant to their stated goals. In each segment category, we will see Amazon's specific
criteria and target segments set forth very clearly and completely.

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By geography

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 - Region: Amazon has been covering more than 100 countries around the world.
- Density: both urban and rural.
By demographics
- Age: 18 years old and up.
- Gender: Male and female.
- Occupation: students, office workers and even retired people.
By behavior
- Benefits: products are diversified, convenient and competitively priced.
- Personality: approachable, has a lot of options and is very decisive.
- Consumption status: potential, first time customer, normal and old customer.
According to psychology
- Social class: middle, working and upper class.
- Lifestyle: love to explore, yearn, like change and have a distinct style.

Figure 7. Amazon Consumer Segmentation

2.4. Segment granularity
Today, more than 65% of Amazon shoppers pay to become an Amazon Prime
member. In the United States alone, this number represents more than 153,000,000
people. In other words, nearly two out of three adults in the country qualify for an
Amazon Prime membership. This paid subscription service costs $6.49/month or
$12.99/month depending on the different levels of offers on the plans and includes
some benefits like music and video streaming , free two-day shipping and exclusive
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offers. Naturally, Prime members tend to shop and spend more on average than non-
Prime members. In 2019, Prime members spend an average of $1,400 per year
compared to non-members $600 per year. Among prime members, 20% shopped a few
times a week, with 7% of respondents saying they shop almost daily. By category, the
most popular item segments sold on Amazon include electronics, clothing,
shoes/jewelry, home appliances, and kitchens.

Figure 8. U.S. Amazon Prime Households from 2017 to 2021

On average, the shoppers who spend the most on Amazon are aged 30-39. They
tend to be college-educated, married, married, and with an annual household income
of $84,449. For such buyers, the primary motives for shopping on Amazon are low
prices, free shipping, and the ultimate convenience. This is good news because it
paints a fanciful picture of who the typical Amazon customer might be. Since
Amazon's goal is to connect buyers with sellers, the release of Amazon Brand
Analytics to brand owners opens up a whole new world of possibilities when it comes
to marketing and sales. targeted. Additionally, the Amazon Demographics report
shows that brand owners analyze their Amazon customers aggregated by age,
household income, education, gender, and marital status. This information allows us to
assess the need and success of targeted marketing campaigns and make product
category decisions based on demographic customer penetration.

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 Figure 9. The number of age using Amazon.com
II. Value creation process
1. Value customer receives
1.1. Value proposition
Amazon’s three value propositions:
- Low prices
- Fast delivery speed (often same day and with options of free 2-hour delivery)
- Vas selection (“Earth’s biggest selection”)

Figure 10. Amazon Value Propositions

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 However, looking at these three consumer benefits, we can say that Amazon’s
greatest value proposition is convenience because the audience understands that, with
just the help of a device connected to the internet, they have access to the product
catalog of the largest retailer in the world, with a reasonable price and an agile, safe
and reliable delivery service.
1.2. Value assessment
Amazon is to give customers the best experience:
- It is easy to buy. A few clicks in the app and the customer are done. If customers
know exactly what they want, they can order in less than 30 seconds without
disrupting their entire day. Amazon is not the only online retailer, but most don not
make it that easy.
- Saved checkout options, free fast shipping means less hesitation and less likelihood
of cart abandonment.
- Back to that free shipping issue - customers can order at the store they visit
frequently when they even have a break in their schedule to go to the store.
- Their marketing automation suggests additional products to bundle before you even
complete your purchase.
- It is usually risk-free because Amazon offers free returns with free shipping.
- Tons of reviews to ease concerns of those trying to make big buying decisions
without a sales rep.
- The wide range of customer choices makes Amazon the right place for almost
anything.
Amazon removes all the barriers of ordering online and makes it a good
experience. Now, where Amazon can not compete in many cases, is quality. Amazon
has many categories but not necessarily depth in options (not in all categories,
anyway).
2. Value organization receives
2.1. Acquisition economics
Acquisition strategy by Amazon

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 Amazon focuses on customers’ overall shopping experience, whether it’s the
existing customers or the new ones. Some of the following acquisition and customer
retention strategies from Amazon are:
- Build a website that is easy to navigate and checkout without much hassle. An e-
commerce platform should be user-friendly and updated.
- In case a developer adds new features to the website, make sure they are not too
complicated for the users, or it will ultimately affect the user base.
- Users must find the available items on the product lists, and checking out after
buying the product or returning the product should not be much difficult to use.
- Amazon’s website is user-friendly, and anyone can use it without much hassle. The
website should easily track the product return.
- Amazon keeps updating its customers about products by emails and registered
phone numbers. These are some of the methods you must follow to retain your
customers and make it suitable for new users.
Results that Amazon achieved
As of January 1, 2017, 3.3 million new sellers have entered the Amazon
marketplace worldwide – the equivalent of 3,718 new sellers every day. In which,
Americans, British and Indians account for more than half of these new sellers.
According to the analysis, more than 1 million people have entered the e-commerce
market in the US, followed by India with 400,000 new sellers and the UK with
300,000.
Amazon currently has 16 markets: USA, Canada, UK, Germany, France, Italy,
Spain, India, Japan, Australia, China, Brazil, Mexico, Turkey, UAE and Singapore.
For marketplace sellers, total product sales totaled $118.57 billion, up 25.2% from
$94.67 billion in 2016. There are over 5 million sellers across all of Amazon's e-
commerce channels.
There are 1,761,784 sellers whose products are listed. More and more sellers on
the Amazon marketplace have bases located in China or Hong Kong. But recently,
under the impact of Covid 19 and many other factors, this trend has gradually shifted
to Southeast Asia, including Vietnam.

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 1,029,528 new sellers joined Amazon in 2019. That equates to 2,975 new
sellers every day. So far in 2019, 400,703 new sellers have joined Amazon.com.
112,623 new sellers have joined Amazon.in and 80,046 new sellers joined
Amazon.co.uk.
2.2. Retention economics
Retention strategy by Amazon
Understand your target audience – The best example would be, suppose a large
section of your audience stays in a colder region. You can display apparel best suited
for winters.
The Analytics reports of navigating and shopping patterns of users of a specific
area will help you (sellers) to ascertain which products to put on display on the online
portal.
Suppose most customers from a specific location buy books rather than other
items; then Amazon will mostly show books on their product listing page in that
particular area. Amazon uses this strategy to understand its customers.
Personalize consumers’ experience – Amazon makes it a point to personalize
consumers’ experience by providing them with products according to their previous
buying behaviour.
It is a significant step that helps Amazon to convert potential users and retain the
existing ones. Amazon provides offers and discounts according to consumers’ buying
patterns.
Therefore, it is crucial to understand your customers. Tools like Monetate can help
to suggest items to consumers as per their needs. It provides a personalized experience
to users.
Understanding FOMO – FOMO stands for Fear of Missing Out. It is a
psychological marketing strategy to grab consumers’ attention.
The process makes a product appear exclusive and tempting enough so that
consumers feel an immense need to buy the product.
On special days, festivals, Amazon uses this technique to grab customers’ attention.
Prime day sales, exclusive offers, limited offers for prime members, Festive offers,
and so on are strategies implied to stimulate customers’ minds, so they get the fear of

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losing the opportunity of buying an exclusive product on a good deal. You can use this
strategy for your e-commerce website.
Maintaining relations with potential users– At first, many visitors usually visit
the e-commerce website to get answers about a product. A visitor tries to find the
price, quality and availability, and other specifications related to the item.
And in such cases, there is a seldom chance that they would buy any item.
Therefore, communicating with such visitors once in a while by email, telling
them about their searched products weekly or monthly, and informing them about new
offers on the searched and related products may strengthen the bond.
Amazon is efficient at handling visitors. They keep communicating with the
visitors once in a while with a personalized email about the searched products.
Results that Amazon achieved
Amazon has many shortcomings: products are not cheaper than competitors. But
most of all, the giant knows how to entice and retain customers thanks to Amazon.
build a synchronous system.
"Amazon makes consumers believe that they can find and buy things quickly on
its platform," Mr. Kaziukenas said.
Amazon has developed a delivery system that is far ahead of its competitors.
Packages ordered on Amazon can be delivered to customers within the same day, in
line with the trend of online shopping in the current internet-dominated era.
In addition, Amazon also knows how to retain customers with services like
Amazon Prime membership cards. Consumers who sign up for this service will receive
many special offers when shopping on Amazon. If you have trouble shopping, you can
also easily get help.
Surveys show that new Prime members who use Prime Video during the trial
period convert more than members who do not use the subscription. This means that
many integrated services help generate new sales, but it also helps convert members
and retain them in the long run.
Prime members spend an average of $1,300 per year, twice as much as regular
users. In particular, every 100 Amazon users will have at least 63 Prime members,
bringing this giant $ 3.4 billion a year when the number of subscriptions surpassed the
100-million-mark last year.

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 According to CitiGroup: "Prime membership will grow 35-40% annually, and in
10 years Amazon will have 275 million loyal customers."
3. Customer segment lifetime value analysis
3.1. What is CLV
Customer lifetime value (CLV, also known as CLTV) is the total estimated net
profit that a business will earn per customer throughout their entire relationship.
CLV is distinct from other customer-centric metrics like the Net Promoter Score
(NPS), which measures customer loyalty, and the Customer Satisfaction Score
(CSAT), which measures customer satisfaction. While the other metrics measure
intangible benefits, CLV is linked directly to revenue.
3.2. Profit that Amazon achieves per customer
Ecommerce giant Amazon may do its best to please every customer, but there is
one customer segment it pays extra attention to: Prime members. No, it is not just
because Prime members pay for fast shipping and free returns. It is because Prime
members spend $1,340 annually – more than twice as much as non-Prime members.
Factoring in the average amount of time Prime members stay with Amazon, the
customer lifetime value (CLV) of a Prime member is $2,283 compared to $916 for
non-Prime members. Knowing this, Amazon can redouble its efforts to retain existing
Prime members and convert new customers to Prime.
III. Multi-channel integration process
Multi-channel integration in eCommerce is the process of connecting different
systems, channels, or platforms involved in your eCommerce strategy with one
another, to streamline the flow of data coming in and out of these systems and to
provide a coherent and consistent shopping experience for customers.
What is Multi-Channel Fulfillment?
MCF fulfills a seller’s eCommerce orders, giving customers the trustworthy
Amazon shipping experience, they have expected, even when shopping on eCommerce
channels outside Amazon. It is a streamlined and efficient way for businesses of any
size to stay ahead of their competitors by enabling a world-class fulfillment network,
operational expertise, and fast ship speeds, all of which improve the customer
experience.
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 MCF picks, packs, and ships orders either by using existing inventory — if the
seller has an Amazon store — or by using inventory that the seller stores in an
Amazon fulfillment center, ensuring customer satisfaction with each delivery.
Why Multichannel Integration is Important for eCommerce
Multichannel integration is a vital step for any business that wants to grow.
Multichannel listing offers a few attractive advantages online retailers cannot ignore.
Multichannel sellers interact with a huge number of customers
By creating an account on a marketplace like Amazon, which has almost 200
million monthly visitors, you can reach a broad audience.
When selling on your online store, you can market your products only to
customers that have found your online store. At the same time, marketplaces attract
more visitors due to the diversity of presented products. For example, you can buy
almost anything on Amazon, from books to gadgets and clothes. It results in more
product views and potential customers you can interact with.
Multichannel integration is a sure way to increase revenue
Marketplaces offer not only a greater product and brand visibility but provide an
easy way to increase revenue. When you sell products on your website, you need to
dedicate time and effort to marketing, SEO optimization, and promotion to make your
store visible in search results. When you list your products on a marketplace like
Amazon, you automatically get access to millions of customers who might be
searching for the products you sell. It creates unlimited opportunities for you to sell
more and earn more.
Fast fulfillment and delivery of products
If you want to be an omnipresent brand, it is important to provide your customers
with fast order fulfillment and delivery. For example, Amazon offers the Fulfillment
by Amazon (FBA) option. The marketplace owns thousands of fulfillment centers
which Amazon sellers can use when they are participating in the FBA program.
Products in the FBA category are available for customers with Amazon Prime
shipping (2 Days, Next Day, Same Day delivery). With your store, it is quite
challenging to provide the same customer experience.
1. Physical
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 Because Amazon first started as an e-commerce channel, in recent years, the
business has expanded its business model through physical stores such as amazon go,
amazon fresh, and amazon style. This amazon physical store system also has
differences from competitors when they apply technology almost completely in the
purchasing process and perform optimal customer service.
1.1. Salesforce
Multichannel selling is a popular business approach among eCommerce
companies.
It is a practice of offering products on various platforms and marketplaces, like
Amazon or eBay. The primary goal of operating on multiple sales channels is to scale
your business and reach more potential customers. Multichannel integration is
beneficial both for customers and merchants. Shoppers get a chance to buy products on
the platforms of their own choice, while merchants reach a wider audience and
increase their revenue.
Salesforce Service Cloud Voice (SCV) natively integrates Amazon Connect into
Salesforce to deliver a new contact center solution that brings together voice
conversations, digital channels, and CRM data in real-time.
Voice transcription from Amazon Connect empowers agents and supervisors to
view call and CRM data side-by-side in the Service Cloud console. With pre-
integrated cloud telephony, automatic speech recognition, and sentiment analysis from
Amazon Connect inside the leading customer service platform, SCV simplifies
omnichannel routing for phones and other communication channels, helping Agents
resolve issues in record time and deliver more personalized customer service.
To begin with, Amazon Connect is an omnichannel cloud contact center service
that enables entities to provide better customer service. In other words, Amazon
Connect deploys various methods of communication including chat and phone.
Through such, the platform enables customer service representatives to respond to
inquiries from end customers. Notably, the innovation was inspired by Amazon's retail
systems and encounters in their niche within the business environment. As explained
in Amazon Connect Reviews & Product Details, the entity needed a platform where
they could provide a seamless experience across different media and essentially

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connect the customers to their service agents. In that regard, Amazon Connect
furnishes customers with personal, dynamic, and natural experiences through an
organized cloud contact center infrastructure which connects its huge customer base to
agents as if it was set up and managed inside their physical stores.
Justifiably, Amazon Connect is currently a top vendor of cloud contact centers that
serve millions of customers. The vendor’s key selling points are that it; features a set
of tools for skills-based routing, offers thorough-going real-time and historical
analytics, and also provides a simple yet effective intuitive management tool. To
crown it up, Amazon Connect services are propped through an attractive pricing style–
pay-as-you-go. In detail, the software is fashioned to support session routing,
concurrent calling, session queuing, speech analytics, and persistent data, among
others. Further, Amazon Connect enables the connection of parties through Voice,
Web Chat, Social, and Mobile SMS. Plus, the platform also offers strategic
administrative functions which entail, among others, session summary notes, reporting
and dashboard, and session recording. All in all, Amazon Connect offers a variety of
features as availed through a friendly interface that incorporates artificial intelligence.
Cumulatively, these factors leverage Amazon Connect as a formidable cloud contact
center service provider.
1.2. Telephony
Amazon Web Services (AWS) is a cloud computing platform developed by
Amazon. The first AWS services were launched in 2006 for websites and applications.
Amazon Web Services includes storage, databases, analytics, networking, mobility,
tools, and enterprise applications.
Cloud computing is a term that refers to a system that stores and accesses data
over the internet but does not store any data on the hard disk of a personal computer at
all. The data and services delivered in the cloud data center are scalable and accessible
on any device or location. Some of the "big guys" in this industry are Google,
Microsoft, Yahoo, IBM, and Amazon.
1.3. Direct marketing
The quintessential information for any successful business is knowing who their
target audience is, what they want to buy, and how much they are willing to spend.

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Amazon has had great success in targeting its audience. The market is for people of all
ages and suggests new products that each customer might be interested in. Without
information systems Amazon could not successfully target items for each customer,
making their shopping easier and more enjoyable.
Amazon offers many great services such as emailing customers (if they sign up)
about awesome weekly deals and suggesting products that are similar or go along with
their purchase.
Amazon has developed its own information system that holds all of its customer’s
information, making it easy for Amazon to compare its info to other customers. This
allows them to create emails with the best deals for the most popular products which
are sent to their customers each week or every day. It is hard to find a lot of
information about the information systems Amazon created because it is kept a secret,
so other businesses do not use the same system.
Amazon’s direct marketing is so advanced that they see what their customers are
searching for, offer products that are the same or similar, and send you emails when
the price changes for an item you have been eyeing up! Without information systems,
Amazon would not be able to track/view what customer wants, give them related
products, and send out mass emails with deals for items customers want most!
2. Virtual
Electronic commerce
What makes Amazon successful?
Amazon is well-known for its organizational efficiency and a broad range of
goods and services. Let us have a look at seven key lessons you can learn from
Amazon to make your retail business even more successful.
Personalized shopping experience
Amazon is at the zenith of success now due to providing each customer with a
personalized shopping experience. The eCommerce leader uses a customized approach
to address the needs of the customers, making them feel special and giving focused
attention.
By carefully analyzing the customer browsing and purchase history and shopping
behaviors, Amazon shows related items, a history of the products they have recently

25
viewed, and recommendations for new purchases. Effective use of eCommerce
analytics helps Amazon advertise more products, sell more items, and personalize
customer shopping experiences.
Amazon takes personalization further by notifying customers if a chosen product
is available. It prevents customers from adding products to their shopping cart only to
discover at checkout that they cannot get them.
A customer-focused approach
One of the reasons why Amazon is so successful is due to its customer-focused
approach, in every step of the buyer’s journey, no time is wasted: customers are given
what they want right away.
Amazon has always worked hard on making things as seamless and user-friendly
as possible. From the moment you land on Amazon’s homepage, everything from the
right to the left corner is easy to navigate and dedicated to meeting all your needs.
Everything Amazon does have a customer-oriented strategy, so it is no surprise
that Bezos delivered books to the local post office on his own when the company just
started the way to e-commerce dominance. Thus, when Amazon started looking at
expanding its offerings, it decided to send an email to 1000 random customers and ask
Testings
Many websites neglect to test the features of their stores and, as a result, are losing
money. Amazon prides itself on its dedication to testing. Amazon runs 200 tests each
month and tests every feature of their business, from product selection to checkout.
Amazon always tests your products regularly. For instance, conduct A/B tests by
selling limited edition products to get customer opinion and send surveys to evaluate
the user experience in your online store. Based on the given data, it is easier to create
innovative products, features, and services.
Review on products
Nobody wants to make a purchase without knowing what he/she is buying.
Customers usually rely on someone else’s experience and buy items with more
positive reviews than negative ones. Research shows that 45% of customers read
reviews before purchasing.

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 Surely, Amazon is also a pioneer here. The company was one of the first on the
market to introduce a review system on its website in 1995. Since that time, they have
improved and added new features to the review system. When a new feature (“Was
this review helpful?”) was implemented to their review platform, Amazon started to
earn $2.7 billion every year.
Another crucial aspect of Amazon’s review strategy is that they use solicit reviews
for each product separately. The majority of companies send emails asking for reviews
of all purchased products together. Amazon sends different emails for different
products, even if you bought several products at the same time. Therefore, if a
customer liked or disliked a particular product, he/she will most likely click on the
email notification, rather than the generic email.
Outstanding customer service
Amazon is a leader in the eCommerce industry in providing excellent customer
services. Amazon is aware of the particular needs of different demographics and goes
to great lengths to fulfill them with new features. Amazon concentrates on making
millions of global customers happy with affordable prices, free shipping, a broad range
of products, on-time delivery, and great customer support
Because of its commitment to preventing and promptly addressing customer
problems, Amazon has developed a variety of helpful tools to track packages and
swiftly return or exchange ordered products.
Social networking is another powerful tool that Amazon adopted to engage with
customers and enhance the quality of its customer service. Done properly, social media
channels can help your retail business address consumer concerns and increase
customer loyalty.
Loyalty programs
Amazon introduced Amazon Prime in 2005 and positioned it as a paid
membership service. Prime has evolved since then and now offers multiple advantages
such as special discounts, quicker delivery, cloud storage, reduced or free shipping
rates, cheaper prices; unlimited access to various online movies, TV shows, music
streaming service Amazon Music, and Kindle lending library.

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 A crucial aspect of all of these benefits is that they are ongoing. Instead of giving
customers one-time perks for every purchase, Amazon provides its loyalty members
with a whole reward ecosystem. The loyalty program does a great job of attracting
visitors to the eCommerce store and encouraging them to buy something.
Constant innovations
Innovation is the keystone of Amazon. Amazon’s eCommerce strategy largely
derives from its innovative technologies and practices, the majority of which were
initiated by Jeff Bezos. Amazon regularly updates the system and introduces new
concepts to customers.
Amazon keeps progressing in its commitment to trying new things. The company
always thinks of innovative ways to keep their customers happy. Whether it’s by
introducing features like product reordering or access to new movie programming as
part of Prime membership, Amazon is always searching for new possibilities to
evolve.
Bottom line
With a win-win mindset and open arms for new ideas, Amazon experimented and
learned lessons over time to become an e-commerce giant. Amazon’s business success
story speaks all about the eCommerce company’s ability to create customer loyalty,
launch new products, provide an outstanding user experience, and eagerness to keep
innovating.
Launching a web store that will become Amazon’s competitor is not a month-term
business. It requires much time and detailed analysis before making the first step. Are
you ready to become a #1 world online retailer? Leverage the lessons mentioned in
this article and you do not have to wait years to see results but boost your growth right
now.
IV. Performance assessment process
1. Shareholder results
1.1. Employee value
The effective use of human resources

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 One of the key factors to Amazon's success is the effective use of human
resources. Therefore, the company always creates a supportive working environment
for the development of all employees.
Based on peer-reviewed research, Amazon launched a project to improve the
reliability of the company's human resource data and put the information in order.
Ensure that such a data system can help the company find good leaders and “put the
right people in the right jobs”. The company believes that "only a good human
resource can create good values".
Initially established, the company focused on talented and talented engineers in the
city of Seattle, where there is a high level of human resources that are quite abundant.
With the talent and talented management of Bezos, the point of staff management is to
create a link from managers to employees. The company trains employees in two
directions:
- Half of the staff will negotiate with publishers, book wholesalers as well as
warehouse owners.
- The rest will take care of finding sources of consumption by advertising programs
or building software to consume goods online.
In the recruitment stage of the company, the company always pays attention to the
ability, even if it is manual labor. The company always recruits people who are
passionate about the profession and have a long-term commitment to the company.
New employees are encouraged that with solid numbers, they can still surpass the
judgment of former employees.
- Employee ownership: Amazon finds people with a desire to take the lead in
creating new experiences for customers and engages them by giving them
ownership of the stock policy.
- Go beyond the boss's authority: Employees are encouraged to make decisions
without asking permission from their boss.
Style "no high-level management delegation"
With a new management decentralization method, using competent people,
applying science and technology in business, Jeff Bezos has built up the "Amazon
legend"; creating a new business model in the science and technology economy.

29
 According to Bezos, an effective leader who does not spend time at the grassroots
level will not be able to keep up with reality, and therefore the thinking and
management process will be far from reality. Amazon's style is not to delegitimize a
high degree of management where Bezos will be involved in almost all stages. He is
an active recruiter. He hired people to teach the staff. These training courses are not
intended to help Amazon quickly increase sales of books sold online, but Bezos uses
these training courses to help employees "think big" and innovate continuously.
Bezos' interest in innovation is a particular strength of the CEO. Amazon set up a
contest for employees called "Just do it", whereby the winners are employees who
contribute to the company without the approval of the CEO. Bezos' goal is to
encourage people to be proactive with their work.
1.2. Customer value
Deliver better personalized experiences
Today’s customers expect a personalized experience when they are shopping. An
effective personalization operating model, featuring eight core elements, can help
retailers and brands keep pace. As the ruler of large, pure-play, online retailers,
Amazon has used sophisticated analytics to shape its personalization efforts. Over
time, Amazon has expanded its personalization program to show customers products
that are often purchased with the item they are viewing, display items that can be
bundled with products in a customer’s cart, and recommend additional products in the
emails it sends to confirm transactions.
Amazon continues to raise the personalization bar with ever-more-granular, -
innovative offerings to individual customers. For example, Amazon Prime Wardrobe
has recently launched a personal shopping service exclusively for Prime members.
Customers complete a survey about their styles and fit preferences, and a team of
stylists provides personalized recommendations from more than half a million items
across brands. Amazon will probably continue to lead innovation in personalization,
but other, smaller retailers—with far less sophisticated systems—are setting new
standards, too.
Amazon has tried to use personalization to "build tailored stores for each
customer." Each customer will have a personalized website based on their recent

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shopping. Amazon also sends personalized emails and coupons to customers who have
not visited the site in a while. These coupons and e-mails are personalized using the
individual customer's profile and a summary of the customer's recent purchases. In
addition to personalized recommendations, Amazon has tried to maximize profits by
product bundle. For example, when a customer clicks on a book of interest, an
additional book will pop up and Amazon will offer additional products at a discount.
Bezos believes in personalization and branding as a key element of his business model.
He once said "It's like in brick-and-mortar retail. If a merchant knows your tastes, he
can tell you something interesting is coming and he believes you might want it". With
the use of personalization and product packaging, Bezos managed and used the web as
a vehicle to deliver products from a large retailer to a small customer.
Increase customer engagement
One of the best things about shopping online is that you can access a wealth of
information to learn about the product you are considering. Amazon.com provides you
with this information in the form of recommendations, detailed descriptions, and user
review pages. For most of the music and video CDs in the database, Amazon includes
accompanying demonstration clips. In addition, Amazon also provides information to
customers in the most complete way, in the form of sharing experiences of the
community (those accessing the network and customers). These communities, such as
Listmania (the discerning shopper) that encourage people to exchange information and
experiences in buying and selling, are ideal places for online customers to meet each
other and share their understanding of issues of mutual interest.
With Amazon.com, you have a way to reward your loved one by making it
possible for them to shop at a discounted price. Every time you buy a book, music, or
DVD at Amazon.com, you can mail it to your friends and Amazon.com will deduct
10% of the price of the book if your friend buys exactly what you bought. If anyone
buys one of your purchases, you will also receive a discount on your next purchase.
Personalize every touchpoint
Amazon takes advantage of its existing database of customers who have transacted
on Amazon to sell directly to each person's preferences. Those who have ever
purchased goods through Amazon know that the company sometimes sends letters

31
offering similar products or products they have searched for and researched on
Amazon. The company also sends out invitations to customers to comment on
purchased products.
1.3. Shareholder results
Amazon is quite large with a market capitalization of 1.8 trillion USD. Therefore,
we will see the names of institutional investors on the register. Companies of this size
also often win the hearts of retail investors. Looking at the data on shareholder groups
below, it seems that institutional investors are actively buying shares of this company.

Figure 11. Amazon's shareholders

Amazon has institutional investors, who hold a large portion of the stock here.
This shows that Amazon is trusted by many institutional investors. However, this
should not be relied on alone. Institutional investors are sometimes wrong. It is not
uncommon for stock prices to plunge when two institutional investors sell at the same
time.

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 Figure 12. Amazon earnings history
Institutional investors own more than 50% of Amazon shares. Therefore, they
have great influence on the decisions of the board of directors. Hedge funds do not
have any major investments in Amazon.com. Jeffrey Bezos is currently Amazon's
largest shareholder with 10% of shares outstanding. The second and third largest
shareholders own 6.5% and 5.6% of Amazon's outstanding shares, respectively. 25 of
the top shareholders own less than 50% of the shares. Thus, no individual has a
majority interest.
In general, it is a positive thing for insiders to hold a large amount of shares.
However, sometimes this makes it more difficult for other shareholders to hold the
board accountable for their decisions. The data shows that insider shares at Amazon
Inc. at a reasonable level. Amazon has a market capitalization of just $1.8 billion, of
which $184 billion worth of shares are in the hands of insiders.
1.4. Cost reduction
According to Ms. Priya Lakshmi, Head of Startup Business of AWS (Amazon
Web Services) ASEAN region, the biggest barrier for startups is always cost.
Understanding this, AWS is always committed to support to make cloud computing
the best environment for start-ups.

33
 "Our infrastructure allows customers to expand and increase flexibility with just a
few mouse clicks. AWS has been with us from the beginning to help startups get
operational efficiency early on on the startup path," Ms. Priya Lakshmi said.
Thanks to this transformation, startups can access the necessary resources, meet
the ability to test many times without requiring a large investment in the server or
wasting the investment if the idea does not work.
In addition, AWS solutions also help startups free up resources, focus on top
priorities to better serve customers, build a balanced workforce, and solve security
problems. information confidentiality, a requirement that always requires the
investment of both resources and capital for every business.
For example, the company Intercom has implemented AWS Management and
Governance services to replace various manual processes, allowing them to gain
visibility and control of their AWS infrastructure.
Brian Scanlan, Principal Systems Engineer says that using AWS Systems
Manager has saved hundreds of engineer hours per year by fully automating patch
management and automatically fixing broken hosts. They use Amazon CloudWatch
for day-to-day autoscaling, as well as resource utilization management and tracking.
With AWS CloudTrail, they can audit logs for changes, allowing them to meet
compliance requirements. Using AWS Config, they can easily visualize and navigate
timelines of configuration changes in our environment. Overall, the Management and
Governance services have allowed them to establish secure management at scale while
saving costs.
2. Performance monitoring
2.1. Standards
Standard CRM is a powerful and secure app providing you the tools to organize,
synchronize and automate your customer relationship management processes for any
business and industry.
With Amazon, the checkout process is easy. This is Amazon's biggest strength that
few people notice. Amazon's focus is on the customer experience, which has helped
them outperform other online retailers.

34
 In particular, Amazon has invested time and money to build an internal software
system to help support business needs in a specific and detailed way. That is Amazon's
CRM system.
From the CRM system, Amazon can actively capture customer data, all customer
purchases are stored and analyzed carefully. Since then, Amazon has continued to
provide an accurate and streamlined buying journey for their customers. With just a
few clicks, Amazon can access all previous orders, track a customer's parcel, or update
a customer's information. All the above operations are intelligently operated
automatically.
How is Amazon's CRM system used?
Amazon's CRM system, like most other CRM systems, has to collect and process
huge amounts of data every day. The system will continuously collect information
through customer search behavior. From there, the system will censor and mine data,
list customer needs. Whatever the customer is looking for / deciding to buy or not to
buy is an act of providing information to the CRM system. This information is then
analyzed and used to tailor the customer experience on Amazon, helping to provide a
better service.
Deals and promotions suitable
To be able to buy something at Amazon, you need to set up a personal account.
Through your account, Amazon will track your purchases and your browsing history.
This information makes it easy for them to tailor email and marketing campaigns
based on the needs you have and your consumer behavior.
Besides, you can store payment details and personal information in your own
account. This will help you pay faster on your next purchase. With Amazon's CRM
system, whatever the customer wants, is just a click away.
Give suggestions to customers
Another great thing about Amazon's CRM system is the product
recommendation/recommendation feature. Anyone who uses Amazon regularly will
notice that Amazon constantly recommends products that customers might be
interested in, based on previous purchases. Most recommendations tend to be quite
accurate based on the customer's transaction history. Cleverly offering sweet

35
temptations without putting pressure on customers is the secret to helping Amazon
make billions of dollars a year.
Amazon is one of many good examples of pioneering the application of
technology to business activities. That has proven, if you use a good CRM system,
your business will change in a positive direction and ensure success. A CRM system
with the goal of putting customers at the center, making them feel important will bring
better results for the brand development process. And CRM24 is always ready to
listen, accompany the business you choose and build the best and most suitable CRM
software.
2.2. Satisfaction measurement
Amazon focuses on one simple measure of customer service quality: helpfulness.
They regularly interact with customers through non-intrusive and easy-to-use
satisfaction surveys . The surveys are an effective tool for building sales and turning
customers into loyal enthusiasts. Analytics are at the heart of the company’s success
with surveys acting as a critical tool for understanding the customer experience.
Customer service at Amazon is not designed to simply field complaints and queries,
but is an opportunity to improve the company’s relationship to its customers.
The company has made an art of finding new and better ways to improve customer
experience, some of which include:
 Offering fast, hassle-free ordering and delivery.
 Using data to personalize, helping shoppers in real time with product selections
based on browsing and buying history.
 Going out of its way to help customers get the best deal.
Bezos declared early on that Amazon would not simply sell stuff but “help
customers make purchase decisions.”
This attitude led to the key differentiator of allowing customers to post book
reviews and, eventually, reviews of the entire range of products offered on the web
site.
Feedback is placed directly on the product’s page and users are provided with
multiple ways to parse the information to their liking.

36
 While customer reviews are seen everywhere today – Yelp, Uber, TripAdvisor –
Amazon was the first to display such reviews, creating a more transparent e-retail
space with two key benefits for the consumer:
 Prior to customer reviews, internet shoppers were essentially shopping in the dark,
but thanks to Amazon the customer has readily available knowledge with which to
make purchase decisions.
 Manufacturers are now held even more accountable for the quality of their
products, knowing that customers are sharing everything with one another.
People like to know they are not being pushed into a decision, rather they are
happy when provided with all the information so they can make their own decision and
it is your job as a company to help them with that, as Amazon did.
2.3. Result and KPIs
What is KPI in CRM?
A CRM Key Performance Indicator (KPI) is a standard measurement used to
evaluate the process of delivering satisfaction to all of the customer needs from your
organization. KPIs can be set up across key activities that are critical to the satisfaction
of the customer.
Amazon KPI: Amazon Key Performance Indicators (Amazon KPIs) include
conversion rate, shopping cart abandonment rate, associated shipping rate trends,
competitive price trends.
Amazon Key Performance Indicators, better known as Amazon KPIs, are defined
as quantifiable measures that are used to determine how well a company is performing
in different aspects of the business in comparison to the goals that are set. For an
Amazon seller like you, there are more than a few Key Performance Indicators
(Amazon KPIs) that should be tracked since the success of your business depends on
identifying them and paying careful attention to what they are telling you.
Amazon Key Performance Indicators (Amazon KPIs) are part and parcel of
virtually every online business. Simply put, Amazon Key Performance Indicators
(Amazon KPIs) assist in determining progress over a set period against established
benchmarks. The information provided by these Amazon Key Performance Indicators
can then be used to get fully aware of the outcomes and thereby develop and
37
strengthen pre-existing key areas of performance and work towards better
performance.
What to expect from Amazon Key Performance Indicator (Amazon KPI)?
Amazon Key Performance Indicator (Amazon KPI) spells your Ecommerce
Success. Your E-commerce goals and Amazon Key Performance Indicators (Amazon
KPIs) should be strategically aligned to convert more customers and drive higher
profits. This is the success mantra to work smart to sell more.

 It is the best idea to reduce Product Sales lost due to out-of-stock. Amazon Key
Performance Indicators (Amazon KPIs) include current inventory, Estimated Lost
Sales (Units), Avg. Unit Sales per Week, Sales Rank to name a few.
 Sincere efforts should be made to boost sales in a planned way. Amazon Key
Performance Indicators (Amazon KPIs) include daily sales, conversion rate, site
traffic.
 Increase Buy Box Wins consistently and progressively. Amazon Key Performance
Indicators (Amazon KPIs) include Amazon Feedback rating, customer service
metrics, Late Shipment Percentage, Refund Requests.
 Increase conversion rate in a planned way and try to reach the optimum output.
Amazon Key Performance Indicators (Amazon KPIs) include conversion rate,
shopping cart abandonment rate, associated shipping rate trends, competitive price
trends.
 Increase Amazon Feedback rating percent depending upon the number of customer
inquiries. Amazon Key Performance Indicators (Amazon KPIs) include the number
of times you have late shipments, the total number of customer service inquiries,
Feedback score tracking.
 Work towards reducing customer service calls by half in the next 6 months.
Amazon Key Performance Indicators (Amazon KPIs) include service call
classification, identifying pages visited immediately before the call, events that
lead to the call.
V. Information management process

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 Information Management Process: Also known as “Data Repository”, this process
supports other processes and includes IT systems, analysis tools, customer contact
applications. and applications in rear parts.
1. IT systems

Figure 13: AI

IT systems: Amazon uses artificial intelligence (AI) technology. AI is being studied

for effective application. Right from the time you visit the Amazon.com website, AI has
appeared to assist users. A powerful search engine thanks to AI completely understands
what the user is looking for, And from there, the shopping suggestions appear
immediately according to the system for users to choose. However, it does not stop
there, with its superior artificial intelligence system, Amazon also surprises people in the
process after the order is created until it is delivered to the customer. Everything is
dominated, analyzed and performed by AI.
Specifically, through the website, the AI that helps Amazon record all the activities
you perform on the Amazon platform, such as click history, items you viewed, even how
long you stayed at one. product page. From that information, Amazon will proceed to
promote the products you are in demand. If you do not believe it, then surf a few
products on Amazon and then go back to the search bar, the product will display similar
to the products you viewed, from which Amazon has collected customer information.
2. Analysis tools

39
- For Amazone interaction analysis used: Amazon Athena: Query data in Amazon S3
using SQL( Structured Query Language). Amazon Athena benefits:
 Start querying immediately: Athena doesn't need a server. You can quickly query
data without having to install and manage servers or data warehouses. Just point
at your data in Amazon S3, locate a schema, and start querying with the built-in
query editor. Amazon Athena allows you to manage all of the data in S3 without
the need to install complicated data extraction, transformation, and loading
processes.
 Open, robust, standard: Amazon Athena uses Presto with the support of ANSI
SQL (American National Standard Institute / Structured Query Language) and
works across a variety of standard data formats. Athena is great for interactive
queries and can also handle complex analysis, including join operations, window
functions, and large arrays. Amazon Athena has high availability; and query using
compute resources on multiple sites and devices in each facility. Amazon Athena
uses Amazon S3 as the underlying datastore, making your data highly available
and durable.
 Fast, very fast: With Amazon Athena, you don't have to worry about having
enough compute resources for fast, interactive query performance. Amazon
Athena automatically executes parallel queries, so most results will be obtained
within seconds.
- To analyze Amazon operations use: Amazon OpenSearch Service:
 The benefits: Amazon's OpenSearch service provides real-time, secure real-time
search, monitoring, and analysis of business and operational data for use cases
such as application monitoring, analytics. recording, the ability to observe and
search web pages.
- For big data processing: Amazon EMR: Running open source big data framework.
Benefit  Amazon EMR:
+ Build the application using open source frameworks, with the choice of running on
custom Amazon EC2 clusters, Amazon EKS, AWS Outposts, or Amazon EMR
Serverless.
+ Up to 2X faster insights time with API-compatible and performance-optimized
Spark, Hive, and Presto versions.

40
 + Develop, visualize, and debug your applications easily using EMR Notebooks and
familiar open source tools in EMR Studio.
3. Front-office applications
Feedback Genius tool: Help products get more positive feedback: It is a tool that
automatically connects with customers after they receive a product. It will send
them a polite request for them to leave a response. Feedback Genius is specifically
designed for Amazon sellers. It automatically sends emails to customers, so they
have more time to build their branding. 

Figure 14: Amazon feedback genius tool

The Amazon Pinpoint tool expands capabilities by making it easier to run targeted
campaigns to drive user engagement in mobile apps. Amazon Pinpoint helps to
capture user behavior, identify your target audience, identify the message to send,
schedule the best times to deliver the message, and then track your campaign
results. Benefits of the Amazon Pinpoint tool:

Figure 15: Amazon Pinpoint

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  Powerful application analytics: Amazon Pinpoint collects information about
customers' app usage patterns, as well as information about the devices they use
and any other customization features you define. .
 Reach customers globally: Send messages to customers using the communication
channels they prefer to use. You can send emails to leads as well as push
notifications directly to your mobile app users. You can also send text messages
to customers in over 200 countries around the world, from Afghanistan to
Zimbabwe.
 High Reliability: Amazon Pinpoint runs on very reliable Amazon Web Services
infrastructure. Redundant multiple data centers and systems ensure the highest
level of availability.
 Cost savings: Pay as you go and pay only for what you use. There are no upfront
fees, no set costs, and no minimum fees. Target 1,000 customers, track 100
million app events, and send 1 million free push messages every month.

4. Back Office Application

FreeRTOS, SiteWise, Device Management, and Things Graph provide a powerful set
of capabilities for developers to create industrial data monitoring applications from
advanced devices. technology, sensors, and other sources, using Amazon AI's advanced
analytics and services to provide predictability

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 REFERENCES

1. A Strategic Framework for Customer Relationship Management. (n.d.).

Cornelissen.Marketing. Retrieved June 19, 2022, from

https://www.cornelissenmarketing.nl/wp-content/uploads/2017/09/3.1-Payne-

Frow-2005.pdf

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