Abstract

The case discusses customer service at US-based e-tailer, Amazon.com, Inc. (Amazon). Amazon evolved from being just an online bookstore into one of the largest e-commerce platforms in the world where customers could find and discover anything they wanted to buy online in a more convenient way. Customer service, loyalty, and customer retention were the three important aspects of Amazon's service culture. Experts were of the opinion that over the years, the customer base of Amazon had increased significantly due to its high levels of customer service. In addition to consumer customers, Amazon offered marketing and promotional services for third-party retailers and web services for developers. It allowed third party vendors to sell their products on its website. The case outlines the customer-centric philosophies of Amazon and discusses the various customer programs undertaken by Amazon. The case discusses the importance of customer experience at Amazon and describes the focus of the company on three aspects — price, selection, and convenience. Jeff Bezos, CEO of Amazon, invested heavily in building advanced technological infrastructure to serve his customers. He spent huge sums of money on customer service programs, even though this affected the operating margins of the company. The case points out certain issues related to Amazon’s customer service and whether it would continue to disrupt the retail sector with its innovations and customer service. The case concludes by discussing how Amazon had to further improve its customer service as competition had intensified and customers whose support was important were demanding more attention, better quality, and greater value for their money.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Understand the importance of customer service, particularly in the online retail industry.
• Understand various concepts in customer service and customer relationship management.
• Understand how companies can leverage big data and technological and IT infrastructure for better customer service.
• Study the customer-centric philosophies of Amazon, the systems and processes, and how these have contributed to the success of the company.
• Analyze the factors that contributed to a strong customer service culture at Amazon and how some of the negative aspects associated with its customer service can be improved upon.

Keywords

Customer service,Customer Relationship Management,Customer loyalty,Customer retention,Customer-centric philosophies,Customer service culture,Customer obsession,Customer satisfaction,Innovation,Technological infrastructure,IT infrastructure,Big data