Amazon`s Big Data Strategy
| Case Code: ITSY077 Case Length: 15 Pages Period: 2003 - 2013 Pub Date: 2014 Teaching Note: Not Available |
Price: Rs.400 Organization: Amazon Industry: E-commerce Countries: US Themes: Big Data, Analytics, Market Research |
Abstract Case Intro 1 Case Intro 2 Excerpts
Introduction
Leading e-commerce company Amazon.com, Inc. (Amazon) and its subsidiary Zappos were ranked among the top ten retailers in the National Retail Federation Foundation/American Express Customers’ Choice Awards for two years (2010 and 2011) in a row. Industry observers felt that the coveted recognition was the result of Amazon’s use of its big data resources to provide superior service quality. Right from the time it had emerged as a dominant provider of Internet services in the early 2000s, Amazon had started to focus on big data to improve its performance. Along with many other major Internet companies, it realized the importance of big data in the early 2000s, and had since then, focused on properly utilizing the huge databases of people who were shopping on its e-commerce portals.
Amazon leveraged its big data sources to give its customers good product recommendations and thereby improve the relationship with them. It utilized its big data resources to meticulously upgrade its famed customer recommendation system. Data on past purchases made by customers was used to give them highly customized product suggestions. Analysis of past customer data also helped Amazon in giving suggestions to new customers who were buying from its portal for the first time. Big data helped Amazon in developing 360 degree customer profiles and to create hyper-personalized marketing messages regarding the products based on the needs and preferences of individual customers.
On the customer side, Amazon also utilized its big data resources to improve the quality of its customer care. Easy access to the profiles of customers and their past purchasing/browsing habits made it easy for the company’s customer service executives to provide quick solutions to the complaints of customers. The acquisition of Zappos by Amazon in the year 2009 further facilitated the use of big data in improving customer service quality. Big data resources were also put to some innovative uses like checking fraud at the organizational level.
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