Impact of Customer Loyalty on Amazon Delivery

IMPACT OF
CUSTOMER
LOYALTY ON
AMAZON
DELIVERY

Table of Contents
TOPIC: IMPACT OF CUSTOMER LOYALTY ON AMAZON DELIVERY...........................................3
Introduction.................................................................................................................................................3
Overview of the company and identified issue........................................................................................3
Project background and business case.....................................................................................................3
Research Project Objectives........................................................................................................................4
Research Aim:.........................................................................................................................................4
Research objectives.................................................................................................................................4
Research Questions.................................................................................................................................4
Research Rationale..................................................................................................................................4
Literature Review........................................................................................................................................5
Reflection....................................................................................................................................................9
References.................................................................................................................................................11

TOPIC: IMPACT OF CUSTOMER LOYALTY ON AMAZON DELIVERY
Introduction
Overview of the company and identified issue
Amazon delivery is a well-known delivery company under the umbrella of Amazon
brand. The respective entity is likely to deliver the products all across the world. It was founded
in the year of 1984 by Jeff Bezos. Amazon is a multinational company of America that is based
on e-commerce, online delivery, digital streaming, cloud computing, artificial intelligence and
more. The main aim of the company is to deliver best possible services to the customers with an
aim to formulate loyalty among buyers in significant manner. Major four principles followed by
Amazon are customer obsession passion for invention, commitment for operational excellence,
earth’s best employer and safest place at earth to work (Amazon| Who we are, 2022). The
organization is growing in line with e-commerce sector and soon will become the largest player
within the industry. Here, the respective global retailer ensures offering speedy delivery to the
customers at lower price within in small country with the help of appropriate infrastructure. The
net income of the respective entity in 2021 was 33,364 billion $ which was 56.41% high than
previous year (Amazon Net Income 2010-2022). The present study is based on loyalty of
customers towards time taken in delivering the products of Amazon. This will cover how the
delivery of Amazon affects the loyalty level of customers for the organization.
Project background and business case
Customer loyalty is really important with an aim to run a business entity successfully.
Loyal customers are likely to visit the organization frequently and also they stay with the
company for longer duration. In addition to this, customer loyalty put a direct impact on profit
margin, sales and revenue of the organization. Therefore, well-planned customer loyalty
programs play an imperative role in retaining the customers, attracting new buyers and driving
more profit in significant manner (Rehnen and et. al., 2017). Additionally, loyal customers are
repeated buyers. Here, increasing loyalty of customers is important from economic view. It is
analyzed that consumer are highly volatile. It is possible to formulate customer loyalty by

maintaining emotional connection between company & buyers. Further, a loyal customer is
likely to suggest others to buy the products of the company. By this way, a loyal customer acts as
an ambassador of the organization that helps in driving more revenue & profit in significant
manner. This is a crucial reason to invest in customer loyalty that is helpful in terms of acquiring
more & more buyers. In the current competitive environment, it has become quite complex to
maintain loyal customer base. The present study is based on impact of customer loyalty on
Amazon Delivery. The study will help in terms of analyzing how customer loyalty affects the
operational practices of the respective entity.
Research Project Objectives
Research Aim: The aim of current project is “to analyze the impact of customer loyalty on
Amazon Delivery”.
Research objectives
 To define the importance and the impact of the consumer loyalty in the case of the
delivery system of Amazon
 To identify the issues regarding consumer loyalty that Amazon has faced in their business
 To recommend the strategies that help Amazon to mitigate the consumer loyalty issues in
their business.
Research Questions
 What is the importance and the impact of the consumer loyalty in the case of the delivery
system of Amazon?
 What are the issues regarding consumer loyalty that Amazon has faced in their business?
 What are the recommend the strategies that help Amazon to mitigate the consumer
loyalty issues in their business?
Research Rationale
In the present era, customer loyalty is imperative in order to earn significant amount of
profit. If the customers are loyal, they are likely to stay with the company for longer duration.
Loyal customers visit to the organization frequently and also suggest others to buy the products
from respective entity. The present study is based on analyzing the loyalty level of customers in

context of Amazon. The study will prove helpful in terms of developing significant knowledge
base regarding the significance of customer loyalty. Here, information gathered through the
report will help researcher in terms of formulating strategies regarding enhancement of customer
loyalty in significant manner. In personal context, the report will allow the researcher in terms of
developing significant knowledge & skills like communication skills, presentation skills,
research skills, data analysis skills and more to grow in future career.
Literature Review
It is about including the thoughts, opinion, perception of other researchers who have been
conducted research on the similar topic previously. Here, LR is an important part of the entire
project report as it is useful in terms of developing significant knowledge base on specific topic
which further assists the researcher to conduct the research study in profound manner. The
present project is based on customer loyalty of Amazon.
Importance and the impact of the consumer loyalty in the case of the delivery system of
Amazon
Loyal customers play an important role in growth of the organization as they profoundly
affects the sales, profit, brand reputation of the entity. It is monitored that loyal customers do not
only purchase the products but also spread the positive aspects of such product. Also, they
promote the products or services through word-of-mouth. Here, word-of-mouth marketing is
highly persuasive. Majority of the people are likely to believe on the saying of their relatives.
Besides this, loyal customers have believed in the organization hence, they do not shy to share
their positive feedbacks with other buyers. Further, It is analyzed that consumer are highly
volatile. It is possible to formulate customer loyalty by maintaining emotional connection
between company & buyers (Ramaseshan and Ouschan, 2017). Further, a loyal customer is
likely to suggest others to buy the products of the company. By this way, a loyal customer acts as
an ambassador of the organization that helps in driving more revenue & profit in significant
manner. Here, customer loyalty is an emotional conception between the brand and its buyers.
When customers are loyal, they visit to the company more often (Hollebeek, Das and Shukla,

2021). It makes the business entity enable to get the personal credentials of the buyers that might
further use in order to structure suitable strategies of growth and brand enhancement.
Figure: Leading benefits motivating customers to invest in or renew program loyalty programs
in the United Stated as of March 2021
(Source: Klaviyo.com, 2022)
From the above-chart, it is analyzed that there are ample of loyalty programs are being
run by the company. It is important to understand the significance of each and every loyalty
program for the benefit of the organization. As per 16% buyers in-store experience is an
important loyalty program that is useful to gain attention of potential consumers. Also, 21 %
individuals consider that personalized offers are important so that more and more buyers get
attracted towards the products or services. It s monitored that as per 29% individuals holiday
discounts is a crucial program with an aim to gain attention of buyers potentially. Further, it is