Impact of Customer Relationship Management on Amazon UK Sales

This project investigates the impact of Customer Relationship Management (CRM) practices on the overall sales of Amazon UK. The study begins with an introduction to the research background, organizational context, rationale, aims, objectives, problem statements, and research questions. It explores the concept of customer relationship management, examines various CRM theories and models like the IDIC Model, and analyzes the ways in which Amazon UK sells products. The research employs a mixed-methods approach, including descriptive analysis, regression, and correlation to analyze data from Amazon UK's annual reports. The findings reveal the relationship between CRM strategies and sales volume, with recommendations for further research and practical implications for businesses seeking to improve their CRM practices and enhance sales performance within the e-commerce sector. The project uses statistical tools like SPSS for data analysis and includes a comprehensive literature review, research methodology, findings, discussion, and conclusion, along with personal reflections.

TO REVIEW THE IMPACT OF CUSTOMER
RELATIONSHIP MANAGEMENT PRACTICE
ON THE OVERALL SALES OF AN
ORGANIZATION: CASE STUDY OF AMAZON
UK

ACKNOWLEDGEMENT
Firstly, I would give thanks to my tutor for supporting me with the motivation to complete
the project with success. Then I would like to special thanks in particular to my
supervisor and also to as well as, who provided their valuable guidance and helped me
to patch this project. Their suggestions and instructions have served as major
contribution in order to complete the project. I am so thankful to all those people who
have given me provision, guidance as well as much needed motivation so as to
complete the current research study. This includes support from my team members,
family and friends who helped me in all possible accords. This led to successful
completion of dissertation and achievement of relevant results. With all the support
given by these people who have immensely helped in developing my understanding and
knowledge of the topic selected in the dissertation.

ABSTRACT
Consumer relationship management will reflect benefits in raising the operational
identity and gains for the long-term operations. In the present era, there has been rise in
online trading activities as it is more convenient to consumers. It impacts entities as per
having increment in the revenue generation as well as gains for adequate control and
profit making. There will be influence of various thoughts which were being presented
by several authors. Moreover, out of such debates, there will be determination of
effective conclusion. Thus, it will be helpful to the scholars in analysing current issues
and implication of CRM techniques, which will have positive impacts in enhancing their
knowledge. Research study will be based on various techniques and data set which
were to be analysed and determined to have the appropriate solution to the research
issues. In the present study, in analysing the CRM approach to the operational
influences in Amazon there have been implication of various factors. In the present
study, interpretivism philosophy has been selected and analysed by the researcher
which will aimed at facilitating the appropriate determination to the facts. There will be
implication of deductive approach which in turn represents a more reliable statement
based on the reviews of participants that will be helpful in drafting a logical answer. In
the present study, there has been use of annual report of Amazon which consists of all
the details relevant with the profitability, liquidly as well as market value of the firm in the
given period. Thus, it will consist of overall information regarding the performance of this
entity over the years. The fact in this report was determined that with a boost to
consumer relation while using different approaches and techniques proved to be boon
for the Amazon. This can be said that with a satisfied consumer a list of new consumers
also gets attached with mouth publicity and the same consumer also visits amazon
again for making the purchase and this lead to the fact of consumer retention.

TABLE OF CONTENTS
CAHPTER 1: INTRODUCTION........................................................................................1
1.1 Research Background....................................................................................... 1
1.2 Organisational background................................................................................1
1.3 Rationale............................................................................................................2
1.4 Aim and Objectives............................................................................................2
1.5 Statement of problems.......................................................................................3
1.6 Research Questions.......................................................................................... 3
1.7 Hypothesis.........................................................................................................3
1.8 Research Structure............................................................................................4
CHAPTER 2: LITERATURE REVIEW..............................................................................6
2.1 Introduction........................................................................................................6
2.2 Concept of customer relationship management................................................6
2.3 Theories and models of CRM approach............................................................8
2.3.1 The IDIC Model..........................................................................................9
2.3.2 Quality Competitiveness Index Model......................................................11
2.3.3 CRM value chain Model...........................................................................12
2.3.4 The Forrester Model.................................................................................13
2.3.5 Conceptual Model.....................................................................................13
2.3.6 The Payne's Five Forces Model...............................................................14
2.4 Ways of Selling Smart Point Device to restaurant business............................16
2.5 CRM in boosting sales volume of online industries..........................................18
2.6 Conceptual framework.....................................................................................20
2.7 Conclusion of literature review.........................................................................20
CHAPTER 3: RESEARCH METHODOLOGY................................................................22
3.1 Introduction to research methodologies...........................................................22
3.2 Research philosophy.......................................................................................22
3.3 Approach......................................................................................................... 22
3.4 Design..............................................................................................................23
3.5 Data collection................................................................................................. 24
3.6 Methods........................................................................................................... 24

3.6.1 Descriptive analysis:.................................................................................24
3.6.2 Regression:.............................................................................................. 25
3.6.3 Correlation coefficient:..............................................................................25
3.7 Data analysis................................................................................................... 25
3.8 Sampling methods...........................................................................................26
3.9 Reliability and validity.......................................................................................26
3.10 Ethical consideration......................................................................................27
3.11 Limitations......................................................................................................28
3.12 Conclusion to research methodology.............................................................28
CHAPTER 4: FINDINGS AND DISCUSSION................................................................29
4.1 Introduction......................................................................................................29
4.2 Results.............................................................................................................31
4.2.1 Descriptive statistics:................................................................................31
4.2.2 Regression............................................................................................... 32
4.2.3 Correlation................................................................................................36
4.3 Conclusion.......................................................................................................38
CHAPTER 5: CONCLUSION AND RECOMMENDATIONS..........................................39
5.1 Conclusion.......................................................................................................39
5.2 Recommendations...........................................................................................41
5.3 Further research methods................................................................................41
5.4 Personal reflection...........................................................................................42
REFERENCES...............................................................................................................44

CAHPTER 1: INTRODUCTION
To review the impact of customer relationship management practice on the
overall sales of an organization.
1.1 Research Background
In the present era, there has been rise in online trading activities as it is more
convenient to consumers. It impacts entities as per having increment in the revenue
generation as well as gains for adequate control and profit making. Present research
project, there will be discussion based on Consumer relationship management in
Amazon with influence of e-commerce. Moreover, this research will ascertain various
trends and terms used for managing relationship with buyers in operations of an
organisation, which will be fruitful in context of resolving problems, bringing
dedication of employees towards work practices. It will also help in bringing
comprehensive planning and executing professional activities.
Along with this, research will be based on aim and various objectives that will
help in bringing in-depth analysis of current issues. In addition, there will be use of
SPSS tool to have effective analysis on gathered data on Amazon from 2000 to
2017. It will include various statistical tests such as descriptive statistics, T-test,
Anova, Regression, correlation etc. Thus, it will analyse current consumer
preferences as well as strengths of business in meeting them. It will help
professionals in analysing preferences and developing relevant strategies in
products, services, pricing as well as in promotional activities.
The main motive of this research project is for analysing the ways to bring
utmost consumer satisfaction. It will be help in determining current trends and
provokes the organisation in terms of bringing qualitative changes in work practices
(O’Beirne and et.al., 2018). Moreover, there will be preparation of research structure
which in turn benefits the researchers in developing framework and making proper
operational control.
1.2 Organisational background
Amazon is known as the best online retail organisation which have the highest
market share in the world in e-commerce segmentation. The consumer retention of
this business is comparatively higher than other competitors stated in the world.
Currently, industry is operating in more than 45 countries which has reflected the
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higher growth of revenue since last decade. Moreover, as per analysis on the online
business of Amazon on which it can be said that, this has been dealing in various
kinds of products such as clothing, accessories, electric goods, food articles, books
as well as various household products (Beke, Eggers and Verhoef, 2018). The rising
trend in online segmentation of the business enhances the operational efficiencies of
the organisation. Amazon itself known as the brand for various commodities and e-
services.
1.3 Rationale
Significance behind this research project will preformed on the basis of
analysing current obstacles and issues faced by online businesses in recent times.
Consumer relationship management is a prime requirement in every organisation
which helps in developing better operational strength. Moreover, this research study,
will bring accurate information regarding the implications of CRM system in business
as well as developing strategies for sound relationship with consumers.
In consideration with operational practices of Amazon, it can be said that there
are various activities which are required to be considered for effective determination
of all operations. However, implicating this system as well as training employees
accordingly will be adequate in bringing higher satisfaction and will result in rising
sales volume of the firm (Casalo, Flavián and Ibanez-Sanchez, 2017). Moreover,
there have been various issues which are associated with sales volume of
organisation due to dissatisfaction of buyers with prices, times frame as well as
product quality. Thus, with respect to such issues, this research will help in
identifying such facts and drafting a valid solution to over-come with these obstacles.
1.4 Aim and Objectives
Aim: To review the impact of customer relationship management practice on the
overall sales of an organization-case study of Amazon UK.
Objectives:
 To explore the concept of customer relationship management for maintaining
B2B relationship.
 To assess theories and models of CRM approach
 To determine the ways in which Amazon UK, will sell Smart Point Device to
restaurant business
 To derive use of CRM in boosting sales volume of Amazon UK
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1.5 Statement of problems
The operational framework of Amazon must be considered which is mainly
known as online business giant in the world. The implication of CRM system in
organisation is quiet mandatory for retaining the potential consumers on longer
terms. However, there has been various obstacles which were being faced by
business in the recent time. Thus, these are mainly relevant with initiating and
executing the CRM system as well as managing the wide spread business (8 CRM
implementation best practices, 2018). In addition, there are several issues which are
required to be addressed by the professionals for better execution and management
of various operations.
There are various issues which are the matter of main concern such as:
 Improper administration of sites as well as centralization of social media
interactions
 Mode of making payments to all articles which were being bought by
consumers
 Time utilisation for transactions such as delivery and payments.
 Employees are unaware with CRM process and lacks to value the existing
buyers.
 Lack of right and accurate solutions to any trade relevant issues.
 Improper sales volume as well as revenue generation of the organisation
which is affecting the financial health of organisation.
1.6 Research Questions
 Explain the concept of customer relationship management?
 How customer relationship program helps Amazon, UK in boosting its sale
volume?
 Describe the use of theories and models of CRM approach?
1.7 Hypothesis
To analyse impacts of CRM in financial or internal health of organisation, there
will be need of having effective analysing on the data set relevant with the business
and its consumer turnover. It will be consisting of various statistical tests such as
Anova, T-test, Regression, Correlation etc. These tests will be accurate in context
with drafting favourable recommendations based on CRM implication and growth of
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firm in the operational advancement. Thus, it will be analysed on the basis of below
presented hypothesis.
Null Hypothesis (H0): There is no mean significant difference in CRM
management and revenue retention of Amazon
Alternative Hypothesis (H1): There is a mean significant difference in CRM
management and revenue retention of Amazon.
1.8 Research Structure
Conducting a research analysis will be based on appropriate planning and
structured details regarding tasks and operations which are required to be covered in
the project. Thus, in accordance with analysing details and presenting a valid
information there will be need of addressing proper details (Ascarza and et.al.,
2017). However, in terms of analysing in-depth research and reach to the valid
information, there have been a presentation for below listed structure. Thus, this
involves all chapters and parts of the research which will be covered in report along
with its proper uses.
Chapter 1: Introduction
This is an initiating part of the research report which is comprised of all
relevant information regarding elements which will be used in the project. Thus, there
has been preparation of aim and objectives to the report which will process the entire
research. Along with this, there will be brief discussion based on the problem
statement which is currently affecting operations of firm. This part of study will also
consider the entire structure that will be based on several chapters with techniques
of analysing research issues.
Chapter 2: Literature review
This chapter of the study is based on generating ideas from secondary
sources and analysing research issues with its pros and cons. There will be
influence of various thoughts which were being presented by several authors.
Moreover, out of such debates, there will be determination of effective conclusion.
Thus, it will be helpful to the scholars in analysing current issues and implication of
CRM techniques, which will have positive impacts in enhancing their knowledge
(Casaló, Flavián and Ibáñez-Sánchez, 2017). Various theories and models will be
discussed which in turn brings accurate analysis over research issues and suggest
suitable techniques for implicating CRM methods in an organisation.
Chapter 3: Research methodology
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To perform a fruitful analysis over environment with consideration of collecting
relevant information, there will be use of specific techniques. There has ben use of
several methods based on philosophies, approaches, design of research. Along with
this the technique for gathering information will be considered and discussed. This is
the main part of research study which brings the overall framework for generate
accurate information through market. It ensures sampling or data analysis methods
on data that will bring accurate determination of facts. It will also bring relevant
information regarding ethical considerations and sources which were being used for
effective analysis and data collection.
Chapter 4: Findings and discussion
In this chapter, researcher will present raw data that will be gathered in
analysis to have concrete solutions to the research issues. It will ascertain various
statistical tests that will be applicable to generated data. Moreover, in relation with
analysing issues and bringing relevant information, on which it is the most important.
Apart from thus, this chapter will draw a valid conclusion and discussion based on
the research issues. Thus, outcomes which were being analysed and derived from
the operations will be supportive and helpful in terms of meeting goals and drafting
strategies to resolve such issues.
Moreover, on the basis of drafted hypothesis, there will be performance of
tests which will bring results that ascertains the acceptance as well as rejection to
hypothesis. These can be fruitful in developing new strategies as well as making
proper changes in operational practices of organisation.
Chapter 5: Conclusion and Recommendations
After completion of all parts such as literature review, methodology, findings and
analysis then drafting of a valid conclusion will be made. Thus, such determination
will benefit researchers in developing valid suggestions or recommendations to the
professionals of Amazon in context with making proper changes in operations. This
chapter will consist of gist of the entire research which will help in developing and
adopting new tactics for further research. The findings and outcomes will be
discussed here in a summarized form. Thus, it will be a specific and brief details of
overall report.
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CHAPTER 2: LITERATURE REVIEW
2.1 Introduction
To make an adequate analysis and influences of secondary research will help
in meeting a valid information. In ascertaining issues, there can be several obstacles
which will be analysed. In this part of research, there will be secondary analysis on
various issues and obstacles that are currently faced by organisations in relation with
CRM implication and management of online operations in entity. Moreover, there
have been debates based on several themes which will be discussed to have
relevant and authentic information regarding current market environment. Along with
this, there will be suggestive increment in the operations of an entity. Influences of
various theories and approaches will help the industry in retaining appropriate gains
as well as redesigning the activities. In order to enhance the CRM practices as well
as bringing several improvement in operation it is necessary that the business must
imply adequate operational variation which will lead it to retain satisfactory success.
2.2 Concept of customer relationship management
According to Xie, Zhang and Zhang, (2014), in relation with manging
operational criteria and meeting the organisation goals, it is necessary that an
industry should have reliable information regarding consumer wants and
preferences. It involves workforce management, analysis over availability of
resources which will be used in developing effective theories and methods. A trained
system will be more effective in analysing needs and wants of consumers. There can
be rise in sales of volume of industry as if professionals must be clear towards their
view point and business goals.
Trainor and et.al., (2014) said that, apart from involving various methods and
technique’s in operations, there will be use of relevant and effective information
which in turn brings ability to the firm for developing strategies and analysing needs
of buyers. Therefore, it can be said that, a firm need to focus on all segmentations or
departments of its operations such as sales, finance, marketing, consumer services
and its operations. There will be balance in work culture for more effectiveness in
bringing better operating profits.
Verma, Sharma and Sheth, (2016) determined that, personalization,
customization and scales for the future will bring ability to consumer in relation with
accessing and making several deals with organisation. It will be effective in bringing
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tailored situation to the business. Thus, potential buyers will have proper attention for
resolving their queries and making proper changes in activities. Soltani and
Navimipour, (2016) said that, a trained workforce will make it easy to establish and
effective CRM system in the organisation. There can be use of various training
programs such as seminars, conferences as well as workshop which will help in
identifying skills, talent and strength of employees for completing duties. Moreover,
there are several operational requirements which in turn will be useful for an entity to
achieve desired growth.
As per view of Hammer, (2015), Online businesses has to be concerned
regarding changing trends, governmental policies, choices, preferences of buyers
which will have positive as well as negative influences on trade practices. Therefore,
taking feedbacks, reviews from buyers will be a proactive approach to get
information regarding current obstacles. It will benefit an organisation in formulating
strategies and making relevant changes in the operational practices.
Grégoire, Salle and Tripp, (2015) ascertains that, if an organisation conduct
survey and marketing campaign on existing consumers which will bring them
detailed information regarding their issues in trading with them. Along with this,
professionals will have time to formulate strategies and techniques to overcome
issues. Implicating CRM technique will be helpful in context with predicting the future
trend as well as demands for a particular product. It will bring ability to make pre
plans and amendments to conduct further business activities.
Li and et.al, (2017) carried out a study that, managing an idol relationship with
potential buyers is more beneficial for the industry in terms of retaining the adequate
returns over their operational practices. There will be fruitful relationship which will
bring appropriate gains and creates unique identity in the market. It will improve the
productivity, sales volume as well as quality of the products and services offered by
an entity. O’Beirne and et.al., (2018) investigated that, CRM practices are to be
based on training the workforce in that manner that they can easily analyze the
buyer’s requirements and bring them satisfactory goods and services. It rewards the
business in context with attaining favorable growth and operational achievements
which expands the industrial operations on higher level.
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