Knowledge Exchange Project: Amazon Delivery Customer Loyalty Impact

This report, focused on the Knowledge Exchange Project for a BA (Hons) in Business Management, investigates the impact of customer loyalty on Amazon's delivery services. It begins with an overview of Amazon, its business model, and the identified issue of maintaining customer loyalty in the context of its delivery operations. The project aims to analyze how delivery practices affect customer loyalty, outlining research objectives, questions, and rationale. The report includes an extensive literature review, exploring the importance of customer loyalty, its impact on sales and brand reputation, and the role of loyalty programs. It identifies issues such as inaccessibility, confusion in loyalty programs, lack of unique customer relevance, and unappealing rewards. The report concludes by recommending strategies for Amazon to mitigate these issues, including understanding customers, offering discounts, and using customer feedback to improve services. The report's structure includes an introduction, literature review, and reflection, aiming to provide a comprehensive analysis of customer loyalty within Amazon's delivery system.

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

found that surprise rewards are considered as the major important loyalty program as per the
29% individuals. However, majority of the people consider that free shipping is a crucial
program so that more and more customers get attracted towards the offerings of the company.
Issues regarding consumer loyalty that Amazon has faced in their business
As per point of view of, Belleghem (2014), Loyalty programs are considered as one of
the significant strategies of marketing, promoting and advertising the products or services so that
customers can be retained for longer duration. It allows the entity to gain competitive advantage
significantly. Therefore, majority of the business entities are likely to incorporate ample of
loyalty programs with an aim to attract more number of customers in an efficient manner.
However, sometimes, these programs could not generated the expected outcomes. The foremost
and major issues with loyalty programs is inaccessibility. Customers are unable to participate in
such loyalty programs that are nor accessible to them. Even company is offering a great loyalty
program but customer will not return if, the program is not accessible. Hence, it is imperative to
develop such a loyalty program that can be access by all at any point of time. Also , Amazon
faced issues of confusion. Here, loyalty programs such as rewards points or special discounts
have been in business practice for last several years. It shows that the target audiences are quite
familiar to the rewards they are getting. However, the companies add several additional rules and
offers multiple compensation without giving any sort of clear instructions. By avoiding such type
of confusion, it is possible to keep the loyal customers stick to the organization for longer
duration. In this situation, creating a guide will help in providing clarity to the potential buyers in
significant manner.
The other issue of customer loyalty is lack of unique relevance to customers. To keep the
customer loyal, it is imperative to provide them unique experience so that they stick to the
products or services being provided by the company. If customers are not loyal, they will keep
saying that the products or services of the organization cannot fulfill their requirements. In
context of Amazon, they face the issues in terms of providing unique relevant experience to the
buyers. Besides this, people often get bored while they use same thing again and again. In case of
loyalty programs, offering the similar types of rewards again and again minimized the interest of

buyers significantly. Here, they easily get bored with same type of rewards over the period of
time and may get off from business. Therefore, it is really imperative to assist the customers to
come out from this boredom through an appropriate loyalty program. Here, it is imperative for
Amazon to offer variety of loyalty programs (Bruneau, Swaen and Zidda, 2018). Sometimes,
loyalty programs are not able to gain the attention of buyers as the programs feel unappealing to
attract new buyers. If loyalty programs are not appealing, they might fail easily. In the present
competitive environment, it is quite complex to work with pre-defined stereotype loyalty
programs. In case of Amazon, they are also facing issues of unappealing loyalty programs that
will put a major impact on the loyalty of existing & potential buyers in significant manner.
Recommend the strategies that help Amazon to mitigate the consumer loyalty issues in their
business
As per point of view of Woodland (2022), it is found that Amazon is facing ample of
issues in terms of maintaining high loyalty level among buyers. They can easily deal with such
issues by adopting certain effective strategies that will prove helpful in terms of improving the
overall customers loyalty significantly. For this purpose, Amazon needs to know its customer
first. For this purpose, they need to conduct an analysis based and try to collect more and more
information regarding the buyers. This information will assist them to structure suitable
strategies to attract high number of customers who will stay in the organization for longer
duration. To deal with the customer loyalty issues, Amazon needs to offer high discounts to the
potential buyers. Here, discount offers are important to gain the attention of consumers
significantly. Rewards also play an important role in maintaining long-term relationship with
buyers so that they do not switch to the other competitors. Also, ensure to add expiration date of
reward program to stimulate customers to take instant actions. This type of strategy will not only
encourage the buyers to buy products instantly but also stimulate them to stay in the company for
longer period of time.
Customer feedback is highly imperative to improve the practices of the entity. By
accepting feedbacks, the entity can easily improve the overall products or services so that more
number of buyers gets attracted towards the organization (Bombaij and Dekimpe, 2020). In
reference of Amazon, feedback received from the buyers will make the entity enable to improve
their overall offerings with an aim to get better outcomes in future period of time. Therefore,

following such strategies will allow the organization to deal with the issues of customer loyalty
potentially.
Project Methodology:
Research methodology is an important part of the research report. This is an important
section that is related to collect, evaluate and interpret the data & information in an efficient
manner. In this context, research onion model is followed. Here, different elements of research
onion are mentioned below:
Research philosophy: It is the first crucial element of research onion framework that
refers the believes and assumptions of researcher regarding the specific research topic. There are
two types of research philosophies are followed by the researcher such as interpretivism and
positivism. In context of present project, positivism philosophy has been followed as it is based
on analyzing the available data in numerical manner to get authentic results in future period of
time.
Research Approach: In context of research methodology, the second part is research
approaches that are important to complete the research project in an efficient manner. To address
the research problems, two approaches are used such as deductive and inductive (Alkhalifah,
2017). According to the present investigation, the researcher has chosen deductive approach as it
is useful in terms of identifying relationship between two variables. Also, this makes the
researcher enable to generate appropriate results for future betterment.
Research Strategy: This is one of the significant layers of the research onion framework
that is used in order to conduct the overall research in systematic manner. This is used to guide
the researcher to choose right path for collection & analyzing the data properly. During
completion of research project, there are ample of strategies are followed such as case study,
survey, questionnaire and more (Arstein-Kerslake and et. al., 2020). In case of current
investigation, the researcher has been used survey strategy as it is useful in gathering huge
amount of information within limited period of time to complete the research project in

successful manner. This is the best suitable method in order to analyze the method in quantitative
manner.
Research Design: Research design is a crucial way that also assist researcher in
collecting, analyzing and interpreting the information in appropriate manner. The major research
designs are experimental, descriptive, explorarty and more. In present situation, there is use of
exploratory research design as it mainly focuses on resolving the research questions in an
effective manner. This also helps in effective and appropriate completion of the project work.
Research Choice: Here, an appropriate choice has made so that the entire project can be
completed in significant manner. It is majorly divided in two methods such as quantitative and
qualitative. In reference of quantitative method, there is use of numerical data & information as it
helps in getting authentic results in significant manner (Pettey, Bracken and Pask, 2017). Further,
there is use of statistical and numerical tools so that appropriate results can be gathered whereas
qualitative method is based on collecting in-depth and detailed information regarding the topic.
Quantitative method has been chosen in present context as it helps in gathering and analyzing
numerical data in order to get appropriate outcomes in future period of time.
Data collection: Data is an important part of the overall project. To collect necessary
amount of data, it is important to follow suitable method. Primary and secondary methods are
considered as the major sources of data collection (Lourie and Rata, 2017). In present context,
the data has been gathered from primary sources. Here, data has directly been gathered from
respondents. Primary data is raw and first handed that further help in getting authentic results
significantly. Also, secondary data has been gathered from different sources such as websites,
publications, articles, books and more.
Sampling: Sampling is crucial to conduct a research study significantly. Probability and
non-probability are two major sampling methods (Larshin and Lishchenko, 2018). In present
context, probability sampling method has been selected as it is helpful in getting authentic and
fair results. For present study, there has been selection of 20 employees of Amazon. These
samples have been selected using probability method as it helps in getting fair results in an
efficient manner.

Ethical consideration: To complete a research project successfully, it is important to
follow necessary ethical principles. Here, following ethical principles is crucial to conduct the
research in a systematic manner (Volkova and et. al., 2018). For this purpose, numerous ethical
principles are followed by the investigator such as confidentiality, anonymity and more.
Research keeps the data of respondents confidential for getting authentic results.
Time Horizon: To complete the research study in timely manner, it is important to
determine time period efficiently. Here, time horizon is crucial with an aim to complete the
research project successfully. In present situation, the researcher has been set pre-defined time
period with an intention to complete the study successfully. In this regard, Gantt chart is given
below:

WBS:
WBS is an important project management tool that is used with an aim to divide the
entire project into smaller components. The main aim of WBS is to simplify the complex project
so that the entire research work can be finished within timely manner. Creating WBS is useful
classification of various activities and further these activities are assigned to individuals based on
their competencies (Vasiliev, Goryachkina and Budnikov, 2020). By this way, the project
managers can take benefit of skills, competencies and knowledge of different employees for
success of the company. In this regard, WBS is given below: