The future of retail and service industry bound to CRM Big Data. The profit is promising. However, it requires a custom and automatic CRM system to carry out marketing activities.
The Taiwan Non-Store Retailer Association held a “Non-Store Industry” forum. The former executive Dean Zhang Shanzheng said that the future of the retail industry rely on big data and artificial intelligence. CRM Big data understand the preferences and interests of customers, which is the key to success.
Let me share the experience of Amazon.
One-Click Buying, First Step of Managing Big Data
One-click buying is the technique of allowing customers to make purchases with the previously saved payment information. It does not require the shopping cart software. Users have no need to input billing information such as address every time. Instead, users can purchase with the predefined credit card and delivery address. This is quite simple and common these days, but the concept was not popular back in 20 centuries.
The technique was introduced in late 20 centuries. Amazon applied for the patent of one-click buying in 1999. Apple purchased the license from Amazon in 2006. The patent was finally expired in 2017.
Amazon.com is guidance in collecting, storing, processing and analyzing personal information from every customer. The One-Click Buying allows Amazon saving a large amount of customer’s data and purchase history. They analyze the data to capture the customers’ profile.
They use predictive CRM system for targeted marketing to increase customer satisfaction and customer loyalty. Big Data is being adopted in the CRM system, which helps Amazon evolve into a leader among online retail stores.
The Features of CRM System
Amazon developed a CRM system which included a personalized recommendation system. The system analyses purchase history, wish list, reviewed, rated list and search history. The purpose of the system is to recommend other products, which mostly related or interested the customers.
For example, if you add a DVD movie to your online shopping cart, other DVD movies will also be recommended. This feature generates 35% of the company’s sales annually.
Amazon added a new module to their CRM system. Amazon’s anticipatory shipping model use big data for predicting customer’s most interesting products. It predicts the revisit time and when the customers might need the products. Those products delivered to a local distribution center and warehouse, therefore, they would be ready for shipping. It increases Amazon’s profit while decreasing its delivery time.
Price Optimization Module
The module monitors user’s activity on websites, competitors’ pricing, order history, expected profit margin and etc. Prices are set according to the above factors. Prices change every 10 minutes as big data is updated and analyzed. As a result, Amazon offers the best competing discounts on their hero products.
Remember, One-Click Buying and the CRM Big Data concept introduced in the ’90s. It is 2018 now and if you did not invest in the CRM system, you should better get on with it ASAP!