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Customer Relationship Management of Ebay

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Customer Relationship Management – An insight into eBay Plus

Term Paper for “Customer Relationship Management”

Winter Semester 2015

Lecturer: Prof. Dr. Schallehn

Raghu Vinod

MA 15 in International Media and Marketing

Student-No. 1155800002

Table of content

List of Figures:        i

List of Tables:        ii

List of Abbreviations        iii

Chapter 1: Strategic CRM and Impact of Loyalty on CRM        

1.1 What is Strategic CRM?        

1.2 Concept of Loyalty and its role in Strategic CRM        

Chapter 2: Loyalty Programs and their effect on Consumer Activity.        

2.1 What are Loyalty Programs?        

2.2 Design characteristics of a Loyalty Program        

Chapter 3. eBay Organization background and eBay Plus        

3.1 eBay’s operating model and revenue stream        

3.2 eBay’s new loyalty program – eBay Plus        

3.3 Advantages for targeted segments through eBay Plus        

3.4 Is the design of eBay Plus efficient and effective?        

3.5 Potential challenges and improvement for eBay Plus        

Chapter 4. Competitive advantage through eBay Plus        

4.1 What is Competitive advantage?        

4.2 eBay’s competitors        

4.3 VRIO concept on eBay Plus        



List of Figures:

Figure 1.1: Satisfaction Profit Chain

Page 3

Figure 3.1: eBay revenue stream – Marketplace segment

Page 9

Figure 3.2: eBay revenue stream – Payment segment

Page 10

Figure 3.3: eBay revenue stream – Enterprise segment

Figure 4.1: Context in which Competitive Strategy is formulated 

Page 11

Page 20

List of Tables:

Table 1: eBay core competencies and VRIO

Page 24

List of Abbreviations


Business to Consumer


Consumer to Consumer


Customer Relationship Management


Loyalty Program


Value, Reliability, Imitability, Organization

Chapter 1: Strategic CRM and Impact of Loyalty on CRM

1.1 What is Strategic CRM?

Strategic CRM is a customer centric methodology that aims to keep its loyal customers by creating and delivering better value than its competitors. Buttle (2009, pp. 28-29) defines Strategic CRM as “a set of activities that provides a single view of the customer across all contact channels. In a customer centric culture, businesses allocate resources where they would best enhance customer value and reward systems in order to promote


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