Essays on Customer Relationship Management - PayPal Case Study

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The paper "Customer Relationship Management - PayPal" is a great example of a marketing case study.   With the recent develops in e-commerce, several companies which enable the customer to transfer money, get paid and buy online have been founded. One of the oldest and most reputable companies is PayPal. The company has won several awards for its e-commerce processes. However, there are a lot of customer-related issues which lie beneath the seemingly great company. PayPal was started in December 1988 By Levchin and Thiel. The company started off a Confinity. The main objective of the founders was to create a digital wallet which could be used to make transactions on online platforms.

PayPal came to be in October 1999. This was when a Confinity engineer developed an online demonstration that enabled users to make email payments. As a move to popularize the company, it awarded first time users with $10 upon registration. In November 1999, the company set up the money market fund; a program that gave users the chance of earning dividends on their unused funds in their accounts. On January 2000, the company enabled eBay payments.

This enabled it to ride on the great brand name that eBay had created. Within that period, the number of PayPal accounts grew to 100,000. The number grew rapidly and by March 2000, it was slightly above 1 million. In the same month, Confinity merged with X. Com, taking up its name. The 1st customer service center of the company was established on April the same year at La Vista Nebraska. The company discontinued its Palm Pilots on August 200 and focused on building its online business which was more profitable.

By then, PayPal had 3 million users. In 2001, X. Com took up the name PayPal officially. The company also focused on countering fraud that was associated with online transactions. In 2002, PayPal offered its initial public offer and its stocks rise by 54% during its first trading day. During the same year, there were calls for eBay to merge with PayPal and on October the same year, eBay Inc. acquired PayPal. The company started offering Euros and pounds transactions in October. With the launching of APIs in 2003, the company enabled merchants and developers to created advanced online services and payment applications.

The company venture in Europe via eBay UK led to a 300% growth in revenue. In the years that followed, the company continued to expand its operations in their countries and added new currencies on its services. It also integrated mobile technologies in their business. The company also partnered with many companies as becoming a major payment service provider globally. Its acquisition of Bill Me and Fraud Sciences Ltd also enabled it to provide its customers with enhanced better services.

Currently, PayPal has 153 million users. Additionally, it is available in 190 countries and supports 24 global currencies (PayPal 2014, p. 1). Although PayPal’ s history gives a great business story, there are many customer service issues associated with the company (Del Rey 2013, p. 1). The company has for a long time been a source of horrible stories by its users. The first customer service issue related to the company is its inability to provide people with a confidential digital wallet as it was designed during its establishment years (Faull, 2013, p. 1).

Stories about held up funds which have led people to miss upon paying their bills, making crucial purchases and transacting their business are associated with the company. Secondly, the company has terminated the accounts of various users without giving any substantial details (Grabianowski & Crawford 2014, p. 1). The company seems to infringe on the rights and freedoms of its users by dictating the activities which they should be engaged in. Additionally, the company is associated with many fraud cases which they are unable to resolve in sober ways.

Lastly, the company’ s customer care is not able to handle the concerns of its customers efficiently (PayPal Community Help Forum 2011, p. 1). Long delays and customer dissatisfaction are major issues associated with the company. The concerns about the services at PayPal have even led to the creation of websites and blogs that are focused on airing customer service problems at PayPal.


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