SugarCon 2013: Enterprise Collaboration - Making Social Matter
SugarCon 2013: The Amazon Effect: How a New Customer Culture is Creating Crazy New Business...
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The Amazon Effect Brent Leary CRM Essen3als @BrentLeary
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Brent Leary, CRM Essentials While much of the social world focuses on Facebook, Apple, and Google, Amazon.com has centered its social/mobile/cloud activities on optimizing customer transactions. This session looks at how Amazon leveraged its knowledge of customer behavior and activity to become a social commerce juggernaut, the effect it is having on customer expectations and experiences, and the lessons businesses can learn from what the company is doing.
Transcript of SugarCon 2013: The Amazon Effect: How a New Customer Culture is Creating Crazy New Business...
The Amazon Effect
Brent Leary CRM Essen3als @BrentLeary
The Amazon Effect
People don’t buy from companies
People buy from other people
The Amazon Effect
People buy from good experiences
“Amazon, who invented the one-‐click purchase, perfected online shopping with data, efficiency, and customer service,”
Flurry.com, 2012
Amazon Effect – Clearing the DECS
The Amazon Effect
2011 Foresee E-‐tail Sa1sfac1on Index
The Amazon Effect
• one-‐point change in website saCsfacCon can predict a 14% change in revenues generated on the web.
• when highly saCsfied with a purchase¸ 64% of responders more likely to buy from the same company
• 67% were more inclined to recommend the company to others; and
• 65% felt a sense of ‘brand commitment’.
2011 Foresee E-‐tail Sa1sfac1on Index
The Amazon Effect
InternetRetailer.com, July 2012
Amazon has more than 180 million acMve customer accounts and 2 million merchants selling on its web marketplaces
Orders in 1997
Orders in 1997
Orders in 2012
Orders in 2012 – Cont’d
The Amazon Effect
19% of ALL US eCommerce is purchased from Amazon.com
searchenginewatch.com, August 2012
The Amazon Effect
86% of Americans who have bought something online said they’ve purchased from Amazon before
searchenginewatch.com, August 2012
The Amazon Effect
The Amazon Effect
searchenginewatch.com, August 2012
30% of all online shoppers start at Amazon to research products
Generic Homepage
Generic Homepage -‐ Cont’d
My Homepage
My Homepage -‐ Cont’d
My Homepage -‐ Cont’d
My Homepage -‐ Cont’d
PEER RECOMMENDATIONS ARE
THE MOST TRUSTED SOURCE FOR PRODUCT
INFORMATION
“ “
We see our customers as invited guests to a party, and we are the hosts.
It's our job every day to make every important aspect of the customer experience a liPle bit bePer.
Amazon Effect
What's dangerous is not to evolve.
Amazon Effect
Amazon ConversaMons
Instant Chat on Product Pages
Prime Time • Increase their purchases on Amazon from $400 a year to $900 a year aQer they join*
• Spend 130% more than regular Amazon customers*
• May be responsible for as much as 20% of Amazon’s overall sales in the U.S (BusinessWeek)
* Prac3calEcommerce.com
• 82% of Prime members buy on Amazon even if the item is less expensive somewhere else*
• 92% of Prime members plan to renew their membership*
Prime Time -‐ Cont’d
* Prac3calEcommerce.com
• Prime members’ spending at Amazon already accounts for a 40% of the company’s domesMc revenues
Prime Time -‐ Cont’d
* InternetRetailer.com, July 2012
What we want to be is something completely new. There is no physical analog for what Amazon.com is becoming.
ConsumerizaMon of Publishing
ConsumerizaMon of Publishing
Jeff Bezos
Android Marketplaces
There are 2ways to extend a business 1. Take inventory of what
you're good at and extend out from your skills.
2. Determine what your customers need and work backward, even if it requires learning new skills.
Example of working backwards
Marketplaces
On Enemy Territory
Jeff Bezos
The Amazon Effect
InternetRetailer.com, July 2012
Services sales, including Amazon Web Services, a provider of data storage and compuMng capacity to companies of all kinds, rose 57% to $2.043 billion from $1.302 billion.
AWS
Jeff Bezos
Jeff Bezos
Kickstarter.com
Jeff Bezos
Kickstarter.com
FBA
Amazon Selling Coach
Sellers have asked us to tell them about products suitable for FBA. Below, we’ve idenCfied several products for you that have high customer demand and are not currently being fulfilled by Amazon (but may be in the future). FBA can make the products that you sell on Amazon.com eligible for FREE Super Saver Shipping, Amazon Prime, and Guaranteed Accelerated Delivery, benefits that customers love and that can help drive sales. In a recent survey of FBA sellers, 89% of Pro Merchants reported that their unit sales increased on Amazon.com aQer using FBA, and 64% reported an increase of 20% or more.
“At Amazon, we like to pioneer, we like to invent, and we're not willing to do things the normal way if we can figure out a becer way.”
Amazon Effect
Jeff Bezos
Thank You!
@BrentLeary BrentLeary.com
