Focus on Customer Constants
In this journey to create the digital retail experience of the future, I observe people and companies falling into the trap of focusing on super cool technology as an end unto itself. This last week I was reminded of a lesson that I learned, during my years working at Amazon, about building an awesome customer experience.
During an employee all hands meeting, Jeff Bezos mentioned that reporters sometimes asked his opinion about how things will be different in the future. His interesting response was that a better question to ask is what WON’T be different in the future. Regarding ecommerce, customers will always want more selection at lower prices delivered more quickly. For example, it is hard to imagine a time when most customers would say, “I love your company, but you shouldn’t offer such a broad selection!” Or maybe, “Amazon is awesome, but please charge me more!” Or even, “I wish I couldn't get my stuff so quickly!” Jeff then noted that Wall Street’s advice is exactly the opposite of what customers want. “Charge more! Offer fewer products! Use cheaper ship methods!” Amazon has a laser focus on the customer constants of selection, price, and speed, and they have been rewarded with serious customer loyalty. In 2014 alone, they added the equivalent of the entire 2013 Starbuck Corporation ($14.5B) to their revenues.
This week, I lost an important item and needed it replaced immediately. I opened the Amazon mobile app and was given the message on the first product screen that if I ordered within 3 minutes and paid the $3.99 upgrade fee, it would be delivered the next day. In only a few seconds I had placed the order. Only 10 minutes later, I found the item I thought I had lost. I went right back to the app, and the order status had already changed to indicate that it was being prepared to ship, but gave me the option to cancel the order. I canceled the order, and received the confirmation email seconds later.
When I started at Amazon in 2010, these features largely did not exist, including the precise messaging, the 1-day shipping option, the later order cutoff (I was ordering after 4 PM), canceling an order already in the process of shipping, etc. The rapid expansion of Amazon’s selection through 3rd party sales and the Fulfillment By Amazon (FBA) program also came into play, since this item was offered by a 3rd party seller (i.e. selection and price) but shipped by Amazon (i.e. speed). These and other enhancements have created an awesome customer experience.
We can easily be tempted to focus on cool new technologies, but those should always be a means to an end, not an end unto themselves. By focusing on the basic, constant customer needs, you can more effectively identify the most powerful innovations that will move the needle. As these innovations launch one after another, you create a robust customer experience that builds and strengthens customer loyalty, bringing them back again and again.
Confidential
5 年Hey Aaron, I agree with your statement that technology should be means to an end and not any other way. Amazon is an amazing example and you sharing the post was extremely insightful !! Thank you.
Co-Founder, ANEWBrand | Certified LGBTQ+ business | Columbia Tower Club ~ Chair Emeritus | Designer, Thinker, Futurist, LGBTQ+
10 年well perceived Aaron..thanks for the reminding post.
Fractional Project Manager, Consultant, Trainer
10 年My favorite part is "Wall Street’s advice is exactly the opposite of what customers want."