SugarCon 2013: The Amazon Effect: How a New Customer Culture is Creating Crazy New Business Opportunities and Killing Companies That Won’t Adapt
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SugarCon 2013: The Amazon Effect: How a New Customer Culture is Creating Crazy New Business Opportunities and Killing Companies That Won’t Adapt

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Brent Leary, CRM Essentials ...

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.

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SugarCon 2013: The Amazon Effect: How a New Customer Culture is Creating Crazy New Business Opportunities and Killing Companies That Won’t Adapt Presentation Transcript

  • 1. The  Amazon  Effect    Brent  Leary  CRM  Essen3als  @BrentLeary  
  • 2. The  Amazon  Effect  People  don’t  buy  from  companies  People  buy  from  other  people  
  • 3. The  Amazon  Effect  People  buy  from  good  experiences  
  • 4. “Amazon,  who  invented  the  one-­‐click  purchase,  perfected  online  shopping  with  data,  efficiency,  and  customer  service,”  Flurry.com,  2012  Amazon  Effect  –  Clearing  the  DECS  
  • 5. The  Amazon  Effect  2011  Foresee  E-­‐tail  Sa1sfac1on  Index    
  • 6. 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    
  • 7. 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  
  • 8. Orders  in  1997  
  • 9. Orders  in  1997  
  • 10. Orders  in  2012  
  • 11. Orders  in  2012  –  Cont’d  
  • 12. The  Amazon  Effect  19%  of  ALL  US  eCommerce  is  purchased  from  Amazon.com  searchenginewatch.com,  August  2012  
  • 13. The  Amazon  Effect  86%  of  Americans  who  have  bought  something  online  said  they’ve  purchased  from  Amazon  before  searchenginewatch.com,  August  2012  
  • 14. The  Amazon  Effect  
  • 15. The  Amazon  Effect  searchenginewatch.com,  August  2012  30%  of  all  online  shoppers  start  at  Amazon  to  research  products  
  • 16. Generic  Homepage  
  • 17. Generic  Homepage    -­‐  Cont’d  
  • 18. My  Homepage  
  • 19. My  Homepage    -­‐  Cont’d  
  • 20. My  Homepage    -­‐  Cont’d  
  • 21. My  Homepage    -­‐  Cont’d  
  • 22. PEERRECOMMENDATIONS ARETHE MOST TRUSTEDSOURCE FOR PRODUCTINFORMATION““
  • 23. We  see  our  customers  as  invited  guests  to  a  party,  and  we  are  the  hosts.    Its  our  job  every  day  to  make  every  important  aspect  of  the  customer  experience  a  liPle  bit  bePer.    Amazon  Effect  
  • 24. Whats  dangerous  is  not  to  evolve.    Amazon  Effect  
  • 25. Amazon  ConversaMons  
  • 26. Instant  Chat  on  Product  Pages  
  • 27. 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  
  • 28. • 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  
  • 29. • Prime  members’  spending  at  Amazon  already  accounts  for  a  40%  of  the  company’s  domesMc  revenues  Prime  Time    -­‐  Cont’d  *  InternetRetailer.com,  July  2012  
  • 30. What  we  want  to  be  is  something  completely  new.  There  is  no  physical  analog  for  what  Amazon.com  is  becoming.  ConsumerizaMon  of  Publishing  
  • 31. ConsumerizaMon  of  Publishing  
  • 32. Jeff  Bezos  
  • 33. Android  Marketplaces  
  • 34. There  are  2ways  to  extend  a  business  1.  Take  inventory  of  what  youre  good  at  and  extend  out  from  your  skills.  2.  Determine  what  your  customers  need  and  work  backward,  even  if  it  requires  learning  new  skills.    
  • 35. Example  of  working  backwards  
  • 36. Marketplaces  
  • 37. On  Enemy  Territory  
  • 38. Jeff  Bezos  
  • 39. 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.  
  • 40. AWS  
  • 41. Jeff  Bezos  
  • 42. Jeff  Bezos  Kickstarter.com  
  • 43. Jeff  Bezos  Kickstarter.com  
  • 44. FBA  
  • 45. 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.  
  • 46. “At  Amazon,  we  like  to  pioneer,  we  like  to  invent,  and  were  not  willing  to  do  things  the  normal  way  if  we  can  figure  out  a  becer  way.”  Amazon  Effect  
  • 47. Jeff  Bezos  
  • 48. Thank  You!  @BrentLeary  BrentLeary.com