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...
The	  Amazon	  Effect	  2011	  Foresee	  E-­‐tail	  Sa1sfac1on	  Index	  	  
The	  Amazon	  Effect	  •  one-­‐point	  change	  in	  website	  saCsfacCon	  can	  predict	  a	  14%	  change	  in	  reven...
The	  Amazon	  Effect	  InternetRetailer.com,	  July	  2012	  Amazon	  has	  more	  than	  180	  million	  acMve	  customer...
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,	  Aug...
The	  Amazon	  Effect	  86%	  of	  Americans	  who	  have	  bought	  something	  online	  said	  they’ve	  purchased	  from...
The	  Amazon	  Effect	  
The	  Amazon	  Effect	  searchenginewatch.com,	  August	  2012	  30%	  of	  all	  online	  shoppers	  start	  at	  Amazon	 ...
Generic	  Homepage	  
Generic	  Homepage	  	  -­‐	  Cont’d	  
My	  Homepage	  
My	  Homepage	  	  -­‐	  Cont’d	  
My	  Homepage	  	  -­‐	  Cont’d	  
My	  Homepage	  	  -­‐	  Cont’d	  
PEERRECOMMENDATIONS ARETHE MOST TRUSTEDSOURCE FOR PRODUCTINFORMATION““
We	  see	  our	  customers	  as	  invited	  guests	  to	  a	  party,	  and	  we	  are	  the	  hosts.	  	  Its	  our	  job	...
Whats	  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...
• 82%	  of	  Prime	  members	  buy	  on	  Amazon	  even	  if	  the	  item	  is	  less	  expensive	  somewhere	  else*	  • ...
• Prime	  members’	  spending	  at	  Amazon	  already	  accounts	  for	  a	  40%	  of	  the	  company’s	  domesMc	  revenu...
What	  we	  want	  to	  be	  is	  something	  completely	  new.	  There	  is	  no	  physical	  analog	  for	  what	  Amazo...
ConsumerizaMon	  of	  Publishing	  
Jeff	  Bezos	  
Android	  Marketplaces	  
There	  are	  2ways	  to	  extend	  a	  business	  1.  Take	  inventory	  of	  what	  youre	  good	  at	  and	  extend	  o...
Example	  of	  working	  backwards	  
Marketplaces	  
On	  Enemy	  Territory	  
Jeff	  Bezos	  
The	  Amazon	  Effect	  InternetRetailer.com,	  July	  2012	  Services	  sales,	  including	  Amazon	  Web	  Services,	  a	...
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.	  Bel...
“At	  Amazon,	  we	  like	  to	  pioneer,	  we	  like	  to	  invent,	  and	  were	  not	  willing	  to	  do	  things	  the...
Jeff	  Bezos	  
Thank	  You!	  @BrentLeary	  BrentLeary.com	  
SugarCon 2013: The Amazon Effect: How a New Customer Culture is Creating Crazy New Business Opportunities and Killing Comp...
SugarCon 2013: The Amazon Effect: How a New Customer Culture is Creating Crazy New Business Opportunities and Killing Comp...
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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

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

  1. 1. The  Amazon  Effect    Brent  Leary  CRM  Essen3als  @BrentLeary  
  2. 2. The  Amazon  Effect  People  don’t  buy  from  companies  People  buy  from  other  people  
  3. 3. The  Amazon  Effect  People  buy  from  good  experiences  
  4. 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. 5. The  Amazon  Effect  2011  Foresee  E-­‐tail  Sa1sfac1on  Index    
  6. 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. 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. 8. Orders  in  1997  
  9. 9. Orders  in  1997  
  10. 10. Orders  in  2012  
  11. 11. Orders  in  2012  –  Cont’d  
  12. 12. The  Amazon  Effect  19%  of  ALL  US  eCommerce  is  purchased  from  Amazon.com  searchenginewatch.com,  August  2012  
  13. 13. The  Amazon  Effect  86%  of  Americans  who  have  bought  something  online  said  they’ve  purchased  from  Amazon  before  searchenginewatch.com,  August  2012  
  14. 14. The  Amazon  Effect  
  15. 15. The  Amazon  Effect  searchenginewatch.com,  August  2012  30%  of  all  online  shoppers  start  at  Amazon  to  research  products  
  16. 16. Generic  Homepage  
  17. 17. Generic  Homepage    -­‐  Cont’d  
  18. 18. My  Homepage  
  19. 19. My  Homepage    -­‐  Cont’d  
  20. 20. My  Homepage    -­‐  Cont’d  
  21. 21. My  Homepage    -­‐  Cont’d  
  22. 22. PEERRECOMMENDATIONS ARETHE MOST TRUSTEDSOURCE FOR PRODUCTINFORMATION““
  23. 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. 24. Whats  dangerous  is  not  to  evolve.    Amazon  Effect  
  25. 25. Amazon  ConversaMons  
  26. 26. Instant  Chat  on  Product  Pages  
  27. 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. 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. 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. 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. 31. ConsumerizaMon  of  Publishing  
  32. 32. Jeff  Bezos  
  33. 33. Android  Marketplaces  
  34. 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. 35. Example  of  working  backwards  
  36. 36. Marketplaces  
  37. 37. On  Enemy  Territory  
  38. 38. Jeff  Bezos  
  39. 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. 40. AWS  
  41. 41. Jeff  Bezos  
  42. 42. Jeff  Bezos  Kickstarter.com  
  43. 43. Jeff  Bezos  Kickstarter.com  
  44. 44. FBA  
  45. 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. 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. 47. Jeff  Bezos  
  48. 48. Thank  You!  @BrentLeary  BrentLeary.com  

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