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.

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. PEER
RECOMMENDATIONS ARE
THE MOST TRUSTED
SOURCE FOR PRODUCT
INFORMATION
“
“

23. 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

24. What's
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
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.

35. Example
of
working
backwards

36. Marketplaces

39. On
Enemy
Territory

40. Jeff
Bezos

41. 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.

42. AWS

43. Jeff
Bezos

44. Jeff
Bezos
Kickstarter.com

45. Jeff
Bezos
Kickstarter.com

46. FBA

47. 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.

48. “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

49. Jeff
Bezos

50. Thank
You!
@BrentLeary
BrentLeary.com