The common conception is that Amazon rules retail due to its superior technology. But the facts show otherwise, Amazon reigns supreme because it has put customer relationships first and foremost at its cultural core. Jeff Bezos famously said that “aligning the company’s interests with its customers’ ensured our success.”
How has this philosophy contributed to Amazon’s meteoric rise?
The Harris Poll on corporate reputation in 2018 ranked Amazon No. 1 for the third consecutive year. Its American consumer satisfaction index has ranked in the the top 10 for 13 years, since 2007. Amazon is winning retail because managers figured out long ago that selling is about relationships and customer loyalty, not technology.
Customer Service is the Difference Maker
Amazon excels at customer service. Customer complaints get resolved immediately and completely, with an actual human being. From the onset, Bezos instructed his customer service managers never to settle for any outcome that was less than 100% customer satisfaction. As the company grew, settling would have been easy but it never happened.
The irony is that other retailers have so misunderstood the lessons of Amazon’s success. They believe the way to compete is with less customer contact. They could not be more wrong. The lesson of Amazon is the pathway to growth and success is through greater customer relationships, personalization, better experiences and brand loyalty.
It’s the Customer Service. Not Automation
Yes, Amazon is big-time into automation. It is automating warehouses and supply chains- the stuff customers don’t see, while at same time they are hiring more and more people to have conversations with customers.
So how can small and medium size retailers, both brick & mortar and e-comm, apply the lessons of Amazon in their own business? There are many ways, but one proven method is to give high value customers instant cash rewards. It provides an immediate positive direct customer experience and motivates a return visit to spend the reward, and usually a lot more.
Customer Loyalty Accelerator App is the Easiest Way to More Money
Customer Loyalty Accelerator just such a loyalty and return customer spending program, available on both the Shopify and Clover App stores. In one case study, a woman’s boutique in Massachusetts experienced a 1500% increase in return customer spending in just the first three months of the program!