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Amazon “mythic”, with its provision of high-quality customer service.
On the other hand, Amazon is not without its challenges.
Amazon still struggling to learn how organized labor fits into relentless push for innovation.
Founder and CEO Jeff Bezos started Amazon, Bellevue, WA, July, 1995, as online bookstore.
Amazon of today, has grown to rival the largest retailers.
First stock offered for sale “IPO”, May, 1997.
Amazon’s net annual sales recently surpassed $100 Billion.
Amazon Much more than simply US’s largest online retailer.
Amazon involved many different businesses, number of rivals increase from innovation.
Amazon’s first international websites, with the United Kingdom, Germany.
CEO Jeff Bezos named Time Magazine’s 1999 “Man of the Year.”
2000 launched Marketplace, offered free shipping $99 purchase, contracted with Toys”R”Us.
2002 Amazon made first profit, became more aggressive, lowered free shipping to $25.
Seeking new technologies, including Kindle tablet, exploration of drone delivery, and smart phone.
Continual reinvestment has allowed growth, yet challenges Amazon to reach profitability.
Search for innovation places Amazon in competition with technology giants; Google, Netflix, Apple.
Competing with Netflix, Hollywood movie companies, signed rights for first movie; Spike Lee’s “Chi-Raq”.
2002 launched online cloud service, Amazon Web Services (AWS) before industry-known.
Meets federal security and compliance requirements, leading provider of cloud services.
Expanding the reach of the Kindle, with applications for other devices, Amazon continues.
Amazon Prime, a $99/year subscription service provides 2-day delivery, streaming movies and music.
Innovation continues with purchase of robotics company, adding robots in warehouses.
Average consumer purchasing items from Marketplace.
Businesses selling products on the Marketplace.
Start-ups with limited computer storage first Amazon Web Services customers.
Now larger companies are utilizing AWS to remain competitive, without the cost of overhead.
Employees important customers; 2011 “Career Choice” program pays 95% of tuition, prepaid.
Corporate headquarters: Seattle, WA.
Also locations: Australia, Brazil, Canada, China, Fra,
Germ, India, Italy, Japan, Mexico, Netherlands, Spain,
Successful in China: Worked well for Amazon, knowledgeable regarding cultural
Acquired Chinese e-commerce start-up Joyo, 2006: Amazon.cn
Delivery of goods in China is unique set-up, may be foreshadowing of future.
China only country where Amazon delivers good on own; average delivery time 2.5 days.
Chinese more interested in knowing when package will delivered, prefer to pay on delivery.
Customers are notified of the date and time their package will arrive.
Amazon first allowing point of sale(POS) upon delivery, using hand-held, portable card
Amazon.cn CEO Wang Hanhua--service in China “…has surpassed its service in the US.”
Amazon may have missed the mark in Germany. Amazon’s second largest market.
Regularly has conflicts with organized labor in Germany.
Fulfillment centers strike against Amazon on a regular basis.
In U.S., Amazon has successfully prevented union organization.
In Germany, Amazon has pushed back, saying too much union involvement prevents continual
CUSTOMER SERVICE CHAMPIONS
Most current award; 2014 by Zogby, 24/7 Wall St: highest-rated company for fifth year.
One comment from research-- “The company’s roots as a technology company… helps customer service.”
2013 ranking by ForeSee, ranked higher than brand names Nordstrom, Coach, Tiffany, Costco, etc.
Has highest ranking for 9 years, consecutively.
Showed great importance of Amazon’s focus on the “…customer experience…”
SERVICE BREAKDOWNS AND
Personal experience: Wall plug replaced on rechargeable watch.
Amazon willing to replace if unable by working directly through the manufacturer.
Customer service rep. apologetic, even though it was my fault that I broke the part.
Manufacturer replaced the part at no charge, including the cost of shipping.
Impressed that Amazon willing to replace entire item, including the watch, in order to rectify my error.
Positive customer experience that Amazon is fully committed to provide, with every single contact.
SERVICE BREAKDOWNS AND
Commitment shown strongly in corporate material: “There’s Always Room for Improvement”.
Amazon coined innovation: “ACES (Amazon Customer Service Excellence System’).
Continuous improvement methodology; closer to customer-centricity through continuous improvement.
Jeff Bezos’ Question mark email: Shows commitment to action is article about CEO Jeff Bezos.
”…Amazon employees get a Bezos question mark email, they react as though… ticking time bomb.”
Amazon is so committed to customer obsession, even rectifies situations that it cannot control.
A father purchased a PlayStation from Amazon, was stolen from the front steps of their home.
One of Amazon’s customer types is sellers on Amazon website.
Independent business, Florida Gifts, initially hesitant: “…It turned out to be really great thing for us.’”
Helped grow their business.
Amazon stating on website: they are “most customer-centric retailer on earth” shows commitment.
Experiencing this on a personal, direct level, along with numerous ratings and rankings of research,
Amazon is consistently rated in first place, verifies this result.
Included research of two main age-group targets: millennials and baby boomers.
Prosper Analytics: millennials ranks Amazon first place, Baby Boomers ranked Amazon second place.
Prosper found two out of five Prime members under 35, loyalty important to younger generation.
Amazon Prime is an online innovation that is similar to a membership at Sam’s Club or Costco.
$99/year membership that allows certain benefits for its members. No limited offering of items.
Anyone in the household, purchasing an item under this membership, can receive Prime benefits
As long as you have an online connection, log into Amazon Prime account.
Benefits include free 2-day shipping for items with “Prime” label, instant ad-free video, music streaming.
The “extras” add a great deal of value.
Another way that Amazon encourages customer loyalty:
One technology that provides a history of past purchases mentioned already.
Another described: “Price-Drop”; a business writer impressed that he ordered a book, received $.16.
Explained Amazon’s high level of integrity, bringing Jonathan Salem Baskin for more to purchases.
Christiana Hart explained commitment to loyalty shown by numerous warehouses, worldwide.
50 in U.S. alone spread over 19 states, as major commitment for “…faster and cheaper delivery”.
The technological innovations main categories:
1) First there is the website technology, for convenience for online retail customers.
2) The suite of tools targeted for eCommerce business, Innovations for all organizations, including
Government and education. and/or entrepreneurs.
3) Finally, machines that you can “hold in your hand”.
Amazon is generally seen as mainly as retailing website: Amazon relishes this emphasis.
Simplifying the process of purchasing an item, online requires complicated technology.
Amazon’s IT staff has developed this process, patented the “1-Click” purchase button, on 10/12/99.
1-Click makes “’…shopping easy and hassle-free.’”
Another technology Amazon uses is the storage and reminder of previous purchases.
It provides a summary of the account, on top, than “Buy it Again”, various departments recently shopped.
Definition: “An entire spectrum of companies that market products on the Internet and through
other technology, and the process of accessing them by consumers”.
E-commerce businesses that utilize Amazon have package of technologically driven products.
They can simply use Amazon.com to advertise their products.
Businesses can use Amazon Pay, or the commitment can be as deep as Fulfillment by Amazon.
AWS Saves money for businesses and organizations
Technology that you can hold in your hands
Amazon seeks more practical, best value, such as the Amazon Fire HD 6, retails for $99.
First company to contract with a wireless provider, 12/1999, allowing online purchases by cell phone.
Also offers higher-end, interactive devices, with recent introduction of the $189Amazon Echo.
Conclusion: Amazon may be the most
customer-centric company on earth
Amazon very complex company extremely driven to satisfy the customer, make some profits.
Utilizing every logistical, technological, and systematic customer-centric tool that they can develop.
Amazon appears on a path to pursue every possible avenue to satisfy the needs of customers.
These have been the reasons Amazon
Is a customer service champion
Explaining service breakdowns and recoveries