By David Dorf on Feb 27, 2013
Amazon has been at the forefront of innovation in e-commerce, and that's because they are constantly looking for new ways, not to sell, but to satisfy customers. That's a key point. Instead of advertising products, they provide information and advice to customers either directly or via other customers. This helps people make better decisions about their purchases. Looking back, we can see Amazon has been a leader in many areas:
- 1995 - customer reviews
- 1997 - recommendations & bundles
- 1997 - 1-click ordering
- 2001 - look inside the book
- 2001 - where's my stuff?
- 2002 - free super saver shipping
The latest feature I've seen is the Customer Questions & Answers. On certain product pages, you can click on "Questions" and pose a question to other customers that have purchased the product. Apparently Amazon send the question via email to past customers that purchased the product and they are encouraged to reply with an answer. Shoppers can browse past questions and answers as well.
This emulates the physical world quite nicely. You see a product, like a digital camera, and want to know how many pictures it can take without a memory card. A current owner responds with an answer, and you are better positioned to make a decision. Its just like asking your co-workers and friends, except Amazon knows who already owns the product so they do the "matchmaking." Amazon claims 96% of the questions get answered, and 40% within two hours.
So what should retailer's take away from this? Focus less on traditional advertising and selling, and shift to satisfying your customers' needs. The selling part will eventually follow.
Check out this fantastic presentation on Amazon to learn more: