Amazon business strategy: focus on company reputation

Amazon was in a unique position; the number of its customers began to increase exponentially, and it had the infrastructure in place to support massive growth and expansion into other industries and product lines. The wisdom to take things initially slow ended up paying major dividends, since the perfected version of Amazon customer service and logistics was already in place after working out the kinks over the past 5 years of large-volume shipping via online shopping. They adopted a new policy as the years went by and their reputation as a reliable, honest, and affordable retailer of books extended to all of their new products, which, as their logo suggests, truly ranges from A to Z

The most interesting part about Amazon’s success is that it has absolutely no face-to-face contact with its customers, yet the digital relationship that they create with their consumers is ranked as the best in the world. Amazon has now been ranked at the top of the list for two consecutive years as the company that provides the highest customer satisfaction; this year they actually achieved the highest score in the history of the ranking system, which began in 2005. So how does a sprawling company that handles more than 150 million webpage hits per day maintain such a personal and memorable relationship with so many of its customers? That is the great secret that Amazon has figured out, and the reason that it is one of the happiest and most profitable companies in history.

A company that is able to maximize consumer happiness, while maintaining a negligible amount of direct contact between employees and consumers is shocking, but Amazon makes it work for them. Despite the focus of this series of essays touching on consumer happiness so often, that is not the only aspect to highlight. Consumer satisfaction and overall happiness is an essential part of a company’s overall success, and when you customer base exceeds 100 million, you need to take care of them. It is common for customer service to decrease as a company grows, due to inadequate customer service representatives compounded with an overwhelming volume of products, but Amazon somehow flips that trend and excels in spite of its dominant portion of the market. Not only does this make it the go-to company for any form of online retail, but it also means that the company enjoys the best reputation out of any company in e-commerce.

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Can Akdeniz

Can Akdeniz is the author of seven books and founder of Business Hacker, a popular business blog. His books such as Go Nuts, Cool Boss, Happy Company and MBA 2.0 have changed how people think about business, productivity and work.