Advertising and marketing has been around for thousands of years, in some fashion, but it has grown into an impressive industry in the past century, and companies now rely on getting the word out about their company in a variety of different ways. Billions of dollars are spent every year just to make sure that the right people are seeing a company name in a favorable light. A much less expensive approach that some of the more successful companies in the world rely on is quite ancient in itself – word of mouth. A great company that delivers top quality products and services can always count on people telling friends, family, and even strangers on the street about notably extraordinary service and reliability. Logistics, customer service, and a truly outstanding relationship with customers is something that most companies would beg, borrow, and steal for, but by putting those qualities at the forefront of company strategy, certain businesses get that irreplaceably valuable advertising for free. (more…)
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.
For many of us, a profitable business where you rank in the top billionaires is difficult to achieve. So it was for Jeff Bezos, founder of “Amazon.com”, one of the first companies to sell products in the online environment.
Before laying the foundations “online store”, Bezos worked as a financial analyst on Wall Street, during which enjoyed great success. With a great desire for freedom, he decides to leave behind a solid career in the financial field, and moves with his wife in Seattle, to build their own business.
With $ 300,000 borrowed from parents, with a garage of a modest house with three computers, Jeff Bezos launched what today is the biggest online store in the world: Amazon.com.
Although the company had a portfolio of products, the business was to be unprofitable in the early years. The poor spread of the Internet in the 90s brought record low profits, but Bezos realized from the start online sales advantages, being sure that in a few years, people will prefer to buy a home.
There followed years in which profits rose substantially, which is why Jeff says it was worth the wait. In 2003 he earned first 35 million dollars net profit, following that in 2005 it will be nearly 10 times higher, registering record $ 359 million. His style is unmistakable Jeff Bezos. Over the years it has surprised the way they behave with employees, and clients. Company director enjoys a loyalty worthy of admiration and respect.
Jeff Bezos didn’t invent online shopping, but he almost single-handedly turned it into a multi-billion-dollar business. His Amazon.com began as a bookstore in 1994, and quickly expanded into dozens of product categories, forcing the world’s biggest retailers to rethink their business models, and ultimately changing the way people shop.
But Amazon.com isn’t just an internet success story. It’s the standard by which all web businesses are now judged — if not by their shareholders, then by their customers. Amazon set a high bar for reliability and customer service, and also introduced a wide range of online retail conventions — from user reviews and one-click shopping to the tab interface and shopping cart icon — so commonplace we no longer think of them as once having been innovations.
Bezos, meanwhile, is one of the few early Web CEOs who still run the companies they founded. Outside of his work with Amazon, he recently founded Blue Origin, a space-flight startup.
Amazon almost ended up being named MakeItSo.com. Browse.com, relentless.com, and bookmall.com were all possibilities under consideration, but ultimately the company’s founder settled on naming the online store after the world’s largest river. The tale behind the founding and growth of Amazon.com is recounted in an absorbing fashion in Brad Stone’s book, The Everything Store. (more…)