The Secret behind the world’s largest company.
After 25 years of setting up Amazon as an online bookseller in Seattle in 1994, in January 2019, Amazon surpassed Microsoft to become the world’s most valuable public company with a net value of about $797 billion. Amazon is also the world’s largest internet company. The Secret behind the world’s largest company.
The Beginning of the world’s largest company.
Jeff Bezos, the mastermind behind Amazon, is a Princeton Engineering graduate (Batch of 98). After his graduation, Bezos became the youngest senior VP at D.E. Shaw– the investment firm, in 1990.
In 1994, Bezos decided to quit as the VP and venture into opening Amazon.com, an online bookstore that in no time became a huge success on the internet.
Originally, the company was going to be called “Cadabra”. The first product that Bezos sold was ‘books’. He opened a store in his garage with his wife and a few friends and so was Amazon launched.
He managed to raise 1M from his family and venture capitalists. It was only when he met Larry Page and Sergey Brin, founders of Google, and invested in them that he started making profits. During the first 3 years, people thought he would fail to make fun of amazon, calling it “amazon.bomb”, “amazon.toast”, “amazon.con” but Bezos went on to build the world’s most consumer-centric company – inspired by the der of Sony (Masaru Ibuka).
After 19 years, in 2013, Amazon acquired The Washington Post, and in 2017 it acquired Whole Foods.
Amazon in 2020!
Before talking about the success of Amazon’s Customer obsessed operating techniques, let’s take a look at Amazon’s Mission Statement for 2020.
“We aim to be Earth’s most customer-centric company. Our mission is to continually raise the bar of the customer experience by using the internet and technology to help consumers find, discover and buy anything, and empower businesses and content creators to maximise their success.
We believe this mission is important for the UK because digital empowerment for customers and businesses improves living standards for people up and down the country and drives our economic competitiveness and productivity in a global economy.
We will continue to push at the boundaries of how technology – digital infrastructure and services – can improve the customer experience and help make the economies of the countries where we operate more competitive on the global stage.” (Read from the source here)
Now let’s take a look at this stat on Amazon-
“Amazon made $75.5 billion in sales revenue in the first quarter of 2020″
Now even if you don’t know how to count, you must have realised instantly that this is HUGE.
One thing is for sure. Amazon’s customer-centric Policies are working. And how!
The Secret behind the world’s largest company.
Here are the three main Customer-centric that Amazon mainly diverts all its efforts and resources towards-
In 2013, Bezos told Charlie Rose that the customer comes before business innovation: “I would define Amazon by our big ideas, which are customer centricity, putting the customer at the center of everything we do.”
Indeed, the company has made an art of finding new and better ways to improve customer experience, some of which include:
- Offering fast, hassle-free ordering and delivery.
- Using data to personalize, helping shoppers in real time with product selections based on browsing and buying history.
- Going out of its way to help customers get the best deal.
Unfortunately, companies tend not to pay enough attention to their customers, whom they are providing products and services to. They get so caught up with everything else in company, that they end up overlooking the most important aspect of a business: happy customers.
Bezos declared early on, that Amazon would not simply sell stuff but “help customers make purchase decisions.”
This attitude led to the key differentiator of allowing customers to post book reviews and, eventually, reviews of the entire range of products offered on the web site.
Feedback is placed directly on the product’s page and users are provided with multiples ways to parse the information to their liking.
Amazon focuses on one simple measure of customer service quality: helpfulness.
They regularly interact with customers through non-intrusive and easy-to-use satisfaction surveys. The surveys are an effective tool for building sales and turning customers into loyal enthusiasts.
Analytics is at the heart of the company’s success with surveys acting as a critical tool for understanding the customer experience.
For example, asking about customers habits: “How often do you browse an online store on your cell phone/mobile phone device?”.
A Small Survey on the world’s largest company.
Speaking on a personal account, the Amazon website is the most effortless web service that I have ever availed. With the 100 % accurate and to the point recommendations, the easy and smooth payment mechanism and the super-responsive customer support, Amazon sets the bar very high for other online retail companies in being accessible and convenient. And this is not just a personal feeling.
I tried to conduct a small survey on around 50 of my close acquaintances. The basic survey question was ‘Which online retail company do you use and why?’
43 people out of them, said Amazon (no surprise there).
For ‘Why’, almost all the 43 people said something related to ease and convenience. This doesn’t leave many stones unturned on how we perceive Amazon, as a brand, and the image that Amazon has successfully retained over these years.
But how does Amazon do this?
“The most important single thing is to focus obsessively on the customer,” “Our goal is to be the earth’s most customer-centric company.”
Eric De Groot, writing for Revelx, on “What I Learned From Amazon’s Jeff Bezos: How To Stay Customer-centric”, lists down 4 reasons for why he thinks Amazon is where it is now.
What really brings out the unique customer-centric approach is the 4th point in the Article, which says,
“Amazon Knows How to Say They’re Sorry“
He quotes an instance where Bezos apologized for the manner in which the problem of selling pirated copies of 1984 was handled:
“This is an apology for the way we previously handled illegally sold copies of 1984 and other novels on Kindle. Our ‘solution’ to the problem was stupid, thoughtless, and painfully out of line with our principles. It is wholly self-inflicted, and we deserve the criticism we’ve received.”Jeff Bezos
This level of frankness and responsibility is a rare sight in today’s competitive e-retail world, but Amazon does it, and how!
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[Read more from the Ubblu Blog here]