When it comes to delivering instant gratification to online shoppers, Amazon’s ecommerce marketing strategy knocks the proverbial ball out of the park (and if you’re one of 63 million + Prime subscribers, you can also have that ball drone-shipped to any doorstep in under an hour.)
One of Amazon’s 14 leadership principles to delivering an unparalleled retail experience centers around two words – customer obsession. It’s resulted in the company’s $356 billion valuation, a 43% ownership of all online sales, and a success that other retailers strive to emulate. Amazon’s imminent arrival to the Nordic ecommerce market means that these numbers are only expected to grow. With business entities and preparations for a local launch entering their final prep stages, what can fellow Nordic retailers do to work with – or mitigate – the power and influence of one of retail’s leading powerhouses?
How to Ace the Your Retail Strategy and Customer Experience, Amazon Style
Ace the Online Customer Experience is a guide that explores five key areas where Amazon excels at driving the best customer experience. We’ve brought in industry experts across each of these areas, and they’re revealing their most trusted insights to help Nordic retailers achieve an Amazon-style customer strategy, which include:
- Curating the customer’s search experience
- Powerful personalization using AI technology
- Leveraging the strength of ratings and reviews
- Making payments a positive experience
- Ensuring delivery is a positive differentiator
Your sneak peek of each strategy? Right this way…
Curating the customer’s search experience (by Klevu)
Amazon has demonstrated indisputable capabilities in machine learning-led search that, over time, has become superiorly personalized. Amazon captures every bit of a customer’s journey to programmatically rank results based on recent views, what others viewed upon viewing specific products, what was bought with specific searches and views, etc. Learning from user-generated data (i.e. a shopper’s interaction with Amazon’s catalog) is the primary strength and driver of Amazon’s customer experience. However, Amazon has certain limitations when it comes to quick search.
Explore what Amazon does well (and where they fall short) in terms of search and what a retailer can do to stay relevant in terms of superior search experience.
Powerful personalization using AI technology (by Nosto)
When an Amazon customer signs in to their account, they’re immediately greeted with an experience that speaks to their tastes: from the products they’re recommended site-wide, to the content they’re shown as they navigate, to new (but still relevant) product discoveries that lead to higher conversions and order values. Together, these ingredients amount to a smooth, one-way ticket to checkout.
But often times, the Amazon experience ends there. With millions of customers and an even larger product product catalog, the emotional connection between company and consumer often gets lost. And it’s this very connection that shoppers look for when committing to a brand or product. This is an area where smaller, more brand-specific retailers have an opportunity to step in and convey a more powerful, personalized story…
Leveraging the strength of ratings and reviews (by Trustpilot)
Some businesses sell products, while other businesses sell stories. Marketplaces only offer the former, giving smaller companies a real opportunity to dominate on the latter.
Thus, retailers should ask themselves: How far does the company go beyond the product/service? And is branding aligned with the brand’s story? It’s important to tell the story of how the company came to be, and why the company decided to launch their brand. Letting customers in on the company’s journey will have a positive impact on the way they perceive the brand as whole.
Making payments a positive experience (by Trustly)
Amazon’s customer obsession is evident in its checkout and payment experience. Recognizing that cart abandonment is largely driven by friction in payments, the company has become famous for innovating around the 1-Click Checkout, which makes it possible for customers to make a purchase with just one click. Even those who don’t use this feature can still save their card details, making subsequent checkouts smoother. So how can retailers match — or even outpace — Amazon’s payment experience?
The key is to localize the payment mix, offer instant refunds and to allow purchasing without registration.
Ensuring delivery is a positive differentiator (by Budbee)
A lot of companies can find inspiration from Amazon’s supply chain management. One area that differentiates Amazon from other players is that they constantly work with logistics as a value-creating element for their customers. The combination of sophisticated information technology, an extensive network of high-tech warehouses, inventory management and excellent transportation makes Amazon’s supply chain one of the most efficient in the world. Checkout conversion is, of course, critical for all ecommerce players; but do not forget that when the customer finalizes the purchase, the process is not over.
To attract more loyal customers, make the post-purchase experience quick and smooth with fast pick-and-pack, easily accessible customer service, pinpointed information flow and a last-mile-delivery that suits the unique customer.
Added bonus: complementing your business by working alongside Amazon
We’re also revealing how you can work together with Amazon to achieve your business goals. Naturally, the aim is to both attract and keep customers on the store’s own site by offering a stellar experience. However, via Amazon Marketplace retailers can cover their bases and fight the threat of cannibalism by doubling up – selling both on their own site and via Amazon…
Ready to ace the customer experience? Download the guide today!