ow that capital to buy customers
is harder to get, companies such as Amazon.com have to start changing the
way they handle customers. Some competitors still can keep up the "give
away" policy that at some times doesn't make much sense. Is a customer going
to remain loyal once the company is getting stricter on customer service? I
don't think so. Let me give an example.
Which of the following 2
solutions would you prefer as a customer?
-
If Proxis.be (a competitor for
the new Amazon.fr) has a problem obtaining an item within the timeframe
promised, they give a 2,5 Euro purchase coupon for a next purchase, valid
for 2 weeks.
-
If Amazon has a problem
delivering thing within the timeframe promised, you now have to go to the
site, confirming I still want the thing.
Over all my orders on Amazon.com
until the beginning of 2000, if a book ever wasn't available in the delay
promised, the rest of the order would be sent, and I would be warned about
that, without any action required from my part. I was very happy with that
kind of service. Amazon now changed it policy: "in order to make it easier
to cancel a delayed book". (probably they were getting too many books
returned to them?)
But now on each delay you are
asked to *reconfirm* buying this book.
a) This is quite confusing since the message you get makes you wonder: "Does
this mean the shipping of the rest of my order will be delayed until they
can have this book?" (no it doesn't)
b) Also, such an automated process can be quite annoying, especially when
you get 5 delays on the same book in a row and each time you need to
reconfirm.
A result? Probably Amazon will sell less delayed books in the future!
Which of the following 2
companies would you place your next order with?
-
If you don't order from bn.com
for a certain time, you get a 10 USD purchase coupon from them.
-
If you order for hundreds of
dollars books from Amazon, you don't get much "thank you signs" in the
form of coupons.
No need to answer … Coupons work!
The recommendation?
A suggestion for Amazon's user
interface design specialist:
The "delayed book problem" you have is an "exception handling problem". This
means that *only* those users requiring exception handling should take
action.
In other words: in stead it
making mandatory to *re-confirm* a delayed order, turn it around! Give
people the chance to change their order when a piece of it is delayed,
without obliging them to do anything if it's OK to them.
A suggestion for Amazon's
marketers
In stead of focusing to attract
new customers with low prices, focus on getting your existing customers to
do "repeat-purchases". Rise the prices on your books (eventually), but give
the people coupons, customer cards, etc. All these are well known off-line
ways to build consumer loyalty to your products. It's not the first order
that's important, it's the customer coming back that counts! So reward the
loyal customer in stead of trying to get a "new customer". Otherwise you
create the paradox that existing customers would be better of presenting
themselves as new customers. It's not because you provide quality
information that the customer will buy from you. It's far too easy to
compare prices etc, so once you've found what you are looking for on Amazon,
what stops you from browsing for the same product on one or two competing
web sites? Also, when taking into account delivery costs, discounts for
being a loyal customer, coupons, etc price comparison is a lot harder, and
you can create the impression of being less expensive without that the
customer will do the math.