You and your customer rate the relationship together
Innovating with a safety net

Amazon continues making itself indispensable

Tq140416tdI confess that well-deserved pity for Hachette authors has not led me to boycott Amazon. (Hachette can take care of itself.) As a book lover, Amazon has done more to improve my quality of life than any traditional publisher. Kindle, wish lists, free shipping for the patient, excellent search capabilities, a sound recommendation engine, and many other little conveniences have made me a better book buyer. And I hope the authors are grateful for that.

I tried Prime for one year and came to the conclusion that it led me to buy books too impulsively. I prefer to space out my purchases and bundle them into a free shipment every other month. If I need to read something immediately, I can get it on Kindle. However, Prime is definitely the loyalty program that Amazon is banking on.

Bloomberg View: Amazon Sets Fire to Its Money-Losing Business Plan, 2014-Jun-19 by Ben Thompson

Call it the whale strategy. In this view, Amazon sees the Fire Phone as a means of earning a disproportionate amount of profit from the sorts of loyal customers who were featured in the video that opened yesterday's keynote. In this view, instead of the Fire Phone being a means of driving e-commerce, e-commerce is in fact a means of capturing customers and building loyalty; Prime deepens the connections, and the profitability; and at the final stage, the Fire Phone makes more profit in a single purchase than anything that came before, even as it drives an even-deeper connection with the customer.


Verify your Comment

Previewing your Comment

This is only a preview. Your comment has not yet been posted.

Your comment could not be posted. Error type:
Your comment has been saved. Comments are moderated and will not appear until approved by the author. Post another comment

The letters and numbers you entered did not match the image. Please try again.

As a final step before posting your comment, enter the letters and numbers you see in the image below. This prevents automated programs from posting comments.

Having trouble reading this image? View an alternate.


Post a comment

Comments are moderated, and will not appear until the author has approved them.

Your Information

(Name and email address are required. Email address will not be displayed with the comment.)