Amazon

Amazon will help you make your business better by sharing what made Jeff Bezos’s gigantic company so successful at going from its humble beginnings to now dominating the e-commerce market.

It’s impossible to have a business without customers. This is one lesson that Amazon knows better than everyone else. It’s so dedicated to this that the first of the company’s 14 leadership principles is Customer Obsession.

If you use Amazon regularly, you know how awesome it is. Two-day shipping has become the norm, and we all love that and many other things about the online retailer. A big reason for this is because of the company’s spending on research and development to improve customer experience. Amazon’s investment of 6% of profits is much higher than the industry average of 1-2%.

Every time Amazon builds something new, teams begin by thinking of what the customer wants. For example, employees show product ideas in the form of a mock press release to learn how the public will see them.

And did you know that more than 50% of all online product searches start on Amazon? This gives it incredible amounts of data from which it can better serve people. Sometimes the designs of products and services that Amazon creates give consumers just what they need even before they know they need it!

This consistent innovation to benefit customers sets Amazon apart in a big way. The hard work this company puts in for the people it serves is now a prime reason why so many are loyal to it.

Were you aware that the fee for a Prime membership doesn’t even cover all of the extras that come with it? It can’t even make Amazon break even on shipping! But it doesn’t care about these little details. The bigger picture is more important.

The idea of a loyalty program is pretty old and seems typical everywhere you go. But Amazon’s customer obsession has set up the Prime membership as one of the best rewards programs ever. With it, you get two-day shipping, exclusive deals, and a wide array of entertainment options.

Saving money isn’t even the heart of why this offering exists. The idea behind Prime memberships is mainly to help customers save effort, time, and energy. That makes it a natural choice to pick Amazon over other options.

Amazon knows that putting effort into making Prime memberships so valuable will yield significant results in the long-term. Their hard work pays off because a Prime member spends an average of 500% more on Amazon than other customers! It’s no wonder this is the backbone of their business model.