The 7 Commandments of Amazon’s Remarkable Customer Success
Explore Amazon's success through its customer obsession principle. Learn how Bezos's ethos drives innovation and service, inspiring entrepreneurs.
Amazon's ascent to global dominance starts with a principle that stands as a beacon for entrepreneurial success: customer obsession. Jeff Bezos, the mastermind behind the behemoth, once articulated, "If you're truly obsessed about your customers, it will cover a lot of your other mistakes." This exploration reveals how Amazon's customer-first philosophy manifests in its strategies and metrics, serving as a blueprint for aspiring entrepreneurs.
So, let's dive in as we start a new series of studies where we break down all of the Amazon Leadership Principles and learn from one of the greatest entrepreneurial successes of our time.
Mike Parsons
The Prime Paradigm
The introduction of Amazon Prime is a testament to Amazon's foresight in customer convenience and satisfaction. Bezos believed in a customer-centric approach: "We're not competitor obsessed, we're customer obsessed. We start with what the customer needs, and we work backward." The numbers speak for themselves—with an investment geared towards expedited delivery, Amazon Prime subscriptions skyrocketed to over 200 million by 2021.
The Return Revolution
Amazon's easy return process directly reflects their understanding of customer concerns. Echoing the importance of patience and innovation, Bezos noted, "We've had three big ideas at Amazon that we've stuck with for 18 years, and they're the reason we're successful: Put the customer first. Invent. And be patient." This principle is critical for any entrepreneur looking to build a trustworthy and customer-centric business.
The Review Reformation
Bezos underscored the collective wisdom of consumer feedback, "When you look at customer reviews, you're looking at the aggregate, compiled wisdom of the crowd. It's tough to manipulate that." Amazon's encouragement of customer reviews has set a precedent for transparency and garnered over 12 million product reviews, shaping a new era of informed purchasing.
The AWS Ascendancy
Amazon Web Services (AWS) represents a leap in understanding and meeting customers' technological needs. Bezos's foresight is evident as he remarked, "There is no alternative to digital transformation. Visionary companies will carve out new strategic options for themselves — those that don't adapt will fail." AWS is a beacon of success, demonstrating the profitability of a customer-first approach in technology services.
The Kindle Conquest
The Kindle phenomenon directly results from Amazon tapping into the shift toward digital reading habits. With an emphasis on innovation, Bezos commented, "What we want to do is something completely new. Let's innovate." This idea resulted in the Kindle device and store becoming household names, with millions of units sold and over 6 million e-books available.
The Alexa Advantage
Voice shopping via Alexa caters to the modern need for convenience and simplicity. Bezos's customer-centric questioning, "What do our customers need?" not "What do we have?" led to Alexa becoming an essential feature for many households, especially evidenced by the tripling of voice shopping during the 2019 holiday season.
Metrics That Matter
Each of Amazon's strategic decisions is a chapter in its success story, underscoring the importance of a metrics-driven approach to understanding customer needs and behaviors.
Conclusion: Making Customer Obsession Your North Star
The core message for entrepreneurs is clear: embedding customer obsession into the DNA of your business can yield unparalleled success. As Bezos puts it, "Obsess about customers, not competitors." Let this ethos guide your entrepreneurial journey.
Suggested Reading
To extend your understanding of the customer-first philosophy, consider these insightful reads:
- "The Everything Store: Jeff Bezos and the Age of Amazon" by Brad Stone.
- "Be Obsessed or Be Average" by Grant Cardone.
- "Delivering Happiness: A Path to Profits, Passion, and Purpose" by Tony Hsieh.
Mike Parsons