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The Amazon Experience. What makes Amazon's Customer Experience great?

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The Amazon Experience

Pascal Spelier, June 13th 2014

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”Our vision is to be the world's most consumer-‐centric company, where customers can come to find anything they want

to buy online.”  Jeff  Bezos  

4  Source: Google Trends

Trends

Customer Journey

Customer Experience

Customer Experience: Hip and happening

Index 100

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Price

Product

Service Customer Experience

The road to loyal customers

‘Commodity’ Competitive edge by ‘value added services’

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“How likely is it that you would recommend [your company] to a friend or colleague?”

“How much effort did you personally have to

put forth to handle your request?“

Loyaliteit predictor

Customer satisfaction

Co-‐creation

Product-‐ and transaction focused

Get to know your customer

‘Fix the basics’

Source: based on model Balachandran

Involvement customer

Loyality

Long lasting relationship

For the customer

Together with the customer

Stop trying to delight your customers

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Product/service differentiation

Employee satisfaction

Processefficiency Processeffectiveness

-‐ Customer satisfaction

-‐ NPS

-‐ Sales

-‐ Share of wallet

-‐ Retention

-‐ Referral

-‐ NPS (als groeidoel)

-‐  Groth revenue

-‐  Market share

-‐  Profitability

-‐ Share holder value

People

Product/service offering

Process

Customer Experience Customer Behaviour High level company KPI’s

Leading indicators Lagging indicators

Chan

ges

in re

gula

tions

and

tech

nolo

gy

deve

lopm

ents

Context

Source: based on Schmitt – Managing the Customer Experience

Determine your motivation for improving customer experience

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Customer Experience is about smooth processes and value adding propositions

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Customer insights 1

Customer Experience Design 4

Customer Journeys 3

Customer Experience Strategy 2

Customer Experience Implementation 56 Customer Experience Monitoring

Customer Experience approach: take it step by step

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From Customer Journey to Customer Experience

3 Customer Journeys

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Simplified Customer Journey

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Customer Journey

Buying a book Life events / Products / Services

Reading a book Groceries Cloud services Streaming music

and video Other events

Voice of the customer: I want..., I need...

Voice of the employee: I want..., I need...

Awareness Discover Receive Use Get help Next purchase Purchase

What does the customer want and what does the customer need?

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Customer Journey

Each Customer Journey has a customer side and an organization side

Processes

Midoffice

Customer Relationship

Management

Customer Financial

Management

Document Management

CommunicationManagement

Business Process

Management Security

Awareness Discover Receive Use Get help Next purchase Purchase

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Remove barriers Simplify processes Ensure alignment and consistency

Provide relevant content Differentiate and create

“wow-‐moments”

Customer Experience opportunities

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Range

Price

Customer Experience

Availability

Amazon’s Value Proposition

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For the second year in a row, Amazon was the top-‐scoring company in terms of overall customer satisfaction, just above Coca-‐Cola and Apple Nielsen, May 2014

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Amazon.com is the reigning and undisputed champ in both

Internet retailing and across the entire department in overall

customer satisfaction.

American Customer Satisfaction Index, University of Michigan, June 2013

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Amazon stands at the top of 100 globally-‐known brands

across seven major industries for best customer experience. .

Foresee Experience Index, Report, Deccember 2013

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Customer Journey

Awareness Discover Receive Use Get help Next purchase Purchase

What makes Amazon’s Customer Experience great?

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Customer Journey

Awareness Discover Receive Use Get help Next purchase Purchase

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Range

Price

Customer Experience

Availability

Amazon’s Value Proposition

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Price

“I got an email a few days ago from Amazon, telling me the price of the book I’d ordered had dropped, so it was passing the savings on to me. I think it was all of $.16. But that small sum is why I’m a loyal customer.”

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Customer Journey

Awareness Discover Receive Use Get help Next purchase Purchase

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35% van de sales komt uit recommendations

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Customer Journey

Awareness Discover Receive Use Get help Next purchase Purchase

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Milkrun: Instead of waiting for suppliers to

deliver to Amazon's warehouses, Amazon sends

its own trucks out to pick up top-‐selling goods.

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Customer Journey

Awareness Discover Receive Use Get help Next purchase Purchase

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Customer Journey

Awareness Discover Receive Use Get help Next purchase Purchase

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Mayday, mayday, mayday button…  

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Customer Journey

Awareness Discover Receive Use Get help Next purchase Purchase

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”Customer experience includes having the

lowest price, having the fastest delivery, having

it reliable enough so that you don't need to

contact [anyone].”  Jeff  Bezos  

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Customer Journey

Awareness Discover Receive Use Get help Next purchase Purchase

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Amazon aims to keep you clicking

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Customer Journey

Awareness Discover Receive Use Get help Next purchase Purchase

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One word…  

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Reading tip: Customer Experience

in practice

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What’s your most important…

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Pascal  Spelier    

Managing  Consultant  All  Channel  Experience  

 Reykjavikplein    1,  

Utrecht,    The  Netherlands    

Mobile:+31  (0)  6  53  29  90  17  pascal.spelier@capgemini.com  

Thank you!

@spelier

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