Question

In: Economics

Why and how does Amazon focus on customer satisfaction so much?

Why and how does Amazon focus on customer satisfaction so much?

Solutions

Expert Solution

Amazon is one of the most profitable companies in the retail sector these days with total sales in 2016 of over 130 billion US dollars. It managed to build a multi-million business based on an excellent experience with the customers. The company has implemented a customer-centric approach at all levels since its founding in 1994. The secret to the company's success has been listening to and inventing for consumers, according to Jeff Bezos, CEO and founder of Amazon. This approach led to the launch of unique and useful products and services including Kindle, Amazon Prime, Amazon Music and so on.

Customer Attention-The organization focuses on continuous quest for new and innovative ways to boost customer experience. They give fast delivery, use customized customer approach and work to deliver best offers.
Help consumers make buying decisions-Amazon was the first company to incorporate product reviews to its website, thus helping customers make the right purchase choices based on input from other shoppers. Feedback also lets marketers know what people love or hate about their products, and can make changes or improvements to their products with this information.

Assess Customer Performance-Amazon regularly sends its customers basic surveys to measure their satisfaction level. This helps develop customer engagement , increase customer loyalty and improve retention.


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