Amazon Prime: Online Marketing by Prime – Amazon.co.uk

Amazon Prime: Online Marketing by Prime – Amazon.co.uk: by Jason Li 2013 ©
 

IMPORTANT ANNOUNCEMENT (For Marketeers Regarding Amazon Prime)

“Try Amazon Prime FREE for one month: Unlimited FREE One-Day Delivery on millions of eligible items; Express Delivery for £4.49 per item (delivery before 1pm).”

“Over 300,000 popular Kindle Books to borrow for free, as frequently as one book per month and with no due dates.”

(Taken from Amazon Prime)

 

Amazon Prime – what you have just read is about a service that is changing the world forever.

It’s the single most important business copywriting and strategic marketing reveal that you must analyse and understand if you want your business to succeed.

So Am I Promoting Amazon As A Secret Amazon Prime Employee?

No... Although - I admit straight away: I LOVE AMAZON.

For me... first came the internet, and then came GOOGLE and Amazon as the world’s most useful internet services in the world.

And it’s going to be for the foreseeable future possibly humankinds most valuable consumer supplier of goods and services.

Here’s Why (And How Amazon Prime will do this)...

Amazon has played its card in how it is going to get even more rich, and you’re about to see why this is with Amazon Prime.

What is Amazon Prime?

There’s some clue in the opening paragraphs so I’m going to state how important it is and have you read it again:

“Try Amazon Prime FREE for one month: Unlimited FREE One-Day Delivery on millions of eligible items; Express Delivery for £4.49 per item (delivery before 1pm).”

“Over 300,000 popular Kindle Books to borrow for free, as frequently as one book per month and with no due dates.”

In summary, at the time of writing in June 2013, customers get to borrow free Kindle Books and enjoy free delivery. Plus there are streamlining movies services too.

So you see, for those who understand how effective direct marketing and strategic marketing is... Amazon is going to be

The De facto World’s Greatest Direct Marketing Business!

Here’s some stats to prove it:

Amazon was launched in the United States in 2005.

(Taken from Wired.com) In the fiscal year of 2012, analysts at Morningstar suggested that Prime members grew from 7 million to nearly 10 million. Prime membership was greatly boosted by promotions to customers who bought a Kindle Fire.

In total, Amazon had about 182 million customers during the year, so Prime members make up about 4 per cent of the total customer base.

So here is the significant bit about profit: Prime customers accounted for $78 more in profit before interest and taxes per customer than non-Prime customers, as revealed by Morningstar analyst R.J. Hottoy.

And now the comparison bit: The average Amazon customer when calculating the operating profit from the 182 million customers is $10 per customer.  So Amazon Prime customers are about

SEVEN TO EIGHT TIMES MORE PROFITABLE

than a non-Amazon Prime member.

And now for the insane bit: about a third of Amazon’s profit come from just 4 per cent of customers who buy stuff on Amazon.

So how does Amazon go on to be the de facto direct marketing business on the internet?

Amazon Prime is capturing all the people in the world:

a)      Who have money to spend.

b)      Who are happy to buy direct... that is online.

c)       By offering people with money the convenience, opportunity to save money, and the service of wider selection of goods; so that it is easy to just go to one-stop Amazon to see if what the buyer wants is listed by searching Amazon’s product database.

d)      By keeping in touch with people who keep on spending by being constantly relevant...Prime members keep revisiting... and spending.

Once you’ve got used to buying books, Amazon’s fantastic web designers and copywriters make it easy for you to notice other items in other categories by:

·         Promoting other books.

·         Promoting non-book items such as brand name watches to streaming films to baby toys.

Emails

The secret power of Amazon is in emails.

Amazon sends you regular emails on all sorts of categories to tempt you to buy special offers. It’s really hard for consumers to resist.

Just think of near enough every item that are resold in retail shops (eg. Your Armani watch or Nike T-shirt) in the most popular and largest locations. Think of John Lewis, or Oxford Street in London, or even the Trafford Centre in Manchester. Amazon will likely have the item available.

Think about it, you can kit out your whole home by buying off Amazon without having to leave the sofa.

But Amazon Destroys Business

Isn’t that what locals always say when a successful innovative business comes along.

(Hey... there’s nothing better than a local business with tradition and history.)

In fact, we’re lucky we live in a free market system and innovation is here to improve customers’ buying power, or else monopolies can dictate products and prices.

So yes, you may not like your Tesco’s taking customers from local businesses, but look at it this way... if there are two restaurants on the same street, and one is busy and the other hardly has any patrons...

Is It The Restaurant That Is Struggling That Is Wrong

Or Obviously It’s The Consumer Who’s Wrong?

So the question must be posed? Is it big businesses that destroy local businesses, or consumers who are not considerate and change to shop at big businesses; or the local business who cannot be bothered to innovate and improve? Hold that thought.

Amazon Prime Innovation

Remember the paragraph describing the services of Amazon Prime?

Amazon would have spend months analysing the customer research data to come up with their new compelling strategy of capturing the segment of

The world’s most CONSISTENT SPENDERS in the online direct marketing category

During a history of innovation and technology to improve humankind, humans cannot resist technology.

You see – humans choose the easy option when faced with similar choices (a consumer psychology tip that can help you win orders by just mastering this technique alone – it’s in the ebook The Goose Bump Effect in more detail.)

Here are some examples to prove it:

·         We wore clogs and moved onto shoes.

·         Transport was once by horseback, now it’s by car, bikes, trains, airplane (and skateboard).

·         Messages were sent by letters, and now sent by text, social media or email.

·         Once we drove into town to buy books or a film... now you just search Amazon.

And this is where we are today: Innovation, convenience, better pricing, wide selection of goods and so on and so on.

That’s why Amazon Prime is the most important development in direct marketing.

Scared by Amazon Prime?

You don’t have to be. You just need to keep being systematically pro-active.

Here’s some ideas that might help your business:

·         Don’t ever stop innovating even if you are top of the tree.

·         And don’t forget the importance of direct marketing. Keep in contact with your customers.

·         Make sure you systematically collect data and research your customers.

Thanks for reading. Please share this article with friends who like Amazon.

 

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Quality, Price, Delivery – What type of customer

Quality, Price, Delivery – What type of customer: by Jason Li 2012 ©

When you have a product or service on offer for your customer, there is a high chance there will be resistance. How can this be when you have an offer which the customer cannot refuse? You’re thinking it’s a no brainer. You would definitely snap it up if you were in their position.

Quality, Price, Delivery (QPD)

So let’s check the offer is right. We’ll use a customer with a shop assistant in a smart phone shop as an example.

When you go to buy a smart phone, what type of person are you. Do you buy based on quality and will choose on the best, no matter the price? Here is a guide to working a customer out quickly:

Quality – functions, benefits, the range of value created: from minimum to maximum a product or service can do.

Price – from the lowest price to most expensive in your range

Delivery – now or in two weeks

Only on the odd occasion does delivery guide the decision. Such as if you have a plumber who needs new taps for a job he is doing and needs it doing by the end of this afternoon – “what taps do you have in that I can take now?”

If there is no urgency, then it is down to quality and price now.

So here you will need to find out what is most important to the customer. You might ask:

“So what are the key features you are looking for?”

“What are the main things you want the phone to do?”

If you get: “not bothered really it’s down to cost”, then this is a cost person.

However, you might get someone giving you a long list of features they want – so you’re confused and wondering if they are really here to buy an item with the most beneficial features, and are in fact a quality person. So to double check you can ask after they have listed the features they want:

“So what budget range is ideal for you?”

“What’s a comfortable amount for you to pay each month?”

Funnelling

Funnelling is choosing a funnel to dig deeper with more questions to understand your customer better. Better let me explain.

Let’s say each criteria of quality or price or delivery is a funnel. What you can do is ask a series of questions on each subject to hear if the customer is willing to talk about it or finds it important – so that you understand a bit more about what suits their needs and wants. Here is an example of a quality funnel:

“If you spend a lot of time on the internet, what do you mainly do? For example reading lots of text/like online newspapers or watch videos?”

“Some customers do a lot of social networking and email and do lots of typing, how about yourself?”

“Let’s say the standard screen is 3.5 inches, tell me what screen size is suitable for you?”

QPD – putting it together

If the customer rambles on about: “as long as the phone does all the features listed and it’s not silly prices”, then they are a quality person, and cost not too sensitive.

If the customer says they only have a certain budget. Then this is potentially more a mix of quality and price person.

If the customer says ideally they want the best phone at £5 a month, then really they are a cost person. You might want to ask a further question to double check which features they would pay for and what they would stretch to. If they want a feature but won’t pay, you know the answer.

Hey, we all want to live for free. There is no point advising a cost person that spending a bit more will get them a feature they want, just leave them be.

QPD Profile

So you can create a profile of a customer each time now. In your head, you can mark each funnel out of ten to work out what type of customer you are dealing with here.

Let’s say out of ten, you can ask a few questions and know that a customer is maybe 6/10 quality, 3/10 price and 1/10 delivery – this is mostly quality. Or the next one is 2/10 quality, 8/10 price and 0/10 delivery – in fact they will walk 20 minutes to the next shop if they can save 50 pence.

You might have three directors in a room and they cannot agree, and are “Still thinking about it.” Well now you can build up a profile for each, then quote so that all three are happy as you make an offer that suits each individually.

Know your customer, tailor an offer

So you see, you might think you have a product or a service that is a no brainer and thousands will pay on the spot – but they don’t.  We are all different, different circumstances, tastes, values, stages in our life, and customers can be just pure baffling to you.

Now you have a way to work out what your customer wants and to offer them what they want to buy. After this, if they buy or don’t buy is up to them. If they don’t there will be possibly ten reasons that you would never have thought of.

The more you can understand your customer and tailor your offers, the better your products and services will be in meeting your customers buying requirements. This will lead to more people accepting your offers and buying from you, which means more profits.

Test the theory

Let’s take McDonalds. They are definitely not the best tasting burgers in the world. But I still go from time-to-time. Why? Well the quality of food is possibly 6/10. I have been to some cafes and spent ages pulling out grizzle and tiny flecks of bone cartilage out of my cheap beef burger. So now I must have decent quality beef due to these chilling experiences. It was just short of chasing down a cow and taking a bit at the knee. Back to McDonalds. The service is a decent 6/10, the restaurant itself is pleasant and better than some cafes so 7/10, and the toilets are always useful at 8/10. Then onto the cost, well it’s easily an 8/10. There are cheaper but then I can never go back to super cheap burgers again. As for delivery, it’s pretty much instant for popular products so 9/10.

So who generally doesn’t go to McDonalds, but would like to eat a burger and have no problems with McDonalds?. It’s likely to be people who want a great quality tasting burger at a nice restaurant, and can afford to spend more. They want more quality value and go elsewhere.

Is McDonalds successfully generating a lot of revenue? Is McDonalds profitable? Does McDonalds create value for a large part of the population? Can you look at your business to see how you create value that is irresistible to your customers?

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