The Zen of Jeff Bezos
Wired 13.01Identifies the key to Amazon's early success as due to: "early word of mouth came from people looking for more obscure volumes. These days, the site sells more than 20 million products, including all 29 colors of the KitchenAid 5-quart mixer. And it's a $6 billion business, thanks to its focus on niche markets and customer service."
Bezos tested TV advertising and concludes that instead of trad ads Amazon" put all that money into lower product prices and free shipping. That has significantly accelerated the growth of our business.
Is this a trend?
Yes, more and more money will go into making a great customer experience, and less will go into shouting about the service. Word of mouth is becoming more powerful. If you offer a great service, people find out.
In the magazine world, we rely on ads. Should we be terrified?
I'm not saying that advertising is going away. But the balance is shifting. If today the successful recipe is to put 70 percent of your energy into shouting about your service and 30 percent into making it great, over the next 20 years I think that's going to invert."
posted by Jen @ 7:01 am
<< Home