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

1. 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

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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

7. 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
Changesinregulationsandtechnology
developments
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
5
6 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
Communication
Management
Business
Process
Management
Security
Awareness
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Use
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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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59. 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