Small and medium-sized businesses are always on the keen lookout to find newer ways to connect with target customers. As a business owner, there are several marketing strategies that you can follow to improve the visibility of your brand. The tried and tested methods that have worked long for the most successful business are definitely worth a shot. Amazon is the leading e-commerce giant in the world currently. The annual revenue for Amazon in 2018 was $232 billion, which was a 30.93% increase from the previous year.
Amazon as an industry leader can teach significant tactics to grow your business and scale it to a greater level. Being the world’s largest e-commerce marketplace, Amazon’s business journey has been one of its kind which can be a lesson for SMBs. Following the Amazon marketing strategy, SMB owners can benefit in the future with marketing and advertising.
All about Amazon’s long-term Growth
According to Statista, Amazon’s revenue has seen an increase over the years, growing at an increasing rate throughout the years. It rose steadily in 2004 and improved every year after that. It followed several strategies for growth over the long term and succeeded in generating revenue and net income.
What SMBs can learn from the marketing strategy of Amazon?
With the fundamental knowledge of Amazon’s numbers over the years, you as an SMB owner can ameliorate your own marketing strategies by learning from the steps that Amazon followed. You can take valuable lessons from the Amazon marketing strategy and implement those in your business. A few of those are:
- Understand every minute detail of your business
Being an entrepreneur, it is your prime job to understand the nitty-gritty of your business. From knowing what you sell to the customer’s lifetime value, you should have an idea of all aspects of your business. You should be aware of your USPs, your competitors and their journey, your long-term and short-term goals, your customer’s journey, innovation strategies, and more. For your brand to stand out in the market, you should be one step ahead, just like Amazon has always gone the extra mile to fully understand its business, which has made it successful.
- Know and understand your customers fully
Being the industry leader, Amazon knows how to fully know its customers and use this understanding to drive sales. The Amazon marketing strategy consists of new innovations from time to time for enhanced user experience. Using the automated systems, Amazon seeks to provide you information such as recommended, complementary and supplementary products related to their customer’s past interests. Amazon generated 35% of its revenues with such a system as per a report published by McKinsey. The conversions for the recommended items could be as high as 60%. This is a great example where a company generated revenue by improving the customer’s experience by fully understanding it.
- Focus on long-term revenue through returning customers
Amazon has always emphasized customer retention for the long term and has been generating revenue from recurring customers. They come up with ideas such as subscription models and delivery advantages for Amazon Prime customers. Once a customer is acquired, you can be sure that they will return to the platform and shall be converted. You too can apply this vital point from the Amazon marketing strategy and add the same to your own strategy.
- Constant innovation with a focus on improving customer experience
Amazon has always been a customer-centric company and their customer services are unmatchable. They launched Alexa to give customers ease of shopping. They have constantly worked on improving delivery methods. They have continuously followed an innovative approach. You as an SMB owner can take a lesson from this Amazon marketing strategy to come up with plans to improve your products and other processes so that the user experience improves directly for your customer.
- Referral marketing
One of the best marketing strategies to follow is word-of-mouth or referral generation. You can even integrate contemporary digital marketing methods for referral generation. The Amazon marketing strategy has often revolved around referral generation many times in the company’s journey. So, you can also generate referrals from your existing customers and parallelly invest in excellent customer services. When a customer is happy with the experience they got from your company, they will not only return to shop from you but also ask other people to purchase your brand. This will effectively improve your sales, thus leading you to growth.
- Review system
The credibility of your product is important and so is getting that credibility testified. Getting reviews and ratings from customers is the way to build your brand’s reputation. This practice became more common with Amazon adding reviews to their platform, dating back to 1995. Some tactics followed by Amazon are sending different review emails for different products. E-commerce sellers are in the practice of sharing a generic review or feedback email, which the customer may ignore but Amazon follows a different approach.
- Measuring and Optimizing processes
With the availability of a vast array of technical tools in the current times, you can easily test and measure the performance of your marketing campaigns. There are analytical tools that give you the exact numbers for your activities. The data from different marketing channels can be utilized to optimize your platform further. The innovative outlook of the Amazon marketing strategy and the company’s process improvements strategies have always been based on data and its analysis.
Amazon as a successful business has grown dramatically and its marketing strategies have been a major reason for its success. You can leverage Amazon’s business model to define the direction of your efforts that can lead you to growth. With a well-determined marketing plan and keeping customers in the center, you too can succeed in the business world.