Amazon is the king! And we don’t say it: the Boston Consulting Group ranks it fourth among the 50 most innovative companies in the world and according to Brand Finance; Amazon is the richest brand in the world with a value of over 150 billion dollars.
Its history is not very different from that of other leading companies: born in a garage, far from the high finance areas, Jeff Bezos’ company has found itself facing several dark times over the years. When, however, in 1995 it launched its first service as a simple online bookstore, the results were incredible and led it today, 23 years after its birth, to be the largest e-commerce on the web, recording numbers record: 2 billion visitors per month and an expected sales volume for 2020 of 300 billion dollars.
What were the keys to its success? Amazon has focused on two fundamental elements: a constant search for innovation and the needs of the consumer in the first place, with a customer journey that is as immediate and enjoyable as possible. But what marketing strategies did you adopt to become the number one e-commerce on the web? We see them together.
When we do an online search for any product, the first result we see is almost always an Amazon ad. If we pause for a moment to think about the number of ads it advertises, it would be difficult to imagine that its operators write millions of keywords for each product sold on e-commerce. So how do they do it?
Using DKI (Dynamic Keywords Insertion), Amazon advertises over 5.8 million PPC keywords on Google Adwords and Bing / Yahoo using 6 million ads . This technology allows you to automate the ad creation process and bring up the keyword you are looking for within the title and description of the product itself.
KINDLE AND ITS EBOOKS
One of the flagship products of the American giant has always been the Kindle. Amazon chooses to sell it at a loss with the specific goal of billing 4 times more on its related products, eBooks. In this way, the Kindle Store has surpassed 4.6 million titles since 2016, becoming the largest eBook retailer in the world.
This is a strategy that many other companies choose: those who own a Kindle are more inclined to spend money to buy eBooks with which to use it on Amazon and this helps to close the circuit of acquired customers. Over time, this strategy has refined with the introduction of an eBook subscription service called Kindle Unlimited, which makes over a million titles available to customers in the Kindle store.
AFFILIATE MARKETING FOR CHARITY
But Amazon doesn’t seem to want to just bill, bill and bill again. The Cupertino Company has decided to create an alternative portal to its own: Amazon Smile. By accessing it, customers can donate 0.5% of their total purchases to charities of their choice (which are part of the Amazon Smile program). Over $ 62 million has been donated since 2013. This strategy has proved successful for three reasons:
– it flatters the customer who knows he can perform a good action parallel to his purchase;
– encourages future purchases;
– rehabilitates the image of the brand in terms of social responsibility, which has always been the subject of numerous controversies.
CONVERSION RATE: THE 5 STEPS TO INCREASE IT
Amazon has designed the user experience in a functional way to its primary goal: conversion. To do this, it focused on 5 elements.
– social proof: when you get to the product page, the first thing customers notice are the yellow stars that represent the satisfaction of those who have already made that type of purchase and the reviews received;
– The perceived price: the original price is “cut” and the discounted price is highlighted. In this way the savings are perceived both in numerical and percentage terms;
– scarcity and urgency: to what has been said above, we add the information on the number of products left, which increases attention to the product and the urgency of arrival if you order it within a set time, increases the possibility of purchase;
– 1-Click purchase: a button that allows you to purchase the product immediately, skipping all the operations of the cart;
– upselling and cross-selling: during the purchase, the user is shown another product purchased together with the one he is viewing with the item “often bought together” and the possibility of buying it at a reduced price. In addition, all related products are highlighted in order to incentivize their purchase accompanied by the item “customers who have purchased this product have also purchased …”
Being present online certainly has its advantages, but the biggest disadvantage is that the customer will not be able to perceive the product except when it arrives at home in his hands.
For this reason, Amazon is also trying to go offline by creating physical stores that also represent its brand in the analog world, but experimenting with them with a better idea: pop-up stores, stores open for a limited period.
Which offer the latest news and then suddenly close without warning. This helps to increase the brand awareness of the brand and at the same time increases in the customer the perception of being able to enjoy an opportunity not to be missed. In this way Amazon can reach all customers with its products, both online and off-line and those who need amazon seller account reinstatement.
But the real stroke of genius Amazon did it with Prime. The flagship service of the American giant offers its customers the opportunity to have their purchase delivered within one or two working days with an annual subscription with a negligible cost!
Doing two calculations, Amazon noted that 80% of customers who are subscribed to the Prime service generate three times more spending than non-members.
How did you introduce it? Try it for free for 30 days. Initially, Amazon did not offer this opportunity and the subscription cost much more. Not getting long-term results, he decided to try the service for free. The numbers have skyrocketed: 73% of customers who test Prime for the first 30 days convert and after one year 91% will renew, to turn into 96% the year after. Amazon will eventually have a loyal customer for life.
News a few days ago, sees Amazon close the first quarter of 2018 with a + 43% (compared to + 37% in the same period of the previous year) collecting 51 billion dollars!
Its growth shows no signs of stopping and there is no doubt that the strategies adopted have proved successful, transforming it into a case study for many web marketing experts, as well as in the strongest e-commerce in the world.