Just Why is Amazon so successful?
Posted 9 months ago by Caspar
15/09/2007
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Credit to the free WSJ again at Waterloo for highlighting a great piece of research on one of the reasons why Amazon is so successful.
According to the article, it's down to User Generated Content (at the heart of our beliefs of Rewarding Dialogue and how the web is about relationships and interaction, not just an information library).
In this situation, it comes down to product reviews; the actual case study is a US company called Bass Pro Shops which sells outdoor gear (anything from a $2 fishing lure to a $500 propane gas grill).
What they did is create a system of product reviews in the same way that Amazon does where consumers debate, comment on and review the products for sale. The results were amazing:
- a 59% increase in the rate that shoppers made purchases;
- the conversion ratio rose from 3% to 5%
Additional benefits felt, but not quantified were increased customer satisfaction and reduced returns.
Whilst this is an example from the consumer world selling products (b2c), we see strong parallels with the b2b world, and a much wider application of the principle of user generated content helping to inform, educate, build loyalty and support a buying/ sales process.
On a different note, it has been a great week for Trovus - Jon and Ed have been doing some amazing things with new customers (in Agency world) and also with partners. Jon and I met some potential partners yesterday afternoon with whom we very much look forward to working with - in particular Stuart McIntyre at Morpheus and Neil Burston from Avnet.
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