Before we completely move on from last month’s Amazon Prime Day, it’s important to understand why retail brands once again braced themselves to lose customers and online sales when they had a whole year to do things differently.
Amazon’s ingredients for the promotion were extensive and strategic, but were also simple extensions of its carefully built ecosystem: They offered sneak previews of the sale a week in advance, gave Alexa shoppers a several-day head start on Alexa-specific product deals, gave Prime Now members a two-day head start on deals for products with a 2-hour delivery, pushed voice shopping by giving first-time voice shoppers first dibs on deals the day of the promotion, and extended access to 100 Alexa-related deals beyond the close of the promotion.
The most glaring takeaway from all of this is that Amazon didn’t do anything that other retailers can’t do themselves. When you break it down, they put together a promotion that rewarded loyal shoppers, drew attention to the benefits of membership, pushed valuable behaviors they want to see more of, and created deal segments according to user and product type.
While there are admittedly few retailers that have the infrastructure and product variety that Amazon does, what most retailers do have is lots and lots of data. And as of very recently, they also have access to advanced technologies like artificial intelligence that can put this data to work so they’re less vulnerable to retailers like Amazon.
What continues to stand between many retailers and Amazon is their inability to put technology and data to work for them, so they can think less about the day-to-day minutiae and more about the customer experience. Here’s how Amazon did that and what retailers can learn.
Get out of the weeds and put the customer first.
A major inefficiency for retailers is the overwhelming amount of customer data they must wade through to come up with the type of tangible insights — recurring visitor trends, buying patterns, and product preferences — that Amazon bases most of its marketing and promotions on. The same data that allows retailers to hyper target their audiences with personalized messages has simultaneously become way too much for them to analyze and act on creatively in other ways that would enhance the customer experience.
Amazon got ahead…