With both companies being Outside In, how do their business models compare? Why Apple is the better Amazon.com View more presentations from Thorsten Faltings.
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Knowledge@Wharton interviewed George Day about the challenges companies face in implementing "outside in" strategy, especially during a recession; what benefits companies can realize by adopting this approach, and which companies have done this well and which haven't, among other topics. In the video, he discusses his book's contribution to the ongoing debate over marketing strategy, and relates how McDonald's used an "outside-in" approach to turn around its business. See http://bit.ly/9hFUB4 Amazon - leaders of the online shopping revolution - have branched out into the grocery delivery business in the UK. In this article, a comparison is made of the cost of groceries, cost of delivery and the total cost. Unfortunately, Amazon is almost 200% more expensive than the nearest competitor and a staggering 280% more expensive than the cheapest online retailer.
See http://bit.ly/a7Ue9i So, you've got an website and you're selling things online. Great for you. But are you really making the most of your online channel? Doesn't matter how small or how big you are, you could be doing more to increase sales and if you are going to compete with the likes of Amazon, the one thing you can learn from them is to provide an exceptional customer experience to make your customers lives easier, simpler and more successful.
So, in the physical world, setting up shop takes a lot of effort because you have to choose the location, fitout the shop, put your merchandise on display and wait for customers to come through the door. Well, you would probably argue that these same challenges exist in the online space too. In fact, some of the challenges are even more difficult because of the sometimes competitive nature of the Internet and the ability to quickly compare prices. So, the goal remains the same; How are you going to get customers to come to your online shop and purchase from you and not someone else? Well, your opportunity might not be to continue to compete on price alone. These days, service is such a forgotten art that companies incorrectly believe customers will not pay a little extra for it if you can make their lives easier, simpler and more successful. So, look at your customers, understand what they really want from you and deliver it to them. Deliver it well and they will thank you for it by returning and telling others. Provide a poor experience and they are likely to go elsewhere. And it's easy to judge the service level you provide your customers. In a recent article from Canadian Business magazine (see http://bit.ly/OIVirgin), Richard Branson said "The trick is always to look at your business or brand from the outside in. Instead of looking strictly through the prism of the latest quarterly financials, attempt to see yourself as your customers see you. Start simply: call your own customer service line. Just finding the number can be interesting. If you’re subjecting your customers to some kind of electronic hell, redesign the system — pronto!" Here's an example of knowing what you customers really want. If you find that your customers are looking for gifts for family and friends, provide a gift service where presents can be wrapped, cards created and attached to the present for delivery to the loved one. An opportunity for you to make your customers lives more successful and an opportunity for you to increase your revenue. What about helping them choose the present by asking them some details about the recipient and then displaying something like "Customers who searched for presents with similar profile purchased" ... Ever forgotten to send a card or present, how about providing customers with a calender with a reminder service and a history so you can see what they purchased last year. Remember, user interface and navigation is important. If you make it difficult for customers to find and purchase what they want, they may just give up. The principle to remember has been around for quite some time and that is the more interactions a customer has to go through, the less successful the interaction is. Apple knows the importance of this, just have a look at how simple their devices are to use. They're complex and powerful devices but simple to use. Look at your site, how simple is it to use? How many keystrokes and button clicks does it take for someone to find what they're looking for or for them to check out? Ask yourself, are they really all necessary? If the answer is no, then get rid of them and in doing so, help make your customers lives easier, simpler and more successful. |