Why customers love Amazon?

Summary #

Customers love Amazon because Amazon gives them a good experience. It is a well-known idea that providing a good experience to customers increases profits. But most companies don’t use this idea in practice. Amazon uses this idea in practice because it has faith in it. Most companies don’t have this faith.

Explanation #

Customers love Amazon because the company obsesses about giving them a good experience. The company provides its customers with the best experience in all retail. It has the best prices, the best shopping experience, the best delivery speed, and the best return policy. The company is continuously finding new ways to improve the customer experience. No other company comes close to thinking about customer experience like Amazon.

Most companies understand the importance of good customer experience. It is a well-known idea that good customer experience increases profits. Professors teach this idea in business schools. But most companies don’t use this knowledge in practice. This is because they don’t truly believe in this idea. They don’t have faith in it. They only have an intellectual understanding of it. This lack of faith stops them from launching large customer experience initiatives. They see such initiatives as a waste of money as they don’t have faith in better customer experience increasing profits. Amazon, on the other hand, has faith in customer experience. It believes at a fundamental level that good customer experience will inevitably increase profits. This faith allows the company to launch large customer experience initiatives. The company sees expenses of such initiatives as an investment. For example, Amazon will not hesitate to buy large aircrafts as it helps the company improve delivery speed. The faith in customer experience makes all the difference. Amazon is miles ahead of other companies in customer experience because of this faith. The difference is very apparent to customers. They love Amazon for it.

Jeff Bezos himself drives customer experience in Amazon. He has a rare irrational faith in customer experience. He drives this faith in Amazon through the company culture. When he leaves Amazon, the faith will also slowly erode. Most CEOs don’t have the faith of Jeff Bezos. This faith cannot be learned. It is gained only through personal experience.