Toy R Us and Maplin have now both gone into administration – a clear sign that retailers are struggling to retain their position. What could make the difference? In a recent ITProPortal article, Stu argues that brands need a complete shift of thinking, both when it comes to internal strategies and customer experience. Adding a website is not enough anymore (if it ever was). We should be looking for more creative ways to create best-in-class customer experience. You can read a separate piece on creating digital strategies that make a difference here.
Amazon’s successful B2C strategy and expansion into the B2B is a major success story for modern business. They have become a definitive leader in both e-commerce, fulfilment and logistics. So what can brands learn from Amazon? The retail giant is not afraid to experiment with new technologies. But only because they already mastered the basics. Amazon ensures that each new service or product responds to genuine customer needs and delivers real results. Improving ordering process and delivery times, expanding fulfilment or logistical capabilities or digital-physical services have all created massive change when it comes to the way customers perceive online shopping.
From B2C to B2B
Perhaps the most intriguing thing, though, is how Amazon have transposed their approach from the B2C sector into B2B. With personalised, customer-focused interfaces, they ensured their B2B proposition is user-centred. They’ve embraced mobile-friendly navigation and an omnichannel approach – which is essential for success in any business. Enhanced analytics with new data streams, data-led personalisation, and a flexible market differentiation strategy are also essential supports for a user-centred business. And the investment is paying off. A few weeks ago, Amazon reported that Amazon Web Services (AWS) accounted for 73% of net income for Amazon and AWS operating income grew by 46% in Q4 of 2017. Amazon Business, launched in July 2017, has already gained over 1m customers. It offers procurement system integration, VAT invoicing, and powerful analytics – all coupled with a Prime-style service.
While Amazon’s case study provides valuable lessons, there are few things to remember. A simple replication of what has worked for e-commerce giants will not do the trick:
At BIO, we’ve worked with Arrow Electronics to support them with online transition. We helped them expand beyond B2B and sell directly to customers with a bespoke collaboration facility, enabling business customers to talk directly with technical experts. Read more about the case study here.
Click here to access the article on ITProPortal.