Amazon has been relying heavily on customers' expectations to get much cheaper products with the best customer service. This sounds like nonsense, especially if you have to make it balance on their profit. With continuing quarterly losses and evaporating sales tax advantage, Amazon (AMZN, Financial) really struggles to overcome these challenges. In the end, there are no other options besides raising prices in order to generate reasonable profits to satisfy shareholders.
What did Amazon learn from their acquisition of Zappos? This can be interesting since Zappos is among the leaders in customer satisfaction. From Zappos studies, more than 75% of their sales rely on repeat customers. This is a high number compared to the market benchmark, which is around 25-30%. Since the acquisition in 2008, Amazon has improved its customer loyalty program.
Amazon definitely cares about its customers. If you call Amazon customer service right now, the response is totally amazing. You are no longer experiencing the hassle of getting transferred or waiting in line for so long. This makes online shopping much easier. Amazon has successfully transformed its online shopping to a more personal shopping experience.
Its values and dedication to customer service have now become role models for other businesses. From our survey conducted, Wallao is one of the example how Amazon has influenced their corporate values to more focused on Customer Service. From our interview, Ella P., the manager of public relations, explained, "Now, the challenge is how to always improve the user experience, which includes everything from the point customers looking for the products, placing the orders, until receiving the orders."
