We have been writing countless articles about the Amazon Effect for many years as customers have the upper hand. In essence, if you cannot provide rapid, customized service with easy returns and ‘extra value’, you will be left in the dust. The needs aren’t going away. If anything, Amazon continues to raise the bar. Several companies such as FedEx, Walmart, and more have announced same day and next day delivery. Target is redesigning stores and pick up areas so that customers can conveniently pick up purchases same day. Walmart is evaluating delivering groceries inside a customers’ home while they are at work. And, Coscto has established a chicken farm to grow, slaughter and distribute chickens in an effort to eliminate the middle man for quicker, cost effective deliveries. However, this isn’t just about B2C and traditional e-commerce companies typically in industries such as consumer products and food and beverage. B2B companies expect Amazon-like service as well! Behind every B2B company is a person who expects B2C customer service.
Executives are still intrigued by the Amazon Effect. The reason executives still care is because it is getting harder and harder to remain competitive and profitable. For example, at the Manufacturing Summit, we recorded a series of videos from an Amazon Effect panel talking about these issues. Countless CEOs are expressing concerns about how to navigate these troubled waters. On the other hand, there are a few who are taking advantage of the situation to stand out from the crowd by becoming the disruptor instead of the disruptee. Which are you?
The Amazon Effect also teaches us that innovation is cornerstone to success. Not only does Amazon continually innovate and test new ideas, but some of these new concepts ‘stick’. As the founder of Netflix said, it isn’t that you set out to get the idea for Netflix and it is success all the way. The reason we are still talking about 3M and the famous sticky pad innovation is that it doesn’t happen that often, and 3M sets aside time and money for innovation as a part of their culture. Thus, we must get comfortable with trial and error. Of course, the error part is the problem. No one likes failure yet it is just a part of the process. In fact, if you aren’t failing, you won’t succeed. Even Amazon fails. They test new markets, are willing to lose money and shut down programs. We just don’t hear about them as often as we hear about the latest and greatest new service or drone delivery! Are we really pushing the envelope far enough?
Have you thought about whether you have a culture that supports innovation? Check out our video series on innovation to gain some ideas. Gather your team to brainstorm out of the box ideas. Ask an expert to poke holes. Deliberately stimulate debate and organize trials. In essence, why not encourage maverick behavior within reasonable guide posts so that you set your team up for a “win”? If you are interested in an Amazon Effect assessment with ideas to break from the mold, check out our free resources and/or contact us.