Do you like to turn your startup business into a cash cow?
It’s possible. If Amazon can do so, you also can make it possible. When Jeff Bezos laid its foundation on 5 July 1994, nobody was so confident that it could be the topmost eSeller. Today, its net income is USD 3.033 billion. If you talk about its operating income, you hardly believe that it touches USD 4.06 billion (according to Wikipedia).
Its foremost position, in the nutshell, is a consequence of the best business analytics services. It hired the premier talent of the analytical world. And finally, it’s on the top of the world.
Would you like to know how it struck the bull’s eye? Here are a few lessons driven from its smart business analysis that you, also, can try to achieve your business goals.
- Let data speak up:
Amazon has the richest data repository. Roughly, it has nearly 100 private brands under its flagship. But, its flagship was not as rich as it is today. It has gained the momentum since last five years. Around 5 dozen private labels registered under its tag during those previous years.
Why did this happen-its answer hides a secret to map a way to a popular brand. Indeed, it banks on the market research knowledge and access to data. Its skilled analysts have discovered every way to access that data.
A naïve might be attentive to promoting brand name via digital marketing. But, its veteran analysts sift through the searches. What they believe is that generic search always stays ahead of the brand search. Around 70 percent searches are categorized as a generic keyword is.
Let’s say, you promote an apparel brand called “XYZ” by its name. But, amazon plays with the generic keyword for this category, like a trending t-shirt for men. The logic is simple. Nearly 70 percent consumers type trending t-shirt for men rather than Mark & Spencer t-shirt.
- Democratize retails:
A few decades ago, the brands used to rule in the market. Presently, local brands are showing their excellence. The world’s biggest retailer Amazon democratized the retail world. However, the brands like Energizer and Duracell are still the giant players in the gadget world. But, several regional sellers pop adjacent to them.
Despite being not so big brand, they get consumers under its private-label goods. Although they have to share a slight portion of their profit with the biggest retailer, yet they get the customers. They are pivotal to bring in the income that they could not generate due to the monopoly of the big brands.
You, also, can bring small and unknown retailers onto your board. Finally, your pathways to scale up would not be so far.
- Incentivizing shoppers:
Have you ever thought about incentivizing your shoppers? No!
Amazon did it. It strategically formulated the concept of ‘Amazon Prime’. Its business analysis team carved a route to pull in the customer’s data via it. In return, it provided them with inexpensive deals. Also, the newly registered members can exclusively grab some private-label goods & brands that no other consumer can have.
If you look into amazon.com, the amazon prime member can steal the deal of Goodthreads men’s khakis. It’s what the best point of attraction for the consumers. They feel rewarded. So, you can derive some innovative tricks through business analysis to let your customers feel as if they’re being rewarded.
- Private-label goods:
Lower prices, undoubtedly, attract customers. But, they need quality at economical prices. A brand always capitalizes on its fame. So, collaborating with them would not satisfy your customers. You need to have some local retailers.
Amazon analyzed this fact and collaborated with the private label goods dealers. But, it absorbs not every dealer/retailer. Its analysts take into account the surging demand of some particular goods. When brands seem unwilling to sell at the economic value, the local retailers come into play. Its analysts introduce ‘test and repeat’ technique. Initially, it places orders in a small quantity; tests demand. If the result is positive & customers are satisfied, order in a bulk is placed thereafter.
- Feedback:
Have you heard about Vine Voices? Amazon employs some active reviewers. It offers some free products to analyze the quality of the product. Subsequent to using those products, the reviewers send their feedback. Around 1600 products across its private label brands have utilized this facility.
You can also include the similar program to cast an influence over your customers.