Amazon's strategy for world domination

Amazon, 1995: A bookstore!! But online!! Hehe!! (˶ᵔ ᵕ ᵔ˶)

Amazon, 2024: Amazon-Powered AI cameras are being used to detect emotions of unwitting UK train passengers.

Talk about character transformation, huh?

Amazon’s humble beginnings make the now-behemoth more impressive (business-wise) than it already is.

This is despite being hit with evil corporation allegations, with some calling it a 'genocidal war machine.'

Others have called out the exploitation of its workers and oppression of vulnerable people. Slate even crowned the brand the #1 evil tech company in the world. Yikes.

However, I am a mere mortal marketer.

I’m not here to weigh out the moral standards of giant corporations (I am judging. I'm just doing it quietly.) No, I'm here to analyse marketing strategies. And sinner or not, Amazon's marketing has been largely responsible for their meteoric rise into the global market.

To understand this, we must first understand what Amazon’s marketing goals and objectives are.

The brand is famously customer-centric. So their marketing revolves around customer satisfaction through data-driven decision-making. This is what gave Amazon its competitive edge and the ability to achieve such sustained growth over the years.

The primary goals within its strategy include:

• Customer satisfaction, through excellent service and a user-friendly shopping experience

• Market expansion, by entering new regions and launching new product categories

• Brand loyalty, through programs like Amazon Prime, which offers exclusive benefits and faster shipping

• Innovation, by investing in new technologies to improve operations and enhance the customer experience

The company’s relentless pursuit of customer-centricity is the reason for its success. Because it consistently prioritises the needs and preferences of its customers.

So what's Amazon's secret to creating such a customer-focused experience?

It’s all about customer data. The company creates personalised product recommendations based on customers' preferences and purchase history.

I don’t know about you, but I do be feeling a little bit special when my Amazon Algo just ♥︎ gets me ♥︎. Because at the end of the day, I’m just a GIRL – and it’s nice to feel understood.

And I’m not the only one. This strategy seems to have worked quite well for the company.

This personalised experience doesn't just enhance our shopping experience. It also increases the chance of our discovering new products we may not have considered. Which gives off 'we know you better than you know yourself' vibes, but that’s ok.

Leveraging advanced analytics and algorithms helps Amazon understand customer behaviour on a deeper level than most of its competitors. In doing so, Amazon has built an exceptionally loyal customer base while delivering a shopping experience like no other online retailer.

Crazy that if you like, care about your customers you’ll like, be successful or whatever?

Using data also means they can target their audiences with laser precision.

Which, of course, ensures maximum ROI.

So, who is Amazon’s target audience? With such a broad appeal, their audience encompasses a WIDE range of demographics, primarily adults aged 18 to 60. That’s a 49-year age bracket…

But they all have one thing in common. They love to online shop (they just like me fr) and have the financial capacity to do so (not so like me, womp womp.)

Geographically speaking, they’re mostly from the US, with more than 60% of their website traffic coming from there alone.

But age and location isn't all they consider. Amazon also has a deep understanding of their audiences from a behavioural standpoint through customer and psychographic segmentation. This includes things like purchasing patterns and interests.

How the heck are you supposed to effectively market to that many people?

Amazon tailors is strategies and initiatives to reach the broad age range of its online shoppers by using social media, email marketing, SEO and targeted online advertising.

Of course, many of its marketing efforts go to reaching US consumers, with such a large portion of their customer base residing there. But the company often invests in international campaigns with popular institutions and sporting events, too.

Once you've got 'em, you've got to keep 'em.

With so many retailers out there, the competition for Amazon continues to grow. That’s probably why the company is upping its perks on Prime. But with players like Walmart, Target and Best Buy entering the chat with their own subscription models, the free shipping benefit is sort of losing its value.

This may be why Amazon’s campaign Evergreen has come about. It highlights Prime's benefits beyond free shipping alone.

What can we learn from Amazon’s winning strategy:

• Prioritise customer satisfaction. Caring about your customers actually helps your business succeed. Crazy, right? Utilising data to deeply understand them is the best, most precise way of knowing how to cater to their needs.

• Innovate, baby! Invest in new technologies and expand into new markets as often as you can. You may not be a multi-faceted e-commerce store, but think about the ways you can expand your own product or service to stay ahead of the competition.

• Target precisely. Use data to create detailed audience segmentation to reach and engage a broad demographic. Utilise digital channels and tailor your marketing strategies to your customers' interests and behaviours. That way, you’ll have maximum impact.

-Sophie, Writer