Why Amazon wins? Well at least one reason. Much has been written about how Amazon has:
- Amazing data and uses it as a way to try and better understand intent
- It has access to large amounts of capital so it can scale internationally and defeat local e-tailing champions
- Amazing logistics foot print to satisfy consumer needs quickly
But one of the biggest factors in Amazon’s success is the quality of competition that it often faces.
Let me give you an example that happened to me this week. I have kept the vendor’s name anonymous because they are no worse than many other e-tailers – and they make damn fine iPhone cases.
I got an iPhone 7 Plus when the phone first came out and ordered a protective case from my usual preferred case manufacturer. I ordered direct because Amazon hadn’t got it in stock at the time. The supplier sent me two cases instead of one – probably an order fulfilment error.
I then get an email from this week:
Keep your Pixel and Pixel XL protected and pristine. XXXX Certified XXXX Protection
Protect your Google Pixel and Google Pixel XL with XXXX Certified XXXX Protection.
Commute with Confidence with our Commuter Series or choose Rugged Daily Defence with our Defender Series.
Shop Google Pixel Shop Google Pixel XL
Let’s think about this for a moment. They have me buying a cover for an iPhone 7 Plus. The average consumer replaces their phone probably on a two to three year cycle
Citigroup estimates the phone-replacement cycle will stretch to 29 months for the first half of 2016, up from 28 months in the fourth quarter of 2015 and the typical range of 24 to 26 months seen during the two prior years.
(Wall Street Journal – Americans Keep Their Cellphones Longer)
They have a number of pieces of information about me:
- Date of purchase
- Model of phone that I purchased a case for
- Colour combination that I selected
- Gender (based on my title)
They will also know information about the phone model itself since they make an Apple certified product:
- Date of release
They also know based on previous Apple launches that this handset is likely to be in the product line for two years, one year as the flag ship product and the next as a cheaper line.
So why did they decide to send me the Google Pixel email?
I can think of three likely hypothesises:
- The company’s email marketers don’t have access to information that could be used for targeting – good for privacy, not so good for successful email marketing campaigns
- The email marketers had the data but didn’t bother to use it – poor work
- The email marketers viewed the Pixel as a much buy device and considered me a likely purchaser – their opinion would be at odds with reviews of the Pixel
Using Occam’s razor the answer is likely to be one or two. It’s not that hard for Amazon to win with competition like this.