Question

How the level of customer satisfaction and engagement may affect the business of Amazon?

Answer 1

The importance of customer satisfaction and engagement is clearly demonstrated in Amazon’s values and beliefs. The company focuses on 14 key beliefs/leadership attributes in their employees and one of them is customer focus.

Amazon is a business that is built on their e-commerce initiative. The company began as an e-commerce company and grew from there. Now, as an e-commerce company the number of customers served is usually very high compared to the other business types such as enterprise products or B2B sales. This means that every customer for Amazon provides small revenue/profit but the number of customers tend to be high. Due to this, the average service quality for the customers is what matters for the company in the long run.

In such businesses it may be impossible to maintain a 100% satisfaction among all the customers. But the major chunk of the customers should be happy. They should be willing to trust, depend and speak about Amazon to their friends, family and colleagues. This is why for the satisfied bunch, Amazon should seek not only customer satisfaction but customer delight. This is possible when they design their product/services and offering with customer in mind.

The level customer engagement is also important. However, given that Amazon has a large number of customers as their market, they probably may not be able to engage all the customers. In spite of that if they can display effort on the engagement front, many of the customers will be happy and satisfied.

The business of Amazon (or any other business) depends on the acceptance of customers. Without the customers, a company cannot survive. Naturally, customer satisfaction and engagement is of paramount importance if the company want to sustain their leadership or survival.