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	<title>Virginia Miracle &#187; Amazon</title>
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	<description>Word of Mouth Marketing Practitioner</description>
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		<title>Amazon&#8217;s Investment in Customer Experience</title>
		<link>http://www.virginiamiracle.com/2008/01/07/amazons-success-cancelling-its-advertising/</link>
		<comments>http://www.virginiamiracle.com/2008/01/07/amazons-success-cancelling-its-advertising/#comments</comments>
		<pubDate>Mon, 07 Jan 2008 12:32:53 +0000</pubDate>
		<dc:creator>virginia.miracle</dc:creator>
				<category><![CDATA[Clutter Free Marketing]]></category>
		<category><![CDATA[Amazon]]></category>
		<category><![CDATA[Jeff Bezos]]></category>
		<category><![CDATA[Jeffrey Eisenberg]]></category>
		<category><![CDATA[word of mouth marketing]]></category>

		<guid isPermaLink="false">http://virginiamiracle.com/2008/01/07/amazons-success-cancelling-its-advertising/</guid>
		<description><![CDATA[There was a great case study shared by Jeffery Eisenberg yesterday in his post &#8220;Should You Cancel All Your Advertising?&#8221;. In 2003, Jeff Bezos pulled all of Amazon&#8217;s advertising and chose to reinvest those dollars in deferring shipping charges for customers. This shows insight into the top potential objection to shopping online and directly combats [...]]]></description>
			<content:encoded><![CDATA[<p><a href="http://virginiamiracle.com/wp-content/uploads/2008/01/bezos.jpg" title="Amazon’s Jeff Bezos"><img src="http://virginiamiracle.com/wp-content/uploads/2008/01/bezos.thumbnail.jpg" alt="Amazon’s Jeff Bezos" /></a>There was a great case study shared by Jeffery Eisenberg yesterday in his post <a href="http://www.grokdotcom.com/2008/01/06/should-you-cancel-all-your-advertising/" title="Jeff Eisenberg post" target="_blank">&#8220;Should You Cancel All Your Advertising?&#8221;</a>.  In 2003, Jeff Bezos pulled all of Amazon&#8217;s advertising and chose to reinvest those dollars in deferring shipping charges for customers.  This shows insight into the top potential objection to shopping online and directly combats it &#8211; if I can get the same item for less on Amazon AND not pay shipping, the only remaining reason to shop retail would be if I absolutely had to have something today.   By giving shipping back to the customer, Amazon used great customer experience to generate great word of mouth.  But, this does not come without a pricetag.  In a recent presentation from Amazon&#8217;s CFO, forgone shipping revenue was estimated at a whopping $600Million for a single year.</p>
<p>To answer the question Eisenberg poses of whether or not other businesses should cancel their advertising to focus on word of mouth marketing alone, there are a few considerations:</p>
<p>1) <strong>Current Customer Experience</strong> &#8211; Why are people opting for your competition (be it another business or another channel) instead of you?   Is that something you could correct by reinvesting marketing dollars?</p>
<p>2) <strong>Quality of Customer Stories</strong> &#8211; When folks do select your business, what kind of conversational capital are you providing them?  Is it the kind of story they will want to shout from the mountaintop, tell a select few, or never think about mentioning again.</p>
<p>3) <strong>Awareness &amp; Urgency</strong> &#8211; Does anyone know who you are?  If the answer is no, it could take a long time to launch your business with absolutely no advertising.   You would be relying on your immediate personal and business connections to get the word out.</p>
<p>If you do have a solid customer base who would be willing to tell your story more often if only you provided them with a better one, the reinvestment of marketing dollars into your customer experience might payoff just as much as Amazon&#8217;s did.</p>
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