Amazon Embraces Customer Service and Innovation

When Jeff Bezos founded Amazon in 1994, he focused on two things: customer satisfaction and innovation. It was—and continues to be—a winning combination. With net sales of $638 billion, an increase of $ 63.25 billion over the previous year, profits of $59.3 billion,1,200 logistics facilities throughout the world, and an inventory of more than 600 million products, Amazon is the second largest company in the world.

Everything this company does is done with a focus on its customers. It's a focus that has seen Amazon's sales increase 17.5% during the second quarter of this year over 2024. It has 2.56 billion website visits each year and sells an average of more than 12 million products each day to customers in more than 100 countries. More than 60% of the products Amazon offers its customers are from independent small and medium-sized businesses.

The company has 250 million Prime members who enjoy several benefits, one of which is that 92% of those customers get their deliveries within one day. Analyzer.Tools estimates that Amazon processes tens of millions of orders each second, which is mindboggling. Its customers order $31.09 million worth of products every hour—the equivalent of $8,635 every second.

In today's fast-paced world, customers appreciate the ease of shopping with Amazon. They want what they want, and they want it now! Amazon has eliminated the need to get in your car, drive to several businesses in search of what you want or need—at the lowest price—and make your purchase. I have a friend who calculates the money and time she would have spent on gas to shop at several companies. She then mentally deducts those costs from the price of the product or products she has ordered on Amazon and says she is always pleased with the result.

When you place an order, the company acknowledges it within one second and tells you when to expect it to be delivered. On the day of delivery, Amazon tracks your order and lets you know how many stops away it is from your home or office and then alerts you when it has been delivered.

When you put products in your online shopping cart, Amazon offers you options for similar items. It also tracks your interests, based on past purchases, and alerts you when the price of those products has dropped. The company also offers easy—and free—returns.

Amazon has mastered the principles that are necessary to drive a service culture. It has a relentless strategy and has reduced friction by eliminating ridiculous rules, policies, and procedures that are roadblocks to serving its customer. It also empowers its employees to make decisions, makes speed a top priority, trains all of its employees on customer service, and practices service recovery. Everything Amazon does is focused on providing exceptional customer service.

Globally, we are a society that values speed, extraordinary customer service, a myriad of quality products, and great prices. That, in a nutshell, is what Amazon offers. You would do well to study Amazon, from its founding through today, and identify what steps you can take to mimic it and reap the rewards of doing so.

John Tschohl is the founder and president of the Service Quality Institute—the global leader in customer service with operations in more than 40 countries. He is considered one of the world's foremost authorities on all aspects of customer service and has developed 20 customer service training programs—including his bestseller, Relentless—that are used by companies throughout the world. His monthly strategic newsletter is available online at no charge at customer-service.com. He can also be reached on Facebook, LinkedIn, and Twitter.