Tag Archives: Jim Collins

What Amazon Could Teach Radio

76aI can’t think of a more competitive marketplace than one that offers infinite choice. This is the marketplace that Amazon operates in. It’s called the internet.

So how is Amazon doing?

Exceptionally well.

Why?

Customer Focus

The Motley Fool writes that Amazon’s secret weapon for success is just a handful of core principles with the leading one being to “focus relentlessly on our customers.”

Jim Collins, author of such great books as “Good to Great” and “Built to Last” created the strategic framework that Amazon uses known as the “flywheel.” Here’s what that looks like from Amazon.com via Benedict Evans

76

The beauty of this concept is that while it takes a lot of effort to put everything in motion, once it is moving it develops its own momentum that contributes to future growth. Much as I learned in my college physics class about Newton’s 3rd Law of Motion. These things are really universal and when you can connect the dots, magic happens.

Christmas 2016

You’ve probably heard by now about how merchants did selling stuff for Christmas. The forecast for 2016 was one trillion dollars to be spent; an increase of 3.6 to 4% over 2015.

So with that kind of spending on the table what we see is Macy’s, Sears and Kohl’s among other retailers reported flat or down sales for Christmas 2016. Macy’s, Kmart and Sears announcing store closings as a result.

Amazon meanwhile reported its best holiday season yet, shipping over one billion items worldwide.

AMAZON Christmas 2016

To give you a better idea of how strong Amazon’s Christmas sales were in 2016, let’s look at the Monday before Christmas. Slice Intelligence reported that Amazon sold 49.2% of items purchase online.

For the 2016 Christmas season, Amazon ended up making 38% of all online sales followed by Best Buy at 3.9%, Target at 2.9% and Walmart at 2.9%.

Customer Focus Rules

When you focus on your customer relentlessly, you organize your whole organization around a single goal and insure that everyone stays focused on that goal 24/7.

Your radio station(s) have the power to do what other media services can’t do, be live and local delivering entertainment and information that can’t be obtained from any other source.

One of the big advantages Amazon had this Christmas was their Prime 2-day delivery. It meant that Christmas shopping procrastinators aka most of us men could shop closer to the big day.

You might have read or seen that Amazon is working on delivery by drones and delivery services shorter than 2-days. Amazon appears to be thinking about owning its own delivery supply chain eliminating the need for UPS or USPS.

So how much time has been devoted by you and your people to customer focus? That means your listeners and your advertisers.

Once per year?

Once per month?

Weekly?

Daily?

So what’s stopping you?

 

 

6 Comments

Filed under Education, Mentor, Radio, Sales