Close on Walmart’s tail is Amazon, which jumped from fifth to second place on this year’s Fortune magazine Fortune 500 List. Amazon first joined this exclusive business list in 2002, tearing up to its current status with an average 28 percent annual sales growth and an astonishing 22,000 percent growth in market value.
What has Amazon figured out that the rest of us should know? One thing this organization does well is knowing who to ignore. They don’t care much about what their competitors are up to. Instead, they obsess over what their customers are doing and how to please them. It’s an approach championed by Jim Collins and known as the flywheel.
No humans allowed
Amazon continues to grow because of an increase of independent sellers who offer more products and compete by lowering prices. The flywheel effect comes into place because the independent sellers attract more customers, who generate more revenue for Amazon, which allows the company to achieve even better economies of scale. The flywheel completes its revolution when prices are lowered again.
But here’s the thing about this flywheel. It’s increasingly powered by Artificial Intelligence (AI) and transforming itself from a flywheel to a learning machine. Amazon already has more than a quarter of a billion employees, and reports it plans to hire 100,000 more. Even that increase wouldn’t accommodate the decisions necessary for what to purchase, how much to charge for it, and where to stock it.
Know the customer
Think about all the information Amazon collects from its customers. It knows what they buy, and what they look at. To that, Amazon can add what they ask Alexa, or even watch or listen to using Prime TV or Prime Audio. Artificial intelligence consumes this vast infusion of data and analyzes it to make predictions.
It can determine when you are likely to order another product again. It can entice you with special offers based on what you’ve perused online but didn’t order. Amazon can even suggest products to you based on their relationship with what you’ve already purchased or looked at but didn’t buy.
It’s a powerful way to use data to get inside your head and deepen your satisfaction. It only works, however, because Amazon has such unrestricted access to the personal shopping/viewing/listening experiences of millions of their customers. Most companies don’t have that
So, what do you do and how can AI help you if you’re not Amazon?
AI and Identity Resolution
Amazon knows that the most efficient way you can market is to connect only with people who are looking to buy your product or service right now. There’s no guessing when you have permission to extract this information from people.
Fortunately, the same AI technology Amazon deploys to predict and delight their customers is available and can be put to use by organizations who don’t have built-in access to buyer identities. The power of AI can be used to extract fragmented information from multiple sources and devices and then “resolve” the identity of an individual who is exhibiting online and offline behavior communicating that they will soon decide to purchase your product or service.
They announce themselves to Amazon. You know they’re out there, but you don’t know who they are. Be like Jeff Bezos. Now you can unleash AI – the same thing that’s powering his flywheel – to know exactly who’s looking to buy what you sell. Watch this video to learn more about how AI makes Identity Resolution the new and better way to succeed with lead generation.