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Demand generation lessons learned from Amazon Fresh

October 12th, 2009 · No Comments

In an earlier post, I talked about how much I enjoyed the high-quality service and convenience of Amazon Fresh, Amazon.com’s grocery delivery service.

Today, I want to share with you a few demand generation lessons I learned from Amazon Fresh.

To generate more sales, a retailer has a few options:

  • have existing customer buy more each time
  • have existing customer buy more frequently
  • acquire new customers

When I received the first delivery from Amazon Fresh, we also received 3 things that made us surprised and delighted:

  • they sent us beautiful flowers to welcome us as first-time customer.
  • we ordered 1 box of Cheerios, but they sent us 3 boxes. The additional two boxes were "surprise gifts".
  • they included a 10% off coupon for our next purchase.

The nice surprise gifts of flowers and extra boxes of Cheerios serve as "nice gestures". It helps to retain us as customer so that we will continue to order from Amazon Fresh.

Amazon Fresh’s price is about 5% above regular grocery stores. And they charges $5 delivery fees for orders less than $75. With the 10% coupon, they essentially removed the barrier for us to order again.

Additionally, we also received two coupons for us to give to our friends:

  • coupon #1 is a free grocery sampler for any first-time customer
  • coupon #2 is a 10% off discount for any first-time customer

I’ll certainly give the coupons to my friends. I’m happy to help my friends. My friends will enjoy the savings.

It’s a win-win-win situations for all parties.

As a result, Amazon Fresh will acquire a couple of new customers.

Just think about the viral effect — every new customer will refer a couple of new customers.

Absolutely brilliant demand generation strategy.

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Excellent resources:

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Tags: Innovation · Start-up Success

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