Earlier this week, Nike announced that the company will no longer sell its products through Amazon, saying, “As part of Nike’s focus on elevating consumer experiences through more direct, personal relationships, we have made the decision to complete our current pilot with Amazon Retail.” That pilot program began back in 2017. According to an article by Engadget, Nike was especially frustrated with Amazon’s inability to prevent curtail “third-party sellers and potential counterfeit goods.” Engadget further explains, “as many companies have found on Amazon, eradicating third-party sellers is a game of whack-a-mole, with a new vendor popping up for each one removed.”
When you stop to think about it, this is a pretty big deal. Amazon “is the world’s largest e-commerce marketplace” and “one of the Big Four technology companies along with Google, Apple, and Facebook,” according to Wikipedia. At the time of this article, Amazon has a market capitalization of $868B, making it much larger than Nike’s market cap of $114B, and yet the footwear-and-apparel company had decided it doesn’t need the online warehouse’s widespread reach.
Your business’s market capitalization might not be in the billions of dollars, but there’s a lesson that we can all learn here. Consider Nike’s decision double down on experience over convenience. This company concluded that having a completely divorced relationship from the end consumer, even with a good sales volume, isn’t worth it in the long term. After all, shoes and clothes are ultimately commodities. There are plenty of other manufacturers who produce decent versions of each, and by the sounds of Engadget’s article, there are even counterfeiters out there doing a reasonable job of making fakes. So what can a company like Nike do? How can the company keep its brand from becoming just one on a list of a thousand? —It can start by taking back control.
Whether you operate a local retail store, a restaurant, a bank, or any other kind of business that connects directly with end users, you have the same opportunity to take control of your customer service experience. Remember that most industries are commodified, so ask yourself why your clientele should choose to shop at your business instead of your competitor. As we’ve discussed many times, you can try to be the cheapest, but that’s only a race to the thinnest margin. Quality products and services, a great atmosphere, and friendly service will be the difference that sustains your business for many years to come.
To get started with that endeavor, you need to evaluate your staff. The Brandt Group can help you with taking a snapshot of your current customer service health, which will encompass everything from your employees’ general helpfulness to how well they’re suggestively selling. Our tools, including staff training and mystery shopping, will empower you and your managers to properly train your staff and ultimately enhance your profits and bolster your company’s reputation.
If you’d like to get started right away, we offer complimentary mystery phone shops so you can get a sample of your over-the-phone service. Click this link to learn more, and when you’re ready to take advantage of our other services, don’t hesitate use our contact form. Let us help you take control of your customer experience today!
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