Amazon: How well do they really know their consumers

 

Overview

Isn’t it creepy the accuracy Amazon has with showing advertisements on social media platforms such as Facebook? I could be talking to a coworker about a new pair of headphones I plan on getting so I could ignore the rest of the world while I am trying to work, short attention span, if you know, you know. Within the hour, I will receive that advertisement on my Facebook newsfeed. Is Amazon always listening, or do they know me better than I know myself? 

Big Data

Amazon is a massive company, so of course, they will be involved in big data; they know all and see all when it comes to the inner workings of internet shopping. Long story short, Amazon uses various algorithms to track consumers as they are shopping; this allows them, in return, to display relevant ads to all of its users. 

With this in mind, while they are gathering this data on consumers, they are also collecting data that will help them to improve their overall shopping experience via website analytics. These very website analytics help them decide the campaigns they are going to do. These are critical identifiers to what they place on sale for Black Friday. 

Optimizing Your Product 

Starting a new business platform is complex; for some people, their shops will not take for a while, and some shop owners will struggle to receive recognition. By utilizing Search Engine Optimization via product pages, Amazon lets individual shop owners use search engine optimization within their product descriptions (Berry, S. 2021). By giving shop owners this power, Amazon ultimately makes more money, and their shop owners make more money, so everyone wins in this story. Almost everyone, Amazon is a megacorporation that has had multiple strikes among employees because of poor conditions in the workplace, but who am I to judge. 

The Ranking System

I am well aware that this sounds like something you would see on Dance Moms, but I promise it is a real thing and used by other companies; Facebook, for example, uses a similar ranking system. Essentially, the algorithm mentioned above is really utilized in this ranking system. Consumer engagement and product descriptions are brought into play with just one search. Amazon is the superhero in this situation by providing quality search results a majority of the time. 

Amazon suggests that shopping owners use hidden keywords and abbreviated versions of things. For example, if I was a shop owner and sold legos, I was to sell a Harry Potter Lego Set, I could use words such as Gryffindor, Slytherin, Huffle Puff, Ravenclaw, and HP to be included in the ranking system. 

Segmentation

Everyone can agree that Amazon's specification is literally out of this world and blows away most shopping experiences. This is all because of their algorithm shown above and this fun little thing called segmentation. Segmentation in marketing is essentially how companies categorize their consumers, making even smaller specific groups and even smaller ones. This strict specification allows Amazon to give consumers the best shopping experience that they possibly can. 

Customer Opinion and Optimization

The consumer experience is one of the most important parts of marketing and positive brand identity. One of the best ways to allow consumers to get the most out of their experience is more straightforward and cheaper (it is free) than you think. Everyone loves to be a Karen sometimes, and the positive is that everyone loves to talk about what they love. 

If I love a product, I will talk to everyone about it; that is how I have found my favorite products just by consumer review via word of mouth. Consumers having the ability to leave a review and express how much they love a product increases engagement with the website, overall helping with website analytics and campaign goals, and allows the company to know what products they should be promoting. Amazon uses the customer experience to its advantage. 

It is All in the Algorithm 

Amazon uses website analytics incorporated with on-page keywords that allow Amazon to enhance the customer experience. This all occurs within Amazon's ranking system and their algorithm that watches consumer behavior on the website. This is one of the most crucial website analytics the company uses regarding customer experience and optimization. Typically, right before the reviews of a product, there is an additional option to bundle items with other products that are often bought with it. This is the algorithm at wor,k ultimately using segmentation and matching the products to the person. 

This is a one-of-a-kind algorithm for a one-of-a-kind company. It is often discussed in the marketing industry and often used as an example on websites such as Hubspot that include the company in its lessons. The company is truly reaping the benefits of the hard work its marketers have put into website analytics and the search engine optimization the company puts into place that is visible and hidden from the public eye. 

They really see all and know all.

..I really hate to admit it, but Amazon really does know everything about me, they know my shopping habits, and I am pretty sure they know I do a lot of late-night shopping on payday; everyone loves a wardrobe upgrade the week before a car payment, not the best decision but the serotonin rush is nice.  Because they know all of this information about me, they can utilize my shopping habits to advertise the products that are going to fit my needs the best. Although I find it a bit creepy, I appreciate the ranking system and algorithm. 

Reference

11, S. B. on M. (2022, April 4). What is Amazon Seo? and how to rank higher on Amazon [video]. WebFX. Retrieved April 11, 2022, from https://www.webfx.com/blog/marketing/what-is-amazon-seo/