For many Chief Marketing Officers, Amazon is seen as a rival who must be competed against even though the Online retailer is now an omnipresent part of life for most. The company’s Prime membership group is so successful it sees customers purchase from one of its platforms every six days. Instead of fighting against the retail giant, research giant Forrester believes it would be more proactive for CMO’s to make the decision to partner with Amazon and other rivals to compete on the global stage. Not only should marketers play a role in the customer experience but artificial intelligence should also begin to allow a relationship to be built with any customer.
Develop Customer Entanglement
In recent years, much of the conversation between CMO’s has been focused on the development of customer relationships, with artificial intelligence playing a significant role in this area of business. The customer experience means creating options for customers and making sure they are happy at all times. Amazon has built many platforms designed to ensure interaction between retailer and customer on a personal level, in an area of support known as entanglement. Developing this technology can be expensive, but a strategic partnership can help build a brighter future.
- Come together with a rival company to form a strategic partnership
- Work together to develop the technology needed by the customer
- The partnership will allow the platform to be tested at a lower cost compared to development by a single brand
Advertise with the Retail Giant
One of the most challenging aspects of the work of CMO’s is deciding when and where to advertise for the good of their brand, and that can often lead to missed opportunities. One area the retail giant has been expanding is its developing marketing sector. This sector has seen existing customers looking to expand their input by an average of 63 percent in the coming year. The development of platforms is far outstripping rivals such as Google with around a 54 percent increase in budget and 53 percent for Facebook.
- Prime members make up 47 percent of the U.S. population
- 66 percent of non-Prime members feel valued by Amazon
- The brand made $2.5 billion from advertising alone in 2017
The biggest question CMO’s should be facing is how to get the most from the AI investment. So far, about half the investors have yet to see any benefit from artificial intelligence. The Online retail giant has been a leader in developing strategic partnerships with its manufacturers, suppliers, and some rivals on the way to dominating the digital marketplace. The connections being created include a focus on specific brands capable of building on the success seen by many who have already made the commitment to success in Online Retailing.
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