Fair weather friends? Consumers tie loyalty programs to getting discounts and freebies.

As more consumers than ever before have gravitated online to do their shopping, loyalty programs continue to grow in importance.

But what do consumers really want out of these loyalty programs?

The short answer to that question is “freebies and discounts,” the Loyalty Barometer Report from HelloWorld, an arm of Merkle, makes clear.

Of the ~1,500 U.S. consumers polled, ~77% of the respondents said they expected benefits for their loyalty to be in the way of free products, and an almost-equal percentage (~75%) expect to be offered special offers or discounts.

As for the most important reasons people participate in loyalty programs, the Merkle survey reveals that most people take a purely “transactional” approach to them.  Discounts and free products far outweigh other considerations:

  • Participation to receive discounts or offers: ~43% of respondents cited as the most important reason
  • To earn free products: ~27%
  • To gain access to exclusive rewards: ~10%
  • To receive members-only benefits: ~9%
  • To stay connected to a “brand I love”: ~6%
  • Other factors: ~5%

Notice how far down the list “brand love” falls.

As for negative aspects of reward programs, it turns out that there are a number of those.  The following five factors were cited most often by the survey respondents:

  • It takes too long to earn a reward: ~54% cited
  • It’s too difficult to earn a reward: ~39%
  • Receiving too many communications: ~36%
  • The rewards aren’t very valuable: ~32%
  • Worries about personal information security: ~29%

[For more details from the Merkle report, you can access a summary of findings here.]

The results of the Merkle survey suggest that rewards programs may be more “transactional” in nature than many brand managers would like them to be.  But perhaps that’s happened because of the very way the loyalty programs have been structured. When loyalty marketing is focused on discounts, it’s likely to drive transactions without necessarily engendering much if any actual customer loyalty.

On the other hand, if we define customer loyalty as when people are willing to pay a premium, or go out of their way to purchase a particular brand’s product or service, that represents a significantly smaller group companies than the plethora of companies offering loyalty programs to their customers.

Which brands do you consider to be true loyalty leaders?  A few that come to my mind are Amazon, American Express and Nike — but what others might you posit?  Please share your thoughts with other readers here.

Brand statements get a real workout in 2020.

The bigger the company, it seems, the heftier the brand statement documents are that are associated with it.  And it’s gotten even more so in 2020 with several consequential current events being added to the mix – namely, the COVID-19 pandemic and racial unrest.

Unfortunately, these new challenges have come with their share of socio-political ramifications.  We’re dealing with people’s lives and livelihoods, after all, and there isn’t really a “one size fits all” response that will work for many brands.

Companies are having to address two aspects, actually.  One pertains to internal (employee) audiences.  To build and maintain trust, employees and others who represent a company’s brand need to be briefed on the brand implications of the events in the news.

What to communicate depends on a variety of factors – and it’s also prone to mid-course adjustments in rapidly evolving environments.  (We’ve certainly experienced numerous twists and turns with the coronavirus pandemic and social unrest over the past six months.)

What’s most important is for internal messaging to assure employees that the work environment will be supportive when it comes to issues of physical (and mental) health, instances of alleged racism or discrimination, and the like.  And beyond this, to assure that employees have options and avenues to raise concerns, and that those concerns will be considered on the merits.

Some aspects of internal messaging may be uncomfortable to address, but keeping silent on the issues isn’t usually a practical option, considering the intensity of the current environment and how it has affected so many aspects of our daily lives.

As for what to say to the outside world, many companies and brands have released public statements as well; my inbox has been positively stuffed with them over the past months.

On the other hand, other companies have remained quiet.  Should they be doing so?

The answer to that question begins with the company’s own “DNA.”  What has its public face been over the years?  Has it been in the forefront with public statements in the past?  For some brands, any such statement will feel like a normal, regular extension of the brand as it’s been perceived — par for the course.  But if this hasn’t been the “culture” of a company up to now, to make a statement now might come across as insincere.

A company is an amalgam of the people who make up the organization.  That makes it wise for corporate leaders to trust their own instincts.  If their gut tells them it isn’t the right time to put certain public-facing content out into the world, such discretion is probably warranted.

But even if the decision is to remain mum, this is as good a time as any to consider if the “quiet company” approach might need to change going forward.  More than a few organizations are undertaking some form of “genetic re-engineering” to bring their brand DNA in line with modern expectations.  That’s probably a good thing.

Change agent: COVID-19’s ripple effect on BtoB marketing and sales.

Before the coronavirus pandemic hit the world of business (and nearly everything else), marketing and sales in the BtoB realm had already undergone some pretty big changes in recent decades.

Historically, B2B sales were primarily a matter of face-to-face, physical contact. Often, the “road warriors” of those times would spend the majority of their weeks traveling to visit with customers and prospects at their places of business, or meeting them at trade shows.

But the turn away from that traditional model began in the 1980s and 1990s with building security concerns. Then along came 9/11 …

Technology has played a big part in the evolution — and has actually helped accelerate it with e-mail, database management, digital advertising, online RFP pricing/bid systems and other innovations affecting the nature of customer engagement.

Let’s not forget social networks, too — with LinkedIn being a particularly lucrative tool assisting many sales and marketing professionals in finding and nurturing prospects.

Somewhere along the way, the functions of marketing became much more than merely branding, advertising, and lead generation. Today, BtoB marketing is involved in every stage of the customer relationship.

Along comes COVID-19 in early 2020, which seems certain to drive further change. For one thing, virtual engagement has become a necessity instead of a merely an option.

At the same time, one could posit that customer retention has taken on more importance than ever before. It’s no wonder we’re hearing the phrase “retention is the new acquisition” stated with such frequency at the moment.

Roger McDonald

International strategic business advisor Roger McDonald believes that business has come full circle, returning to Peter Drucker’s classic maxim from more than 30 years ago: “Business has only two functions: marketing and innovation. These produce revenues. All others are costs.”

In McDonald’s view:

“Perhaps we are at a tipping point, where senior management will move beyond metrics of lead generation to nurture marketing’s evolving role as an organizer of systems, IT initiatives, and salesperson engagement for both acquisition and retention.”

One thing seems quite clear as we emerge from nearly three months of mandated COVID-isolation: We won’t return to an “old normal.” Those eggs have already been broken and scrambled.

What are your thoughts on which BtoB marketing and sales fundamentals have changed in light of the coronavirus disruption? Please share your thoughts with other readers in the comment section below.

As the American workplace reopens, not all employees are onboard with returning to the “old normal.”

A new survey finds that nearly half of employees who are currently working from home want to keep it that way.

The forced shutdown of the American workplace began in mid-March. Only now, ten weeks later, are things beginning to open back up in a significant way.

But those ten weeks have revealed some interesting attitudinal changes on the part of many employees. Simply put, quite a few of them have concluded that they like working from home, and don’t much care to return to the “traditional” work routines.

It’s an interesting development that illustrates yet another manifestation of “the law of unintended consequences.” For decades, the opportunities to work from home seemed to be a realistic proposition for only a distinct minority of certain white-collar workers and top-level managers.

Reflecting this dynamic, prior to the Coronavirus outbreak just ~7% of the U.S. private sector workforce had access to a flexible workplace benefit, as reported in the 2019 National compensation Survey released by the Bureau of Labor Statistics.

Suddenly, working from home went from being a rarefied benefit to something quite routine in many work sectors.

In late April, The Grossman Group, a Chicago-based leadership and communications consulting firm, conducted an online survey of nearly 850 U.S. employees who are currently working from their homes.  A cross-section of age, gender, geography, ethnicity and education levels were surveyed to ensure a reliable representation of the U.S. workforce.

The topline finding from the Grossman research is that nearly half of all workers surveyed (48%) reported that they would like to continue working from home after the COVID-19 pandemic passes.

The reasons for preferring work-from-home arrangements are varied. Certainly, the prospect of reduced commuting time is a major attraction, along with other work/life balance factors … and while some employees have found that setting up an office in their home isn’t a simple proposition, it’s also clear that many employees were able to adjust quickly during the early days of the workplace lockdown.

David Grossman, CEO of The Grossman Group, sees in the survey findings a clear message to employers:  Worker preferences have evolved rapidly, necessitating a re-imagining of traditional ways of working. Grossman says:

“A great deal has changed in employees’ lives in a short time, and if we want them to be engaged and productive, we’re going to have to be willing to meet them where they are as much as possible … that’s a ‘win-win’ for companies and their people.”

He adds:

“Many employees have gotten a taste of working from home for the first time – and they like it.”

Interestingly, the Grossman Group survey found practically no generational differences in the attractiveness of a work-from-home option; whether you’re a Baby Boomer, a Gen X or Gen Z worker, the attitudes are nearly the same.

Of course, not every type of work is conducive to working remotely. Many jobs simply cannot be done without the benefit of a “destination workplace” where mission-critical machinery, equipment, laboratory and other facilities are accessed daily. But the COVID-19 lockdown experience has shown that employees can be productive no matter where they are, and a “one-size-fits-all” approach to the workplace likely won’t cut it in the future.

This might be a little difficult for some people to hear, but employers will have to set aside concerns about potential slackening employee motivation and productivity in a remote working environment, lest they lose their talent to other, more flexible employers who are figuring out ways to manage a remote workforce effectively over the long-term.

As David Grossman contends, “More flexibility adds value to the employee experience, builds engagement, and brings results.”

Additional findings from the Grossman Group research can be accessed here.

What are your thoughts on the topic, based on your own experiences and those of your co-workers over the past 10 weeks? Please share your opinions with other readers here.

 

Contact Tracing: The giant obstacle smack in the middle of the road to COVID-19 recovery.

… But we’ve got to figure out how to do it right.

In recent days, news reports about the coronavirus pandemic have gravitated from a shortage of ventilators and possible overcrowding in the nation’s hospitals to how best to reopen the economy (and society).

The challenge, of course, is how to “reopen” in responsible ways that don’t result in a new flare-up of COVID-19 cases.

Governors, medical professionals and governmental personnel have been cogitating about this issue for a number of weeks now, and it appears that some “baby steps” are starting to be taken in some states, with other jurisdictions to follow in the coming days and weeks.

One of the biggest obstacles in the way of bringing the economy – and life – back to some semblance of “normal” is being able to know who has, or has had, the coronavirus — and beyond that identifying who the people are that each affected person has interfaced with in the previous weeks.

There’s the old-fashioned way of doing contract tracing: undertaking in-depth interviews with patients to learn who they have interfaced with for 15 minutes or longer over a period of 2-3 weeks … and then interviewing those persons plus the people they’ve interfaced with … and so on down the line.

Those suspected of being exposed can then be directed to quarantine themselves for the requisite two-week period so as to arrest the spread of the virus.

This is a hugely costly undertaking.

Moreover, it’s labor-intensive — to the tune that a state like Massachusetts is attempting to hire 1,000 new workers to undertake these duties. And that’s just to get through Phase 1 of the recovery effort.

The other challenge with traditional contact tracing is that the data being collected is based on memory and recollections, which as we all know are prone to fallibility.

In our tech-savvy world, some giants are “on the case” – entities like Google and Apple that have teamed up to use cellphone tracking technology to “keep tabs” on people’s movements and thereby know what people may have been exposed to the COVID-19 virus.

Of course, this solution is also prone to gaps in coverage, as phones aren’t turned “on” at all times, not to mention that significant swaths of the population – particularly the elderly – aren’t using cellphones equipped with the types of location information functionalities that can be tracked.  (Surprisingly perhaps, smartphone penetration worldwide still languishes at only around 45% of cellphone users.)

And then there’s always the issue of “privacy” lurking the background – a factor which can’t be ignored in a world where many people are already suspicious of governments snooping into their private lives.

But there could be other methods to employ by which contact tracing can be made more efficient, and more accurate – and at a more reasonable price tag.

Recently my brother, Nelson Nones, whose company, Geoprise Technologies Corporation, specializes in encrypted data management, outlined just such a practical solution that can accomplish this trio of disparate-yet-important goals.

His article on the topic, titled “Call to Action: Recovering from the COVID-19 Pandemic,” has been published and can be read here.

I find the article as persuasive as it is understandable to a technology layperson like myself. Moreover, it seems as though the solutions proposed could become an essential software-as-a-service (SaaS) solution not just for government agencies but for private business organizations, too.

Action is already happening, but so far, the results have been somewhat mixed despite strong support from governments, private businesses and end-users. Functionalities need to continue to build.

But it looks like we may be on our way … and that’s extremely good news for anyone who has an interest in reopening the economies of the world – and going back to living life the way humans were meant to live it.

A small silver lining in the big, black Coronavirus cloud? Robocalls fall off a cliff.

There isn’t much positive news at all for businesses and consumers coming out of the Coronavirus pandemic — which makes one appreciate any glimmer of good news all the more.

One thing we’ve noticed at my company is a drop-off of those pesky robocalls in recent days. As it turns out, we aren’t the only ones seeing this.  My brother, Nelson Nones, who lives and works in East Asia but who also has U.S. personal and business phone lines, has noticed the same phenomenon.  And he believes that there’s a direct correlation to the COVID-19 outbreak.

What’s more, he has quantitative evidence to back it up. Here’s what he writes:

Within the past fortnight I’ve noticed a dramatic falloff in the number of robocalls I’m receiving to my primary landline. 

I’ve plotted the number of robocalls I’ve received so far during each day of March 2020, alongside the cumulative number of COVID-19 cases reported worldwide. Here are the results month-to-date:

What classifies as a “robocall”? I define a robocall to be an inbound call received from a phone number I’ve blocked based on reputations reported by the https://www.nomorobo.com website. 

As the chart above shows, the falloff began on March 11, 2020, just as the cumulative number of COVID-19 cases worldwide began to accelerate. Whereas during the first ten days of March I had been receiving two robocalls per day on average, since then I’ve received an average of just one robocall every five days.  

That’s almost a 90% drop. 

Is this just a happy coincidence? 

At first glance, maybe — because COVID-19 cases didn’t start to accelerate rapidly in the U.S. for another week or so, at about the same time as schools and theaters began to close, sporting events were postponed or cancelled, and many people began working remotely.  

If anything, one would expect the volume of robocalls to jump as scammers seize the opportunity to prey upon the growing number of people in the U.S. who are available to answer calls while cocooning at home.  

Most scammers use a technique called “neighbor-spoofing” to trick people into answering by displaying a local U.S. phone number. For a personal example, nearly all the robocalls I block appear to come from my U.S. area code (or from overlapping and adjacent area codes).  

But in fact, the vast majority of those calls originate from overseas. This makes them difficult to trace, but anecdotal evidence suggests that many of the calls originate from India and the Philippines, which already have well-established and legitimate call center industries owing to the local population’s English language skills.

As examples, Medicare scams involving the writing of fraudulent prescriptions for orthopedic braces are perpetrated in the Philippines, while sophisticated IRS scams have been broken up in India.

The scammers are criminal organizations that use personal computers, free software and ultra-cheap voice over Internet protocol (VOIP) connections to dial vast numbers of calls automatically. The tiny fraction of calls that are answered are put through to their human staff, who are reportedly packed elbow-to-elbow in call centers hidden inside the upper floors of nondescript buildings, under the constant watch of security cameras and even armed guards.  

In other words, the perfect coronavirus-spreading grounds. 

[What makes it possible for me to track this is thanks to the very same VOIP technology, which automatically routes callers who dial my primary U.S. landline to Thailand free of charge.] 

As you can see in the chart below, COVID-19 cases were already trending upward in India and the Philippines when my robocalls began to drop precipitously on March 11, 2020, about a week ahead of the U.S. curve:

I don’t think that this is a coincidence.

I suspect a lot of people in those concealed call centers got sick and went home. And now that India and the Philippines are in near-total lockdown, hardly anyone can show up for work to keep the scams running. 

We’ll see if the tsunami of robocalls resumes once the COVID-19 pandemic subsides. In the meantime, I’m happy to count the hiatus as a small Coronavirus blessing, alongside Italy’s passionate sopranos and tenors in lockdown and the many acts of human kindness now being reported in the U.S. media.

Virtual Meetings: Will the COVID-19 virus accelerate a trend?

One of the big repercussions of the Coronavirus scare has been to shift most companies into a world where significant numbers of their employees are working from home. Whereas working remotely might have been an occasional thing for many of these workers in the past, now it’s the daily reality.

What’s more, personal visits to customers and attendance at meetings or events have been severely curtailed.

This “new reality” may well be with us for the coming months – not merely weeks as some reporting has indicated. But more fundamentally, what does it mean for the long-term?

I think it’s very possible that we’re entering a new era of how companies work and interact with their customers that’s permanent more than it is temporary. The move towards working remotely had been advancing (slowly) over the years, but COVID-19 is the catalyst that will accelerate the trend.

Over the coming weeks, companies are going to become pretty adept at figuring out how to work successfully without the routine of in-person meetings. Moving even small meetings to virtual-only events is the short-term reality that’s going to turn into a long-term one.

When it comes to client service strategies, these new approaches will gain a secure foothold not just because they’re necessary in the current crisis, but because they’ll prove themselves to work well and to be more cost-efficient than the old ways of doing business. Along the same lines, professional conferences in every sector are being postponed or cancelled – or rolled into online-only events.  This means that “big news” about product launches, market trends and data reporting are going to be communicated in ways that don’t involve a “big meeting.”

Social media and paid media will likely play larger roles in broadcasting the major announcements that are usually reserved for the year’s biggest meeting events. Harnessing techniques like animation, infographics and recorded presentations will happen much more than in the past, in order to turn information that used to be shared “in real life” into compelling and engaging web content.

The same dynamics are in play for formerly in-person sales visits. The “forced isolation” of social distancing will necessitate presentations and product demos being done via online meetings during the coming weeks and months. Once the COVID-19 pandemic subsides, in-person sales meetings at the customer’s place of business will return – but can we realistically expect that they will go back to the levels that they were before?

Likely not, as companies begin to realize that “we can do this” when it comes to conducting business effectively while communicating remotely. What may be lost in in-person meeting dynamics is more than made up for in the convenience and cost savings that “virtual” sales meetings can provide.

What do you think? Looking back, will we recognize the Coronavirus threat as the catalyst that changed the “business as usual” of how we conduct business meetings?  Or will today’s “new normal” have returned to the “old normal” of life before the pandemic?  Please share your thoughts with other readers here.

Weighing in on America’s most trusted brands.

tutdIf someone were to tell you that the Unites States Postal Service is the most trusted brand in America right now, that might seem surprising at first blush. But that’s what research firm Morning Consult has determined in its first-ever survey of brand trust, in a report issued this past month.

Survey respondents were asked how much they trust each of the brands under study to “do what is right.” The ranking was determined by the share of respondents giving the highest marks in response to the question – namely, that they trust the brand “a lot” to do what is right.

The USPS scored 42% on this measure. By comparison, runner-up Amazon scored ~39% and next-in-line Google scored ~38%.

Wal-Mart rounded out the top 25 brands, with a score of ~32%.

The Morning Consult survey was large, encompassing more than 16,000 interviews and covering nearly 2,000 product and service brands. The size of the research endeavor allowed for evaluation based on age demographics and other segment criteria.

Not surprisingly, ratings and rankings differed by age.  Unsurprisingly, the USPS is ranked highest with the Gen X and Boomer generations, whereas it’s Google that outranks all other brands among Gen Z and Millennial consumers.

mibAnother finding from the research is that of the 100 “most trusted” brands, only two were established after the year 2000 – Android and YouTube. That compares to 20 of the top 100 most-trusted brands that were founded before 1900.  Clearly, a proven track record – measured in decades rather than years – is one highly significant factor in establishing and maintaining brand trust.

Also interesting is the study’s finding that brand attributes related to product or service “reliability’ are far more significant over factors pertaining to “ethics.” Shown below are the factors which two-thirds or more of the survey respondents rated as “very important”:

  • Protects my personal data: ~73% rate “very important”
  • Makes products that work as advertised: ~71%
  • Makes products that are safe: ~70%
  • Consistently delivers on what they promise: ~69%
  • Provides refunds if products don’t work: ~68%
  • Treats their customers well: ~68%
  • Provides good customer service: ~66%

By contrast, the following factors were rated “very important” by fewer than half of the respondents in the survey:

  • Produces products in an ethically responsible way: ~49% rate “very important”
  • Produces products in a way that doesn’t harm the environment: ~47%
  • Has the public interest in mind when it comes to business practices: ~43%
  • Is transparent about labor practices and the supply chain: ~42%
  • Produces goods in America unless it is particularly costly: ~40%
  • Has a mission beyond just profit: ~39%
  • Has not been involved in any major public scandal: ~38%
  • Gives back to society: ~37%
  • Has strong ethical or political values: ~34%

There is much additional data available from the research, including findings on different slices of the consumer market. The full report is accessible from Morning Consult via this link (fee charged).

Facial Recognition Faceoff

Facebook has been resisting outside efforts to rein in its “faceprints” facial recognition initiative – and mostly losing.

I’ve blogged before about the concerns many people have about facial recognition technology, and the troubling implications of the technology being misused in the wrong hands.

Facebook would claim to be the “right hands” rather than wrong ones when it comes to the database of “faceprints” it’s been compiling over the past decade or so. But its initiative has run afoul of an Illinois biometric privacy law passed in 2008.

The Illinois measure, which prohibits companies from collecting or storing people’s biometric data without their consent, is one of the strongest pieces of legislation of its kind in that it also allows individual consumers to sue for damages – to the tune of up to $5,000 per violation.

And that’s precisely what’s happened.  A class-action suite was filed in 2015 by a group of Illinois residents, alleging that Facebook has violated the Illinois privacy law through its photo-tagging function which draws on a trove of “faceprint” photos to recognize faces and suggest their names when they appear in photos uploaded by friends on Facebook.

Facebook has vigorously resisted efforts to rein in its faceprint initiative, arguing that any such lawsuits should be dismissed because users haven’t actually been injured by any alleged violations of the state law.

That stance has been rejected – first in U.S. district court and then in the court of appeals. Undaunted, Facebook appealed to the U.S. Supreme Court which turned down the appeal in late January.

Rebuffed at all legal levels, Facebook has now decided to settle the suit for a reported $550 million, including payments of ~$200 each to claimants in the Illinois class-action suit.

Facebook has lost, but the whole notion of facial recognition technology could well be like playing a game of whack-a-mole. As it turns out, another firm has developed similar functionality and is busily selling facial recognition data to police departments across North America.  According to a recent investigative article publishing in The New York Times, a company called Clearview AI has mined billions of photos from Twitter, Facebook and other social platforms.  (Clearview is now being sued in Illinois for allegedly violating the same biometric privacy law that was at the center of the Facebook suit.)

And indeed, the efforts to rein in facial recognition activities may be a little too little, a little too late: According to a recent report from Business Insider, the faces of more than half of all adults in America have already been logged into police or government databases.

… Which brings us to a parallel response that appears to be gaining traction: figuring out ways to fool facial recognition software.  A number of entrepreneurs are developing intriguing methods to beat facial recognition software.  Among them are:

  • Clothing designers have begun to target weaknesses in the ability of facial recognition software to process overlapping or unusual shapes, as well as deciphering multiple similar images appearing in close proximity. One such example is a pair of goggles fitted with near-infrared LEDs that interfere with the ability to scan facial features.
  • Headscarves decorated with different faces “confuse” the software by overloading it with excessive amounts of data in the form of numerous facial features.
  • So-called “adversarial patches” – a graphic print that can be added to clothing – exploit the vulnerabilities in facial recognition scanning by making a person “virtually invisible for automatic surveillance cameras,” according to creators Simen Thys, Wiebe Van Ranst and Toon Goedemé.

Will the two-front attack on facial recognition technology from the legal as well as technology standpoint succeed in putting the facial recognition genie back in the bottle? It’s debatable.  But it’s certainly making things more of a challenge for the Facebooks and Clearviews of the world.

Amazon: Where utilitarian products deliver stellar results.

In the era of e-commerce, year after year the growth and financial success of Amazon continues to be noteworthy — seemingly impervious to economic downturns or volatility.

What’s the secret sauce?

The answer is interesting. It isn’t that Amazon dominates any particular product category. Rather, it’s the kind of product — “utilitarian” — that cuts across many categories.

From cellar to stellar: Amazon shares’ incredible run.

Utilitarian products tend to be practical, generally inexpensive or downright cheap … and typically carry little risk associated with making a regretful purchase choice. They aren’t the type of products that inspire brand affinity, and they typically don’t require very much in the way of pre-purchase research on the part of buyers.

Moreover, on Amazon these utilitarian products have an equally utilitarian path to purchase. Purchase “journeys” — such as they are — are straightforward. Often they begin and end on Amazon’s site, with few or no deviations to conduct research or compare brands.

This is where Amazon excels — in nudging shoppers down the sales funnel while giving them no reason to go away from the website. Amazon makes the purchase steps quick, effortless and satisfying — and probably easier to complete than anyplace else online. If there is a more elegant purchase procedure out there in cyberspace, I have yet to find it.

And if some shoppers might wish to do a little more product evaluation, Amazon makes that possible as well, with consumer reviews offered right on the site for quick and easy evaluation and validation.

Of course, there are certainly product categories that aren’t particularly “utilitarian” in nature, and this is where Amazon’s model is a little less effective. A category such as women’s apparel is more brand-specific and brand-driven, and the purchase journeys in that realm are typically more longer, more circuitous, and more discovery-focused.

But Amazon has effectively carved out a niche in so-called “basic” products to the degree that it has become the “go-to” destination for thousands of products that are “common” in every sense of the word — resulting in some very uncommon business and financial results for the company.