Boston, MA 04/15/2013 (wallstreetpr) – Amazon.com, Inc (NASDAQ:AMZN) (Closed: $272.87, Up by 1.12%) is going the extra mile with customer satisfaction. The automated systems that have now been installed are able to detect when a customer has paid more than the lowest price for a product and refunds are doled out to them. Customers are given refunds if the streaming of a movie is not upto the mark. In his annual letter to the company’s shareholders, Jeff Bezos the Chief Executive Officer said that customer focus is a bigger priority than stock performance or outpacing rivals.
A lot of thought and strategizing has gone into the new positioning and the online retailer has channelized a large amount of money into cloud computing, digital media and fulfillment centers. The $18.5 billion that has been spent is designed to nudge near-term profit out of the way and boost growth in the long run. These efforts have not gone unnoticed by the shareholders and the company’s efforts have been lauded by them. Over a period of three years the stock has almost doubled and at the end of last year has been valued at over 700 times earnings which has been the highest ratio reached by any company in the Standard and Poor’s 500 Index.
Bezos said that Amazon lowered prices and thus increased value much before they had to and the focus is on inventing before expected time. There is no reaction to competition and customer focus is the only objective. The Seattle-based Amazon had been founded by 1994 by Bezos and his commitment since then has always been to provide customers with the highest value possible. In one example Bezos cited that the software detected that the playback of an online rental movie “Casablanca” had been very poor and the customer was refunded $2.99. Even in cases where there is a price drop between the order time and the shipment time, a refund is given to the customer.
Also touted by Bezos was Prime, the biggest customer service program launched by Amazon. Customers who pay an annual fee of $79 are eligible for unlimited two-day shipping and online video access. Now, the company has over 15 million products listed under Prime. The very fact that there has been a 15-fold increase in the number of products since the program was launched in 2005 goes to show how successful it has been said Bezos. In about a year the Prime video selection has also tripled.