Long-term thinking is both a requirement and an outcome of true ownership.[1]
Topic map
- To our shareholders p.1–2[2]
Numbers
| Metric | Value |
|---|---|
| American Customer Satisfaction Index score | a score of 88[4] |
Notable quotes
Owners are different from tenants.
Though negative reviews cost us some sales in the short term, helping customers make better purchase decisions ultimately pays off for the company.
Our pricing strategy does not attempt to maximize margin *percentages*, but instead seeks to drive maximum value for customers and thereby create a much larger bottom line—in the long term.
Lessons
Predictions
vs. 2002
Added: Owner vs. tenant framing for long-term investors[12] · Customer reviews and Instant Order Update as customer experience examples[13] · American Customer Satisfaction Index score[14]
Dropped: Inventory turns per year · Order cycle time improvement · Contacts per order improvement · U.S. electronics selection increase
Anecdotes
- Bezos recounts a couple whose tenants nailed their Christmas tree to the hardwood floors, illustrating the difference between owners and short-term tenants.[15]
- Amazon empowered customers to review products shortly after launch in 1995, drawing vendor complaints about allowing negative reviews.[16]
- Instant Order Update feature reminded customers of prior purchases, measurably reducing sales slightly but benefiting customers and shareholders long term.[17]