The funny side of the story as someone has pointed out, is that the company is seeking additional sources of revenue in order to pay tax, once and for all.
Reading between the lines though, one can see that there could be other interests at play. The interest to sell more, so that if you want an item but it costs less than £10, pair it up with another cheap item so that your bill exceeds £10 and you get free delivery this time.
There is also a clever marketing strategy. We as human beings get caught in the comparison syndrome as Rolf Dolbelli states in his book "The art of thinking clearly" (which I bought recently from Amazon!). When you have two things or people and you compare them, you would select the one that stands out from the other. This is regardless of the price you pay. The decision is as rational as it can be, considering that there is a sample of only two. So for Amazon this means you will sell the ugly thing with the less ugly one. But you will sell two. Whereas for the customer, in reality, it means she bought two things, when she thought she bought the nicest one.
Strategies like this get on the way of a good and responsible customer relationship management (CRM) activity. If the goal is to strengthen and maintain good relationships, why does not Amazon look first into who were the customers buying small things?
In my view, Amazon has a CRM strategy that encourages people to buy more of the same, based on our previous purchases, regardless of anything else we might like to do next. Again, this works well by comparison, so that for instance you have a book and you can be tempted to buy a similar one, only cheaper, or more interesting that the one you already have.
But is is not good CRM. Good CRM is about understanding where customers are in their lives, anticipating what you and I might need in the future. Just like a good friend. And also caring for other stakeholders. Like a socially responsible business.
As insignificant as a small item appears to be, it could be an indication of where you are at in your life. True, this item could be paired up with bigger ones. Amazon has an opportunity here, by looking at a broader picture and responding. But Amazon should not try to milk the small customers here. They either seem to be loyal, otherwise why should buy from Amazon, or they could be very weary of transport costs.
If the issue here is cost of transport of small items (and I keep saying in my blog that this is just an excuse not to care for customers), then Amazon is inadvertently leaving the space open for other companies who could provide those small items at cheaper cost. For some customers, buying only what they need is a more logical way of proceeding. For others, it would be preferable to bite the dust and buy things themselves from a nearby shop. In any case, their relationship with Amazon might be no longer desirable. Other companies will show up on the door step and will offer, by comparison, a better deal.
I am a book and CD buyer by nature. But what assurances do I have that I will not be the next on target from Amazon? I thought we were friends...not sure anymore dear Amazon ! Please show some care not only for your balance sheet but for the rest of organisations and people involved. Maybe Yu need to change your idea of CRM.
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