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WHAT GOLDILOCKS CAN TEACH US ABOUT FENDING OFF AMAZON By Carl Gold Chief Data Scientist at Zuora
Amazon just released a children’s book subscription box that Prime members can subscribe to—and book publishers are all ”haven’t we been through enough?” We’re on the verge of a major macroeconomic shift—where people are shunning ownership of things for access to services. We call this The End of Ownership. You can subscribe to a service to read books, listen to music, drive a car. You can get your clothes or dog toys or razor blades delivered monthly. And yes—Amazon is very very good at getting these services into the hands of its billions of Prime members. It is consistently buying up more businesses to deliver even greater value to its subscribers, and it could be gunning for your business, too. But here’s the thing— Amazon doesn’t have to eat your retail business. Even children’s book sellers can survive. In fact,
Goldilocks, a storied children’s book, is actually a great analogy. The tools to compete with Amazon are available and cost competitive. But first, think about your customer and how to offer your services on a subscription basis. Businesses that offer subscriptions outperform businesses that don’t. Where can you deliver ongoing value that will improve your relationship with customers and your revenue outlook, too? And when you commit to that subscription offering, there’s lots you can do. You can customize your offerings, deliver flexible options and pricing, and cement those Prime-like relationships that keep customers excited and engaged just like Amazon. You just need to move quickly, and use what you know about customers to your advantage.
