Blog Post 1

Amazon, Seven Eleven, Wal-Mart, and Yellow all offer customers an array of products and services. Although each respective business model is different and each company strives for a different goal, they all have one thing in common. These leaders of the business world have pinpointed what their customer’s need and a way to satisfy those needs. On the surface, you look at each of these businesses and believe they sell a product and in turn collect money for a profit. However, with a deeper look into the process it becomes clear that these companies do not remain in business simply by selling. These companies use innovation, technology, and market research to develop a differentiation strategy that sets them far above their competitors.
Seven Eleven, once your average convenience store, has completely evolved from just your average gas station. '7 Eleven Gets Sophisticated' describes how Seven Eleven has discovered that customers want different things, at different times, at different locations. Mass stocking each convenient store did not allow the store managers to customize their product selection to their own unique customers. With highly effective technology in place, Seven Eleven store managers now have a wide range of inventory at the tip of their fingers. Customers are able to purchase the things they need and want most, without even asking for it. The inventory selection is processed by the store manager who knows exactly which products will sell on a certain day of the week, because of the weather outside, or because of a local event. Data provides the managers with the ability to segment their own customers and make decisions for their specific customers. The technology at Seven Eleven allows the company to anticipate what the customers want, without making them ask.
Amazon, like Seven Eleven, uses technology to set itself above the rest. In the article 'Might Amazon,' we learn that Amazon operates by using technology that can quickly, efficiently, and easily grab multiple items from a huge warehouse and package them all into one box to be shipped. These things allow customers to order what they want with a few clicks of a button, at a very low price, and without hassle. Both companies are thinking giant steps ahead of their customers which in turn gives them money and power. With the power that these companies have garnered they are able to play by their own rules, not follow someone else’s. The companies are using marketing research and data to watch their customers’ behavior. Taking the process one step further, they are determining the basic needs that are actually driving customer behavior. Like we have discussed in class, the key to their continued success is selling their products in a way that correlates to these needs.
It is amazing to imagine what it would be like if these companies were not paying such close attention to what their customers need. Looking at the products and service these companies have created we naturally think ‘duh.’ The ideas are so simple and obvious when we step back and look at them. For example, not having the ability to pay for my gas at the pump seems so silly, however at one time it actually was not possible. Without the attention and persistence of Seven Eleven executives something as simple as swiping your card at the pump would not exist. Even though the idea now seems like an afterthought, in reality it takes intuition, creativity, and attention to customer behavior to turn an insight into a goldmine. To sustain profitability in a competitive business market we must study our customers, dig deeper into our research, and determine the basic needs that influence their behavior. I think that both of these companies demonstrate the perfect definition of customer insights, segmentation, and differentiation. They are the leaders of their fields and are thinking way ahead of all of their competitors.