The Amazon Gold Box

Subjects: Increasing Average Sale per Visit
Principle: Once you got the customer in the door looking for something, what else can they buy from you?

As Jay Abraham says, there are only 3 ways to grow a business:

1. Increase the number of clients
2. Increase the Average purchase they make
3. Increase the frequency of purchase

That’s it…

Today we talk about the second way: increase the Average purchase a client makes, and we talk about Amazon.com

I really love that company: their web site is a neve- ending source of ideas on how to efficiently run a business, optimizing every aspect of the purchasing experience.

Since some time, Amazon has a little icon in the top of the screen called “Your Gold Box”. At the beginning I was puzzled by it: it’s basically a series of special offers tailored to you, time-limited (60 minutes), that you can take or lose forever. Hmmm, not exactly a life changing concept...

Now I understand… every time a visitor to the web site clicks that icon and goes thru the series of special offers, Amazon has the opportunity to increase the average sale they make. Yes, because all the stuff they show me during the "Gold Box little parade" is something I would not have bought anyway… if they can sell only 1% of people, it’s 1% extra sales at no extra effort (Amazon does not have to hire extra sales people to do that… it’s a piece of code, perfectly scalable and that repeats an algorithm to propose with extreme consistency an optimized sequence of offers, tailored to the specific viewer).

Amazon in this way is capitalizing a great asset they have: the fact that a viewer is on their web site. Since he/she is there, they try to get maximum return.

Kramerilio in USA