E-commerce and Coaching: Is Amazon’s Customer Centric Approach Transformational?

"Physics is not the most important thing. Love is.”

- Richard P. Feynman

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The What: Amazon’s Customer Centric Approach

Customer centricity refers to an organizational philosophy that places the customer at the core of all business decisions. It entails understanding customer needs, preferences, and expectations, then tailoring products, services, and experiences to meet those demands. One of the key factors behind Amazon's remarkable success is its unwavering commitment to being customer centric.

Amazon, the e-commerce giant founded by Jeff Bezos in 1994, has revolutionized the way we shop. In a letter to shareholders in 2017, Jeff Bezos said; “One thing I love about customers is they are divinely discontent…People have a voracious appetite for a better way, and yesterday’s wow quickly becomes today’s ordinary” (1). The same thing rings true in sport as athletes are continuously striving to improve. Accomplishments are often seen as lily pads that lead to a successful career.

The Four Domains of Customer Centricity 1. Customer Obsession Amazon's customer centric model is based on a philosophy of customer obsession. This means that everything Amazon does is focused on meeting the needs of its customers. Amazon has a deep understanding of its customers' needs and uses this understanding to create products and services that meet these needs. One-click ordering, convenient return policies, and hassle-free refunds exemplify Amazon's dedication to reducing friction in the buying process. By consistently exceeding customer expectations, Amazon has fostered trust and loyalty among its customer base. 2. Personalization Amazon's vast product selection is a testament to them valuing the individual over the sum. The company offers millions of products across various categories, catering to diverse customer preferences, using data and analytics to personalize the shopping experience for each customer. This includes personalized recommendations, personalized search results, and personalized advertising. By personalizing the shopping experience, Amazon can create a more engaging and relevant interaction for its customers. By understanding customer behavior and preferences, Amazon ensures that customers find products that best suit their needs, fostering a sense of satisfaction and loyalty. 3. Customer service Amazon's dedication to customer-centricity extends beyond the purchase journey. The company is renowned for its exceptional customer service, which includes 24/7 support, easy returns, and prompt issue resolution. Amazon's customer service representatives are empowered to go above and beyond to ensure customer satisfaction. This commitment to resolving customer concerns promptly and efficiently has earned Amazon a reputation for reliability and trustworthiness. 4. Continuous Innovation Amazon's customer-centric philosophy is deeply intertwined with its culture of innovation. The company is constantly innovating and introducing new products and services that meet the evolving needs of its customers. This includes services like Amazon Prime, which revolutionized the concept of fast shipping and introduced a range of additional benefits, such as streaming services and exclusive deals. The introduction of voice-activated virtual assistant, Alexa, and smart home devices like Echo further exemplifies Amazon's commitment to innovation and customer convenience.

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So What: The Rebirth of Transformational Leadership

Customer centricity is not isolated to the business world. The four domains listed above can be applied in human performance and quite often are. A great example of this is the Transformational Leadership Theory and coaching.

Transformational leaders exhibit four key characteristics: idealized influence, inspirational motivation, intellectual stimulation, and individualized consideration. They set high standards, create a vision, challenge the status quo, and provide support and development opportunities for their athletes. Coaches can utilize these characteristics within a structured process to support athletes in achieving their goals, enhancing their performance, and unlocking their potential. Much of coaching relies on tactics such as these to positively influence behaviour and transform change.

Findings suggest that transformational leadership can improve an athlete’s “extra effort”, perception of their coach, and coach satisfaction (2). It has also been demonstrated that transformational leadership can improve perceived autonomy support leading to an increase in engagement (I.e., Decrease in procrastination) and goal attainment (3). Keeping in mind, effectiveness is dependent on coach behaviours, coach-athlete interactions, and personal characteristics of the athletes, emphasizing the importance of athlete centricity (4). Is this the junction where Amazon’s customer centric model and transformational coaching meet?

From integrating with the chain of command or coaching staff to impacting training program adherence, transformational leadership and coaching combined create a powerful synergy. Can we utilize these four characteristics in consideration of the athlete over the product?

The Four Characteristics of Athlete Centric Coaches 1. Idealized Influence (I.e., Customer Service)

Idealized influence refers to a coach’s ability to serve as a role model and gain the trust, respect, and admiration of athletes. Transformational leaders exhibit high moral standards, integrity, and a strong sense of purpose. They inspire their followers to emulate their behavior and strive for excellence. 2. Inspirational Motivation (I.e., Customer Obsession)

Transformational leaders possess the ability to communicate a compelling vision and inspire their athletes to share in that vision. They motivate and energize their athletes by setting high expectations, challenging the status quo, and fostering a sense of purpose and meaning in their work. By painting a vivid picture of the future and articulating the importance of the athletes' contributions, they inspire commitment and dedication. 3. Intellectual Stimulation (I.e., Continuous Innovation)

Intellectual stimulation involves introducing creativity and innovation to your programming tactics. Transformational coaches need to think critically, question assumptions, and explore new ideas and approaches. They create an environment that fosters learning, experimentation, and intellectual growth. By encouraging independent thinking and providing opportunities for personal and professional development, they empower their athletes and staff.

4. Individualized Consideration (I.e., Personalization)

Transformational leaders demonstrate genuine concern for athletes’ and their needs, aspirations, and development. They provide personalized programming and mentoring to contribute to the athletes’ growth and success. By recognizing and appreciating the unique strengths, talents, and perspectives of each individual, they foster a sense of belonging, trust, and loyalty. This characteristic emphasizes the importance of building strong relationships and treating each athlete as an individual with specific needs.

Figure 1: Examples of the difference between product-centric and athlete-centric practitioners with relation to the four domains of customer centricity and four characteristics of transformational leadership.

Now What: Athlete Centricity

Amazon's success story is a testament to the power of customer centricity. By placing the customer at the core of its business model, Amazon has transformed the retail landscape and set new standards for customer experience. Through continuous innovation, a vast product selection, personalized recommendations, and exceptional customer service, Amazon has built a loyal customer base.

Practitioners who adopt transformational leadership empower their athletes, foster a culture of continuous improvement, and create an environment that encourages innovation and collaboration. The similarities between the needs of customers and athletes are highlighted when comparing Amazon’s customer centric approach and transformational coaching.

Apply the four characteristics of transformational leadership filtered through the four domains of customer centricity to transform change.

Alexander J. Morgan, MSc., CSCS, RSCC, CEP

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References

1. Bezos, JP. (2017). 2017 Letter to Shareholders. https://www.aboutamazon.com/news/company-news/2017-letter-to-shareholders

2. Álvarez, O., Castillo, I., Molina-Garcia, V., & Tomas, I. (2019). Transformational Leadership, Task-Involving Climate, and Their Implications in Male Junior Soccer Players: A Multilevel Approach. International Journal of Environmental Research and Public Health, 16 (19), 3649. https://doi.org/10.3390/ijerph16193649.

3. Losch, S., Traut-Mattaush, E., Muhlberger, M., & Jonas, E. (2016). Comparing the Effectiveness of Individual Coaching, Self-Coaching, and Group Training: How Leadership Makes the Difference. Frontiers in Psychology, 7. https://www.frontiersin.org/articles/10.3389/fpsyg.2016.00629.

4.. Hyun-Duck, K., & Bautista Cruz, A. (2022). Gender Differences in the Relationships Between Coach Transformational Leadership and Player Satisfaction and Commitment: A Meta-Analytic Review. Frontiers in Psychology, 13. https://www.frontiersin.org/articles/10.3389/fpsyg.2022.915391.

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