Customer Insights Quotes

Art isn't only a painting. Art is anything that's creative, passionate, and personal. And great art resonates with the viewer, not only with the creator. What makes someone an artist? I don't think is has anything to do with a paintbrush. There are painters who follow the numbers, or paint billboards, or work in a small village in China, painting reproductions. These folks, while swell people, aren't artists. On the other hand, Charlie Chaplin was an artist, beyond a doubt. So is Jonathan Ive, who designed the iPod. You can be an artists who works with oil paints or marble, sure. But there are artists who work with numbers, business models, and customer conversations. Art is about intent and communication, not substances. An artists is someone who uses bravery, insight, creativity, and boldness to challenge the status quo. And an artists takes it personally. That's why Bob Dylan is an artist, but an anonymous corporate hack who dreams up Pop 40 hits on the other side of the glass is merely a marketer. That's why Tony Hsieh, founder of Zappos, is an artists, while a boiler room of telemarketers is simply a scam. Tom Peters, corporate gadfly and writer, is an artists, even though his readers are businesspeople. He's an artists because he takes a stand, he takes the work personally, and he doesn't care if someone disagrees. His art is part of him, and he feels compelled to share it with you because it's important, not because he expects you to pay him for it. Art is a personal gift that changes the recipient. The medium doesn't matter. The intent does. Art is a personal act of courage, something one human does that creates change in another.

A bit of theory as we settle down for lunch: the waiter's treatment of Kitty is actually a kind of sandwich, with the bottom bread being the bored and slightly effete way he normally acts with customers, the middle being the crazed and abnormal way he feels around this famous nineteen-year-old girl, and the top bread being his attempt to contain and conceal this alien middle layer with some mode of behavior that at least approximates the bottom layer of boredom and effeteness that is his norm.

Good market research would have made you aware of the real picture at the right time, and maybe you would have been able to write a different future because of that.

Market research gives you enough time to learn from your competitors’ mistakes, take inspiration from their strengths, and exploit their weaknesses.

Let market research be a permanent, ongoing part of your business strategy.

There is no better tool to bring you closer to your competitors than market research. So, keep your friends close and your competitors even closer with the help of market research.

You don’t have to wait until you have a heart attack to understand the importance of a healthy lifestyle.

what sets the best suppliers apart is not the quality of their products, but the value of their insight—new ideas to help customers either make money or save money in ways they didn’t even know were possible.

Image perception makes a big difference. That's one of the things I tell entrepreneurs today. Fine, focus on products, focus on customers and all that good stuff - that's necessary. But the image that you project is also key. Don't forget that.

Break down your problem as much as you can, but don’t do it on the basis of your guesses. If you don’t know exactly what is wrong, use market research to break down your problem further and further until you reach the very point of your trouble.

Without solid insights gained through market research, any kind of marketing you do is like throwing your pamphlets at Times Square and hoping somebody will pick them up, read them, become interested, and get the product. That happens… just not so often.

Product management is about insights and judgment, both of which require a sharp mind. Hard work is also necessary, but for this job, it is not sufficient.

the Lean Startup is a new way of looking at the development of innovative new products that emphasizes fast iteration and customer insight, a huge vision, and great ambition, all at the same time.

If you have no idea whether the problem is with your product, price, or something else, then it’s a good idea to start with a little research. It’s going to help you understand what the main problem is, or why people are not buying more of your products.

Unless they are off duty, no matter how wide it is, and even when it is sincere, a smile seems fake if the job description of the person who is smiling includes smiling.

What comes before determines what comes after,” Kellhus continued. “For the Dûnyain, there’s no higher principle.” “And just what comes before?” Cnaiür asked, trying to force a sneer. “For Men? History. Language. Passion. Custom. All these things determine what men say, think, and do. These are the hidden puppet-strings from which all men hang.” Shallow breath. A face freighted by unwanted insights. “And when the strings are seen . . .” “They may be seized.” In

The Lean Startup asks people to start measuring their productivity differently. Because startups often accidentally build something nobody wants, it doesn’t matter much if they do it on time and on budget. The goal of a startup is to figure out the right thing to build—the thing customers want and will pay for—as quickly as possible. In other words, the Lean Startup is a new way of looking at the development of innovative new products that emphasizes fast iteration and customer insight, a huge vision, and great ambition, all at the same time.

Insight into customers’ needs is important, but it’s not enough. The essence of strategy and competitive advantage lies in the activities, in choosing to perform activities differently or to perform different activities from those of rivals. Each of the companies we’ve just described has done just that, tailoring their value chains to their value propositions.

The key to getting hired is to understand the narrative of the customer’s life in such rich detail that you are able to design a solution that far exceeds anything the customer themselves could have found words to request. In hindsight, breakthrough insights might seem obvious, but they rarely are. In fact, they’re fundamentally contrarian: you see something that others have missed.

It is useful for companies to look at AI through the lens of business capabilities rather than technologies. Broadly speaking, AI can support three important business needs: automating business processes, gaining insight through data analysis, and engaging with customers and employees.

I should have known that Moti-Lal would figure it out. More than once, he’s told me selling gold requires an insight into human nature. He says you must be able to discern the intensity of a customer’s desire by looking into their eyes. That will tell you what to show, what to hold back, and how much the customer is willing to part with.

start by defining the customer experience, then iteratively work backwards from that point until the team achieves clarity of thought around what to build.

And finally there is the product development process that gives this book its name: working backwards from the desired customer experience.

Another of Jeff’s frequent exhortations to his small staff was that Amazon should always underpromise and overdeliver, to ensure that customer expectations were exceeded.

There is a lot of competition out there. If you don’t take care of your customers, somebody else is ready to take your place.

Identify your unique benefits. Develop commercial insight that challenges customers’ thinking. Package commercial insight in compelling messages that “lead to.” Equip reps to challenge customers.

Steve Jobs was known for the clarity of his insights about what customers wanted, but he was also known for his volatility with coworkers. Apple’s founder reportedly fired employees in the elevator and screamed at underperforming executives. Perhaps there is something endemic in the fast-paced technology business that causes this behavior, because such intensity is not exactly rare among its CEOs.

When you base your product strategy on technical insights, you avoid me-too products that simply deliver what customers are asking for. (Henry Ford: “If I had listened to customers, I would have gone out looking for faster horses.”)

The NPI process was deflating for morale. But figuring out how to “boost morale” is not Amazonian. Other companies have morale-boosting projects and groups with names like “Fun Club” and “Culture Committee.” They view morale as a problem to be solved by company-sponsored entertainment and social interaction. Amazon’s approach to morale was to attract world-class talent and create an environment in which they had maximum latitude to invent and build things to delight customers

Asiatic youths are flocking to Western colleges for the equipment of modern education. Our insight does not penetrate your culture deeply, but at least we are willing to learn. Some of my compatriots have adopted too much of your customs and too much of your etiquette, in the delusion that the acquisition of stiff collars and tall silk hats comprised the attainment of your civilisation. Pathetic and deplorable as such affectations are, they evince our willingness to approach the West on our knees.

The task of delighting customers is thus the job of everyone. It requires the efforts of everyone in the corporation—and beyond—to share insights and figure out ways to handle a challenge that is much more difficult than merely delivering a product or service.

The customer is also at the center of how we analyze and manage performance metrics. Our emphasis is on what we call controllable input metrics, rather than output metrics. Controllable input metrics (e.g., reducing internal costs so you can affordably lower product prices, adding new items for sale on the website, or reducing standard delivery time) measure the set of activities that, if done well, will yield the desired results, or output metrics (such as monthly revenue and stock price). We detail these metrics as well as how to discover and track them in chapter six.

We have an unshakeable conviction that the long-term interests of shareowners are perfectly aligned with the interests of customers.”2 In other words, while it’s true that shareholder value stems from growth in profit, Amazon believes that long-term growth is best produced by putting the customer first.

Our culture is four things: customer obsession instead of competitor obsession; willingness to think long term, with a longer investment horizon than most of our peers; eagerness to invent, which of course goes hand in hand with failure; and then, finally, taking professional pride in operational excellence.

Visionaries are that rare breed of people who have the insight to match up an emerging technology to a strategic opportunity, the temperament to translate that insight into a high-visibility, high-risk project, and the charisma to get the rest of their organization to buy into that project. They are the early adopters of high-tech products.

Focus only on the critical requirements. Many startup companies get distracted by the trappings of a new business. Focus only on those aspects of the business that are critical to delivering your product to the customer. Too often, businesses over-invest in buildings, infrastructure, and networks “in advance” of business materializing—really

Better customer experience leads to more traffic. More traffic attracts more sellers seeking those buyers. More sellers lead to wider selection. Wider selection enhances customer experience, completing the circle. The cycle drives growth, which in turn lowers cost structure. Lower costs lead to lower prices, improving customer experience, and the flywheel spins faster.

The problem of groupthink and individual ignorance besets not just ordinary voters and customers, but also presidents and CEOs. They may have at their disposal plenty of advisors and vast intelligence agencies, but this does not necessarily make things better. It is extremely hard to discover the truth when you are ruling the world. You are just far too busy. Most political chiefs and business moguls are forever on the run. Yet if you want to go deeply into any subject, you need a lot of time, and in particular you need the privilege of wasting time. You need to experiment with unproductive paths, to explore dead ends, to make space for doubts and boredom, and to allow little seeds of insight to slowly grow and blossom. If you cannot afford to waste time - you will never find the truth.

This is a promising new source of insight that can supplement survey data but can’t replace it for the foreseeable future. That’s because the tools have a ways to go before they can accurately gauge sentiment about specific customer interactions as precisely and consistently as a survey. You should consider this option when your measurement program matures, but start out with the tried-and-true approach of fielding surveys.

#1 Creating overly optimistic projections about market size and customer acquisitions. My advice: Do your homework in terms of market research. Don’t blur the line between the number of potential customers who might possibly buy your product and the number who actually will. Don’t overlay an arbitrary percentage on the largest possible customer base when estimating potential market share. In three words: Know your customer. #2

Margaret Fuller, the leading antebellum female intellectual, even went so far as to suggest that the anti-slavery party ought to plead for women’s rights, too—because, like slaves, women were kept in bondage by civil law, custom, and patriarchal abuse.68 It was an emboldening insight. Elizabeth Cady, daughter of a prominent New York lawyer, had had fantasies when she was eleven years old of leading a life of scholarship and self-reliance.

Language had arrived from outer space and mated together lizards and monkeys or whatever until it had customized a host which could sustain it. That first person had been introduced to the complicated DNA sequence of proper nouns and compound verbs. Outside of language he didn't exist. There was no method to escape. To feel anything, anymore, required ever-increasing amounts of words. Great landfills and airlifts of words. It took a mountain of talk to achieve even the tiniest insight.

Winners throw out the traditional product management and introduction processes they learned at existing companies. Instead, they combine agile engineering and Customer Development to iteratively build, test and search for a business model, turning unknowns into knowns. Winners also recognize their startup “vision” as a series of untested hypotheses in need of “customer proof.” They relentlessly test for insights, and they course-correct in days or weeks, not months or years, to preserve cash and eliminate time wasted on building features and products that customers don’t want.

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Entrepreneurship itself is an emergent system, where companies create the conditions for experimentation and learning to occur, often symbiotically with customers. In 1978, Eric von Hippel (my PhD advisor at MIT) pioneered the notion of user-driven innovation.10, 11 Back then, the conventional wisdom was that innovation only came from corporate, government, and university research-and-development labs. While some still believe this today, Eric's insight proved to be prescient in many areas, especially in the information age, as the widespread adoption of open-source software and Lean Startup methodologies have demonstrated.12 Twitter is a tangible example since three of the platform's most popular features—the @ reply, the # hashtag indexing, and retweet sharing—were all generated bottom-up by users.

What does it mean when customers don't take a deal? Does it mean that they didn't want the product as much as they did want the one they bought? Is a negative signal as strong as a positive one? Perhaps they like Champagne but already have a lot in stock. Maybe they just didn't see your e-mail newsletter that month. There are a lot of reasons why someone doesn't take an action, but there are few reasons why someone does. In other words, you should care about purchases, not non-purchases. The fancy way to say this is that there's an “asymmetry” in the data. The 1s are worth more than the 0s. If a customer matches another customer on three 1s, that's more important than matching some other customer on three 0s. What stinks though is that while the 1s are so important, there are very few of them in the data—hence, the term “sparse.

This determination that nurturing should become exclusively a concern of women served to signify to both sexes that neither nurture nor womanhood was very important. But the assignment to women of a kind of work that was thought both onerous and trivial was only the beginning of their exploitation. As the persons exclusively in charge of the tasks of nurture, women often came into sole charge of the household budget; they became family purchasing agents. The time of the household barterer was past. Kitchens were now run on a cash economy. Women had become customers, a fact not long wasted on the salesmen, who saw that in these women they had customers of a new and most promising kind. The modern housewife was isolated from her husband, from her school-age children, and from other women. She was saddled with work from which much of the skill, hence much of the dignity, had been withdrawn, and which she herself was less and less able to consider important. She did not know what her husband did at work, or after work, and she knew that her life was passing in his regardlessness and in his absence. Such a woman was ripe for a sales talk: this was the great commercial insight of modern times. Such a woman must be told — or subtly made to understand — that she must not be a drudge, that she must not let her work affect her looks, that she must not become “unattractive,” that she must always be fresh, cheerful, young, shapely, and pretty. All her sexual and mortal fears would thus be given voice, and she would be made to reach for money. What was implied was always the question that a certain bank finally asked outright in a billboard advertisement: “Is your husband losing interest?

A few years ago, the British chocolate manufacturer Cadbury’s received a large number of customer complaints, claiming that they had changed the taste of their Dairy Milk brand. They were at first baffled, because the formulation hadn’t been altered for years. However, what they had done was change the shapes of the blocks you would break off a bar, rounding their corners. And smoother shapes taste sweeter. Truly. Nothing about perception is completely objective, even though we act as though it is. When we complain that a room is hot, there may be no point at which we agree about what ‘hot’ means; it may merely mean ‘a few degrees warmer than the room I was in previously, to which I have become acclimatised’. ‘Time flies when you are having fun’ is an early piece of psychophysical insight. To your watch, an hour always means exactly the same thing, regardless of whether you are drinking champagne or being waterboarded. However, to the human brain, the perception of time is more elastic.*

These include: the Bar Raiser hiring process that ensures that the company continues to acquire top talent; a bias for separable teams run by leaders with a singular focus that optimizes for speed of delivery and innovation; the use of written narratives instead of slide decks to ensure that deep understanding of complex issues drives well-informed decisions; a relentless focus on input metrics to ensure that teams work on activities that propel the business. And finally there is the product development process that gives this book its name: working backwards from the desired customer experience. Many of the business problems that Amazon faces are no different from those faced by every other company, small or large. The difference is how Amazon keeps coming up with uniquely Amazonian solutions to those problems. Taken together, these elements combine to form a way of thinking, managing, and working that we refer to as being Amazonian, a term that we coined for the purposes of this book. Both of us, Colin and Bill, were “in the room,” and—along with other senior leaders—we shaped and refined what it means to be Amazonian. We both worked extensively with Jeff and were actively involved in creating a number of Amazon’s most enduring successes (not to mention some of its notable flops) in what was the most invigorating professional experience of our lives.

In addition to his insight about making a positive difference, Peter Drucker had five other rules that are applicable for earning credibility. At first they may strike you as self-evident, even trite, but smarter people than I have had the same initial reaction and now are quoting them back to me on a regular basis. If you want to elevate your credibility, start by committing these Druckerisms to memory: Every decision in the world is made by the person who has the power to make the decision. Make peace with that. If we need to influence someone in order to make a positive difference, that person is our customer and we are a salesperson. Our customer does not need to buy; we need to sell. When we are trying to sell, our personal definition of value is far less important than our customer’s definition of value. We should focus on the areas where we can actually make a positive difference. Sell what we can sell and change what we can change. Let go of what we cannot sell or change. Each of these rules assumes that acquiring recognition and approval is a transactional exercise. Note the frequent reference to selling and customers. The implication is that we must sell our achievements and competence in order to have them recognized and appreciated by others. These Druckerisms not only endorse our need for approval, they emphasize that we can’t afford to be passive about it—not when our credibility is at stake.

Along the way to Seattle, he wrote his business plan. He identified several reasons why the book category was underserved and well suited to online commerce. He outlined how he could create a new and compelling experience for book-buying customers. To begin with, books were relatively lightweight and came in fairly uniform sizes, meaning they would be easy and inexpensive to warehouse, pack, and ship. Second, while more than 100 million books had been written and more than a million titles were in print in 1994, even a Barnes & Noble mega-bookstore could stock only tens of thousands of titles. An online bookstore, on the other hand, could offer not just the books that could fit in a brick-and-mortar store but any book in print. Third, there were two large book-distribution companies, Ingram and Baker & Taylor, that acted as intermediaries between publishers and retailers and maintained huge inventories in vast warehouses. They kept detailed electronic catalogs of books in print to make it easy for bookstores and libraries to order from them. Jeff realized that he could combine the infrastructure that Ingram and Baker & Taylor had created—warehouses full of books ready to be shipped, plus an electronic catalog of those books—with the growing infrastructure of the Web, making it possible for consumers to find and buy any book in print and get it shipped directly to their homes. Finally, the site could use technology to analyze the behavior of customers and create a unique, personalized experience for each one of them.

Different form, same function. Many companies that create blue oceans attract customers from other industries who use a product or service that performs the same function or bears the same core utility as the new one but takes a very different physical form. In the case of Ford’s Model T, Ford looked to the horse-drawn carriage. The horse-drawn carriage had the same core utility as the car: transportation for individuals and families. But it had a very different form: a live animal versus a machine. Ford effectively converted the majority of noncustomers of the auto industry, namely customers of horse-drawn carriages, into customers of its own blue ocean by pricing its Model T against horse-drawn carriages and not the cars of other automakers. In the case of the school lunch catering industry, raising this question led to an interesting insight. Suddenly those parents who make their children’s lunches came into the equation. For many children, parents had the same function: making their child’s lunch. But they had a very different form: mom or dad versus a lunch line in the cafeteria. Different form and function, same objective. Some companies lure customers from even further away. Cirque du Soleil, for example, has diverted customers from a wide range of evening activities. Its growth came in part through drawing people away from other activities that differed in both form and function. For example, bars and restaurants have few physical features in common with a circus. They also serve a distinct function by providing conversational and gastronomical pleasure, a very different experience from the visual entertainment that a circus offers. Yet despite these differences in form and function, people have the same objective in undertaking these three activities: to enjoy a night out.

For fifteen years, John and Barbara Varian were furniture builders, living on a ranch in Parkfield, California, a tiny town where the welcome sign reads “Population 18.” The idea for a side business came about by accident after a group of horseback riding enthusiasts asked if they could pay a fee to ride on the ranch. They would need to eat, too—could John and Barbara do something about that? Yes, they could. In the fall of 2006, a devastating fire burned down most of their inventory, causing them to reevaluate the whole operation. Instead of rebuilding the furniture business (no pun intended), they decided to change course. “We had always loved horses,” Barbara said, “so we decided to see about having more groups pay to come to the ranch.” They built a bunkhouse and upgraded other buildings, putting together specific packages for riding groups that included all meals and activities. John and Barbara reopened as the V6 Ranch, situated on 20,000 acres exactly halfway between Los Angeles and San Francisco. Barbara’s story stood out to me because of something she said. I always ask business owners what they sell and why their customers buy from them, and the answers are often insightful in more ways than one. Many people answer the question directly—“We sell widgets, and people buy them because they need a widget”—but once in a while, I hear a more astute response. “We’re not selling horse rides,” Barbara said emphatically. “We’re offering freedom. Our work helps our guests escape, even if just for a moment in time, and be someone they may have never even considered before.” The difference is crucial. Most people who visit the V6 Ranch have day jobs and a limited number of vacation days. Why do they choose to visit a working ranch in a tiny town instead of jetting off to lie on a beach in Hawaii? The answer lies in the story and messaging behind John and Barbara’s offer. Helping their clients “escape and be someone else” is far more valuable than offering horse rides. Above all else, the V6 Ranch is selling happiness.

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This generation grew up constantly reminded that they lived in the greatest country in the world, the land of the free, with liberty and justice for all its citizens. Yet, as they matured, members of this generation found a disturbing disparity between this popular American self-image and actual reality. They found that many people in this land—women and certain racial minorities—were, by law and custom, definitely not free. By the sixties the new generation was inspecting closely, and many were finding other disturbing aspects of the United States’ self-image—for instance, a blind patriotism that expected young people to go into a foreign land to fight a political war that had no clearly expressed purpose and no prospect of victory. Just as disturbing was the culture’s spiritual practice. The materialism of the previous four hundred years had pushed the mystery of life, and death, far into the background. Many found the churches and synagogues full of pompous and meaningless ritual. Attendance seemed more social than spiritual, and the members too restricted by a sense of how they might be perceived and judged by their onlooking peers. As the vision progressed, I could tell that the new generation’s tendency to analyze and judge arose from a deep-seated intuition that there was more to life than the old material reality took into account. The new generation sensed new spiritual meaning just beyond the horizon, and they began to explore other, lesser known religions and spiritual points of view. For the first time the Eastern religions were understood in great numbers, serving to validate the mass intuition that spiritual perception was an inner experience, a shift in awareness that changed forever one’s sense of identity and purpose. Similarly the Jewish Cabalist writings and the Western Christian mystics, such as Meister Eckehart and Teilhard de Chardin, provided other intriguing descriptions of a deeper spirituality. At the same time, information was surfacing from the human sciences—sociology, psychiatry, psychology, and anthropology—as well as from modern physics, that cast new light on the nature of human consciousness and creativity. This cumulation of thought, together with the perspective provided by the East, gradually began to crystallize into what was later called the Human Potential Movement, the emerging belief that human beings were presently actualizing only a small portion of their vast physical, psychological, and spiritual potential I watched as, over the course of several decades, this information and the spiritual experience it spawned grew into a critical mass of awareness, a leap in consciousness from which we began to formulate a new view of what living a human life was all about,

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There is a simple, but powerful, insight at the core of our theory: customers don’t buy products or services; they pull them into their lives to make progress.

In this sense, customer loyalty is much less about what you sell and much more about how you sell. The best companies don’t win through the quality of the products they sell, but through the quality of the insight they deliver as part of the sale itself. The battle for customer loyalty is won or lost long before a thing ever gets sold. And the best reps win that battle not by “discovering” what customers already know they need, but by teaching them a new way of thinking altogether.

The word we like to use here is “reframe.” What data, information, or insight can you put in front of your customer that reframes the way they think about their business—how they operate or even how they compete? That’s what your customers are really looking for. Remember what we saw in our customer survey? Rep offers unique and valuable perspectives on the market. Rep helps me navigate alternatives. Rep provides ongoing advice or consultation. Rep helps me avoid potential land mines. Rep educates me on new issues and outcomes.

Steve Jobs was known for the clarity of his insights about what customers wanted, but he was also known for his volatility with coworkers. Apple’s founder reportedly fired employees in the elevator and screamed at underperforming executives. Perhaps there is something endemic in the fast-paced technology business that causes this behavior, because such intensity is not exactly rare among its CEOs. Bill Gates used to throw epic tantrums. Steve Ballmer, his successor at Microsoft, had a propensity for throwing chairs. Andy Grove, the longtime CEO of Intel, was known to be so harsh and intimidating that a subordinate once fainted during a performance review.

Throughout the development of these projects, we adhered to Amazon’s distinctive management practices. Above all, they are examples of Amazonian long-term thinking, customer obsession, willingness to invent, and operational excellence. Throughout, we were stubborn on the vision and flexible on the details.

To improve total delivery time, we would need to make big changes to our supply chain. Our current fulfillment network had been built to optimize for nearby access to our third-party shippers so we could reliably and cheaply ship products to customers in three to five days. This logistics topology had been convenient for Amazon, but not for the customers who wanted products delivered fast and free.

Though it’s unclear whether Jeff knew about Charlie’s idea before sending out his directive to launch a free shipping program in October, it doesn’t really matter—the story is noteworthy for a couple of reasons. First, customer-focused ideas come from all areas within Amazon. Many companies have the “business people” tell the “technical people” what to build. There’s little discussion back and forth, and the teams stay in their own lanes. Amazon is not like this at all. It’s everyone’s job to obsess over customers and think of inventive ways to delight them. A second noteworthy aspect of the story is that when Charlie returned from vacation and found out we had decided to build something akin to his idea, he joined the team charged with making Prime a reality, and played a vital role on it.

The Amazon Deliver Results leadership principle states, “Leaders focus on the key inputs for their business and deliver them with the right quality and in a timely fashion. Despite setbacks, they rise to the occasion and never settle.” Shipping speed is a key input metric for Amazon. So, if you are customer obsessed, then you’re also obsessed with measuring and improving the shipping experience for customers.

What happens inside the WBR is critical execution not normally visible outside the company. A well-run WBR meeting is defined by intense customer focus, deep dives into complex challenges, and insistence on high standards and operational excellence. One may wonder, at what level is it appropriate for executives to shift focus to output metrics? After all, companies and their senior executives are routinely judged by output metrics like revenue and profit. Jeff knows this well, in part based on his time spent working at a Wall Street investment firm. The simple answer is that the focus does not shift at any level of management. Yes, executives know their output metrics backward and forward. But if they don’t continue to focus on inputs, they lose control over and visibility into the tools that generate output results.

It is worth noting here that, at Amazon, even the most senior executives review the full WBR deck of metrics, including all the inputs and outputs. Metrics—as well as anecdotes about the customer experience—are the area where the leadership principle Dive Deep is most clearly demonstrated by senior leaders. They carefully examine the trends and changes in the metrics; audit incidents, failures, and customer anecdotes; and consider whether the input metrics should be updated in some way to improve the outputs.

Over our long march to building Amazon’s digital business, we proved a powerful lesson: it takes exceptionally patient and unwavering leadership to persevere through the prolonged process of building a new business and navigating through transformative times in an established industry with entrenched interests. The fact that we entered as total beginners and emerged as industry leaders is in no small part a result of our adherence to being Amazonian in our principles and our way of thinking, including thinking big, thinking long-term, being obsessed with customers, being willing to be misunderstood for long periods of time, and being frugal—principles that few companies are capable of maintaining in the face of quarterly reporting requirements and the daily gyrations of the stock market.

The good news is that you don’t need a Jeff to make this type of decision. You only need to ruthlessly stick to the simple-to-understand (but sometimes hard-to-follow) principles and process that insist on customer obsession, encourage thinking long term, value innovation, and stay connected to the details. None of us, including Jeff, knew exactly what we would end up building; it’s more like we stuck with the process and surrendered to where it was taking us. Prime was a perfect example of the multicausal, nonlinear way in which business initiatives both major and minor got decided on and executed at Amazon. Correspondingly, we can’t tell a linear story of how we came up with Prime because there isn’t one. Instead, this chapter will reflect that there were a lot of little tributaries that emptied into the river of Prime.

He explained to Steve that there was an important difference in the digital media value chain as well. In physical retail, Amazon operated at the middle of the value chain. We added value by sourcing and aggregating a vast selection of goods, tens of millions of them, on a single website and delivering them quickly and cheaply to customers. To win in digital, because those physical retail value adds were not advantages, we needed to identify other parts of the value chain where we could differentiate and serve customers well. Jeff told Steve that this meant moving out of the middle and venturing to either end of the value chain. On one end was content, where the value creators were book authors, filmmakers, TV producers, publishers, musicians, record companies, and movie studios. On the other end was distribution and consumption of content. In digital, that meant focusing on applications and devices consumers used to read, watch, or listen to content, as Apple had already done with iTunes and the iPod. We all took note of what Apple had achieved in digital music in a short period of time and sought to apply those learnings to our long-term product vision.

Our core competencies did not extend to either end of the value chain. Steve did not let this get in the way. In one of our meetings, he said that a typical company that wanted to grow would take stock of its existing capabilities and ask, “What can we do next with our skill set?” He emphasized that Amazon’s approach was always to start from the customer and work backwards. We would figure out what the customers’ needs were and then ask ourselves, “Do we have the skills necessary to build something that meets those needs? If not, how can we build or acquire them?” Once we determined what was necessary to create value for our customers and to differentiate ourselves from our competitors, we didn’t let our lack of ability deter us from achieving this important end result—our own device.

Jeff would reject what he saw as copycat thinking, emphasizing again and again that whatever music product we built, it had to offer a truly unique value proposition for the customer. He would frequently describe the two fundamental approaches that each company must choose between when developing new products and services. We could be a fast follower—that is, make a close copy of successful products that other companies had built—or we could invent a new product on behalf of our customers. He said that either approach is valid, but he wanted Amazon to be a company that invents.

But Kindle had not started out that way. In the early stages of its development—before we got started on the press release approach and when we were still using PowerPoint and Excel—we had not described a device that could do all these things from the customer perspective. We had focused on the technology challenges, business constraints, sales and financial projections, and marketing opportunities. We were working forward, trying to invent a product that would be good for Amazon, the company, not the customer. When we wrote a Kindle press release and started working backwards, everything changed. We focused instead on what would be great for customers. An excellent screen for a great reading experience. An ordering process that would make buying and downloading books easy. A huge selection of titles. Low prices. We would never have had the breakthroughs necessary to achieve that customer experience were it not for the press release process, which forced the team to invent multiple solutions to customer problems.

We can’t tell you how many times we’ve heard people say, when talking about a recently launched Amazon initiative, “You can do that at Amazon because you don’t care about profits.” That simply isn’t true. Profits are just as important to Amazon as to any other major company. Other output metrics like weekly revenue, total customers, Prime subscribers, and (over the long term) stock price—or more accurately, free cash flow per share—matter very much to Amazon. Early detractors mistook Amazon’s emphasis on input metrics for a lack of interest in profits and pronounced the company doomed, only to be stunned by its growth over the ensuing years.

Articulate the core elements of the company’s culture, as Amazon did with long-term thinking, customer obsession, eagerness to invent, and operational excellence. Then build these into every process and discussion. Do not assume that simply stating them and displaying them will have any significant effect.

After the launch, as we monitored the response, we had another surprise. Some of our biggest customers were not affiliates and not outsiders of any kind. They were Amazon software engineers. They found Amazon Web Services easier to use than some of our existing internal software tools they had been working with to build amazon.com. At this point there was little doubt that web services were going to become a new way of building things.

The Working Backwards process is all about starting from the customer perspective and following a step-by-step process where you question assumptions relentlessly until you have a complete understanding of what you want to build. It’s about seeking truth. Sometimes the Working Backwards process can uncover some surprising truths. Some companies, in a rush to get a project to market, ignore that truth and keep building according to the original plan. In their attachment to the modest gains of that plan, they motivate the team to pursue it aggressively, only to realize much later that there was a much bigger gain to be had if they’d taken the time to question their own assumptions. The cost of changing course in the PR/FAQ writing stage is much lower than after you’ve launched and have an operating business to manage. The Working Backwards process tends to save you from the expensive proposition of making a significant course change after you’ve launched your product.

In recent years, Continuous Glucose Monitoring (CGM) devices have emerged as a game-changer in diabetes management, offering patients a real-time view of their glucose levels and revolutionizing the way they monitor their condition. Among the pioneers in providing these life-changing devices, Med Supply US stands out as a reliable source, offering CGMs from various renowned brands like Abbott, Dexcom, and more. This article explores the significance of CGM devices and highlights the contribution of Med Supply US in making them accessible to those in need. Understanding CGM Devices: For individuals living with diabetes, maintaining optimal blood glucose levels is crucial to prevent serious health complications. Traditionally, this involved frequent finger-prick tests, which could be inconvenient and sometimes inaccurate. CGM devices, however, have transformed this process by providing continuous and real-time glucose level readings. These devices consist of a small sensor inserted under the skin that measures glucose levels in the interstitial fluid. The data collected is then transmitted to a receiver or a smartphone app, allowing users to track their glucose levels throughout the day and night. Benefits of CGM Devices: The introduction of CGM devices has brought about a paradigm shift in diabetes management due to their numerous benefits: Real-time Monitoring: CGM devices offer a real-time insight into glucose trends, enabling users to make informed decisions about their diet, exercise, and insulin dosages. This real-time feedback empowers individuals to take timely action to maintain their glucose levels within a healthy range. Reduced Hypoglycemia and Hyperglycemia: By providing alerts for both low and high glucose levels, CGMs help users avoid dangerous hypoglycemic episodes and hyperglycemic spikes. This is particularly beneficial during sleep when such episodes might otherwise go unnoticed. Data-Driven Insights: CGM devices generate a wealth of data, including glucose trends, patterns, and even predictive alerts for potential issues. This information can be shared with healthcare providers to tailor treatment plans for optimal diabetes management. Enhanced Quality of Life: The convenience of CGM devices reduces the need for frequent finger pricks, leading to an improved quality of life for individuals managing diabetes. The constant insights also alleviate anxiety related to unpredictable glucose fluctuations. Med Supply US: Bringing Hope to Diabetes Management: Med Supply US has emerged as a prominent supplier of CGM devices, offering a range of options from reputable brands such as Abbott and Dexcom. The availability of CGMs through Med Supply US has made these cutting-edge devices accessible to a wider demographic, bridging the gap between technology and healthcare. Med Supply US not only provides access to CGM devices but also plays a crucial role in educating individuals about their benefits. Through informative resources, they empower users to make informed choices based on their specific needs and preferences. Furthermore, their commitment to customer support ensures that users can seamlessly integrate CGM devices into their daily routines.

join in. Exchange ideas and challenges. Meet other entrepreneurs and innovators at other Meetups. Talk with them about Customer Jobs. If you can drum up interest, ask if they’d be interested in getting together for a Meetup specifically about Customer Jobs. Contacting Me I try to help anyone I can, however I can. As time permits, I enjoy doing calls and sharing e-mails with entrepreneurs and innovators. I encourage you to contact me via my website with your questions or comments or if you want help. If I can’t help you, I’m sure I know someone who can. I also enjoy learning how others apply Customer Jobs. If you have a story or insight to share, feel free to contact me. The best ways to contact me are through my website, alanklement.com; Twitter, @alanklement; or the jtbd.info site.

older entrepreneurs have higher success rates when they start companies than their younger counterparts. The experience they bring to the table, along with a network of relationships built up over the years and the deep knowledge and understanding they have of their field and its customers, gives them the best chance of survival. People who have been in business for a while have a long view of what works and what doesn’t; they have honed financial judgment and relationships that give them business insights. One reason you may

Identify and leverage control points While building your ecosystem business, you need to pay close attention to the control points—like data. That is to say, identify the key steps in the customer journey that, if you control them, will allow you to gain an advantage over your competitors and form a deeper, closer relationship with your customers by meeting their needs holistically. Typically, important data sets make good control points. Therefore, you must identify and pursue the especially important data sets that will offer deeper and more meaningful insights into your customers’ needs. And beyond data sets, there could be many other things (e.g., access to customers) that could function as control points.

This is a first insight. If you examine customer data to find complementarities, you would like to see that nonexistent world in which the online product is not available. If we could somehow compare that world with the world that includes online purchases, we would be able to discern the true relationship between the two products. The most sophisticated businesses use three approaches to get closer to the truth: pattern recognition, trend analysis, and experiments.

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Vision mission: What was the original market or technology insight that led you to create this company? Customers: Who do you envision buying this product or service? Who will use it? Problem statement: What’s the problem you think you can solve for your potential customers? Use cases: What are the specific ways people will use this product or service to solve their problem? Product/solution: Give a detailed explanation of the technology behind the solution—what does it do now, and what else is it capable of doing? Ecosystem: In many cases there are other companies involved in solving the problem or adding additional value. These companies form an ecosystem around the problem and solution. What are all the companies and where in the ecosystem are the control points where one company has leverage? Competition: Who else is trying to solve this problem—or, if no one else sees the problem yet, who might jump in to compete with you to solve the problem once you identify it? Business model: How will your product or service change business for your customers? Will it increase their return on investment or reduce costs in a significant way? Or does it allow them to do something that couldn’t have been done with prior technology, creating huge value? Sales and go-to-market: Enterprise companies should articulate how the product or solution will make its way to the market. Through a sales force? Through distribution partners? Both? For a consumer company, how will users find out about your solution? From app stores? Search? Viral adoption? Growth hacking techniques? Advertising? PR? Organization: How is the company organized? Who are the major influencers on the company? How are decisions made? What kind of culture will work? Funding strategy: What’s the next funding event? A private financing? An IPO? How much runway does the company have before it needs more money and what kind of funding is in place to execute against the category strategy?

Business success depends on management decision-making from hindsight and insight for razor focused foresight without which careful oversight would be difficult at best.

Ravi Dhar, professor at Yale University and the director of its Center for Customer Insights, is right when he says, “Most marketers assume that consumers are rational agents who weigh each option carefully considering all possible trade-offs, whereas in practice choices emerge out of intuitive processing that makes some option look more attractive than others.

Clear and persuasive copywriting. Classic, heartfelt storytelling that speaks to people’s everyday problems. A strong and well-communicated differentiator, so I stand out from the competition. An email list I control and regularly provide value to. Informative, insightful content that delivers value upfront while also moving people toward a sale. Long-term relationships that will continue to bear fruit for years. Authentic testimonials that help people see themselves in what I’m offering.

Woven of wise women’s insight and young men’s dreams, of societal expectations and half-moon’s beams, Maurlocke’s robe habitually changed its form to match the expectations of the merchant’s customers.

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Remember, the real value of the interaction isn’t what you sell; it’s the insight you provide as part of the sales interaction itself.

Long-term thinking levers our existing abilities and lets us do new things we couldn’t otherwise contemplate,” Jeff wrote. “Long-term orientation interacts well with customer obsession. If we can identify a customer need and if we can further develop conviction that that need is meaningful and durable, our approach permits us to work patiently for multiple years to deliver a solution.”2 Key word: patiently. Many companies will give up on an initiative if it does not produce the kind of returns they are looking for within a handful of years. Amazon will stick with it for five, six, seven years—all the while keeping the investment manageable, constantly learning and improving—until it gains momentum and acceptance.

Though it’s unclear whether Jeff knew about Charlie’s idea before sending out his directive to launch a free shipping program in October, it doesn’t really matter—the story is noteworthy for a couple of reasons. First, customer-focused ideas come from all areas within Amazon. Many companies have the “business people” tell the “technical people” what to build. There’s little discussion back and forth, and the teams stay in their own lanes. Amazon is not like this at all. It’s everyone’s job to obsess over customers and think of inventive ways to delight them.

Stewart Brand abandoned his communard dreams for a new calling: corporate consultant. He had gotten a taste of the power of a social network at the WELL. If a company could sponsor an online community and if it could convince its customers that they were engaging in social rather than economic activity, then they could increase customer allegiance and their own profits. From this insight flowed the Global Business Network. Forget going back to the land—there was gold in preaching that Whole Earth message in the suites of the Fortune 500. The corporate conquest of the Web had started.