

The Big Idea with Ron Davis
September, 2016
Take Cues From Amazon’s Customer Obsessions
If you had just one really great idea you could share with the alarm industry, what would it be?
In talking with one of my colleagues last week, it was quite clear that he has a personal relationship with Alexa, the voice service that powers Amazon’s Echo. He talks to Alexa about the weather, flight delays, movie reviews, restaurant reservations, his son’s school projects and even what temperature he wants the room to be. My colleague readily admits the more he interacts with Alexa the more she compels him to buy on Amazon. ... Through Alexa, Amazon is creating an on-demand, personalized, signature experience that we will be talking about for years.
With Prime, Echo and its ever-broadcasting web services business, Amazon is slowly but surely becoming the world leader in delivering on its brand promise: being the “Earth’s biggest selection and being the Earth’s most customer-centric company.” In his annual letter to shareholders, [founder Jeff] Bezos humbly stated why Amazon continues to be so successful: “Our focus is on customer obsession rather than competitor obsession, eagerness to invent and pioneer, willingness to fail, the patience to think long term, and the taking of professional pride and operational excellence.” Customer obsession is one of the hallmarks of brands that stand apart from the rest — think Apple, Southwest and Nordstrom. But Amazon is the one that other brands are now obsessing over. Be honest about what experience you are delivering today — from a customer perspective — and where there are opportunities for improvement. Technology can enable game-changing innovation, but not every company has to create its own version of Echo.
In our industry, it seems some firms are so concerned with everything that other companies are doing, including building a nice niche for themselves, that they forget they have strengths of their own. If your attrition rate is 10% or less, you have very sticky customers, and that means they are aware of, open to and ready for new ideas and thoughts from your company. That’s why there is so much interest on the part of cable companies, telcos, etc., to acquire alarm company customers — so some of the stickiness of alarm customers will rub off on other services being offered.
Ron Davis is Security Sales & Integration's "What's the Big Idea?" columnist and contributing market analyst. He is president of Davis Group, a full-service consulting firm serving the security industry, which also includes GraybeardsRus. He has 35 years of industry experience, including founding Security Associates International in the 1980s.
Home of the Graybeards
5894 Partridge Lane
Long Grove, IL 60047
Phone (847) 955-2360
Email: info@graybeardsrus.com
