Over a past of time, Amazon is developing a lot of techniques and tricks to organize their products and their customers. Geo targeting technique is a blessing for Amazon to organize their world targeted audience. In Geo-targeting, commonly the product or service is advertised according to the geographical areas or on location basis.
As we know, Amazon is the biggest online shopping website so far. Amazon has to take care of their customers as well as potential customers. So Geo-targeting helps Amazon to make a profile of each customer on the basis of location. Some basic needs for Amazon using Geo-targeting are as follows:
Different Customers — Amazon has a large number of customers in the world. Top save the data, preferences, account and every information, Amazon is blessed with geo-targeting. For example, there may be Steve in USA and UK too but because of location centralised websites, it is easy to use the particular customer information.
Different Prices — Nobody wants to pay price in other’s currency because of maybe their high or low exchange rate. So Amazon makes the particular website for particular location, like www.amaon.ca for Canada and www.amazon.in for India, so that people don’t have to face difficulty to pay for their products.
Different festival and occasions — Every geographical location has its own festivals and occasions. Every company gives promotional deals and discounts on these festivals to build up company’s sale and growth and also its own reputation. So Geo-targeting is the best way to target the local customers on particular festivals.
Too much data — To organise the data for a worldwide web company, it is best way to save by location. So that they can deal with the local head department to take out any information of any customer in any geographical area. This small change can enhance the customer service too much.
Effect on growth rate of Amazon after segmentation
There is a growth in the revenue of the Amazon from 2014 to 2016 because of Geo-targeting; company can focus on their target customers easily. Locally divide customers can get best service and it is also beneficial for Amazon to save the data for customer preferences and other information.
How Amazon does bring opportunities with Geo-targeting?
Amazon differentiates the geographical areas and website by its domain name. For instance, Amazon website for Canada ends with “.ca” domain name and same as India — “.in”, America — “.us” and for UK — “.uk”. Amazon starts the Amazon Affiliate Program in which they pay a percentage of advertisement to the person who posted ad. This brings opportunity to the customers as well as common people to enjoy the benefits of earning program.
In this program, geographical location plays a vital role. First of all, the denomination of currency will be respective to their country as Amazon has their own website for each location. Secondly, the ad must be relevant to that area in which it is posted. For example, Halloween offers will be for western countries not for Arab and Eastern locations where someone hardly celebrate that.
Overall, Geo-targeting organize and arranges the Amazon very much from so before which helps them to grow and earn profit and provides a loyal customer service.