David Mastovitch | Learning from the flywheel concept | Company

What can you learn from Amazon’s flywheel concept? Whether you love Amazon, hate Amazon, or begrudgingly support Amazon, we can all agree, it’s an incredible achievement that has changed and continues to impact all of our lives.

The beauty of how Amazon was built and grew is that it all started on a napkin with their strategic development of something that was discussed a lot in the founding book, “Good to Great”.

“Good to Great” is one of those legendary business books, which no matter when you read it, no matter how old you are at that time and what year you read it, it still has its relevance and still applies. The concept of a flywheel is discussed in the book.

The concept of a flywheel in business is that you have this wheel of things working together and continuing to spin and making the operation smoother. Then you go faster and faster and your growth kicks in. You reach your goals for market share, scale, customers, and profits.

In “Good to Great”, the concept of Amazon’s flywheel was that they wanted to have a combination of the lowest cost structure, lowest price, more choice and more sellers, which would lead to more customers.

You can see how this flywheel concept would work. If you have the lowest cost, and if you have more sellers, and you have more offers, you will get more customers.

And when you get more customers, that ladder will fall into place and you can have even lower prices.

You are going to have more people who want to sell, which means you have more offers, which means you will have more customers, which means you can continue to offer the lowest prices, entice more people to want to sell, to have more offers, to attract more customers, etc.

It is an example of one of the most successful growth companies in business history.

A flywheel also combines marketing and customer strategy with operational strategy and organizational strategy.

Part of strategy can be a lightning rod or cause stress, cynicism, or frustration because people don’t really understand that there is an organizational strategy.

How are we going to be built? What will our structure be? What type of leadership and management?

And there’s the financial strategy, how you’re going to evaluate things and what you’re going to do and what your philosophy is.

And then there’s the marketing strategy – which customers do you want to target and who do you want to connect with, connect with and engage with.

When you develop your flywheel, you are able to establish how your business will build on everything you do to keep improving in achieving your key goals.

It will also help you understand who your customers are and who you want them to be, and how you are marketing.

Developing that steering wheel can be huge for you. It was obviously huge for Amazon.

Your business needs to think in terms of marketing strategy. What customer segments do you want to be in? Which ones are you already in? It looks at how you’ll systematically learn what these customer segments think, feel and want, and then how you’ll give it to them, when and where they want it at a price they’re willing to pay.

Then you can do the fun part, which is talking to them over and over again.

When you tell them, it’s a story built by and for and about your customers, built by and for about your customers.

I want to practice what I preach, so let me tell you a bit about the flywheel of MASSolutions, which starts with systematically gathering information. I often discuss the science of marketing and the science of storytelling.

There is a science to systematically gathering information, and this information can be qualitative information obtained by talking to customers and following what we have been told. It can be quantitative market research, it should be related to target market segmentation and competition analysis.

These can include tools such as the predictive index to see who is doing what and why, and what energizes them versus what depletes them.

We want to leverage the experience, expertise and instinct of each team member. We have gathered these ideas and we continue to gather and leverage the experience, expertise and instincts of the team members. This then allows us to develop customer experience solutions, and create stories.

When you systematically gather information about our intellectual property, how we do it, and leverage our experience, expertise, and instincts, we deliver customer experience solutions that help our customers and our customers’ customers. . They help our customers and our customers’ customers, including customer experience solutions.

And they allow us to develop a top-down storytelling, which goes to the next element of the flywheel, which helps us reach, connect and engage with our client or customer target audiences, reach, to connect and engage with these customers, to change behaviors and mindsets.

As we do this, as we reach, connect and engage, and as we change behaviors and mindsets, we are still systematically gathering information.

And we always leverage the experience, expertise and instinct of each member of the MASSolutions team, which leads us to develop more customer experience solutions and create better upper and lower stories. , stronger and more memorable, that reach, connect and engage with target audiences to change behaviors and mindsets.

Our flywheel spins around and helps our customers again and again.