Monday 30 May 2016
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How Dash Buttons can help Amazon learn about its customers

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unnamedBI IntelligenceAmazon recently expanded its Dash Button to include 29 brands that now offer products for purchase and delivery with just the click of a button. On the surface, the Dash Button is all about convenience for the consumer. But besides growing sales and brand awareness for its subscription-only Prime membership program — which now boasts 53 million members worldwide — what does Amazon get out of this deal?

Dash Buttons are a perfect way for Amazon to learn about the intimate behaviors and needs of its customers. Because the Dash Button allows customers to place orders for products as soon as they need them, Amazon can observe patterns of what their customers are going to need and when. And while this isn’t in its immediate plans, Amazon could potentially use this information to anticipate its customer needs before they are even aware of them. In fact, Peter Larsen, Amazon’s VP of devices, has this exact vision in mind for the future, according to The Verge. “You can see a scenario where, at 4 o’clock this afternoon, a lightbulb arrives at my door and I say, ‘Why is this here?’ And 30 minutes later our lightbulb goes out. And that’s because Amazon knows that your lightbulb was about to run out.”

The growth of the e-commerce market is largely due to the idea of convenience. Being able to purchase items without leaving the home is what makes versatile marketplaces like Amazon, eBay, and Walmart’s e-commerce site so successful. The Dash Button could, and might, take that one step further to become more of a concierge-like service. Instead of relying on customers to come to the company to make purchases, Amazon could have the autonomy to make the buying process — one that is constantly being further simplified — virtually nonexistent for the customer.

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Disclosure: Jeff Bezos is an investor in Business Insider through his personal investment company Bezos Expeditions.

Original author: Nancee Halpin and Cooper Smith
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