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1.3.3.2 Evolving predictive capability

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With historical data, Amazon is able to predict the repeated buying behavior of users, especially some consumables, such as printer ink, daily consumables and food. Amazon has built multiple models to know the frequency of each kind of product used by different individual customers, so as to know when they will repurchase and then it reminds users to buy by e-mails. This naturally makes Amazon the first choice for customers. There were times when some careless customers did not notice they were running out of shampoo until Amazon sent them a reminder. Based on such predictive capability, Amazon can easily offer their Subscribe & Save service. After selecting the payment method and favored items, Amazon can send the products to the customer’s designated address regularly based on customers’ use frequency. This whole process, thanks to a strong data system, is automated.

Marketing Strategy In The Digital Age: Applying Kotler's Strategies To Digital Marketing

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