Why can't Amazon make a profit?

Why can't Amazon make a profit? The answer is, they choose not to. Now to some extent this defies logic on several levels. First, they are a publicly traded for profit corporation. Second, you would think the stockholders would demand it. Yet, Amazon has been one of Wall Street’s darlings in the past decade. Amazon’s stock price jumped 234 percent in the past five years alone, giving the company a valuation of around $120 billion.

In those five years, Amazon’s sales have tripled to more than $60 billion a year, while its profits stayed remarkably flat. The reason for Amazon’s stagnant profit is its founder’s notorious commitment to long term growth. Jeff Bezos, who founded Amazon in 1994 and has lead the company ever since, has a track record of investing everything his company earns right back into it. Defending his investment strategy in his latest letter to shareholders, Bezos wrote:

  “Proactively delighting customers earns trust, which earns more business from those customers, even in new business arenas.”

This way, Amazon became the largest online retailer in the world and in the same way the company is now striving to become a dominant force in the distribution of digital media.  So far, investors seem to believe in Amazon’s long term success, but some day the company is going to have to proof it can turn a sizeable profit.

It is as Bezos recently noted:

“In the short run, the market is a voting machine but in the long run, it is a weighing machine. We’re always working to build a heavier company.”

Can you BLUF?

We all spend a lot time in meetings, sending and responding to emails and talking with others on the phone. More and more we need to cut through the clutter and get to the point quickly in meetings - and in messages.

Let's take a lesson from the Navy. We could all take advantage of BLUF. That’s the acronym they use in the military for Bottom Line Up Front. In a military setting, BLUF communications allow people to grasp the essence of a situation immediately and seek details only as necessary. It’s like a Cliff Notes for every situation.

Here is another nifty list, also from the military. Always describe:

• What’s what.


• So what.


• What next.

If you’re in a meeting that is focused on getting to the bottom of an important situation, these are great guides. Encourage people to cite their headlines from the start. It not only saves time, it ensures the communicator has a point in the first place.

You're Doing Social Wrong. Your Teenager Does It Right.

It seems that everyone is freaking out about teens abandoning social media sites like Facebook. By "everyone" I mean advertisers. They’re racking their brains trying to figure out why it’s happening. If you’re puzzled too, read this lovely piece in Medium by Cliff Watson, who argues that the number one reason kids don't need Facebook is that they "literally don't need Facebook."

After running through a host of theories as to why, including the fact that parents (ew) and even grandparents are on Facebook now, he comes up with a much more reasonable reason: Young people are gravitating toward messaging services such as Kik, and in doing so, they’re recapturing the intended meaning of social: "Making contact with other human beings. Communicating. Back-and-forth, fairly immediate dialogue. Most of it digitally."

In other words, it's not a post; it's an exchange. Snapchat anyone?

Are you saying pretty please?

Dan Zarrella is a great thinker on social media. He mines massive amounts of data and bases his recommendations on hard science. This is relatively rare yet needed in the field of social media marketing, and so he’s well worth following.

He recently analyzed 2.7 million tweets and concluded the following that people retweet when they are asked nicely as part of the original tweet. Conclusion? If you have something you want people to spread, ask them - with a pretty please.

Use your personal smartphone for work email? Your company might take it

If you use your personal smartphone or tablet to read work email, your company may have to seize the device some day, and you may not get it back for months. Employees armed with a battery of smartphones and other gadgets they own are casually connecting to work email and other employer servers. It's a less-than-ideal security arrangement that technology pros call BYOD — bring your own device.

Now, lawyers are warning there's an unforeseen consequence of BYOD. If a company is involved in litigation — civil or criminal — personal cellphones that were used for work email or other company activity are liable to be confiscated and examined for evidence during discovery or investigation.

More here: Use your personal smartphone for work email? Your company might take it - Red Tape.

Collaboration gone wild?

Is this what collaboration looks like in your organization?



The CEO and the C-Suite can set reasonable limits on what can feel like collaboration gone wild. For most decisions, a form of RACI, decided up front, can help. The key is discipline to stick with it.

R - Recommend (Who, hopefully an individual, makes the recommendation)

A- Approve (Who, hopefully an individual, approves the decision)

C - Consult (Who needs to have input before the decision is made)

I - Inform (Who needs to be notified of the decision)

What should you do to start the journey of constituent experience?

The effect of everyone jumping on the constituent experience bandwagon is a slowdown in the maturation of this new business discipline. Confusion abounds as does disbelief. No one wants to risk exposing their constituents (and their job security) to new engagement practices that might increase instead of decrease frustration and churn.

However, the growing confusion opens unique opportunities. Here are a couple of strategies to start action plans around.

• Creating a disruptive mindset by reimagining your business and constituent relationships in a digital world.


• Making trusted content the center of your business strategy and constituent experience.


• Infusing social constituent experience across all business functional and digital touch points.


• Repeatedly measuring and proving the financial results.

If you haven't begun the journey, now would be the time to start.

“Lithium’s blueprint is in direct response to customer requests for advisory and insight services to help them make their social customer experience strategy a reality.” He defines social customer experience as “unlocking the passions of your customers in the digital world in a way you can capture those insights, measure them and empower your organization to bring your customers along.” ~~Rob Tarkoff, Lithium Technologies President and CEO