Leveraging the Voices of Users: Amazon vs. Hachette Publishing
A solid reference—whether it is for someone seeking a job or for someone trying to close a deal and win a contract—is invaluable because it speaks for the entity’s credibility and experience. References have long been used as one of the last steps to close a discussion before a decision is made.
We often see prospects in a new business deal asking references (most often users) to speak about a company’s quality of service, which provides a sense of confidence for whom they might be working with.
Users are familiar with helping organizations by providing references, but Amazon is now leveraging them in a slightly different and unprecedented way. We all know that Amazon runs and thrives on its many successful partnerships with its suppliers and publishers. Although Amazon is traditionally known to be pro-end user with regards to pricing, its range of titles, and its range of services offered, it is often in the news for its issues with its publishing partners.
The latest issue is with the Hachette Publishing Group, and one of Amazon’s strategies in handling the issue is definitely new. These two giants have been in dispute since earlier this year over the pricing of e-books and their contract. The dispute has become more public in recent months, with allies from user and author communities joining each of them.
In building its case on this issue, Amazon has sent an open letter to its readers and authors, which includes the complete background of the issue, appealing to them to write to Hachette's CEO. It is interesting to see the volume of emails that the Hachette CEO has received in response to this open call from Amazon and the effort he has made to respond to each of them.
Users are being leveraged in contractual discussions and negotiations, not only as references but also as people who can make a case for themselves and for the industry at large. The user's voice is very powerful—whether it is in the feedback they provide, the reference they give, or the message they present. Amazon is leveraging this power to see if it can make an even stronger case against Hachette.
Who will win this ongoing dispute is still unknown, but chances are high that this unprecedented move by Amazon will be emulated by others down the line.
