Wasting your advertising dollars

A couple of years ago, Amazon.com announced that they were going to stop their advertising all  together. No more magazine adverts or TV. Instead they decided to invest all of their advertising dollars into providing free shipping of books.

From what I have read the marketing industry thought it was a foolish decision and predicted that it would spell the downfall of Amazon. How could they possibly think that investing money earmarked for advertising into making the customer experience more positive would increase sales.

The results: 1 year after the decision total sales were up 37% and international sales were up 81%.

The implication of applying the same thinking to our industry is huge. What areas do we spend money on, that if deployed into making our customers experience more positive, would actually increase sales.

Is it technology or marketing or advertising or capital equipment or research & development. How could we redeploy this money, improve the customer experience and increase our business along the way.