You Can’t Buy Customer Loyalty But Can You Sell It?
A loyalty scheme is just a tactic.
A loyalty programme is a commitment to better customer experience and continuously growing customer loyalty. Amazon Prime is one of the world's best customer loyalty programmes.
In this post we explore why we think it's one of the best and what it means for every other brand.
How Amazon Prime Works
"We want Prime to be such a good value, you'd be irresponsible not to be a member."
Why it works
Maximises share of wallet
The Flywheel That Maximises Weight Of Purchase
"[Amazon Prime Video] shows are great for customers, and they feed the Prime flywheel – Prime members who watch Prime Video are more likely to convert from a free trial to a paid membership, and more likely to renew their annual subscriptions."
Does the simple things better
Adds utility and entertainment
Rooted in the best of the brand
"Our vision is to be earth's most customer centric company; to build a place where people can come to find and discover anything they might want to buy online." Bezos again.
An opportunity for Amazon Prime
- Prime members spend more than non-members -- about $1,100 a year compared to $600 for shoppers who don't join;
- Amazon retains approximately 95 percent of them after one year'
- Membership grew 51% last year - including 47% growth in the U.S. and even faster internationally.