Amazon Prime -What brands can learn from it?

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Amazon Prime -What brands can learn from it?

Amazon Prime – What can we learn from it?


For those of you who are not familiar (or living under a rock) with Amazon Prime. It is Amazons, the e-commerce giant, Loyalty program.


That most famously hosts ‘Prime day’ in mid-July, a huge sale similar to Black Friday and Cyber Monday.



The difference between a blitz sale hosted by Amazon and Black Friday is, to avail of Prime day offers you must pay a subscription to Amazon of $99. They had over  80 million people subscribed in 2017 and they shopped. In fact, 9.5million transactions took place in just 30 hours during 2017’s “Prime day”.



Why is Amazon Prime successful?
Amazon Prime was launched in 2004 with the objective of engaging and retaining their most loyal customers by offering them a customer experience that was too good to shop elsewhere.


Over the years, they have seen their Prime memberships grow dramatically.  Amazon saw an increase of 28 million members in 2017.


How? Amazon leveraged their customer’s data to offer a customer experience that their customers actually appreciated.


As an Amazon Prime member, you can benefit from instant gratification through fast delivery, free delivery and access to Prime day offers.


Fast shipping is not the point of Prime, it is a means to an end to deliver instant gratification to their customers and enhance their customer’s experience.


Takeaways from Amazon Prime?
1. Amazon Prime objectives are customer-centric; understand their customers, Build a two-way relationship with customers and create an exceptional customer experience.


2. Leverage data to understand customers’ expectations and used loyalty to deliver these expectations.


3. Customer experience instead of discounts; yes this may seem ironic, considering Prime day is notorious for their price cuts. However, 74% of items were priced lower on Black Friday.


4. Amazon focused on their loyal customers. Amazon prime membership has a sign-up fee. By paying a subscription they display their loyalty to the brand.


Not every brand can charge an annual fee to participate in a brands loyalty program however asking customers to do something, like scanning a card, downloading a loyalty app, entering competitions as part of your loyalty program can help brand identify their engaged customer base and focus on them.


5. Continue to learn and adapt. Amazon Prime launched in 2004 yet 2017 has reached its highest participation to date. This didn’t happen overnight. Year on Year Amazon learned more about their customers, adapted the program based on their findings. Amazon proves their commitment to their customers by continuing to improve their loyalty program.


For more on Customer expectations, read

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