It should be obvious to anyone with a basic understanding of how shopping works that Amazon.com customers who have a subscription to the company’s Prime service probably spend a lot more with Amazon than people who don’t. The temptation to order just about everything one needs without needing to accumulate a $35 order beckons to our inner very lazy or very efficient people.
The important question, though, is what the difference is between Amazon customers who have Prime and who don’t. In a survey of Amazon customers, Consumer Intelligence Research Partners found that Prime members spend about $875 less than non-members. Those non-members spend an average of $625, which also shows some customer loyalty.
That’s because Amazon has other ways to build loyalty to their brand. While a person who owns a Kindle e-reader or table, or a Fire media player probably also has Prime, that doesn’t mean that they necessarily do. The survey found that just under 40% of Amazon customers own the company’s devices, and that some don’t particularly care whether they’re connected to the Internet or not.
About 15% of customers have Amazon’s Visa-branded credit card, and they’re also very loyal to the retailer because of the rewards that they earn.
Let’s review: owning a product with its own media ecosystem, belonging to a free shipping program that you have to pay for in advance, or that having a store credit card that lets customers earn extra rewards by shopping at that store encourages them to shop at that store. Who knew? Everyone, but it’s good to have a survey quantify what we thought was true.
Amazon Prime Hits New Highs [CIRP] (via CNET)
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