Prime Opportunity: Building Loyalty on Retail Platforms
Total Page：16
File Type：pdf, Size：1020Kb
Prime Opportunity: Building loyalty on retail platforms Amazon Prime now reaches about half of all American households and has upwards of 100 million members, all of whom have grown accustomed to the platformʼs seemingly limitless choice and dedication to convenience. As e-commerce continues its unrelenting growth trajectory, the preferences and expectations of the Prime consumer are likely to spread to the broader consumer landscape. The Amazon Prime member shows a preference for simultaneously preferring two different approaches to the marketplace: discovery and loyalty. They value choice and variety more than non-Prime members, while also valuing the power and comfort of a trusted brand name. Amazon Prime Members Non-Amazon Prime Members* Discovery Loyalty Prime members Prime members can value choice be loyal When deciding where to I've had such a positive shop, itʼs important that Iʼm experience with a brand that it introduced to new products will always be my first choice Prime members are Prime members trust more likely to switch brand names brands I trust products from name I would consider switching brands more than I trust from a name brand to a store products that are generic brand** store brands Be Compelling Be Compassionate Be Amazing To align with the discovery To build the bridge between Continuing to earn the mindset, brands need to be discovery and loyalty, a affections of the increasingly discoverable. 58% of all brand needs to prioritize its discerning consumer means consumers, regardless of humanity and empathy. As being anticipatory and finding Prime membership, agree we discussed in our U.S. the right time and place to that “when deciding which Outlook, consumers are engage. It means being brand to buy, there are often bringing ever Greater endlessly innovative and too many options to choose Expectations to the accepting that what inspires from.” With more than 350 marketplace. Price and loyalty today will likely be million SKUs and counting quality continue to flatten as eclipsed by something else on the Amazon platform, the major differentiators while tomorrow. It also means need to stand out will only service and convenience are being meaningful and aware become more pressing. quickly gaining ground in the that the consumer of the Whether itʼs through value equation. Itʼs critical for future will increasingly look at optimized algorithms, brands to adopt the mantra a brandʼs purpose and renegade positioning, or a of Amazon CEO Jeff Bezos whether it stands for memorable brand story, himself and be “customer something more than a being exceptional is obsessed.” product or service. paramount in the increasingly crowded and commoditized retail platform era. * Data for Amazon Prime and non-Prime members are for consumers with an annual household income of $50K or greater in order to control for income variability ** Among grocery, household items, personal hygiene, and apparel categories for relevance of store brand competition.