Amazon Prime Day achieved its goals to acquire new Prime members, promote Amazon branded products and once again reel in record revenue. But in the wake of Amazon’s 30 hours of success, the key takeaway for Amazon’s competitors is: Create excitement about the brand beyond a loyalty program and discounts.
While often reluctant to reveal statistics, Amazon disclosed in a statement that:
Sales during the 2017 event grew by more than 60% compared to the same 30 hours last year;
More new members joined Prime on July 11 than on any single day in its history;
“Tens of millions” of Prime members made a purchase on the day, more than 50% higher than the prior year; and
Prime members purchased seven times more Amazon Echo devices globally than on Prime Day 2016.
“Amazon is teaching the industry that having a membership or a loyalty program is more than just percent off on random products,” said Robin Sherk, VP of North American E-Commerce and Canadian Retail Insights at Kantar Retail in an interview with Retail TouchPoints. “It’s treating this exclusive experience as a way to generate excitement and attention to services and not just deals. You can argue that others like Costco or Target are starting to do more of this as well, but Amazon is continuing to be an excellent example of what the next generation of loyalty programs look like.”
Alexa-Based Promos Spotlight Amazon’s Focus On Growing The Service
Amazon has helped craft its loyal following by positioning the Prime subscription as a gateway to the rest of the brand, according to Cooper Smith, Head of Amazon Research at L2. Additional services including voice assistant Alexa, Amazon Fresh, Prime Now and soon, Prime Wardrobe, continue to add value that positions the e-Commerce giant as much more than a retail marketplace. For example, Amazon maximized the value of Alexa during Prime Day by giving Echo and Echo Dot owners early access to deals.
“If you want even better deals or services, then Amazon says, ‘Why don’t you buy an Alexa device?’ or ‘Why don’t you sign up for Prime Wardrobe?’” Smith said. “They staggered the Prime Day deals and before they even had any deals available. They said, ‘If you are an Alexa user, you get the first access to deals. If you are an owner of a Kindle, then you’re the next wave.’ I’m sure that there’s a correlation between the runway in the length of the deals that are available to those users, and where Amazon sees the priority to increase the user bases of those services. The fact that Alexa had the longest runway of deals, shows that Alexa is the number one…