Amazon has become the gold standard in customer engagement and brand loyalty, and new research from Cowen Investment Banking provided the numbers behind the company’s unmatched presence in ecommerce. According to the report, the brand’s loyalty program, Amazon Prime, has 41 million U.S. subscribers, which represents a staggering 32% year-over-year rise. Prime is the most prolific example of a “pay to play” loyalty program, one that charges users for access to features of the program.
The success of ecommerce is dependent on several factors, chief among them being ease of use, engagement, and added value. The Amazon Prime loyalty program delivers on all three in spades.
Perhaps most impressive is the news that the Prime program is in 38% of U.S. homes. This level of engagement is something of which most brands can only dream, and speaks to Amazon’s commitment to providing the ultimate in engaging and frictionless online shopping.
Besides additional discounts and shipping options, Amazon Prime members enjoy added value through programs like Prime Music, Kindle Owners’ Lending Library, and Prime Instant Video, Amazon’s online streaming service.
Even more than engaging such an expansive consumer base, the report reveals that Amazon Prime members are on the high end of earning groups. Members average a $70,000 annual income per household, and typically have a higher conversion compared to both non-member Amazon shoppers and Internet users as a whole.
“Amazon continues to be a driving force in customer loyalty, and the latest report from Cowen showcases the positive results of offering added value and personalized customer experiences within a loyalty program,” said Mark Johnson, CEO of Loyalty360. “Like the millions of Prime members across the globe, we look forward to seeing how the company innovates as we move further into 2016.”
Since going online in 1995, Amazon has grown into the undisputed king of online shopping. The company has built its name largely upon the company’s incredibly efficient distribution chain. Innovations like 1-click shopping, Amazon Now 2-hour delivery, and the Amazon Prime loyalty program are large factors in the rise of ecommerce as a primary method for shopping.