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Have you seen The Customer-Focused Marketing Playbook?

This comprehensive and practical guide to the latest ideas in customer-focused marketing hands you over 200 packed pages of strategy, best practices, do's and don'ts, practical know-how, facts and figures, and ideas to optimise your marketing strategy, boost sales, market share, increase ROI and profit.

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Amazon Prime falls short on Customer Engagement

It's all about free shipping, not the entertainment

For many of Amazon's Prime program's customers, the entertainment services offered by the package are playing 'second fiddle' to the program's original free shipping benefit, according to research by The Diffusion Group (TDG), which found that 79% of Amazon Prime users cite free shipping as the main reason they subscribe to the service.

More than half of US adult broadband users currently subscribe to Amazon Prime. When asked which of the many benefits of Prime drives their loyalty to the service, eight in ten chose free shipping of retail purchases.

Meanwhile, only 11% of the members surveyed by TDG cited Prime Video as their main reason for being a member, and an even smaller combined 10% cited Prime Music, Photos, Reading, Twitch, or any other of the program's benefits.

"While Amazon Prime is building robust audiences in video, music, and gaming," said Michael Greeson, TDG's President and Director of Research, "Prime is first and foremost about developing more and broader retail relationships, and free shipping is key to that mission. That is where the real value of Prime appears to lie."

Adding high-quality digital media to Prime has certainly sweetened the deal and brought many new subscribers into the mix. Once they begin to buy more merchandise, however, service value appears to shift from media to free shipping. The retail benefits of Amazon Prime serves to differentiate it from media-only competitors such as Netflix and Hulu (video); Spotify and Apple (music); and Mixer, Owler, and Caffeine (gaming).

"The competitive threat that Amazon poses to the media industry is unique," concluded Greeson. "Video, music, and gaming services are largely loss leaders to Amazon's cash-cow retail business. This strategy continues to enable the company to disrupt not only established media verticals but a widening array of other goods and services."

Sources: The Diffusion Group / The Marketing Factbook.
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Categorised as:

Customer Experience
Customer Loyalty
Knowing The Customer
Marketing Know-How

Have you seen The Customer-Focused Marketing Playbook?

Learn the insider's tricks and techniques to turn every customers into a 'super spreader' for your brand. It's better than free advertising. Once you start this ball rolling, your brand can grow rapidly through word-of-mouth, advocacy, influencers, and customer loyalty. Super-charge your company's marketing strategy, build up your market share, and make more sales through repeat business and customer loyalty.

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The Customer-Focused Marketing Playbook walks you step-by-step through the techniques, metrics, reporting, analysis, marketing models, technologies, tools and innovations for successful marketing strategies - both traditional and emerging - with expert guidance from thought leaders in every major market. Find out the best ways to gather, analyse, and act on customer data to increase profitability, build your brand, empower your customers, beat the competition, reduce churn, and increase customer profitability. This is a marketing book you simply can't afford to be without.

This book aims to hand you all the facts, figures and research data you need for the best decisions for a more profitable, more engaging marketing strategy. It also highlights all the facts, forecasts and trends identified by our experts from the global Marketing Factbook's vast database of market data, news, studies, research and articles, and presents you with an invaluable library of ideas and practical support you can call upon at will.

With The Customer-Focused Marketing Playbook at your side, you'll have instant access to a true goldmine of easily adaptable and up-to-date strategies, walk-throughs, trends, research and market data, plus all the supporting arguments you need to build a solid, profitable marketing strategy.

Get it on Amazon (Kindle/Print)