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Have you seen The Customer Experience Factbook?

In this 180+ page report, you'll find all the information and support you need to build a profitable, effective CX Improvement Program that spans every part of your business. You'll be able to implement and manage meaningful and profitable change, and grow your bottom line despite a slowing economy.

Get it on Amazon (Kindle/Print)
 

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.
Copyright © 2018 - 2025 The Marketing Factbook.

    Categorised as:

  • Customer Experience
  • Customer Loyalty
  • Knowing The Customer
  • Marketing Know-How

Have you seen The Customer Experience Factbook?

In this 180+ page report, you'll find all the information and support you need to build a profitable, effective CX Improvement Program that spans every part of your business.

You'll be able to implement and manage meaningful and profitable change, and grow your bottom line despite a slowing economy. Grab this goldmine of easily adaptable and up-to-date strategies, walk-throughs, trends, technologies, research, suppliers and partners, plus all the supporting arguments you need to build a solid CX strategy.

While most marketers could list maybe a dozen key points for improving their brand's Customer Experience (CX), the researchers and writers at The Marketing Factbook have identified FORTY main 'CX Keys' which will help you drive your customers to new levels of delight, loyalty, advocacy and profitability.

The areas in which customers have direct contact with your organization are perhaps the most obvious places in which CX improvements can be made, and this report addresses all 24 of these 'Direct CX Keys', applicable to offline and online businesses alike.

At the same time there are many other areas that indirectly affect CX (such as the supply chain, policies and processes) in which every business can make simple but far-reaching improvements. This report guides you through the problems and solutions for all 16 of these 'Indirect CX Keys', many of which are often forgotten or under-played even in the best CX strategies.

Get it on Amazon (Kindle/Print)
 
Copyright © 2001-2025 Peter J. Clark