Amazon.com Inc - Prime loyalty shows in revealing new survey
A new study by Feedvisor, an algo-commerce company that combines big data and machine-learning algorithms to advise online retailers, has shown that Amazon’s Prime customers show near unparalleled brand loyalty.
The study looked at 1600 Amazon customers in the U.S. of which 65% were Prime members and 35% were not. The study showed that customers who subscribe to Prime Membership are far more likely to make more purchases more often the other customers.
Claudia Hoeffner, Vice President for Global Marketing for Feedvisor wrote “Consumers go to Amazon for almost every activity possible in their shopping experience. And, for activities like browsing for new deals and discounts, comparing prices, and checking availability, Amazon is head and shoulders above other marketplaces and retailers.”
The key results from the survey are:
• 85% of Prime customers visit Amazon at least once a week. This compares to a still impressive, but considerably less so, 56% of non-Prime customers.
• 13% of non-Prime customers make weekly purchases but this jumps to an astonishing 45% amongst Prime customers.
• 51% of customers visiting Amazon cite price checking as their number one reason to click onto the site and 44% said they will always check Amazon’s price before a purchase.
• 60% of customers will not consider purchasing something with less than a 4.5 star rating.
• When considering a purchase 54% of customers always read the full product description.
Prime clearly holds great appeal with up to 90million people subscribed worldwide, and 5billion items sent via the service in 2017 alone.
Amazon’s next big push is likely to be its third-party seller program with the company reporting that more than 1billion items were ordered through this program, of which 140million were ordered in just the 5 days from Thanksgiving to Cyber-Monday.
Dominion holds Amazon in its Global Trends Ecommerce Fund.
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