Attracting Amazon Prime Users

Amazon Prime


Amazon Prime members use the app to make purchases and they do it often. Branding Brand explored results from its
survey of 1,000 Amazon shoppers to understand more about Prime membership loyalty, and how retailers can target these shoppers

App Users are Loyal

Loyalty to Amazon runs deep for its smartphone app users — 64% are Prime members. Of all Amazon Prime Members, 95% said they buy at least monthly. Amazon’s app users shop similarly, with 90% buying at least monthly. 

 

Prime vs. Pricing

The convenience of having a membership is the leading reason 51% of Amazon Prime shoppers buy on Amazon (compared to 31% of all Amazon shoppers). This group cares significantly less about cost, with 18% saying they buy on Amazon for lower prices. However, Prime shoppers said lower prices and free two-day shipping makes them want to shop other retailers. 

Takeaways

While Prime members are literally bought-in for the convenience of Amazon’s loyalty program, retailers don’t have to set a price for customers to come back. Having the app increases loyalty and buying frequency, but only one-in-three retailers has one.

That’s not to say retailers that build an app will have shoppers flocking right away. A thoughtful digital strategy comes first.

An app that helps solve a pain point for shoppers could easily become a lifestyle fit. For more about these pain points and how retailers can address each step of the buying journey, check out the recap below from Branding Brand’s latest webinar featuring Forrester's Brendan Witcher. 

 
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Topics: Trends Survey Company

Targeting Amazon's Power Shoppers

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Adults who make 75% or more of their purchases with Amazon — the power shoppers — buy from the app and want loyalty rewards. A deeper dive into Branding Brand’s recent survey of Amazon shoppers learned more about this segment of customers to understand how retailers can attract them away from the retail giant.

Rewards vs. Shipping

Of the features that could sway Amazon’s customers to buy from other retailers, 51% of power shoppers ranked loyalty and rewards programs above free 2-day shipping, at 49%. Lower pricing still tops the wish list of features, at 59%. 

 

App vs. Mobile Site, Desktop

Power shoppers buy from Amazon’s smartphone app more than any other channel, at 28% — compared with the 26% who shop via desktop site, and 23% shop from smartphone site. This group is more comfortable shopping and purchasing on mobile, with 51% typically buying from Amazon’s app or smartphone site. 

Takeaways

Because lowering prices and offering free 2-day shipping can be cost-intensive for retailers, the fact that Amazon's power shoppers value loyalty and rewards programs more offers a less costly alternative for brands to pull in these customers.

Loyalty engagement is key to driving app adoption. Shoppers who download a brand's app are more likely to buy, especially when they get something in return from an effective loyalty rewards program. 

Learn more ways retailers can develop digital strategies to better compete with e-commerce competition from our webinar recap below. 

 
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Topics: Trends Survey Company

Survey: Amazon Weaknesses are Opportunities for Retailers

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Are Amazon's deficiencies inadvertently creating a blueprint retailers can use to succeed? Amazon shoppers say they would buy from other retailers if offered lower prices (66%), free 2-day shipping (60%), and loyalty rewards (37%) — pointing to strategies retailers can use to attract the youngest generation of consumers.

To better understand how retailers can compete with the e-commerce giant, leading retail app platform, Branding Brand surveyed 1,000 adults from Feb 17-22 who shop on Amazon and make the majority of purchases for their households.

How and Why They Buy
60% of Amazon shoppers buy using their mobile devices. Having a Prime membership is the top reason they buy from Amazon (31%), followed by low prices (29%). Of those surveyed, 58% were Amazon Prime members.

Of non-Prime-members, the main reason 45% buy on Amazon is to find lower prices. 37% of non-Prime members think Walmart is less expensive.

Attracting Young Shoppers
Major opportunities for retailers exist with younger shoppers — 76% of digitally native 18-24 year olds make less than half of purchases on Amazon. This group prefers in-store shopping and a seamless buying experience, and according to the survey, the leading way they buy on Amazon is with the mobile app at 35%. The rest buy on Amazon.com on desktop (34%) or mobile site (24%).

Only 1% of consumers say they use Amazon Dash Buttons or Alexa to shop.

To learn more about our methodology, contact press@brandingbrand.com.

About Branding Brand
Branding Brand is the retail industry's leading omnichannel commerce platform, powering mobile apps, sites, and in-store shopping experiences for over 200 enterprise brands. In addition to being named a Gartner "Cool Vendor" of apps, the Company is also the Forrester Wave Leader in "Mobile Commerce and Engagement Platforms."

Topics: Trends Survey Company Press Release

Sneak Peek! Cyber Five 2016: Consumer Shopping Survey

Click here to see Cyber Five 2016: Consumer Shopping Survey on SlideShare.

1,000 people who bought gifts between Thanksgiving Day and Cyber Monday opened up about their browsing and buying behavior, shopping satisfaction, and next steps to complete their holiday purchases in our latest consumer survey.

Read our Cyber Five 2016 press release.

The 30-page report uncovers what Cyber Five shoppers said about their experiences, including:
  • 27% of holiday shoppers say retail stores helped them find gifting inspiration.
  • 51% of people used a mobile app to buy gifts during the Cyber Five.
  • 86% of people say they were satisfied with their Cyber Five shopping experiences.
  • Only 6% of people have completed their holiday shopping.

Check out the shopping survey excerpt


[EXCERPT] Cyber Five 2016: Consumer Shopping Report from Branding Brand

Download the full report

 
Topics: Trends Survey Holiday

[INFOGRAPHIC] The Most Popular In-App Holiday Purchases

Holiday 2016: Top In-App Purchases

This holiday, shoppers will be tapping—not checking—people off their gifting to-do list.

We know mobile plays a key role in the buyer's journey—it's the first place many people go to quickly research products and reviews. However, shoppers are increasingly going from browsing to buying in retailers' apps. Shoppers prefer apps over websites because they're faster, more convenient, easier to use, and have better deals on products. 

 

The Top 3 Holiday Gifts Purchased In-App

Let's zoom in on the most popular products to purchase in-app:

1. Apparel & Accessories
56% of shoppers say they'll gift apparel or accessories this holiday. 59% say they've purchased apparel and accessories on an iPhone app in the past, which suggests that fashion products will be the most purchased gifts in mobile apps this season.

2. Electronics 
51% say they've purchased electronics on an iPhone app in the past, while 45% plan to gift electronics. This overlap suggests in-app electronics purchases will be popular this year. 

3. Tickets, Books, & Music 
56% of shoppers say they've purchased entertainment tickets on an iPhone app, while 43% plan to gift books, music, and entertainment products this holiday. 

This season, consumers want streamlined experiences in store, in app, and online. In-app purchases don't necessarily happen while lounging on the couch— 74% say they use apps while waiting in line. While in-app purchases are more popular than ever this holiday, the key to winning over consumers is through a strong omnichannel strategy that merges the online and in-store experience. 

Holiday 2016: Consumer Shopping Survey

We discovered what people plan to browse and buying during the 2016 holiday shopping season. Check out what we found in the survey results. 

DOWNLOAD THE RESULTS

Cyber Five 2016: Consumer Shopping Survey

People who purchased holiday gifts between Thanksgiving and Cyber Monday revealed what they thought of their online and in-store experiences. Take a look at the survey highlights to find out how shoppers felt about this year's Cyber Five.

DOWNLOAD THE RESULTS

 

Topics: Trends Survey Holiday Solutions Apps