The industry is buzzing about Amazon Prime Day—boldly designated July 15, in which Amazon pledges to offer more exclusive deals than Black Friday.
Before we dive into Amazon Prime Day, let’s quickly note that Amazon Prime is a subscription service that, most notably, grants members free two-day shipping. Additional benefits include: television shows and movies (several of which are original to Amazon), as well music streaming, photo storage, ebooks, and flash deals.
While Amazon Prime is not necessarily the cheapest ($99/yr.), its 40 million members forgo a bit of money for convenience, quality service, and a host of exclusive benefits. And, it’s paying off. Amazon is building loyalty, providing a memorable experience, and seeing Prime members spend more than double than that of non-members.
Amazon Prime Day is the company’s way of celebrating 20 years of existence and they are rewarding their most loyal customers with a slew of good deals for 24 hours straight. As part of the offer, those without a membership can sign up for a free 30-day trial and get immediate access to deals.
The massive sales event underscores an attempt at customer retention, and further serves to capture new members and fuel growth. It is also a major push to compete with major brick-and-mortar retailers, and highlights their desire to compete with physical retail sale prices.
So, why is this important?
As several competitors promote deals as a means to intercept Amazon Prime Day, brick-and-mortar retailers need to think big picture. In such, retailers need to identify Amazon’s successes in offering a subscription service—ease of purchase, rapid delivery, hassle-free returns, private access to content and deals, etc.—and leverage those relevant qualities to build loyalty and engage with shoppers in-store.
As retailers look to the future, it’s key to not only recognize the growing competitive landscape—as it stretches from online to offline—but also to capture successes in both digital and store operations to generate the most meaningful experience and, more importantly, long-term shoppers.
Be sure to check back for our next post, which will offer retailers 3 ways to create these long-term shoppers and brand advocates.