Amazon is not infrequently the first port of call when it comes to searching for a product on the Internet. In fact, 62 percent of product searches start right there.
Amazon is also at the top of the list when it comes to customer loyalty. Through personal and individual customer care as well as a holistic service – even beyond the order – the company can improve the customer experience. In turn, Amazon can score points with customer loyalty. The enthusiasm of customers for the service and the wide range of products can increase the repurchase and recommendation rate enormously.
For which online retailer doesn’t that sound like music to the ears? But how does Amazon do it? How do online retailers get customer loyalty like Amazon? 3 tips can bring online retailers closer to their goal and make their customers even happier.
1. Customer loyalty through memberships and promotion days
Amazon uses a variety of discount and promotion models to increase customer satisfaction and retain customers.
Amazon Prime
Since 2005, Amazon has had a customer loyalty feature called “Prime” that offers customers a number of benefits.
[tooltip title=”Amazon Prime” color=”blue”]Amazon Prime is a membership offered by Amazon that provides exclusive products and services to the company’s customers[/tooltip].
From discounts to free express delivery to free video and series streaming, the high level of value Amazon offers is something no other retailer or marketplace can match. According to a survey, less than one percent of Prime users would choose another online store over Amazon. Amazon Prime thus contains so many different benefits that it very quickly pays off to take out a membership.
The online mail order company Zalando has also had a similar model to Amazon for about a year. With Zalando Plus, the company offers its customers a whole host of benefits: Premium deliveries, returns pickup, exclusive offers and more. The customer pays 19 euros a year and enjoys all the benefits of Zalando Plus membership.
Streaming services like Netflix, Maxdome & Co. are a few. Amazon, on the other hand, combines the experience of streaming with the fun of online shopping.
The eBay marketplace, on the other hand, can keep up with Amazon when it comes to selling a wide variety of goods. However, it lacks the personal character and the exclusive promotions, discounts and features.
So the US company Amazon is still the undisputed leader among retailers in Germany. However, the two Chinese companies JD.com and Alibaba want to compete with the group in the future and penetrate the European market.
Online retailers can learn a thing or two from Amazon. Faster deliveries, the chance to take part in promotions and events, or personal style advice. Those who offer their customers memberships can not only generate additional sales, but also automatically bind the customer to them.
Amazon Prime Days, Amazon Cyber Monday and Black Friday
Amazon attracts its customers through various offers and promotions, such as Amazon Prime Day or in the form of Amazon Cyber Monday. These promotional days take place separately from holidays, on which most companies start discount campaigns, and are therefore particularly interesting and unique for many customers.
Prime Day is a shopping event on Amazon that can be used by all Amazon Prime members. As part of this promotion, Prime customers can purchase a large portion of products within a set period of time, sometimes with enormous discounts.
During Amazon Cyber Monday, customers can purchase new offers at 5-minute intervals every day from 6 a.m. over the course of a week. Discounts or exclusive promotions arouse customers’ interest and bind them to the company in the long term.
During the Black Friday Sale, which traditionally takes place in America on the fourth Friday in November, there are thousands of special bargains to be found on Amazon.
This means that online retailers should offer their customers added value, in the form of various recurring promotions. These could be, for example, sales promotions or short-term discounts. In addition, it makes sense to reward loyal customers, e.g. with a voucher or a small gift. Here, however, online retailers should make sure that they do not just use promotion days that also attract other companies to generate additional sales. It is therefore better to use your own promotion days that are set by the company and take place on a regular basis. This is what Nike does with its Nike Air Max Day, for example, or Nordstrom with its Anniversary Sale.
It has also been proven that customers are more likely to react to statements such as “Only available for a short time” or “There are only 2 items left” with a spontaneous purchase. Short-term discounts or promotion days are therefore absolute sales boosters, which experience has shown that customers use again and again.
2. Customer loyalty through personalization
Phrases like “You might like this too.” or “People who bought that product also bought this product.” we read more and more often. Not infrequently, this ends up with people buying more products than they had actually planned. A visit to Amazon’s website gives users the feeling that the company knows exactly what they want and need.
Amazon recommends products based on customer behavior. (Source: Amazon)
By using advanced segmentation with the help of artificial intelligence and adaptive algorithms, Amazon knows exactly what customers want before they know it themselves. Relevant conclusions are drawn from the customer’s behavior, thus personalizing the user experience.
If you look closely while browsing on Amazon, you will also notice that the user’s name appears again and again. Whether on the home page, in the shopping cart, or when the order is completed – Amazon takes advantage of this opportunity and addresses its customers directly and personally wherever possible.
What Amazon also does and gives customers a sense of security as well as understanding is to answer customer questions as well as reviews. Anyone who still has questions about a product or wants to submit a review can do so easily and conveniently. You usually receive a satisfactory answer or feedback within a very short time – whether from Amazon itself or from the enormous community that the company has built up in the meantime.
Customers feel valued through personal product recommendations or personalized mailings. Styling tips for their newly purchased shoes or a free USB stick for ordering their new laptop often work wonders. They also get the feeling that the online retailer knows what they like and what they need. This tip can increase the repurchase rate enormously.
3. Customer loyalty through post-purchase communication
The customer is not left alone at any point in the selection, ordering or shipping process. Amazon ensures that the customer’s needs and questions are served holistically. The ordering process does not end here with the click of the checkout button. Amazon also accompanies its customers beyond this point and does not even hand over the shipping communication.
Helpful and individual messages such as “Your package has been delivered to the parcel store and can be picked up there by you. Here you can find the opening hours and directions to the parcel store.” or “I hope your new dress arrived safely. Here you have a few styling tips for your new favorite piece.” remain positive in the customer’s memory.
###Experience shipping messages like Amazon in action!
By forwarding to Amazon’s own track & trace page, the customer remains in the online store’s environment at all times. Thus, the probability of being able to convince him of a repurchase is much higher. The customer contact is at no time given out of hand and also not left to the shipping service provider. Amazon can thus determine exactly what information and messages the company wants to send to the customer during and after shipping.
The customer is redirected to Amazon’s own Track & Trace page as part of the shipment tracking. (Source: Amazon)
For this reason, online retailers should manage their shipping communication themselves and not hand it over to DHL, Hermes & Co. This hides a lot of potential, because shipping is one of the most emotional phases of the customer journey.
Do you want to learn more about this topic? Do you want to become as good as Amazon and optimize your customer loyalty? Do you want to accompany your customers in their shopping experience – even beyond shipping? Then sign up HERE for our webinar on November 06, 2018.
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