63% of the time Prime members shop Amazon.com, they buy, according to Millward Brown Digital. That contrasts starkly with the 5% conversion rate for Walmart.com and 2% for Target.com shoppers. It is also dramatically higher than the 13% of non-Prime members that purchase when they visit Amazon.
Once consumers pay the initial $99 and get “hooked” by Amazon Prime, they virtually stop cross shopping other retailers. Less than 1% of Prime members visit other mass merchandise sites in the same session that they shop Amazon.
The number of Amazon site visits by Prime members increased over 300% in the past year. Prime members now visit the retailer twice as often as everyone else. What’s more, Prime members spend an average of $1,500 annually on Amazon, while non-Prime members shell out roughly $625.
As of January 2015, approximately 40 million consumers were Amazon Prime members. More than 10 million are relatively new, joining during Q4 2014. Macquarie Group projects that by 2020, over half of all US families will be Amazon Prime members.
What are the implications for your business?
- Have you maximized your brand’s presence on Amazon?
- What can you learn from Amazon Prime about how to increase your consumers’ commitment to you?
For help developing powerful digital strategies that work, compelling marketing strategies that drive results, strategic plans that deliver growth, or new products that consumers love, contact Brandology at 925-417-2253 or Maura@Brandology.com.
Sources: CIRP 2015, Forbes 2015, Internet Retailer 2015, Millward Brown Digital 2015
So please…You’re creative. That’s why you considered the name “Brandology.” Use those creative juices to come up with another name that’s not already trademarked. Even though it will take some time, it will be fun, happy time — a stunning contrast to the time you’ll spend with Brandon if you try to use “Brandology.” Really. (It’s probably a little tacky to mention, but if you want our help naming your business, that’s something we do too.)