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What Amazon Can Teach Us About Delivering on Customer Loyalty

Posted by Ashley Harrington on Wed, Apr 25, 2018

 

amazon packages (resized)

I live in a historic Boston neighborhood rich in restaurants and charm, but poor in parking. If you have a car, you have two choices: spend a fortune on a dedicated monthly parking spot or drive in circles until you find free street parking.  I don’t like to waste money or time, so I don’t own a car.

I don’t own a car, but I do have two kids. So, I need stuff and I need it all the time. Enter, Amazon.

I use Amazon on all my devices and have multiple apps. I use it for both planned purchases and impulse buys. I Subscribe and Save for everything from baby wipes to granola bars. I order groceries from Amazon Fresh. I try on clothes with Amazon Wardrobe. I buy e-books. I watch movies and TV shows on Prime. I use Now to get emergency toddler bribes delivered in an hour.

On top of all that, I pay Amazon for the privilege of buying things with them with an annual Prime membership. If that’s not the ultimate sign of customer loyalty, I don’t know what is.

If I was responding to an Amazon loyalty study, I would certainly make it into the “Super User” group, checking all the boxes for how we might define loyalty: frequency of purchases, cross shopping, willingness to try new categories, likelihood to recommend, etc. 

My “Super User” status didn’t happen all at once—it was gradual thanks to the “Amazon Effect.” Over time, Amazon plucked one more category of our household expenses from another retailer.

I work with clients every day to help measure, understand, and improve their customer loyalty. While few companies have the infrastructure and the sheer breadth of product and services in such a frictionless way, there are lessons any brand can learn from Amazon’s excellence in curating a faithful customer base.

 Here’s how Amazon keeps me loyal:

  • Anticipates my needs: I wasn’t actively thinking about how great life would be with a paper towel subscription. But, I gave Subscribe and Save a shot and now we never run out and I can't imagine my household without it.
  • Gives me back my time: With Fresh, I can enjoy time with my family instead of spending it in the grocery store (if you enjoy taking your children to the grocery store, I nominate you for a Parent-of-the-Year Award!)
  • Provides me with flawless execution and problem resolution: Amazon’s apps and website are easy, fast, and intuitive. Once I order something, I know exactly when it’ll arrive on my doorstep. If there is an error, Amazon’s customer experience team is polite and fair in resolving an issue.

While I am a loyal customer, there are certain things I don’t buy on Amazon. Some because they aren’t sold (yet) (e.g., wine) and others because I enjoy shopping elsewhere. And there are Amazon services that aren’t for me. For example, I don’t need to tell Alexa to turn on my lights.

 So, even for this Super User, loyalty has its limits.

 Ashley Harrington is a Research Director at CMB who recently starting using “Amazon” as a verb and probably has goldfish crackers in her bag.

Topics: brand health and positioning, customer experience and loyalty, retail, ecommerce