An e-commerce business has its own challenges, so the loyalty program must be very well planned. To build something that attracts the audience, it's crucial to think about their pain points.
How can your loyalty program alleviate a problem that your audience has in your territory? Amazon thought about this and created an objective and attractive program!
Looking at the E-commerce Customer
A customer might look at a product, love it, and like the price. That's still not enough to make them buy. Because, there's one thing that still makes them hesitate: the shipping cost!
Shipping is not something the store can ignore. Therefore, it's necessary to create strategies to make it less painful for the customer's pocket and viable for the company. See how Amazon handled this in its loyalty program.
Loyalty Program
Called Amazon Prime, Amazon's loyalty program has a direct focus on shipping. Its other benefits are complements and rewards for loyalty.
Amazon Prime offers completely free shipping to customers who sign up for its monthly or yearly plan. But how does the company manage to pay for shipping?
The answer is: the customer who subscribes to the plan tends to become a more frequent buyer and prefers the store. Also purchasing various products in a single purchase. In this way, the store increases its revenue and can afford to pay for shipping costs.
The program allows access to Amazon Prime entertainment without extra fees. This includes movies, music, eBooks, podcasts, and magazines. So, even if the customer doesn't purchase, they will still benefit and maintain the plan.
Marketing
Amazon Prime's marketing focuses on its own website. After all, the people really interested will be there! Besides a specific page for the loyalty program, during the checkout process, the program is reminded to the customer. This way, the customer feels more desire to become loyal.
To further encourage the customer and prove its usefulness, Amazon allowed the customer to use a free trial of the program for 1 month. After this period, the normal price will be charged, and cancellation is allowed at any time.