This year Amazon gave a very unique Valentine’s Day gift to CRM teams all around world: Amazon Moments. Their clients include LuisaViaRoma, Represent, and Jimmy Jazz. They provide technology and strategy to create customer retention programs so brands can form real connections with their customers through engagement, exclusivity and advocacy. Amazon just provides the tools to success it’s up to the individual merchants to use them well.Zsuzsa is co-founder and CMO at Antavo, the leading customer loyalty technology partner of Dotdigital, specialized in helping fashion and retail brands in Europe. In the end, the true value of Moments comes from vendors using the program right and consumers receiving enough value in their rewards to keep them looking at new offers or opportunities. This method, complemented by Amazon’s marketing and fulfillment services, better positions brands to foot the fee and not pass it on. The Amazon Moments formula should enable brands to tightly manage how much they invest in each promotion so they can more accurately forecast profit. This appears to be the model, assuming shoppers can avoid delivery fees. These benefits would include the free two-day shipping that comes with Amazon Prime memberships, so customers could receive their Moments rewards faster. As a bonus, Amazon users could apply other Amazon perks when they redeem their Moments rewards, according to Marketing Dive. Shoppers can roll existing benefits into their rewards.That being said, vendors are not required to share any of their customers’ personal information, according to the Amazon Appstore blog. For example, different user categories can receive rewards of varying values - $5 gift cards for occasional users $100 for big spenders. Brands should deliver more relevant and desired reward options, per customer, since the data is more narrowly defined and controlled. Shoppers will get relevant rewards, without giving much away.If the customer completes the action, he or she will receive a special URL via text message or email, which leads to the physical or virtual reward that Amazon will deliver. They simply send the shopper an invitation to participate in an action - reach a spending threshold or play a game in an app - to get a reward. The participating vendors individually determines the actions and rewards. Amazon users don’t have to do anything but shop. They could potentially earn rewards from a handcrafted belt maker or from a music streaming service. And shoppers can apply many rewards, such as Amazon credits, toward something of value pretty quickly. Shoppers, in turn, have massive opportunities - more than 5 million sellers operated across all Amazon marketplaces in 2017, the most recent year for statistics. Moments is a coalition program of sorts, meaning any brand that sells products or services through Amazon can participate. Moments Worth Repeating - 5 Ways It Will Change Shoppingīut what do shoppers have to gain from this direct-to-consumer loyalty strategy in the long run? Here are five potential benefits that could change shopping expectations forever. It said net revenue increased nearly sevenfold after offering players of the game “Disney Heroes Battle Mode” $5 in Amazon credits for achieving level 15, according to the Amazon Moments developer site. Here’s an example from Amazon’s Appstore blog: If a brand calculates that keeping an active customer engaged is worth $50, it can offer a $40 set of headphones for an action considered important to the brand and still enjoy a comfortable margin of error.Īmong those brands that have tested Amazon Moments is Disney. It’s the rising-tides-lift-all-boats model - Amazon uses it size to do the back-end heavy lifting and its vendors affordably increase sales. The vendors set their own reward expenses, pay Amazon only when reward actions are completed and let Amazon manage the delivery. This is where cost control really kicks in. The vendor just has to determine which actions generate the desired results (revenue or word of mouth) and the rewards, physical or digital, it will give in return. Moments was developed so Amazon vendors could focus instead on the kinds of actions they want their shoppers to engage in, such as using an app or spending a certain amount of money. Essentially, these are the costlier operations of a reward program.
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