Customer Loyalty Programs and Amazon's Anti-Loyalty Program

Loyalty programs have been proven as one of the most effective strategy for increasing revenue and inspiring customer loyalty.

Businesses around the world spend roughly $75 billion on customer loyalty programs to attract new customers and foster their loyalty. Amazon, on the other hand, adopted the idea of an "anti-loyalty" program with Amazon Prime. Prime members pay annual membership fees for perks like free shipping, access to Amazon streaming services, and discounts from Whole Foods. Tune in for a deep dive on customer loyalty and anti-loyalty programs.

Howard Tiersky - CEO at FROM, The Digital Transformation Agency and Author of the Wall Street Journal bestselling book, Digital Customers: The Antidote to Irrelevance, discusses the current state of the loyalty field. Since traditional solutions don't cut it anymore, he propose a better solution.

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CONTENT OF THIS VIDEO

00:00 - Intro
0:11 Loyalty Fallacy
1:10 - Data/statistics of loyalty programs and memberships
3:45 - successful brands without loyalty programs or opted not to have loyalty programs
5:12 - Amazon prime credit card
5:50 - Defenition of loyalty to the brand
8:25 - loyalty programs - reward repeat transactions
9:10 - Company brands without loyalty programs use emotional connection/ emotional loyalty
10:56 - Data from accenture -impact of loyalty programs on feelings of loyalty
11:48 -
12:56 - Example - Amazon Prime subscription program
17:06 Best Buy -
17:48 - data about amazon prime members vs non members
20:55 - Pacifica Cosmetics - data on loyalty program
22:34 - 22% increase in spend
23:32 - Amazon loyalty program costing vs royalty programs costing in US
24:15 - Alternatives used out there that result in loyalty and repeat purchases
25:26 - Amazon Scale
26:23 - Closing about loyalty programs

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