Amazon continues to extend the benefits of its core membership as a customer acquisition and retention tool. Prime has become an essential program for the company, now covering more than 60% of American Amazon buyers, who spend almost twice as much a year as non-Prime members.
In addition to the main benefit of the two-day free shipping, there is a growing list of free content available to core members, including access to the streaming video service of the company. ; Amazon. The newest (or emerging) main benefit seems to be access to premium content in Alexa's skills, according to a TechCrunch report.
The company begins to allow developers to implement a freemium model as a way to monetize skills. Previously, he had put an end to an advertising effort by VoiceLabs in the form of "sponsored messages".
Premium content with access for core members will help developers earn money, which is essential for ecosystem health. This could also help (on the sidelines) with the acquisition / retention of core members.
A recent Lendedu study states that senior-member loyalty is strong, but perhaps not as high as one might have thought. The company asked a thousand current members of Prime a number of questions about the service, including if they had the intention to renew it. About three quarters said yes.
However, about 28% questioned the value of Prime or did not know if it was worth it.
The investigation also focused on the price sensitivity of group members. At the current price level ($ 99), about 77% said that they would probably renew (there is some inconsistency in the responses). At higher price levels, $ 150 and up, the willingness to renew has dropped dramatically.
Only 33% said they would renew at $ 150. The intention to renew dropped to 15% or less at higher prices. If this survey is representative of the largest number of subscriber subscribers, it seems that Amazon has little room for maneuver to raise prices.