Amazon Prime Day has become almost as big a phenomenon as Black Friday or Cyber Monday, rivalled only by Alibaba’s Singles’ Day, which generated $25.3billion in sales in 2017.
With apparel and accessories now surpassing books and music to become Amazon’s second largest category, it’s no wonder that ecommerce brands are feeling the need to compete. In fact, 54% of retailers are standing up to Amazon Prime Day this year, by staging their own one-day sales. Retailers are even capitalising on Amazon’s wording, with nearly half of the largest non-Amazon retailers including the word ‘Prime’ in the messaging around their sales.
Shoppers in turn are responding to this, now viewing the day as a general retail holiday, rather than an occasion reserved just for customers of Amazon Prime, with 39% saying that they’ll look for bargains at other retailers. The introduction of another big discounting occasion in the calendar year may well bring a sales spike, but will it help retailers to win longer-term loyalty?
For 64% of retailers, shoppers acquired during Black Friday and Cyber Monday have a lower lifetime value than shoppers acquired at any other time of year. It’s reasonable to expect the same rules to apply to customers won on or around Prime Day or similar one day sales events. How can you make sure that those customers come back to make a repeat purchase, once the excitement of a sales day has passed?
The jury is still out on the success of Prime Day, both for Amazon and other brands running sales off the back of it. However, the impact on customer loyalty is clear – simply running a sale won’t help you win retained customers that come back and repeat purchase. Ecommerce merchants should think carefully about how to capture the longer-term loyalty of customers that are acquired during a sales event. You can find more tips on how to win long-term loyalty in our new LoyaltyLion Academy, which includes 7 free modules designed to help merchants implement effective loyalty strategies.
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