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Amazon Prime Still Keeps Growing

19 Feb

As we know, Amazon dominates the world of online retailing. And it is a very creative firm.  Think about the Kindle, the Kindle Fire, Alexa, and Amazon Prime. [Click here to read more.] Also, it leads online retailers in customer service, including returns, Because Amazon Prime is the basis for a lot of the firm’s success, today’s post deals with Amazon Prime still keeps growing.

Clearly, Amazon itself has been a true marketing innovator. Think of its 2018 Super Bowl Ad for Alexa. Many observers chose it as the best commercial during the game.

And we know that Amazon Prime has been a brilliant program. See Amazon Creates Its Own “Prime” Holiday and Amazon Prime: A Loyalty Program That Really Pays Off .

Thus, it is no wonder that Amazon is the largest online retailer. As well as the number two retailer in overall sales (trailing only Walmart).

 

Amazon Prime Still Keeps Growing

As reported by eMarketer:

“New data from Kantar Consulting estimate that an impressive 45% of households in the US are willing to fork over membership fees to Amazon in exchange for the promise of free two-day shipping on eligible items, along with ancillary benefits like access to Amazon’s library of streamable content. That’s a figure Kantar said is equal to about 56.9 million homes.”

And “According to a report from Consumer Intelligence Research Partners (CIRP) released in October 2017, Amazon Prime members spent an average of almost $1,300 per year on the platform, compared with $700 for nonsubscribers.”

Now, take a look at these two charts developed by eMarketer.

 

The Growth of Amazon Prime

Amazon Primes for More

 

Frequency of Purchases via Amazon Prime

Amazon Primes for More
 

Consistency Makes Good Customer Experiences Better

15 Feb

Consistency makes good customer experiences better for all parties. Thus, we must ask. Are firms doing well with customer service (the customer experience). Or is it just hype? Some firms are doing well, other not so much. And consistency of the customer experience is essential for their loyalty. As a result, customers must be satisfied EVERY TIME they interact with a firm.

According to Forrester:

“Today, there are growing consumer expectations, rising customer churn rates, and more options with lower barriers to switch. Therefore,  a firm’s customer experience (CX) moves to center stage. And CX leaders grow revenue faster than CX laggards. In addition, they drive higher brand preference. Also, they can charge more for their products.”

Before moving to today’s topic, look at these posts:

 

Consistency Makes Good Customer Experiences Better

For this section, we turn to observations by Connie Harrington for Customer Think. First are some insights. Then, we show a few graphics:

“Creating a single standout customer experience (CX) may get a customer’s attention — but does it win their loyalty? Not always. Companies that have made progress along the CX path recognize that delivering consistent experiences across multiple interactions helps fortify customer loyalty. Fostering consistency in experiences is becoming essential as customers use multiple channels to engage with brands.”

 

“According to 2017 research from Forrester, 95% of customers use three or more channels to connect with a company in a single service interaction, with 62% using more than one device. And Accenture research has found that 65% of customers expressed frustration over inconsistent experiences or information presented across channels.”

Consistency Makes Good Customer Experiences Better

Image Source: SlideShare

 

“Today, consumers are more likely to conduct research—and consider multiple brands or products–before making purchases. A recent study found that two-third of customers research products online before shopping for them in a brick-and-mortar store. Over half follow this research online, buy offline process frequently or every time they shop. Many consumers do the reverse as well. In the same study, more than half of surveyed consumers said they will go to a store location to see products in person before buying them online.”

Consistency Makes Good Customer Experiences Better

Image Source: Retail Dive

 

Trust and consistency go hand-in-hand. In fact, McKinsey’s research in the financial found that brands that cultivated the strongest feelings of trust were more likely to deliver consistent customer journeys. Cultivating trust can have far-reaching impacts on a business. According to the Edelman Trust Barometer, when customers trust companies, they are more likely to believe positive information about the company—and the opposite is true for companies they distrust.”

Consistency Makes Good Customer Experiences Better

Image Source: Clear Action CX

 

What Consumers Want in Returning Items

25 Jan

Today, we consider what consumers want in returning items. And this is a topic that we have studied before. Customer Returns. Better Understanding Returns of Online Purchases. Customer Service Means a Good Return Policy. After all, the purchase process is not complete until a customer is given the opportunity to return a product. And a stress-free return policy is likely to result in repeat business.
 

What Consumers Want in Returning Items Today

So, what factors are most important to consumers when they return products? We know that these factors will affect customer satisfaction, purchase loyalty, and reviews on social media.

Recently, Promocodes.com conducted a study on the most important factors in the return process. And it compared these factors for store shopping versus online shopping.

Promocodes.com’s findings are highlighted in the following eMarketer chart.

According to eMarketer:

“Returns are a big thing for consumers. So much so that many avoid shopping at retailers with strict return policies in place. In fact, more than half of U.S. Internet users surveyed by coupon and discount Web site Promocodes.com last November agreed that they avoid such places. While over a quarter of respondents agreed strongly.”

“When it comes to various return policy options, many consumers look for the same thing. For example, when shopping in-store, 37.9% of those polled said getting a full refund — not just an exchange or store credit — was their most important return-related concern. Almost as many consumers (33.6%) felt the same way with regard to digital shopping.”

“Whether shopping in-store or online for gifts (either for themselves or others in the past six months), a good number of respondents said it’s important that the retailer accepts returns without tags or original packaging. What’s more, nearly as many said it’s important that retailers accept returns for used items.”

What Consumers Want in Returning Items

Now, consider these questions. Should firms always give full refunds? Should they accept returns without receipts? And should firms always offer free shipping? Aren’t there times when firms’ costs outweigh their benefits?
 

Starting a New Business? Try Main Street.

18 Jan

Starting a New Business? Try Main Street. Catchy title for today’s post, right? 🙂 We know this may sound counter-intuitive. But read on. Main Street is not dying, despite some dire predictions. And there are ample opportunities for small new businesses.

We have regularly posted about small business topics. However, not on the possibilities of Main Street. For example:

Now let’s visit Main Street — where many Americans work and shop. And tourists visit.

 

Starting a New Business? Try Main Street.

As Small Business Trends reports, there are “Big Reasons Main Street USA is a Great Place for Your Small Business.”

To begin:

According to data from Main Street America, commissioned by American Express, 68 percent of small business managers consider Main Street when choosing to lease a space. Of course, they have good reasons to start a Main Street business. Data show 71 percent of respondents prefer to shop or dine in a local historic Main Street over planned commercial areas. In other words, businesses present in these areas are more likely to draw the crowd. Want to attract more tourists to your business? Main Street works well again.”

Next:

“What makes Main Streets so much more attractive to businesses are the programs aimed at preserving them. In 2016, the reinvestment of $4.65 billion in Main Street preservation programs resulted in 8,042 building rehabs, 5,616 business openings, and 27,462 new jobs.”

Finally:

Targeting Main Street for your business is just the first step to getting more footfalls. To achieve success, you need a solid location-based marketing strategy. And this is where local SEO can help your business. Optimizing your business with local SEO can help you draw more crowds and boost sales.”

 

Check out the informative infographic.

Starting a New Business? Try Main Street.
 

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