If you work in marketing, you might find Amazon’s cross-platform, self-service loyalty function to be very fascinating. Entering the loyalty market is a smart step for Amazon to expand their business, and it gives companies a chance to take use of their extensive product offering and efficient infrastructure. What further effects will Amazon Moments have on the world of loyalty programmes, who they are most relevant to, and how will they affect customer retention? To respond to these inquiries, we assembled Antavo Loyalty’s experts.
Amazon Moments: What Is It?
According to Amazon, Amazon Moments is a cross-platform marketing tool that enables companies to put up unique triggers, also known as moments, on their website or app. Customers that fulfil the requirements are given an Amazon loyalty incentive of their choice, determined by the marketer, while Amazon handles the sourcing and fulfilment. The service has more than 100 international availability and employs a cost-per-action (CPA) payment model.
It’s a fulfilment service, not a loyalty programme.
Remember that Moments isn’t a commercially available, outsourced Amazon customer loyalty programme. Similar to Tango Card, this is more of a global initiative for reward fulfilment. Although it has its advantages, you should be aware that it lacks management, strategy, and logic, all of which are essential for sending the appropriate message at the right moment. Due to these reasons, you should definitely consider the following two drawbacks:
Amazon provides the structure for rewarding consumer interactions but not the knowledge.
Additionally, because of the CPA pricing model’s very high minimum cost of rewards, it is expensive to incentivize minor but significant acts, like Facebook shares.
We’re able to provide you an early preview of the platform because to Antavo’s use of an Amazon Developer Account.
Campaigns could be used to put together various rewarding efforts. You can create campaigns by choosing the rewards you want to give your consumers, specifying your total budget and CPA budget, and adding some creative materials and language for display communications and email. There aren’t many award categories available at the moment, though this may change in the future.
Who Is Eligible to Use the Amazon Moments Platform?
The incentive options are limitless, says Amir Kabbara, Amazon’s chief of digital marketing and consumer innovation. So we made the decision to predict who would profit greatly from the service.
Small businesses lack a scalable delivery infrastructure and were previously ignorant of the effectiveness of experiential rewards and loyalty programmes.
Global businesses and brands that sell through retailers, like TikTok and Disney, who are actually demo partners in the Amazon Moments programme, look forward to rewarding not only purchases but other acts as well. They are also focused on meeting demands on a wide scale.
Through their potential partners, Amazon has not only discovered a new avenue for commercial expansion but also obtained access to a new layer of client data.
What Impact Will It Have on Customer Loyalty and the CRM Sector?
I personally see this project as a game-changer, something that will inspire every company to up their game. This is why:
Smaller businesses are now able to compete in the loyalty market thanks to Amazon Moments, forcing middle- and large-sized corporations to come up with an even better solution. Additionally, this encourages personalization among businesses.
The prevalence of experiential rewards will increase, and customers will undoubtedly grow to anticipate them. Therefore, you must include them in your toolkit as well, or you risk losing out on a fantastic market opportunity.
Brands and merchants will start to consider ways to interact with customers outside of the transactional cycle and encourage behaviours like weekly app logins as examples of non-transactional interactions. (Read more in this article on Traditional and Recognition loyalty programmes about the idea of “Engagement incentives”).
You cannot disregard them if you want to outperform the competition since they become entry-level prerequisites for a powerful loyalty programme along with mobile integration.
What Does the Future Have in Store for You and Amazon Moments?
I wonder how the industry will respond to Amazon’s cross-platform marketing tool, which definitely had a good premiere. It’s necessary to promote customer-friendly loyalty features, but should that really mean surrendering our lives – and valuable data – to another giant? (Does anyone recall what Facebook did following its IPO in 2012? After social media had free brand reach, it turned into just another paid channel, disappointing many marketers.)
Want to Stay Ahead?
The loyalty management platform from Antavo offers technology and information in a way that lets you control your customer data and choose a strategy that resonates with your target audience. This incorporates gamified consumer profiling, machine learning, and churn prediction. We work with these businesses to integrate instead of fulfilling rewards.
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