Primed: How Amazon Finally Converted Me

If you know me, or have ever listened to The Commerce Marketer Podcast, you know I am not a Prime member.

Until now.

I know, right? I spend my life analyzing the ecommerce world, ordering my products online, and yet I rebuffed all of Amazon’s attempts to draw me in. But the scale finally tipped. It was slow and gradual. I saw the writing on the wall. I finally got to the point I could no longer rationalize not subscribing. This was years in the making. But in all of this, there is a lesson for retailers to learn from my journey.

So, what took me so long to sign-up, and what changed? Let’s explore.

Why Not Prime?

Why was I so resistant to Prime? It’s not like I didn’t shop on Amazon, but, frankly, the value I received compared to my lifestyle did not match. Like other consumers, I have come to expect free shipping. While Prime offers a lot more than free shipping, I always viewed it as paying for shipping. People commonly point to the free shipping as a main reason for subscribing.

Competition with Amazon also benefits non-Prime members. Consumers today have options: If I needed items in a relative hurry, Target and Walmart would often get it to me within two days. Many times, it would arrive the next day. If I needed something that day, I would just run out and grab it. And, not to be forgotten, prices on Amazon were frequently more expensive –sometimes drastically – than elsewhere. Every time I would see this it would cause me to take pause on a free trial.

Were there times I would have liked one-hour delivery? Sure. But those occasions were more the exception rather than a rule.

And those extras, like Prime video – I didn’t need them. I have Netflix, a television package, Apple TV, and Roku devices at home. I also have two children, which means my television time is further reduced. I have enough content to satisfy me. Others, however, may be able to take better advantage of those services.

What Changed?

It was a gradual change, but one I noticed along the way. First, I live in an area with one-hour delivery. I saw that as convenient, but again, more of a nice-to-have than a necessity. Then came the emergence of Alexa-enabled devices, which interest me – and I think this is going to be huge. Then came the big one: Amazon acquired Whole Foods (WF). I am a Whole Foods-first household. This acquisition intrigued me because I knew something would come of it.

I have also had an Amazon credit card for years. It is one I rarely ever used. However, as a non-Prime member, using this card at WF allows me to receive 3% cash-back at Amazon. Prime members receive 5% on the same purchases. This is something I had to take serious pause to consider. The question I asked myself was whether the 2% difference would pay for Prime. After all, I am shopping at WF anyway. For one month, I tracked how much I received with 3% cash back and calculated how much the extra 2% would have been. Then, on two trips, I was given the in-store Prime member discounts while checking out. Amazon is sneaky like that. Based on my purchases, I saved roughly $3 per trip with the in-store discount alone. If I shopped two times per month (which I easily do), this would extrapolate to roughly $72 per year. Amazon was breaking down my walls.

Then came Prime Day 2018. It all changed. Not because I care about Prime Day itself, but because Amazon announced that if you shop at WF the week of Prime Day you would receive a $10 credit to spend on Prime Day. I bit the bullet and signed up for a free trial. GASP! Of course, I got the $10 credit. But to my surprise, so did my wife. Now I am at $92 saved. On Prime day itself, I again saved $3 on member-only sales.

After Prime Day, I received an email From Amazon thanking me for everything and giving me another $10 credit toward an Amazon purchase though August. And of course, I ran out of batteries two days later. Guess what I did? Now I am up to $102. If you throw in the extra 2% I have spent during the first two weeks of my trial membership, I have surpassed the $119 price tag.

Is this enough to keep me renewing? Maybe. Maybe not. But I am excited to see what’s next. What I am most anxious for is same-day WF delivery to my area. I expect it sooner than later. Now you’re talking value that fits my lifestyle!

What Retailers Can Learn

At the end of the day, Amazon took a slow and steady approach. But they kept at it! Ultimately, they added value to my experience, with both cost and convenience. As a retailer, how do you compete with Amazon? It’s imperative you understand how your brand and products fit into your customers’ lives. Reinforce this value at every step along the customer journey, from email to your website to your social channels. Make it hard for people to say no to you rather than finding a reason to say yes.

Consider email marketing, for example. When it comes to email, make sure your automated emails are speaking to what matters to them most. Do they care about price, convenience, quality of products, satisfaction guarantees and flexible return policies, a commitment to a cause, or a combination of these? Are your marketing emails relevant to consumers and help them along their journey?

Most importantly, be patient. Focus on improving one thing at a time. Improving 10% of 10 things will get you nowhere. Continue to make things better and see them through to completion. Optimizing the customer experience and providing value to your subscribers is what will ultimately win them over.

I am now a Prime member, but am I an Amazon loyalist? Certainly not. Amazon is hoping I am like other Prime members and will spend an extra $600 year more than non-Prime members. I am not confident that I will be that person, but I am 100% confident they will get more of my business than they had before.

Kudos Amazon, you finally got me! But you have made me more paranoid than ever. I know that brunch, heat index, and wind chill are reading this and see this as their hope to win their own fight with me.

But those are topics for another day.