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Amazon Prime Members Stay Members

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James Bice
Jun 07, 2016 08:07
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Free-Trial Conversion and One-Year Renewal Rates Improve

Consumer Intelligence Research Partners CIRP released analysis of membership patterns for Amazon Prime from Amazon, Inc. NASDAQ:AMZN .

This analysis indicates that Amazon Prime member retention rates improved over time.

With Amazon Prime, Amazon confronts two or possibly three critical moments in retaining members.

Customers that finish the first year have more data, and decide whether to pay for a subsequent year based on how much they actually used Amazon Prime during their first full year.

When it announced the price increase, Amazon enhanced the benefit mix with a larger library of streaming video, including more original programming, a selection of free e-books, online photo storage, and occasional Prime members-only products and pricing.

After a second year, renewal rates are over 95%, and have improved gradually in the past two years.

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James Bice
Jun 07, 2016 08:07
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