Amazon loyalty programs are designed to keep customers coming back by offering real benefits, not just points. Whether it's Amazon Prime, Subscribe & Save, or Amazon Moments, these programs help sellers increase repeat purchases, customer retention, and overall revenue. For example, Prime members spend more than twice as much annually as non-members, proving the effectiveness of these strategies.

Key Takeaways:

• Amazon Prime: Offers bundled perks like free shipping and cashback, driving higher spending and loyalty.

• Subscribe & Save: Encourages recurring purchases with discounts, boosting predictable revenue.

• Amazon Moments: Rewards specific customer actions, like reaching milestones or engaging with content.

• New Seller Incentives: Helps new sellers gain traction with tools like Launchpad and Brand HQ.

Why It Matters:

• Retaining customers by 5% can grow profits by up to 95%.

• Loyalty members spend 67% more than new shoppers.

• Programs like Subscribe & Save can double conversion rates with meaningful discounts.

To succeed, sellers must set clear goals, offer rewards that resonate, and track key metrics like repeat purchases and customer lifetime value. Agencies like eStore Factory can help sellers design and manage these programs for long-term growth.

Customer Loyalty Analytics: Increase Customer Lifetime Value | Amazon Accelerate 2023

Amazon Loyalty Program Options for Sellers

Amazon provides a variety of loyalty programs aimed at helping sellers strengthen customer relationships and encourage repeat purchases. These programs cater to different business objectives and customer behaviors, offering sellers multiple ways to grow their presence on the platform.

Subscribe & Save

The Subscribe & Save program transforms one-time purchases into steady, recurring revenue. By offering customers automatic deliveries on a weekly or monthly schedule at discounted rates, sellers can establish predictable sales trends.

Here’s how it works: Amazon automatically applies a 5% discount when customers order five or more Subscribe & Save items. Sellers can also opt to fund an additional discount of 5% or 10%. Research indicates that products with 10%–15% discounts under this program can see conversion rates increase by up to 1.8×.

To participate, products must belong to a brand registered in the Amazon Brand Registry and be fulfilled through Fulfillment by Amazon (FBA). Eligible products are automatically enrolled, with sellers incurring only standard selling fees and FBA costs.

One standout example is Puracy, a company based in Austin, Texas. Puracy generates over 35% of its annual revenue through Subscribe & Save, making it a key component of their Amazon strategy.

Next, let’s look at how Amazon Moments takes a different approach by focusing on customer engagement.

Amazon Moments

Amazon Moments is all about rewarding customers for specific actions rather than purchases. Sellers can define the behaviors they want to encourage - like reaching a milestone in a game, watching a video, or signing up for a service - and Amazon creates custom reward campaigns to drive those actions.

This program operates on a cost-per-action (CPA) pricing model, meaning sellers only pay when customers complete the targeted action. CPAs start as low as $3, with campaign spending capped at $5,000 and account spending capped at $15,000. Amazon also handles all aspects of reward fulfillment, saving sellers time and effort.

Here are some real-world examples of Amazon Moments in action:

• In 2019, Disney offered players of "Disney Heroes: Battle Mode" a $5 Amazon credit for reaching level 15, which resulted in a 6.8× increase in net revenue.

• During Shark Week, Discovery Channel rewarded customers with $25 on Amazon for consuming 10 hours of content, leading to a 73% boost in app installs.

• The Washington Post used the program to attract subscribers by offering an Amazon Echo Dot as a welcome gift.

"All the rewards that are part of the program are distributed through Amazon without the marketer having to worry about sourcing or the fulfillment of the rewards. Marketers only pay when they drive actions for their business." - Amir Kabbara, Head of Amazon Moments

When designing an Amazon Moments campaign, consider offering complete rewards instead of discounts. For instance, customers are more likely to appreciate a free $20 shirt than $20 off a $40 purchase. For customer acquisition, CPAs between $3 and $5 work well, while engagement campaigns may require CPAs of $10 or more. For converting customers to paid users, setting a CPA at about 25% of the customer’s lifetime value can be a practical guideline.

Now let’s dive into how Amazon supports new sellers with tailored incentives.

New Seller Incentives

Amazon understands that new sellers often face challenges when starting out, so it offers several incentive programs to help them build momentum and gain confidence on the platform.

Launchpad, for example, provides advanced marketing tools and one-on-one guidance to help sellers effectively promote their products. Meanwhile, Brand HQ offers a learning portal filled with courses, consulting sessions, and webinars designed to teach sellers how to navigate Amazon’s ecosystem and create growth strategies.

Amazon also provides a thorough onboarding process to assist with everything from listing products correctly to managing inventory in Amazon’s warehouses. This support system helps new sellers avoid common pitfalls and streamline their early operations.

Additionally, the Launchpad Marketing Pack focuses on increasing product visibility, offering strategies to help new listings gain traction in Amazon’s competitive marketplace - especially crucial during the first few months.

New sellers can also jump right into loyalty programs like Subscribe & Save and Amazon Moments. With a Professional selling account priced at $39.99 per month (plus selling fees), sellers can start leveraging these tools from day one. Whether you’re just starting out or looking to maximize recurring revenue, these programs align with Amazon’s commitment to helping sellers foster long-term customer loyalty and achieve sustainable growth.

How to Design and Set Up Your Amazon Loyalty Program

Launching a loyalty program on Amazon begins with well-defined goals and a clear understanding of your audience. By leveraging Amazon’s tools and programs effectively, you can create a strategy that turns one-time buyers into loyal customers.

Set Your Goals and Understand Your Audience

Start by identifying your objectives. Are you aiming to boost repeat purchases, increase customer lifetime value, or encourage brand advocacy? Each goal will shape how your program is designed. Keep in mind that retaining customers is far more cost-effective than acquiring new ones - studies show that a 5% increase in retention can lead to as much as a 95% jump in profitability.

Know your audience. Dive into customer data to uncover purchasing habits. Amazon’s Seller Central offers analytics to help you identify trends, such as which products are frequently bought together, seasonal buying patterns, and average order values. Use this information to create customer personas. For example, monthly shoppers may respond well to recurring discounts, while occasional buyers might be drawn to seasonal rewards. Tailoring incentives to these segments can make your program more effective.

Your loyalty program should also reflect your brand’s values. If sustainability is a core part of your identity, consider offering rewards like discounts on eco-friendly products or donations to environmental causes. This approach deepens the emotional connection with customers who share similar values.

Once you've outlined your goals and audience, it’s time to decide on the rewards.

Pick Rewards That Resonate

The rewards you offer are the heart of your loyalty program. They must provide tangible value - like discounts or exclusive perks - as well as intangible benefits, such as a sense of belonging or recognition. Amazon Prime is a great example, offering members not just free shipping but an exclusive “club” experience.

Research shows that 74% of consumers find loyalty rewards difficult to attain, but 91% are more likely to stick with a retailer offering a premium program. With this in mind, consider these strategies:

• For Subscribe & Save: Offer meaningful discounts, typically 10%-15%, to encourage recurring purchases. This approach can significantly boost conversion rates. For instance, Puracy, an Austin-based brand, generates over 35% of its annual revenue through Subscribe & Save.

  "Subscribe & Save is a key success factor for our business on Amazon. Our Subscribe & Save customer base represents over 20% of sales. More recently, our customer base has grown at an accelerated rate because of the new Subscribe & Save coupons!" – Puracy

• For Amazon Moments: Provide full rewards rather than partial discounts. Set your cost-per-action (CPA) carefully - $3–$5 is often effective for acquiring new customers, while higher CPAs may be needed to drive deeper engagement. Use customer data to personalize offers, ensuring they match individual preferences.

Keep your program simple and user-friendly. Complicated rules or difficult redemption processes can turn customers away. Instead, focus on seamless integration and consider gamification elements to make participation enjoyable.

Technical Setup and Budget Planning

With your goals and rewards set, the next step is ensuring your program is technically sound and financially viable.

Start by enrolling in the Amazon Brand Registry and using FBA (Fulfillment by Amazon) to automatically include eligible products in Subscribe & Save. This ensures your products meet Amazon’s quality standards and builds trust with customers.

Inventory management is crucial. Running out of stock can frustrate customers and lead to canceled subscriptions. Monitor inventory closely to maintain a smooth experience.

When planning your budget, factor in the costs of rewards, discounts, and promotional credits. Begin with Amazon’s Professional selling account, which costs $39.99 per month plus selling fees. Use Amazon’s analytics tools to track customer behavior and measure which rewards are most effective. This data will help you refine your program over time.

A well-thought-out loyalty program is an investment in your business’s future. While the initial effort may require time and resources, the long-term benefits - like higher retention rates, increased order values, and reduced customer acquisition costs - are worth it. For example, Amazon Prime members see retention rates of 93% after their first year and 98% after two years, proving the power of a well-executed loyalty strategy.

How to Improve and Measure Your Loyalty Program

Once your loyalty program is up and running, the real work begins. It's vital to keep customers engaged and continuously refine your approach by tracking key metrics. Here's how to keep members interested and ensure your program delivers results.

Increase Customer Participation and Engagement

Getting customers to join your loyalty program is just the first step. Keeping them engaged requires a mix of creativity and strategy.

Offer exclusive perks. Give members access to special rewards like early product releases, limited-edition items, or exclusive discounts. Research shows that 70% of consumers would join a premium loyalty program if the benefits were worth it. This highlights the importance of designing rewards that feel meaningful and not just symbolic.

Incorporate gamification. Adding game-like elements to your program can make shopping more exciting. For instance, you could introduce milestone rewards where customers earn points or badges for specific actions, like making multiple purchases or trying new product categories. Flash Tattoos, for example, uses a subscription popup to offer VIP status and 10% off the first purchase, creating an instant sense of exclusivity and accomplishment.

Personalize the experience. Take a page from Amazon’s playbook by using customer data to tailor recommendations. Personalized experiences can significantly boost engagement. In fact, members of premium loyalty programs are 60% more likely to increase their spending, compared to a 30% increase for free program members.

Utilize built-in features. Platforms like Amazon provide tools that build trust and encourage repeat interactions, helping you maintain loyalty without extra effort. For example, sending targeted notifications about rewards or milestones can keep customers interested - just be careful not to overwhelm them.

Track Key Performance Metrics

To understand how well your loyalty program is working, focus on measurable results. Here are some metrics to keep an eye on:

Repeat purchase behavior. Customers who come back regularly are a clear sign your program is working. Repeat buyers spend 67% more than new customers, so track how often program members return compared to others and monitor changes in their purchase habits over time.

Customer lifetime value (CLV). Loyal customers tend to spend more over time. Those active in loyalty programs make 90% more frequent purchases and spend 60% more per transaction. Comparing the CLV of program members with non-members will show the value your program adds.

Net Promoter Score (NPS). This metric gauges how likely customers are to recommend your brand. Ask questions like, "On a scale of 0 to 10, how likely are you to recommend us to friends or family?" Follow up with questions to uncover what drives their responses.

Engagement rate. Measure how often customers use rewards, redeem points, or take advantage of special offers. For example, Amazon boasts an impressive 93% engagement rate in its loyalty program, setting a high standard.

Return on investment (ROI). Understanding the financial impact of your program is crucial.

"The average ROI for companies using LoyaltyLion ranges from US$14 to US$32 for each US$1 spent on the program", says Charlie Casey, CEO.

By comparing program costs to the additional revenue generated through customer retention and increased spending, you can assess your program's profitability.

Use Data to Improve Your Program

To ensure your loyalty program thrives, use data insights to make informed adjustments. Here's how to turn feedback into action:

Address detractors. When analyzing NPS scores, pay close attention to customers who rate your program poorly. Ask questions like, "What’s the biggest issue you’ve experienced with our store?" or "What stopped you from completing your last purchase?" Resolving these pain points can prevent further dissatisfaction.

Segment your customers. Not all members are the same. Use data to group customers based on factors like purchase history, engagement levels, or demographics. Then, tailor rewards and communications to match their preferences. For example, frequent buyers might enjoy automatic discounts, while occasional shoppers might respond better to surprise rewards.

Test changes before rolling them out. When making adjustments to your program, start with small-scale tests. Experiment with new reward structures, communication strategies, or point redemption processes. Companies with strong customer loyalty often experience 2.5 times more annual growth, so fine-tuning your program can make a big difference.

Act on customer feedback. Send personalized thank-you messages based on NPS responses. For promoters, emphasize what they love about your program. For less enthusiastic customers, ask for suggestions to improve their experience.

Keep an eye on competitors. While you shouldn’t copy competitors outright, studying their successful loyalty features can spark ideas. Amazon Prime, for instance, shows the power of bundling multiple benefits into one comprehensive program.

Work with Experts to Maximize Your Success

If you’re serious about taking your Amazon loyalty program to the next level, working with experts can make all the difference. Amazon’s platform is constantly evolving, and its complexities can be overwhelming for sellers to manage alone. That’s where professional Amazon consulting agencies come in - they provide the specialized knowledge needed to turn your loyalty program into a powerful tool for customer retention and business growth.

With 90% of companies already using some form of loyalty or engagement program, the competition for customer attention is intense. A well-designed program can drive impressive results, but the key often lies in having the right expertise guiding your strategy.

How eStore Factory Can Help

eStore Factory is dedicated to helping Amazon sellers create loyalty programs that deliver real results. Their full-service approach means they handle every aspect of your loyalty strategy, from initial planning to ongoing management.

The process starts with a deep dive into your business. eStore Factory’s team analyzes your customer data, purchase trends, and market position to design a loyalty program that fits your brand like a glove. They don’t believe in cookie-cutter solutions - your program is tailored to your unique goals and audience.

Their services go beyond strategy. Whether it’s setting up Subscribe & Save offers or managing Amazon Moments campaigns, eStore Factory ensures the technical side of things runs smoothly. Mistakes or delays can be costly, but with their expertise, you can avoid those pitfalls and keep your program on track.

By integrating services like SEO and account management, they ensure that your loyalty program not only engages customers but also supports your broader business objectives.

Full Support for Amazon Sellers

Creating a successful loyalty program isn’t just about planning - it’s about execution and ongoing management. That’s why eStore Factory offers end-to-end support. With a team of over 60 professionals spread across offices in India, the USA, UK, Australia, and Germany, they provide the hands-on help you need as your program grows and evolves.

Their expertise in inventory and data management ensures that your rewards are both appealing and sustainable. They help you pinpoint which elements of your program resonate most with customers, how different segments respond to rewards, and where to focus your efforts for maximum impact. Considering that 69% of consumers factor loyalty programs into their buying decisions, these insights are invaluable.

As trends shift and Amazon rolls out new features, eStore Factory stays ahead of the curve. Their proactive approach means your loyalty program remains relevant and effective, adapting to changes in consumer behavior and the marketplace.

Branding and design play a crucial role, too. eStore Factory helps create a seamless loyalty experience that reinforces your brand identity. From eye-catching email templates to product photography that highlights exclusive perks, every detail is designed to make customers feel valued.

"Modern consumers know that they have plenty of options when it comes to shopping and are more likely to expect rewards or loyalty programs in exchange for their business", says Ashley Autry, a writer at Access.

With so many shoppers expecting loyalty benefits, having experts craft and manage your program can set you apart from the competition.

Another advantage of working with a seasoned agency is the knowledge transfer. As your team collaborates with eStore Factory, they gain valuable insights and skills. This ensures that your business is equipped to sustain and grow your loyalty program long after the initial setup, giving you the tools to keep customers engaged for the long haul.

Key Takeaways for Amazon Loyalty Programs

Amazon loyalty programs give sellers a powerful way to strengthen customer relationships and achieve long-term growth. The stats back this up: 62% of customers spend more on a brand after joining its loyalty program, and 59% stick with the brand they’ve joined instead of switching to competitors. These numbers highlight why loyalty programs are no longer a luxury - they’re a must for Amazon sellers aiming to stay competitive.

When it comes to loyalty programs on Amazon, there are three main options to consider: Subscribe & Save, Amazon Moments, and New Seller Incentives. Each serves a unique purpose.

• Subscribe & Save is ideal for consumable products, offering predictable revenue and cutting customer acquisition costs.

• Amazon Moments focuses on encouraging specific customer actions and celebrating milestones.

• New Seller Incentives are a great way for newer brands to overcome trust barriers and attract their first wave of loyal customers.

The key to a successful loyalty program lies in setting clear goals and truly understanding your customers. Generic rewards won’t cut it. Instead, the best programs offer rewards that resonate with your audience, whether that’s exclusive access, personalized perks, or meaningful savings. The value has to feel worth it for your customers.

The financial upside of a well-designed loyalty program is huge. For example, a 5% increase in customer retention can boost profits by up to 95%. Loyal customers - such as Amazon Prime members - not only spend more but also shop more frequently than others.

Data is your best friend. The most effective sellers track metrics like customer lifetime value, repeat purchase rates, and program engagement. Using this data, they continuously refine their programs to match changing customer needs and market trends. This kind of optimization ensures your loyalty program delivers maximum impact.

"We didn't think of [Amazon Prime] as a shipping program, but as a convenience program." - Jeff Bezos

For sellers who want to go beyond the basics, professional help can make all the difference. With 75% of customers willing to switch brands for a better loyalty program, there’s no room for trial and error. Agencies like eStore Factory bring the expertise needed to avoid common mistakes and create strategies that align with your broader business goals.

In today’s competitive market, loyalty programs are more than just tools for retention - they’re a way to win over new customers. 91% of consumers prefer retailers with premium loyalty programs over competitors offering lower prices. That means your program can help you stand out, attract new shoppers, and build a lasting edge.

Finally, consider this: 73% of shoppers redeem rewards, and 66% are influenced by them. Customers who redeem rewards spend up to 25% more annually. Investing in a well-thought-out loyalty program isn’t just smart - it’s profitable.

FAQs

How do I choose the right Amazon loyalty program for my business goals?

When deciding on the best Amazon loyalty program for your business, the first step is to clarify your goals. Are you aiming to improve customer loyalty, drive repeat purchases, or encourage higher engagement? Programs like Amazon Prime and Amazon Business Rewards cater to different needs and can help you achieve specific outcomes.

Take inspiration from proven strategies, such as Amazon Prime’s emphasis on consistently delivering value and addressing customer expectations. Think about how these methods align with your audience and your business goals. The key is to choose a program that connects with your customers while helping you achieve your growth objectives.

How can Amazon sellers use Amazon Moments to boost customer engagement and loyalty?

Amazon Moments gives sellers a way to reward customers with personalized perks - like digital or physical gifts - for completing specific actions, such as making a purchase or leaving a review. These rewards aren't just tokens of appreciation; they help encourage repeat interactions and build stronger customer loyalty.

To make the most of this tool, it’s important to align rewards with what your audience values. For instance, re-engage inactive customers by sending targeted emails or notifications that highlight the rewards they can claim. By offering incentives that matter and staying in touch consistently, you can nurture lasting relationships and lower the chances of losing customers.

How can new Amazon sellers use loyalty programs to attract and retain customers?

New Amazon sellers have a great opportunity to build lasting customer relationships through loyalty programs. Offering targeted incentives like discounts, exclusive deals, and personalized promotions can do more than just attract first-time buyers - it can turn them into repeat customers.

Another effective approach is tapping into programs like Amazon Prime or offering subscription-based deals. These not only keep customers coming back but also strengthen retention by adding ongoing value. By prioritizing customer rewards and consistent engagement, new sellers can create a strong base for growth and long-term success on Amazon.

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