Amazon Prime – Retention and Referral done the right way!

I view customer retention as “The company is treating me really well so I won’t leave”, not as “I was about to leave when this company threw so many discounts and perks at me so I ended up staying”. And in my opinion, Amazon does that really right.

I never saw the value of Amazon Prime, nor was I a big online shopper before I started my MBA. As Part of Amazon Student, I got my first year of Amazon Prime for free, and were they smart to offer that?! I now make most of my shopping on Amazon.

When it comes to customer retention, the convenience of buying everything and getting free two day shipping is amazing! Not only that, if you were a regular Amazon shopper, you can tell stories on how great their customer service is. You email them a question or an issue and you will definitely get an answer very soon. In my experience, in less than an hour! You want to return something? No problem, we’d still love your feedback. 

By doing so, Amazon had retained me as a customer for the past two years, and I think for a very long time after.

When it comes to customer referral, doing things the right way, resolving issues right away, offering a wide range of products (Except parts for classic cars as we were discussing in class), and free two day shipping is forcing me to refer friends without me noticing. I tell stories of “How convenient it is” or “How I bought this or that from Amazon and I have prime” Word-of-mouth is a great weapon in marketing, and friends and family keep wanting to try Amazon Prime due to that.

Not only that, they offer free movie and TV series streaming “Comparable to Netflix”

By doing customer service right, Amazon Prime has been successful in customer retention and customer referrals…


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