Customer loyalty is more important than ever in today’s fast-paced world of e-commerce. Companies must discover inventive methods to keep consumers engaged and returning for more as their options multiply. Amazon Moments is a well-known example of such an innovation. This program, launched by Amazon, is redefining the landscape of consumer loyalty and engagement. This article will examine what Amazon Moment is, how it works, how it affects businesses & customers, and what it costs.
Understanding Amazon Moment
It is a consumer loyalty and engagement initiative that Amazon established in early 2019. It is intended to assist companies, especially mobile app developers and content providers, in rewarding and retaining users by providing targeted incentives based on particular actions or milestones performed inside their apps or services. These actions can involve, among other things, making a purchase, reaching a particular stage in a game, or subscribing to a premium service.
The basic idea of this program is to give a streamlined method for businesses to recognize and reward their customers’ loyalty and participation, resulting in long-term partnerships. It encourages businesses to create personalized, meaningful customer experiences rather than depending primarily on traditional marketing methods such as discounts or promotions.
How It Works
- Integration: Integrate the Amazon Moments SDK (Software Development Kit) into your mobile apps or digital services to participate in the program. It enables the app or service to interact with Amazon’s platform and track user activity.
- Define Actions and Rewards: Once integrated, organizations may specify which actions or events inside their apps or services should be rewarded. These behaviours might vary greatly depending on the nature of the organization, but they are typically associated with user engagement, loyalty, or conversion KPIs.
- Set Reward Values: Businesses can apply rewards to different actions or events. These incentives include Amazon gift cards, discounts, or other unique incentives. The worth of the award is frequently proportional to the significance of the activity or milestone.
- User Engagement: Users who interact with the application or service get rewards for performing predefined actions. Amazon Moments monitors and evaluates these actions in real time, delivering a smooth and rapid reward experience.
- Redemption: Users can use their earned incentives to purchase products and services from Amazon’s online marketplace.
Benefits of Amazon Moment
Improved Customer Loyalty: Enables businesses to strengthen their ties to consumers by rewarding them for significant interactions and loyalty. As a result, people are more likely to stick around and keep using the app or service.
- Personalized Rewards: With the program, companies may customize rewards to specific user behaviours, making them more relevant and appealing. Thus, it could boost the perceived value of the rewards dramatically.
- Simple Integration: The SDK of Amazon Moment Store is designed to be simple to integrate into current apps and services, reducing business development efforts.
- Increased User Engagement: It can enhance user engagement and generate conversions by motivating users to execute specific actions within the app or service.
- Amazon’s Trust and Scale: The rewards program gains credibility and trust by being affiliated with Amazon. Furthermore, Amazon’s marketplace provides consumers with a wide range of products and services, making the benefits even more tempting.
Impact on Businesses
It has disrupted companies across many industries, particularly those that rely significantly on mobile apps and digital services. Here are a few ways of how the initiative has benefited businesses:
- Increased User Retention: Businesses that use this program claim improved user retention rates. Companies may reduce churn and establish a more loyal client base by rewarding consumers for loyalty and participation.
- Increased Revenue: Improved user engagement frequently leads to higher conversion rates and average transaction prices, resulting in increased income.
- Valuable Data Insights: It gives companies significant data insights into user behaviour and preferences. It can improve marketing strategy, product development, and user experience.
- Competitive Advantage: Offering a rewards program helps set businesses apart from other companies and attract new customers in today’s competitive industry.
- Cost-Effective Marketing: Unlike conventional advertising strategies, it provides a low-cost way to engage and keep customers. Instead of broad campaigns, businesses can direct rewards to the areas where they will have the greatest impact.
Impact on Consumers
Amazonmoment is beneficial not only to businesses but also to consumers.
Here’s how customers get benefits from participating in the program:
- Tangible Rewards: Users receive real rewards for their involvement and devotion, such as Amazon gift cards or discounts, providing them a sense of fulfillment and value.
- Freedom of Choice: The opportunity to redeem rewards on Amazon’s large marketplace allows consumers to select products or services that match their interests and needs.
- Enhanced User Experience: Users love personalized rewards, which make their whole experience with the app or service more pleasurable and gratifying.
- Continuous Engagement: Users are likelier to stay connected with an app or service if they know their activities will be rewarded, giving continued value to businesses and customers.
How Much Does Amazonmoment Cost?
Moments uses a CPA (cost-per-action) pricing model, which lets brands scale their customer loyalty promotions through Moments based on their budget. So… it depends! CPAs can cost as little as $3, but many brands pay more because of taxes, shipping, etc. Brands can also set a firm spending limit to keep their budget in check. Amazon puts a limit of $5,000 per campaign & $15,000 per Moments account on the total amount that can be spent.
It’s also important to remember that building an awards program from scratch can be too expensive for some brands, especially smaller ones. Reports say that by 2026, the U.S. Loyalty Programs Market will be worth $22,5907 million, up from $126,639 million in 2021.
No matter how much it costs, brands that use it well should be able to make money in the long run. It can improve customer involvement and sales by giving rewards for the right activities.
However, while it is costly to maintain consumers, losing them is considerably more costly – it costs five times as much to get a new client as it does to retain a current client.
Success Stories
Brands like TikTok, Bravo, Discover, Sago Mini, and Disney have done well with Amazon Moments. After giving players of the Disney Heroes Battle Mode game $5 in Amazon credits for hitting level 15, Disney’s net income increased by almost seven times.
Need more reasons? Here’s some data from two of the Amazon Moment Store participants below.
Sprint
Sprint, the official wireless sponsor of the 2019 Concacaf Gold Cup soccer tournament, launched a five-week Amazon Moments campaign to create a Futbol Mode Rewards platform. Users could download the Futbol Mode Rewards Wallet Pass to view and complete challenges during each tournament stage. Users could accumulate Amazon credits for spending in the Sprint Futbol Mode Rewards store on Amazon. Challenges included referring friends, uploading videos, and posting videos forecasting the winner of a Gold Cup match for set dollar deals of Amazon credits. The final challenge generated the highest participation rate, proving that Amazon Moments can provide positive ROI in the long run.
Discovery GO
Shark Week is a popular summer TV show on Discovery Channel. In 2019, the show teamed up with Amazon Moments to make it the most watched in its 30-year history. The campaign tried to get people to use Amazon devices and the Discovery GO app. After the campaign, the number of activations went up by 73%, the number of regular customers went up by 40%, and the number of hours watched went up by 68%.
Discovery GO utilized Amazon’s Stream it Forward cause-marketing campaign to give customers charitable donations when they streamed content during certain times. The first 1,000 people who signed up for Discovery GO and watched at least 10 hours got a $25 credit, and for each hour spent in the app, $1 was given to Oceana, a charity that works to protect marine life. Discovery Go got users much more involved and helped Oceana raise $75,000. It is an example of a smart business using Amazon Moments by tapping into the company’s and users’ interests in marine life preservation.
Conclusion
Amazon Moments is a game-changer for customer loyalty and engagement. It gives businesses an easy way to recognize and reward important customer behaviour, strengthening customer relationships and increasing user engagement. It provides a new paradigm in customer loyalty through tailored interactions and valuable rewards that increase customer retention, sales, and satisfaction.
Still want to learn more about Amazon Moment and how to integrate it into your digital marketing campaigns? Nixxe Solutions has an entire Digital Marketing Management team at your disposal. We can help businesses get the most out of their digital media accounts, including assessing the value of Amazon Moments and crafting successful campaigns while guiding and avoiding common seller mistakes. Elevate your business with Nixxe’s expertise in digital marketing services to engage and attract consumers to get the appropriate rewards.
