Value of Amazon Prime Member Fails to Grow Over Time, Says CIRP
The renewal rate for Amazon Prime customers who have a membership for at least two years has topped 95% for the past several years, emailed Consumer Intelligence Research Partners Monday. Though they spend about twice as much as nonmembers, and…
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shop more frequently at Amazon, long-term Prime members spend somewhat less per visit, said the report. Members with a membership for one year or less spend an average of about $1,200 per year. Customers who have been Prime members the longest, for three years or more, spend about $1,000 per year, it said. Customers with a Prime membership for one year or less shop at Amazon.com an average of 21 times per year, 28 times for three-year or more members. Customers with a Prime membership for one year or less spend an average of $50 per visit vs. $45 per visit for three-year members. Amazon benefits from long-duration Prime members’ “extreme loyalty, which in turn makes the Prime member behaviors more permanent,” it said, but "the value of an individual Prime member does not seem to grow over time." Just 6% of members in a September survey of 1,308 Prime members reported joining in the previous three months, most likely using a 30-day free trial, CIRP said. About 16% had a membership for one year or less. Amazon didn't comment.