Last week (February 14), Amazon launched a new self-service loyalty marketing tool called Amazon Moments that allows companies to reward customers with Amazon-branded products or other products sold by other retailers when customers complete certain actions e.g. renewing a subscription.
So far, 20 companies including TikTok, Washington Post and Disney Heroes, have signed up to the program which is available in over 100 countries. According to Amir Kabbara, Amazon’s head of digital marketing and consumer innovation, the results were impressive.
Amazon ran test campaigns with partners and found that those targeted with a Moments campaign were nearly four times more likely to stay in the app and renew their subscription compared to the average customer over time. One unnamed developer in gaming increased their percentage of first-time players by 20 times through Amazon Moments. Meanwhile, a video streaming service tested the scheme with an offer of $10 worth of physical rewards and “doubled the likelihood” of winning back a subscriber.
How does it work?
A brand can pick a “moment” that it wants users to perform and can then reward them for doing so. They can set up campaign dates, identify the target customer, add a product or reward package before customising the promotional messages and reward landing page.
The cost-per-action model is flexible as brands can set a budget limit and can custom target, only paying when your customer completes the desired action. Brands can choose from a wide variety of products sold on Amazon which will be delivered to the customer or a monetary reward that can then be spent on Amazon. What’s more, customers redeeming their Moments rewards will be able to apply any of their existing Amazon perks, such as free two-day shipping for Prime customers.
It is easy to implement and is available on all platforms. It is an API that the developer and marketing team can build into an app or website, and the company can choose what gets gifted.
"The scenarios are pretty much endless," Kabbara said in an interview with Marketing Dive. "Really, marketers just need to go through, identify the right action inside of their app or website, choose their reward and figure out what budget they have to get them positive ROI."
Through the new program, Amazon wants to give marketers a new way to guide engagement, create promotions and delight the customer with “fun moments that last.”