4 Lessons You Can Learn From Amazon NPS to Your Boost Customer Loyalty

Did you know that Amazon has over 310 million active users globally?

I am sure you have shopped from Amazon at least once in the past month. But have you ever stopped to wonder why Amazon has such a huge loyal customer base? So much so that 56% of consumers start their online search with Amazon.

Well, it’s because of a customer satisfaction metric called Net Promoter Score.

This simple, yet powerful, metric helps businesses such as Amazon to stay ahead of the curve and meet their customers’ expectations in a streamlined manner.

But the question here is that lots of businesses use NPS to boost their customer loyalty, but what is it that Amazon is doing differently that is making such a difference? Let’s find out!

4 Drivers Behind Amazon’s High NPS Score

Amazon NPS focuses on three aspects to boost customer loyalty – customer retention, customer loyalty program, and word-of-mouth marketing.

1. Personalization

Did you know that 91% of customers say that they are more likely to shop with brands that provide relevant and personalized offers and recommendations?

Amazon is one of the biggest players in the market that stands out for its hyper-personalized customer experience.

With the help of AI and machine learning, they examine customer behavior by analyzing customer data on browsing activity, shopping history, and behavior. This helps them create a customized search engine that is unique to each customer’s preference. And they do it so well, that majority of the customers buy from recommendations only!

2. Prime Membership

Did you know that only after a 30-day free trial, 73% of Amazon users transition to paid memberships, and 91% of those renew for a second year?

This is the power of loyalty programs which Amazon has taken to the next level.

Prime members enjoy a plethora of benefits, such as free 1-day shipping, personalized product recommendations, streaming content through Prime Video, exclusive personalized deals and discounts, and other services like Prime Reading and Prime Music. Additionally, with features like the 1-Click “Buy Now” option, customers can experience quick and easy purchases, promoting impulse buying and further driving revenue growth. 

3. Self-Help Services

According to the Harvard Business Review article, Kick-Ass Customer Service, 81% of customers stated that they intend to take care of matters by themselves before reaching out to a customer service representative.

And Amazon excels at it! It offers extensive self-help services to its customers which enables their customers to resolve issues on their own end. With resources such as a detailed FAQs section, troubleshooting guide, live AI chat support, etc customers can resolve minor issues on their own end, saving their own and the support team’s time and effort. Features such as order tracking, and easy reordering. Self-help kiosks in physical locations further streamline and enhance customer experience.

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4. Catering to a Global Audience

Amazon’s ability to cater to a diverse customer base is a significant driver of its high NPS. The company operates in multiple countries and offers a wide range of products that meet the varied needs and preferences of its global audience. 

Amazon’s extensive marketplace includes local and international sellers, and allows them to sell t-shirts, running shoes, cooking ingredients, e-books and almost anything one can think of, ensuring a broad selection of products that appeal to different cultural tastes and requirements. They have also tailored its services and user interface to adapt to various languages and regional nuances which makes the platform more accessible and user-friendly for customers worldwide. 

Now, that’s all the important lessons you can learn from Amazon on how to improve your NPS, but do these strategies yield any results?

Benefits of Amazon NPS Score

1. Retention

One of the major benefits of a high NPS score of Amazon is customer retention. And taking into account that acquiring a new customer is 5-25 times more expensive than retaining an existing one, this strategy of Amazon is clearly boosting its NPS and reaping financial rewards.

The longer Amazon retains its customers, the more value they derive from each customer, contributing to financial stability and growth.

2. Increased Spending by Prime Members

According to Amazon Quarterly Report, in 2023, the company reported a whopping $575 billion in revenue, up from $514 million dollars the year before.

A huge chunk of this high revenue growth comes from the Amazon loyalty program, Amazon Prime membership, which has enabled Amazon to retain more customers and reduce the cost of customer acquisition.

Amazon Prime members spend significantly more than non-members, with an average annual spend of $1,500 compared to $625. The extensive benefits of Prime, such as free shipping and access to streaming services, encourage higher spending. 

3. Word-of-Mouth Marketing

Another big benefit of Amazon’s NPS score is its loyal customer base which has gone above and beyond to recommend the brand to others, facilitating positive organic marketing, and as a result, new customers come in at no added marketing expense.

This word-of-mouth marketing is also cost-effective and highly influential. Amazon incentivizes these promoters through referral programs, enhancing their engagement and encouraging them to bring in new customers. This strategy not only expands Amazon’s customer base but also reinforces loyalty and increases spending among existing customers.

Conclusion

As we learned from this Fortune 500 company, NPS is a simple yet very powerful metric, and understanding and leveraging it is crucial for businesses aiming to enhance customer loyalty, satisfaction, and overall growth. I mean look at the benefits Amazon is reaping by focusing on creating a loyal customer base and as a result, the company is able to generate high customer retention rates.

Now, for those looking to effectively measure and analyze NPS scores and aiming to follow the footsteps of Amazon, NPS software like SurveySensum is much needed because no great feat can be achieved without proper management and technical capabilities. 

SurveySensum enables you to simplify the process of collecting and interpreting customer feedback, helping businesses identify areas for improvement and foster a customer-centric approach for sustained success. 

Not only that, the platform also comes with end-to-end implementation support and CX consultation. These experts will help you go beyond mere analysis and help you get detailed monthly analysis with actionable and prioritized data points to close the loop and take action on the feedback that impacts the bottom line.

Find Out Your NPS Drivers To Boost Your NPS Performance With SurveySensum

Frequently Asked Questions on Amazon NPS

Apple’s NPS is reported to be 61.

Google’s NPS is reported to be 58.

Amazon NPS is reported to be 73.