BUSINESS

Once You Join Amazon Prime, You’re (Probably) A Lifer

It turns out membership has its privileges, and most people can't give them up

BUSINESS
Prime members are an incredibly loyal bunch. — NurPhoto via Getty Images
Jun 03, 2016 at 12:39 PM ET

Ask anyone who subscribes to Amazon Prime about the service, and they’ll probably say they can’t live without it. Chances are, they’re telling the truth. A recent report reveals that the online retailing giant converts its users to Prime members at an astoundingly good rate—and they stick around.

The data, released by Consumer Intelligence Research Partners, shows that an impressive 73 percent of people commit to paying for a $99 yearly membership after their 30-day free trial has ended. After their first year as a VIP, 91 percent of people sign on for a second year. By the time the third year rolls around, a whopping 96 percent of people renew. It’s proof that once you have tasted the glory of free two-day shipping, you can never go back.

The exceptionally strong loyalty among Amazon Prime members likely boils down to the fact that it provides multiple valuable benefits that appeal to a broad range of people (or everyone just forgets to check their credit card statements). Even if you don’t care that much about receiving your orders at the speed of light, you might care about having free access to Amazon’s exclusive streaming content, e-books, photo storage, or any number of offers for early access and exclusive savings. Amazon clearly hit upon a winning combination since it managed to capture the hearts of an estimated 54 million members and never let them go.

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