Lessons Learn From Amazon Prime’s Referral Program

Amazon is already gracing the top as the number one shopping app in the world. But from its recent activities, it is evident that the company is yet to be satisfied. To incentivize more customers to download the Amazon mobile app, the company is rolling out a referral program that allows new mobile app users to earn $10.

Current app users, on the other hand, can earn $5 from sharing the apps with friends and family. Though this isn’t real money yet, they are merely coupon which a user can use to shop on the site. You can use this coupon the moment your referral makes their first purchase using the mobile app.

At the start of this new development, it was buried in the setting sections. However, it is a full Ad take over as it can be seen on the homepage. When you launch your mobile app, you will see something like; “Give your friend $5 to spend at Amazon.”

1. Why Having A Referral Program Is A Good Idea

According to Mark Zuckerberg, people influence people. The best business strategy that can boost sales is using people to get people. It is where having a referral program is a good idea for Amazon Prime.

Referral programs definitely comes with a lot of benefits. Here are more reasons this step is very reasonable. 

1.1. Information From Friends Is Trusted More

There is this notion that the people you know are less likely to mislead you. When this is incorporated in business, the outcome will be magnanimous. Peer-to-peer marketing is the best strategy and has proven to stand the test of time.

It is probably why Amazon has decided to enlarge its coast using this model. Over 30% of internet users are using Ad Blockers. By using this referral strategy, Amazon will be able to reach more users who can’t because of the Ad Blocker browser extension.

1.2. Customers Feel Like Company’s Partner

Amazon Prime gives users the ability to invite people into buying their product. They feel belonged and part of something bigger than themselves. It is this feeling that Amazon creates in other to double its customer base.

The math is pretty simple. Imagine if one thousand customers invite more than two people through their unique referral link, the result will be breathtaking.

1.3. Increased Marketing Scope

Unlike traditional marketing, referral program is known to perform effectively and at a lower cost. Imagine a scenario where five customers were convinced to bring in at least two customers. The two customers, in turn, invite more customers and so on.

My dear, marketing reach will definitely boost before you can say, Jack Robinson.

1.4. Prime Members Are Lucrative Demographic

According to research, Prime members spend twice as much as other shoppers on Amazon. They are also known to order more times per year than their non-prime counterparts. It has made this program a wise, logical step.

It is like exploiting a rich goldmine.

1.5. Improved Rate Of Customer Retention

When customers take part in a referral program, they are more obliged to stay with the business. Instead of craving for new customers, which is even costly, retention of your existing customers seem like a better option for Amazon.

2. Things We Love About Amazon’s Referral Plan

2.1. An intriguing Header Image

Visuals are everything, and from the top of the Prime Header, attractive and cheerful people could be seen shopping with their tablet.You definitely will feel compelled to join the squad of happy people by joining Amazon Prime program. The appealing image is one of the things you will certainly love about the program.

2.2. Personalized Referral Invite

When Amazon Prime sends its invitation message, it comes boldly with the name of who invited you. Your friends and family might not have heard about Amazon Prime before, but by seeing your name on the invite mail, they will be urged to know more and consequently join the program.

2.3. A Clear CTA On Virtually Every Page

Just as the name suggests, a call-to-action compels visitors to take some steps. It could be in the form of email subscription, etc. there is no need for guesswork when the action required is explicitly spelled out. This reduced guesswork, ensuring a conversation rate.

2.4. Wider range

The referral program is also accessible to Amazon users, a place where advocates and passionate members reside. It makes it easier to refer to users without any hassle. All you need to tap into this wider reach is an Amazon account. You probably will find this very nice.

2.5. Easy to participate in

The Amazon Referral Plan is made very easy for users to be able to invite users using social media or through emails. The interface is straightforward and user-centric, with important buttons placed at strategic locations on the page. The last thing that users will complain about is being confused about site navigation.

3. Things We Don’t Love About Amazon Referral Plan

There are lots of things we love about Prime Plan, that however doesn’t mean it is flawless. This unique program comes with a lot of cons that might discourage prospective users from delving in. One of such drawbacks is;

3.1. Starting With $0 As A New Advocate

A glaring red $0 sign is weakening. It looks as if the new user has to pass through mountains to work his way to the top. The moment you log into your referral site; you are immediately hit with a grim fact that you have earned absolutely nothing.

To fix this sad plight, giving new advocate a sort of motivation can prove to be a good step. Even though they aren’t allowed to withdraw it, it still pops up some positive spirit to hustle and buff up the figure. But when they are faced with the sad reality of zero accounts, they might as well step back, since they have nothing to lose.

3.2. The Invite Letter Flaw

I have already praised Amazon prime for its personalized invite message, but there is a flaw in that system. When a friend or family member get an invite from me, through my name appear as the inviter, but the FROM mail is usually Amazon cooperate email address. For a user who doesn’t know anything about Amazon, Prime will discard such emails as spam.

By making the “FROM” mail to be the invitee’s email address makes it legit and compels users actually to proceed with the program.

3.3. Only An Advocate Gets Rewarded

Another sad reality about the Amazon referral program is the one-sidedness. What this entails is this; the advocate gets a reward, but the invited user gets nothing at all. To fix this flaw, a double-sided incentive works better.

If it entails splitting the $10 the advocate earns, very much better.

4. Benefits of Amazon Prime

4.1. Free two-day shipping

One of the benefits Prime members enjoy is the free two-day shipping on millions of items on Amazon. You have to take note that it isn’t all products, but lots of them come with this benefit. Apart from that, there are also exceptions, like gift cards, magazine subscription, and so many other products on Amazon marketplace.

So, look out for the prime logo.

4.2. Music streaming

There are so many ways to stream music online, like Spotify. Amazon Prime, on the other hand, offers such a service for free. There are millions of music to stream, and as a Prime member, you have unrestricted access to them.

4.3. Prime Video

Just like Netflix, Prime has taken the video streaming industry by surprise. Prime allows users to streams all kinds of movies and TV shows at no charge at all. According to a survey, Prime members have been known to port out of Netflix since they have another platform that offers the same service free.

4.4. Books

If you are a bookworm, then being a Prime member might seem like a pretty great deal. The foundation upon which Amazon is built on books. So, it is only logical that they cover that arena for Prime members.

With Prime, you can borrow magazines, books, and other reading materials for Kindle. Prime reading allows you to borrow magazines, books and read them through your Kindle app.

4.5. Amazon Key and delivery

With Amazon Home Kit, you will be able to allow access for Amazon deliveries inside your home, or even your car without hurdles. The security kit comes at $155 and is available in some selected areas. When delivery is about to be made, you will get a timer notification.

You can also make the delivery life through a key app.

5. Pros And Cons Of Signing Up For Amazon Prime

If you are very convinced that there are lots of Prime benefits that you can utilize, sparing $119 per year might be worth the payment.

Before you become a member, determine how being a member can help you; this will ensure that you make the right decision. Here are the pros and cons of being a Prime Member.

6. Pros

6.1 Save money through Amazon Prime Video Streaming
Instead of paying ridiculous amounts monthly in cable subscription, using the Prime Video streaming service can save a lot of money in the long run. Although you won’t get access to everything, there are numerous movies and TV shows you can choose.

6.2. Free and fast shipping

Instead of always paying for shipping fee on every product ordered, you can save more money with a Prime account. Not only do you save money, but you also get your products delivered in a matter of hours or days. You can order for anything, ranging from toothpaste, brush, creams, books, etc.

6.3. Special promotion

With Amazon Prime, you can take charge of numerous score discounts like 30% off diapers and baby food. Hold on, that is merely one example of how Amazon Prime works.

6.4. Easy shopping

With Amazon Prime membership, you take a step higher into simplifying your life. All of a sudden, you will discover that shopping is much fun, more comfortable, and faster. All Prime services are available with just a click of a mouse.

6.5. Amazon Credit Card

Amazon Prime rewards Visa Signature card, thereby helping you earn 5% back on Amazon and Whole Food Purchases. Also, you can get 2% back at restaurants, stores, grocery, drugstores, and 1% back on all other purchases.

7. Cons

7.1. Bad for irregular shoppers

If you rarely make online purchases, then $119 isn’t a great deal. You will find yourself going at a loss instead of benefiting from its mouth-watering services. If you fall into this category, opting for Prime membership is merely a show of support.

7.2. Available in selected areas

Some services aren’t available in some specific zip codes. If you are living in a rural area, like Idaho, you definitely won’t care about same-day to two-hour delivery options since they will be unavailable.

7.3. Too easy to shop

Amazon Prime makes shopping too easy for users. With alluring discounts and free shipping products, users are often tempted to take charge of opportunities without considering their finance. It could leave you spending more than you wanted.

7.4. Amazon Prime music is limited

Prime music comes with millions of music, but it may not always be what you want. It is probably because of its unpopular state. So, you might want to keep your Spotify account.

7.5. Neglecting local service providers

If you are the type that loves to support or give back to your community, you will be doing the exact opposite by shopping using Amazon Prime. For a lot of users, this is the reason they decided not to forge ahead with creating an account. Amazon Prime comes with value for your money.

It ensures that you buy goods, with mind-boggling discounts, unlike traditional shopping. Furthermore, users can also make money by utilizing the referral program that Amazon Prime offers. That way, you can shop with the money earned from referrals.

After going through this article, do you think it is right to opt into Amazon Prime? If yes, now is the right time to create an account and get a hold of the many benefits.

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