Amazon Prime Conversions Slowing, Retentions Still High, CIRP Reports
The conversion rate to long-term Amazon Prime memberships from a 30-day free trial has steadily declined, reported Consumer Intelligence Research Partners Friday. Some 67 percent went on to pay in September vs. 84 percent in September 2015. Long-term retention rates…
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improved to 93 percent of paid members staying after one year and 98 percent renewing after 24 months, during a five-year period beginning September 2013. Amazon “has to work harder to recruit new members who see a value in paid Prime,” said analyst Mike Levin, saying it likely snared “the most attractive members in the earlier years.” The company now offers a by-the-month option for membership vs. full-year only, he noted. Customers who could choose between a full-year membership and letting one lapse now can turn on a membership for a month or two “when they are most likely to enjoy the benefits,” he said. Findings are based on quarterly surveys of 500 U.S. consumers who shopped at Amazon.