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Opinion Loyalty Strategy

Amazon Division Aligns Rewards to Business Model

We’ve talked a lot about aligning your customer focused programs to your business model. But Amazon’s Web Services Division takes it to the next level.

Going beyond volume discounts, the company lowers prices as it’s services scale — sharing its economies of scale with its customers. It’s interesting for two reasons:

1. The transparency of the business model makes even more sense as customers understand it

2. It redefines loyalty as having customers cheering for its business success and growth — one step beyond simply rewarding volume or spend

The beauty is how it rewards loyalty, growth in customer value, social sharing (and other promotion of the brand / services)s and referrals in such a simple way.

Mar 6, 2015  

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Article CX Strategy

It's impossible for companies to focus on the 'easy' market segments (ie. non millenials) and get comfortable with a less than competitive product or service offering. 

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