Amazon Prime Day boasts biggest sales and can thank its customer service

By Callum Rivett
Amazon Prime Day is here for the third year running, offering Prime member exclusive discounts across a range of products for a 30-hour period. Last ye...

Amazon Prime Day is here for the third year running, offering Prime member exclusive discounts across a range of products for a 30-hour period.

Last year, sales rose by 60% compared with the first Prime Day and at the time was revealed to be the biggest sales day ever for the company. Over 90,000 TVs were sold and sales of Amazon TV devices were up two-fold. 

Ultimately, the main aim of Prime Day for the company is to get customers to sign up for Prime.

Amazon's subscription service offers free next-day delivery as well as video and music streaming and costs $99 per year, or $10.99 a month. 

Data collected by the Consumer Intelligence Research Partners has unveiled why Prime is important - members spend an average of $700 a year more when compared with non-members, whilst 73% of users who take up the 30-day free trial convert to full-paying members.

As well as this, 91% of Prime members then continue their membership past the first year.

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A study commissioned by Ricoh Europe has revealed just how Amazon has managed to be so successful - building a brand around effective customer service and communications has created a quality relationship between the company and the customer.

The research ranks Amazon as third in the top companies for customer service, with the online retailer narrowly beaten out by PayPal and Yamaha Motors. 

Javier Diez-Aguirre, Vice President, Corporate Marketing, CSR & Environment at Ricoh Europe, said: "With a third place ranking in our research, Amazon has clearly established a great reputation for customer service."

"As 68% of customers have said that they have avoided a product or brand after a bad customer service experience, it is vitally important to delight the modern customer."

"Many brands will look on with envy at Amazon’s market share and skills at building and maintaining customer relationships."

Amazon's personalized offers that show on the home page make use of clever marketing and artificial intelligence algorithms, but it helps - 50% of European customers value this service above all other factors when making a purchasing decision.

 

 

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