[eMarketer] Retailers look to membership programs to spur growth

[eMarketer] Retailers look to membership programs to spur growth

08-03-2022 08:07:10 | Door: Bob Koigi | Hits: 960 | Tags:

Best Buy and Walmart are increasingly looking to membership programs in the mold of Amazon’s Amazon Prime and Apple’s AppleCare to provide them with a recurring revenue stream and deepen ties with customers.

Amazon’s subscription revenue stands to continue to soar this year thanks to an increase in the cost of its Prime membership for US subscribers.

The majority of Prime members plan to continue to subscribe after the increase, per CivicScience. That would be in line with historical trends.

There's a good reason for the push: Amazon generated $31.77 billion in subscription revenue last year (the vast majority of that is from Amazon Prime memberships), which was a 15% jump year-over-year.

The number of consumers who pay for membership programs tends to increase during the holiday season and drop off in the following months, according to research conducted by Bizrate Insights for Insider Intelligence.

Both Best Buy and Walmart are pushing their membership programs, TotalTech and Walmart+, by highlighting the significant value that members receive.

eMarketer posits that Amazon’s subscription revenue stands to continue to soar this year thanks to an increase in the cost of its Prime membership for US subscribers.

The majority of Prime members plan to continue to subscribe after the increase, per CivicScience. That would be in line with historical trends.

Read the full eMarketer article here

 

www.emarketer.com


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