The competition in the market has made it near to impossible to maintain brand loyalty. People have lost the drive to purchase the same product repetitively and remain loyal to the brand, irrespective of what the competitors have to offer. Online retailers have the risk of being unable to manage brand loyalty if they operate through random distributors. Those retailers who use Amazon, a trustable competitor in e-commerce, can have an upper hand over those who do not work with Amazon as it offers multiple facilities and rights to its third party retailers to ensure overall satisfaction of both the supplier and the customer.
There are multiple ways to enhance customer retention through the use of Amazon. The first and foremost of it can be gaining control on the distribution of the product to the customers. The only way to control the quality of the product is if it is purchased directly from the company, however mostly the product is marketed through distributors which makes it hard to control the quality delivered to customer. This is the reason that on receiving a bad product once, approximately 76% of the customers vow to never purchase it again and about 72% of these customers warn their family and friends against the product which results in overall consumer loss. It has become approximately 5 to 25 times more costly to earn a new customer.
Amazon offers the service, of selecting authentic distributors, to its retailer so that they can control the quality of the product to the maximum extent and improve the customer experience. Another feature of Amazon is that it allows its retailer to limit unauthorized distributors from selling his product. This is of great importance when there is a need to have charge of the service being provided to the customer, which greatly induces the company's reputation and sales in the long run.
Amazon also allows its retailers to set the rules and regulations that must be followed to ensure that the product reaches safely in original condition. These guidelines act as a set of instructions for the distributors and the employees of the company that must be followed at all costs. Another feature of Amazon is that it offers its customers with Subscribe and Save program along with a Family subcategory that allows them to put essential items on autopilot, without having to select the necessary items from the start, every time they want to purchase. Amazon offers 5% discount of first 4 subscriptions and a 15% discount on the subscription of 5 products or more than that, in the category of baby care, health, beauty and grocery. A 10% discount is also offered by Amazon to all the other products. This greatly motivates a customer to subscribe to the same product thus ensuring loyalty to the brand and increase in the brand's sales.
The services offered by Amazon have greatly benefitted the customer directly in receiving good quality product and the retailer indirectly by managing the brand loyalty.
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