Customer Loyalty circled in red marker by a hand.

How to Build Customer Loyalty on Amazon

Guest Author, Channel Key

April 26, 2020

This blog was updated on March 14, 2024.

At the core of any thriving brand are loyal repeat customers. The complexity of retaining customers can be difficult while also seeking to attract new customers. The competition is fierce, and competitors are waiting for you to drop the ball. Creating innovative customer engagement strategies that can easily be implemented and effectively drive business is essential when developing a loyal consumer base.

Increased brand loyalty and positive brand recognition is the result of providing exceptional customer experiences and creating relevant and valuable events for customers. Currently, these events mostly happen online through multi-channel and omnichannel buying experiences. These experiences enable your brand to continuously grow by gradually gaining loyal customers and attracting new prospects.

What is Customer Loyalty?

Customer loyalty is the act of regularly choosing a specific company’s products or services over another. A loyal customer cannot easily be swayed away by another company’s pricing or availability. A loyal customer prefers to pay more for the assurance of better quality and service.

The results of a company investing time into accurately and consistently meeting and surpassing the expectations of its customer base have a higher probability of customer loyalty through satisfaction. As a customer, you want to be able to trust the people that you do business with and trust creates repeat purchases in the future.

The Importance of Customer Loyalty?

Your business cannot survive without keeping your customers happy. Acquiring new customers is not always an inexpensive task. Gaining new customers can get a little pricey and sometimes new customers spend less money than regular customers. Therefore, it’s extremely important to keep your customers coming back to your business to thrive and continue to succeed. Loyal customers convert more often, and they will naturally advertise for your business through word of mouth and drive free referrals.

Currently with the use of technology your customers can communicate with one another between social media, customer review sites, forums and much more. This can be viewed as a positive for your business by creating an interactive community for your brand.

Adding community forums encourages customer to customer communication on a variety of topics that revolve around your product or service. This allows you to get to know your customers and listen for ideas to improve your brand’s overall customer shopping experience.

To drive revenue growth, brand owners need to consistently go above and beyond to provide the best customer experience possible to attract and engage new shoppers and maintain loyalists. By developing an authentic customer engagement strategy, you can take full advantage of capabilities that can be effortlessly implemented to drive value with little configuration. Understanding the customer’s journey When customers visit your online store, the purpose of that visit naturally speaks volumes for your brand. Depending on the stage of the purchasing lifecycle, you can determine the requirements of their visit to create offers or promotions that connect better leading to higher conversions.

Loyalty based personalization strategies directly impact the bottom line, easy to implement and drive lucrative revenue. Personalizing campaigns tailored to fit the interests of shoppers boost value, revenue time and produce a seamless and memorable customer experience that leads to increased loyalty and lifetime value.

Amazon’s Subscribe and Save Program

Amazon’s Subscribe & Save program is a service that allows customers to subscribe to receive regular shipments of certain products on a recurring basis. This is a great way for brands to build customer loyalty. Here’s how it works:

  • Selection of Eligible Products: Customers can browse through a wide range of eligible products on Amazon that are part of the Subscribe & Save program. These products typically include everyday essentials such as groceries, household items, personal care products, pet supplies, and more.

  • Subscription Setup: Customers can choose the frequency of their shipments (e.g., monthly, bi-monthly) and the quantity they want to receive in each shipment. They then subscribe to the selected product(s) by adding them to their Subscribe & Save cart.

  • Discounts and Savings: Subscribers are eligible for discounts on the products they subscribe to. Typically, customers receive a discount on the current price of the product when they subscribe, and they also receive an additional discount on future shipments as long as they remain subscribed.

  • Automatic Shipments: Once subscribed, customers will automatically receive their selected products at the chosen frequency. Amazon will process the order and ship the products to the customer’s designated address without the need for the customer to manually place an order each time.

  • Flexible Management: Customers have the flexibility to manage their subscriptions at any time. They can easily change the delivery frequency, skip a shipment, add or remove products, or cancel their subscription altogether through their Amazon account.

  • Convenience: Subscribe & Save offers convenience for customers by ensuring that they never run out of essential items. It eliminates the need for customers to remember to reorder products regularly, saving them time and effort.

Amazon’s Subscribe & Save program provides customers with a convenient way to regularly purchase and receive essential products while offering discounts and flexibility in managing their subscriptions. It benefits both customers and sellers by fostering long-term relationships and recurring revenue streams.

Channel Key Takeaway

To summarize, Amazon customer loyalty is crucial for several reasons:

  • Repeat Business: Customer loyalty ensures repeat purchases, which are the lifeblood of any business. When customers are loyal to a brand on Amazon, they are more likely to come back to make additional purchases in the future.

  • Positive Reviews and Feedback: Loyal customers are more likely to leave positive reviews and feedback for the products they purchase. Positive reviews can significantly impact a product’s ranking and visibility on Amazon, leading to more sales.

  • Word of Mouth and Referrals: Satisfied customers are more likely to recommend a brand to their friends and family. Positive word of mouth can lead to new customers and increased sales.

  • Higher Lifetime Value: Loyal customers tend to spend more over their lifetime compared to one-time buyers. By cultivating loyalty, brands can increase the lifetime value of their customers, leading to higher revenue and profitability.

  • Brand Advocacy: Loyal customers become advocates for the brand, promoting it through social media, word of mouth, and other channels. These brand advocates can significantly impact the reputation and success of a brand on Amazon.

  • Competitive Advantage: In a competitive marketplace like Amazon, customer loyalty can be a significant differentiator. Brands with loyal customers are better positioned to withstand competition and maintain market share.

  • Data Insights: Loyal customers provide valuable data and insights that can help brands improve their products, services, and overall customer experience. By understanding the needs and preferences of loyal customers, brands can make data-driven decisions to drive growth and innovation.

Overall, Amazon customer loyalty is essential for building a sustainable and successful business on the platform. It not only drives sales and revenue but also fosters brand advocacy, positive reviews, and long-term relationships with customers.

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