How Amazon keeps finding ways to get customers to spend

by | Oct 12, 2017 | Public Relations

Can you believe that 3 in 5 (60 percent) U.S. adults have made a purchase from the same retailer in the past three months? Such is the power and influence of Amazon.

Among major retailers, the mighty Walmart maintains its place as the purchase destination of choice, but Amazon is breathing down its neck—and if usage growth rates for each retailer stay the same, Amazon will pass Walmart in just one more year, forecasts consumer market intelligence firm Packaged Facts.

“Amazon utilizes numerous strategies to broaden its reach into U.S. homes—and wallets—including segmenting subscriptions, broadening and deepening retail categories, entering social media, and leveraging digital assistants,” said David Sprinkle, research director for Packaged Facts, in a news release.

How Amazon keeps finding ways to get customers to spend

In a new report, Packaged Facts estimates that more than 80 million U.S. adults are members of the company’s Amazon Prime subscription service. But beyond Amazon Prime membership, consumers spend money via Amazon in a variety of ways: for example, tens of millions of American adults use Amazon Kindle e-readers and/or use its mobile app. Amazon’s reach also extends directly into consumers’ wallets, with tens of millions of adults claiming to have an Amazon Visa card and a similar number having its store-only card.

How Amazon keeps finding ways to get customers to spend

In addition, Echo and Alexa are tapped by 20 million users. Likewise, almost 19 million have used Subscribe & Save. While penetration of Amazon Fire TV lags that of Roku, it is ahead of Google Chromecast and Apple TV. With 25-percent usage penetration, Pandora holds a wide lead among streaming music services, with all competitors under 10 percent-penetration—but Amazon Prime Music is fifth, ahead of Google Pay and behind Apple Music.

How Amazon keeps finding ways to get customers to spend

As for which U.S. consumers are most likely to shop via Amazon, the report pinpoints demographic drivers including 25-44s with $100K+ HH incomes, who are 48 percent more likely than the average Amazon user to have ordered from it in the past three months; urban dwellers with $100K+ HH incomes (40 percent more likely); and married/partnered users with $100K+ HH (40 percent more likely).

The report is available for purchase here.

Richard Carufel
Richard Carufel is editor of Bulldog Reporter and the Daily ’Dog, one of the web’s leading sources of PR and marketing communications news and opinions. He has been reporting on the PR and communications industry for over 17 years, and has interviewed hundreds of journalists and PR industry leaders. Reach him at richard.carufel@bulldogreporter.com; @BulldogReporter