While 2020 has been an unprecedented year on all fronts, change has been a common theme.
Since 2015, Amazon has held its highly successful Prime Day in July.
But this year, largely due to the pandemic, Prime Day was delayed three months and is set for Oct. 13-14.
While more retailers launched premium loyalty programs in recent years (i.e. Walmart+), Amazon set the standard when Prime launched in 2005.
Prime Day is known for its amazing deals, but this year it takes on added meaning.
Since it’s only six weeks before Black Friday/Cyber Monday – traditionally the kickoff to the holiday shopping season – Prime Day 2020 could pack a mighty punch and lure millions more consumers.
Some believe that Prime Day 2020 will be the official start of the holiday shopping season and a significant percentage of spending will occur next week.
Consider that 64% of consumers are less inclined to shop on Black Friday this year, and 59% less inclined to shop on Cyber Monday.
Given these factors, the 2020 edition of Prime Day could be the most memorable one ever.
While we don’t know how it will play out just yet, here are the five most important 2020 Prime Day statistics you need to know from the Prime Day 2020 Data Study.
76% of consumers prepare and research prices and discounts before shopping on Prime Day.
This is very interesting because not only do consumers conduct diligent research before Prime Day about Amazon sales, but they also check specials/deals offered by a variety of retailers.
A byproduct of Prime Day is the halo effect and exposure it creates for other retailers, who use this time to offer their own attractive sales.
The first 24 hours of Prime Day last year generated a 66% revenue lift for other e-commerce retailers.
Many retailers are offering their own Prime-like shopping holidays, like Walmart and Target, and it’s important that all retailers ride the wave.
Prime Day could be the beginning and end of holiday shopping for some consumers this year, so it’s important that all retailers make the most of it.
76% of Consumers Wait to Make a Specific Purchase Because They Know the Price Will Be Better on Prime Day.
Many consumers sign up for Prime to take advantage of massive Prime Day sales.
Amazon has always used Prime Day as a key acquisition tool. Besides the incredible sales during Prime Day each year, members are also exposed to the program’s lengthy list of attractive benefits.
While acquisition is crucial for Amazon on Prime Day, in the long run it strengthens retention as well.
If most consumers wait to buy something on Prime Day because they think they will get the best price, other retailers should heed notice and run special sales/deals to take advantage of this holiday shopping frenzy.
86% of Consumers are More Likely to do Their Holiday Shopping at a Retailer Where They Are Already a Loyalty Member (like Amazon).
With more than 100 million Prime members, Amazon usually sits pretty knowing its healthy customer base will do the bulk of their holiday shopping with them.
For retailers, in general, their loyalty programs play a huge role in finding success during the holiday season.
If your program mixes experiential and transactional benefits, and shows clear value, members will use it and they will likely shop with you during the holiday season.
If you aren’t offering compelling loyalty programs before the holiday season, many of your customers could look elsewhere to shop.
DOWNLOAD THE 2020 PRIME DAY DATA STUDY
46% of Consumers Have Joined a Loyalty Program Solely to Use the Discounts and Perks During the Holiday Shopping Season.
This statistic speaks to consumers’ collective joy of instant benefits.
If they can join a loyalty program before the holiday shopping season, and take advantage of great deals and perks, they will likely remain members.
In fact, 67% of consumers say that instant discounts that can be used whenever they shop is a perk that motivates them to invest in a premium loyalty program.
Benefits from traditional loyalty programs are not instant. They work very slowly and were more effective in a world where consumers didn’t have as many choices.
Amazon has certainly seen the benefits of this in the past.
This stat is easily seen among millennials.
48% of Millennials Start Their Holiday Shopping Before October
Since nearly half of millennials start holiday shopping before October, retailers need to cater to them and one way to differentiate is through your loyalty program.
If it’s not appealing and offers little value, consumers won’t shop with you.
In fact, 73% of millennials have joined a loyalty program solely to take advantage of the benefits and rewards during the holiday shopping season.
Millennials have surpassed baby boomers as the largest adult generation. As a result, retailers need to connect with millennial shoppers well before the holiday shopping season kicks in.
Some things to keep in mind:
Millennials are drawn to corporate social responsibility (84% donate to a charity).
They also expect instant gratification and 28% shop with retailers whose premium loyalty programs they belong to at least every few days.
Millennials are attracted to lifestyle brands like lululemon. These are the types of brands they can create emotional connections with and become lifelong customers.
The more you can build member engagement through your loyalty program throughout the year, the better chance you have of your customers shopping earlier for the holidays.
In the Age of Prime, Make Your Loyalty Program Make a Difference
Soliciting consumers to become members of your loyalty program can be impactful for your brand’s holiday shopping season.
Amazon has found great success using Prime as an acquisition tool.
Consider that 67% of consumers aren’t satisfied with traditional loyalty programs.
Listen to your customers and identify their pain points.
Use this information to craft a successful loyalty program.
Prime Day 2020 could be a game-changer for this year’s holiday season and years to come.
But don’t sit on the sidelines.
Get in there with your compelling loyalty program, and great sales/deals.
Make your loyalty program make a difference this holiday season.