Amazon Prime is probably the world’s best-known membership scheme. It completely connects the Amazon experience for the user, whether they’re browsing the .com experience the real-life aisles of the company’s grocery chain, Wholefoods.

Whilst its competitors trifled with discounts and transactional loyalty, Amazon recognized that surrounding their customers in added value and improved customer experience was the secret to success, and could drive recurring revenue. If you want to go deep on how they built it, this oral history is a great piece, including interviews with the main players involved.

For many in small business Amazon is a ruthless competitor, but we have to acknowledge Prime has evolved to be the most successful membership ever - so what can we learn? Here are five big takeaways on Prime for any small business owner that they can implement.

1. Clear value prop

Prime was built around a crystal clear value proposition: free shipping for any member. At the time, it set them apart from the rest of their competitors, but it also gave them an anchor around which to create communications. Since then, the value proposition has evolved substantially to essentially be ‘access to the entirety of the Amazon ecosystem’. But at each touchpoint, whether ‘better prices for Prime members at Wholefoods’ or ‘Access to Amazon Prime video’ it’s clear what the user is getting – a boatload more value and convenience than the non-member.

TAKEAWAY: Beyond your company’s mission, define the specific value that being a member creates for your user, and communicate it clearly.

2. Surround the user with value

Upon launch, Prime immediately became the center of Amazon’s ecosystem, and they didn’t stop with free shipping as the only benefit. Jeff Bezos’ team realized this was about delivering the best of their business to their premium members. Greg Greeley (former Amazon VP of worldwide media and later VP of Amazon Prime) describes how they approached each business unit:

“Prime is this opportunity to provide our premium customers the best of Amazon. What is it in your business unit that you think we could include in Prime as a way to drive more engagement, not only for your business, but to add to the flywheel of all things Amazon? And that’s how we came up with the music service, the photo service, the credit card, the Prime exclusive products, the Prime Reading.”

TAKEAWAY: Once you’ve defined the value, look at every opportunity you have in that business to drive it further, and figure out how to hook it into your membership.

3. Communicate your membership with every touchpoint

Once Prime had been established, the business was focused on driving growth of members and as a result all communications began to reference Prime. It seems like such an obvious thing now, but prior to Prime most cardboard boxes delivered to your door came without branding. Now, that box on your doorstep with ‘Prime’ branding and tape is the greatest advert to those around you of the benefits of the product. Now, every touchpoint Amazon has always references Prime.

TAKEAWAY: Remind, reinforce, repeat - everywhere, all the time.

4. Set membership goals and use all levers at your disposal

‘We eventually set a goal for ourselves: What’s it gonna take to be over 100 million members worldwide?’ said Greg Greeley, this approach is probably one of the most important learnings for small business. People are moved by the targets they are set, in too many businesses loyalty is transactional (think stamp cards for coffee or discounts per 10 purchases) but also it’s passive - loyalty sign-up ticks along without being actively driven.

By focussing on a goal Amazon could brief all departments to drive acquisition, it’s why if you get to the counter at Wholefoods that customer service representative asks if you’re a Prime member. Set your targets and use every aspect of your business to drive them.

TAKEAWAY: Set an audacious goal for your membership, then figure out the key KPI to get you there. That’s your membership north star.

5. Customer experience is everything

Prime has evolved into a premium experience for members. It’s built around delivering them high levels of customer experience. Bezos’ obsession in this space is stuff of legend, but it’s key to Prime’s success.

Deliver your members a great experience and they will stay with you, but most importantly they will likely tell someone else to join. As Bezos himself outlined “If you do build a great experience, customers tell each other about that. Word of mouth is very powerful.”

TAKEAWAY: People appreciate what they get from you. People talk about how it makes them feel. Make interacting with your brand feel seamless, satisfying and positive. The little details matter.

GO DEEPER:
Read this oral history of the Amazon Prime Membership scheme.