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Business Insider has a piece about Amazon Prime, suggesting that its primary reason for existing is to create "increased customer loyalty."

The story quotes a survey done by RBC Capital, saying that "two 'killer' data points, in our view, are that Amazon is building up significant loyalty amongst Prime members and that the longer Amazon Prime members stay around, the more they engage/spend with Amazon."

Additionally, the story says that:

• "Prime adoption is growing: 40% of Amazon customers in the US are Prime members versus 25% in 2013. Globally, Prime members are estimated to number 60 million to 80 million."

• "Prime members are coming back more frequently: Seventy-four percent of Prime members said they used Amazon more today than when they first joined Prime. Also, 73% of • Prime customers said they shopped at Amazon at least two to three times a month, while only 22% of non-Prime customers said they did."

• "Prime members spend more: Forty-nine percent of Prime members spend over $800 annually, while only 16% of non-Prime users do so."

• "The longer they've been a Prime member, the more they spend: Forty-one percent of those in the first year of a Prime membership spend over $800 a year, versus 68% of Prime members of more than four years who do."
KC's View:
I'm sort of amused by this, since I've been saying for years that Amazon is essentially a loyalty program ... everything is constructed to get people to buy more, and to turn to Amazon as the best, first option for almost everything.

But this is serious stuff, in that Amazon seems to be able to monetize consumer relationships to a degree that few other retailers ever have. In pretty much each of these cited statistics, Amazon's numbers almost certainly will improve. And its competition ought to be looking at these numbers and asking themselves to to best compete.