Amazon offers yet more perks for Prime members with a cash-back card
One of the pluses of being an Amazon.com Prime member is that the company continually seems to be working on ways to improve the value of the program to those who use it. The latest perk offered by Amazon is its new Prime Rewards Signature Card that offers users five percent back on everything they buy on the site as well as two percent back at restaurants, gas stations and drugstores, and one percent back on all other purchases.
The new card, which doesn’t carry an annual fee, is only available to Prime members. Prime members who currently use the Amazon Rewards Visa Signature card will be upgraded to the Prime card automatically.
“We are adding even more value to Prime by offering rewards on Amazon and everywhere else you shop,” said Max Bardon, vice president at Amazon, in a statement.
Amazon is coming off a record-setting Christmas. The company accounted for 38 percent of all online revenue over the course of the holidays, according to Slice Intelligence.
Based on data from Kantar Retail ShopperScape (via The Wall Street Journal), only 17 percent of primary household shoppers in the U.S. never shop on Amazon. A recent Business Insider report, citing Bain Capital, estimates that up to 60 million households in the U.S. are now Prime members.
And Amazon has proven successful in retaining Prime members. Ninety-one percent of first year subscribers are likely to renew their memberships for a second year and 96 percent re-up after the second year, according to research conducted by Consumer Intelligence Research Partners.
- Amazon and Chase Introduce New Prime Rewards Visa Card With 5% Back on All Amazon.com Purchases and Rewards Everywhere Else You Shop – Amazon.com
- Two extra shopping days make 2016 the biggest holiday yet – Slice Intelligence
- More low-income people are starting to use Amazon Prime – Business Insider
- Not Everyone Wants to Shop on Amazon – The Wall Street Journal
- Amazon Prime’s retention rates are just sick – RetailWire
DISCUSSION QUESTIONS: Will the addition of the Prime Rewards Signature Card attract more customers to the Amazon membership program? Do you think Amazon will be successful in getting large numbers of Prime members to apply for the new card? What will this mean for its business?