How Amazon Prime Day and Walmart+ Week Improved Perceived Value for Paid Retail Memberships
Source: Morning Consult Brand Intelligence
圣诞节在7月销售不是什么新鲜事,Amazon Prime Day now sets the schedule for the summer sale season. Last week saw Amazon promoting its Prime membership with discounts for members, while Walmart offered early access to their own sale for Walmart+ members and Target promoted their Circlerewards program, along with myriad sales from other retailers. For Amazon and Walmart specifically, promoting their paid memberships is critical to grow and retain enrollment.
The sales were undoubtedly a success: PerAdobe Analytics, e-commerce sales rose 6.1% across July 11 and July 12. Morning Consult’s high frequency Brand Intelligence data shows that consumers’ perceived value for their paid Amazon and Walmart memberships rose throughout the week as they shopped discounts that felt similar to Black Friday deals. Purchasing consideration for Walmart+ also saw significant growth of 7.6 percentage points, helped along by Walmart’s decision to put the membership itself on sale.
Historically, the impact of these events is short-lived, with value and purchasing consideration trends normalizing once the “new toy” effect wears off and the shipping boxes are recycled. Last year, Amazon introduced a second Prime Day in October, a move the e-commerce behemoth is likely to repeat in 2023.
But the July sales events undoubtedly came at the right time. While consumers had pulled back onspendingearlier in the year as inflation continued to pressure household budgets, spending among high- and middle-income groups was on the upswing at the start of summer.
Additional Morning Consult Audiences data shows that Amazon Prime members tend to be wealthier than the average household (51% earn under $50,000 annually, compared with 58% of all U.S. adults) and are better able to afford impulsive discount shopping that these deals inspire. On the other hand, the income demographics for Walmart+ members generally mirror the U.S. general population.
Claire Tassin is the lead retail & e-commerce analyst on the Industry Intelligence team, where she conducts research, authors analyst notes and advises leaders in the retail & e-commerce industry on how to apply insights to make better business decisions. Before joining Morning Consult, Claire was an analyst at Gartner, where she conducted research on shifting consumer behaviors and expectations, as well as trends and technology relevant to marketing leaders in the retail sector. She graduated from Washington University in St. Louis with a bachelor’s degree in psychology.For speaking opportunities and booking requests, please email[email protected].