Martech: Martech is Marketing Logo
  • Topics
    Digital Transformation
    Marketing Operations
    Data
    Customer & Digital Experience
    Performance Marketing
    Marketing Management
    Special Reports
    MarTech Topics
  • Conference
  • Webinars
  • Intelligence Reports
  • White Papers
  • What is MarTech
    Mission
    Staff
    Newsletter
    Search Engine Land
    Third Door Media

Processing...Please wait.

MarTech » Performance Marketing » Amazon to give Prime customers free access to paid Alexa skills content

Amazon to give Prime customers free access to paid Alexa skills content

Company continues to expand Prime benefits; intent to renew about 75 percent.

Greg Sterling on October 26, 2017 at 11:30 am

Jeramey Lende / Shutterstock.com

Amazon continues to expand the benefits of its Prime membership as an acquisition and customer retention tool. Prime has become a critical program for the company, now covering more than 60 percent of US Amazon shoppers, who spend almost twice as much annually as non-Prime members do.

In addition to the principal benefit of free two-day shipping, there’s a growing list of free content available to Prime members, including access to Amazon’s streaming video service. The newest (or emerging) Prime benefit appears to be access to some premium content within Alexa skills, according to a TechCrunch report.

The company is starting to allow developers to implement a freemium model as a way to monetize skills. Previously, it shut down a third-party advertising effort from VoiceLabs in the form of “sponsored messages.”

Premium content with access for Prime members will help developers make money, which is critical for the health of the ecosystem. It will also potentially help (at the margins) with Prime member acquisition/retention.

A recent survey from Lendedu argues that Prime member retention is solid, but perhaps not as high as we might have assumed. The company asked 1,000 current Prime members a number of questions about the service, including whether they intended to renew. Roughly three-quarters said yes.

However, about 28 percent questioned the value of Prime or were unsure whether it was worth it.

The survey also asked about Prime members’ price sensitivity. At current price levels ($99), about 77 percent said they would probably renew (there’s some inconsistency in the responses). At higher price levels, $150 and above, willingness to renew dropped dramatically.

Only 33 percent said they would renew at $150. Intent to renew dropped to 15 percent or below at higher price points. If this survey is representative of the larger Prime subscriber audience, it appears that Amazon has little room to raise prices.


Opinions expressed in this article are those of the guest author and not necessarily MarTech. Staff authors are listed here.


New on MarTech

    Processes, visibility and optimization: The keys to digital marketing transformation
    Webinar: Grow revenue streams through web accessibility and compliance
    How to turn the great buyer resignation into B2B career opportunities
    HubSpot customers paying 12% more than in 2021
    Closing your team’s technical gap without hiring

About The Author

Greg Sterling
Greg Sterling is a Contributing Editor to Search Engine Land, a member of the programming team for SMX events and the VP, Market Insights at Uberall.

Related Topics

Performance Marketing

Get the daily newsletter digital marketers rely on.

Processing...Please wait.

See terms.

ATTEND OUR EVENTS The MarTech Conference logo.

September 28-29, 2022: Fall

Start Training Now: Master Classes

Start Discovering Now: Spring



The SMX Conference logo.

Start Training Now:: SMX Advanced

November 14-15, 2022: SMX Next

March 8-9, 2022: Master Classes

Webinars

Agencies: Grow Revenue Streams Through Web Accessibility & Compliance

Protect Your Paid Advertising Spend Against Ad Fraud and Invalid Traffic

Build an Integrated Search Strategy Across Google, Amazon and YouTube

See More Webinars
Intelligence Reports

Enterprise SEO Platforms: A Marketer’s Guide

Enterprise Identity Resolution Platforms

Email Marketing Platforms: A Marketer’s Guide

See More Intelligence Reports
Featured White Paper

Digital Marketing Strategy Ebook

See More Whitepapers

Receive daily marketing news & analysis.

Processing...Please wait.

Topics

  • Transformation
  • Operations
  • Data
  • Experience
  • Performance
  • Management
  • All Topics
  • Home

Our Events

  • MarTech
  • Search Marketing Expo - SMX

About

  • What is MarTech
  • Contact
  • Privacy
  • Terms Of Use
  • Marketing Opportunities
  • Staff

Follow Us

  • Facebook
  • Twitter
  • LinkedIn
  • Newsletters
  • RSS

© 2022 Third Door Media, Inc. All rights reserved.