Amazon Prime is considered one of the most successful loyalty programs in retail history. While many believe the success of Amazon Prime revolves around free shipping, it is really the removal of friction and focus on experience that sets it apart. Banking can learn from Amazon Prime. There is no denying the explosive growth and competitive impact of Amazon to the retail industry. For their retail business, the foundation of this success is named Amazon Prime.
Digital technology is expanding the impact of online commerce far beyond just the retail industry. As the lines between retail and banking blur, financial marketers need to respond to consumers' expectations and become part of their overall digital lifestyle. Subscribe to The Financial Brand via email for FREE!The buying process and demands of the banking consumer are being impacted more than ever by forces outside of financial services. While smaller fintech competitors are combining the power of data, analytics and digital technology to build more personalized experiences in banking, large non-banking players like Amazon, Facebook, Walmart, Apple and Google are impacting every aspect of the how a consumer manages their daily life. As brands find new ways to engage consumers beyond traditional commerce interactions, consumers are beginning to embrace new technologies like voice-activated devices, purchasing from search results, and using mobile devices for all stages of the buying process.
Amazon has become a central part of the retail establishment by mastering the concepts of'knowing the customer' and flawless delivery. What are the opportunities for banking to do the same? How many stores does Amazon have? Do you have a favorite employee at Amazon who knows you and who is friendlier than the competition? When was the last time you saw an ad for Amazon?