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Major Project Report 2
Major Project Report 2
ON
CUSTOMER LOYALITY OF AMAZON PRIME
Submitted by-
Lakshay
Chhabra(40722081)
Madhavan
Sharma(40722084)
Nitay batra(40722107)
Pranav Sharma(40722114)
Lokik goel (40722082)
Naveen Kumar(40722104)
Nishant(40722106)
CERTIFICATE
I further certify that the work has been clarified under my supervision and
guidance and to the best of my knowledge no part of this report has been
submitted for the award of any other degree/diploma/Certificate.
Signature
Ms. RACHITA MANGLIK
Asst. Professor, DSEU
ACKNOWLEDGEMENT
B.Com BPM
(2022-2025)
DSEU,vivek vihar
INDEX
CHAPTER PARTICULARS PAGE NO.
Cover Page 1
Certificate 2
Acknowledgement 3
Abstract
Chapter 1 Introduction:
Chapter 7 Recommendations 22
Chapter 8 References 23
Chapter 9 Annexure 24
One way to look at loyalty is in the context of brand. People are loyal to a brand because they
associate it with a positive experience, such as great customer service, feeling connected to brand
values and ideals, or consistently high product quality.
It’s not about an individual product or service – loyalty happens as a result of multiple positive
interactions that build up a feeling of trust over time. It also doesn’t mean that every interaction
has to be perfect. Customer loyalty can withstand a few negatives, although too many will break
down the strength of the connection.
In fact, customers won’t necessarily become disloyal from a poor experience, it’s about how well
the business handles that problem.
Loyal customer not only increases the sale volume of business but also creates new Customers.
To attain customer loyalty, it is very important to satisfy customer with valuable
When business retains the customers, it enjoys two fold benefits.
First, it gives revenue to the business and second, customer retention brings cost reduction
Conclusion:
Amazon Prime has undoubtedly transformed the landscape of digital entertainment and e-
commerce, offering a comprehensive suite of services that cater to the diverse needs of its
members. From streaming exclusive content on Prime
Amazon Prime's objectives regarding customer loyalty are multifaceted and driven by a
combination of personalized services, convenience, emotional connections, and rewards. By
continuously enhancing the customer experience, fostering brand loyalty, and building a thriving
community, Amazon Prime solidifies its position as a market leader in the fiercely competitive e-
commerce landscape. Through its unwavering commitment to customer satisfaction and
retention, Amazon Prime remains a prime example of how a successful loyalty program can
drive long-term customer loyalty and business success.
RESEARCH METHODOLOGY
Research methodology for studying customer loyalty, specifically focusing on Amazon Prime,
would typically involve several key steps. Here is an outline of a research methodology that is
used:
Defining the research objectives: Clearly articulate the goals and objectives of the research. In
this case, the objective is to understand customer loyalty towards Amazon Prime.
Literature review: Conduct a comprehensive review of existing literature and research studies
related to customer loyalty, subscription services, and specifically Amazon Prime. This step
helps in gaining insights from previous studies and identifying research gaps.
Research design: The appropriate research design for the study is experimental designs.
Data collection: For customer loyalty research, survey questionnaires are commonly used. The
questionnaire includes relevant measures of loyalty, such as customer satisfaction, repurchase
intention, and willingness to recommend. Additionally, it also includes questions about specific
features and benefits of Amazon Prime that contribute to loyalty.
Data collection: The data is collected through online surveys, interviews with the current
members of amazon prime and the various reviews given by them.
Interpretation of findings: We interpreted the results obtained from the data analysis in relation to
the research objectives. Identified the key patterns, relationships, and trends in the data. This
report has done a comparison of findings with existing literature and drawn a meaningful
conclusion.
Recommendations and implications: Based on the research findings, the report provides
recommendations to Amazon Prime for improving customer loyalty.
DATA ANALYSIS
Interpretation:
Out of 60 respondents, 30%of the respondents are member since Less than 6 Months, 26.7% are
from 6 Months to 1 Year, 10% are from 1 Year to 2 Year and 33.3% are from More Than 2 Years.
Question 2:-On a scale of 1 to 10, how likely are you to recommend Amazon Prime to a friend or
colleague?
Question 3:- What benefits of Amazon Prime do you find most valuable?
Interpretation:-
Out of 60 respondents almost 70% of the respondents agreed that they had used the additional
services provided by Amazon Prime, such as Prime Video, Prime Music, or Prime Reading. Almost
20% of the respondent denied and 10% were not sure that they have used the additional services
provided by Amazon Prime, such as Prime Video, Prime Music, or Prime Reading.
Question 5:- How satisfied are you with the quality of the additional services provided by Amazon
Prime?
Question 6:- Have you experienced any issues or challenges with your Amazon Prime
membership? If yes, please elaborate.
Interpretation:-
Out of 60 respondents, about 80% of respondents denied about Experiencing any issue or challenge
with their Amazon Prime membership and about 20% agreed to the Question.
Question 7:-How frequently do you use Amazon Prime for making purchases?
Question 8:- How likely are you to renew your Amazon Prime membership when it expires?
Interpretation:-
Out of 60 respondents, 36.7% respondents like to renew their membership of Amazon prime Very
Likely,31.7% respondent Somewhat likely renew their membership, 25% respondent were Neutral,
3.3% Somewhat Unlikely and 3.3% respondent Very Unlikely renew their membership.
Question 9:-Do you feel that the benefits provided by Amazon Prime justify the cost of membership?
Question 10:-One Open ended Question was asked about the improvements Amazon can do to
improve their Customer Membership Experience?
About 90% of respondents gave No, all good and 10% doesn’t replied to the answer.
FINDINGS
1. High Retention Rate: Amazon Prime has shown a high customer retention rate. Once users sign up
for the service, they tend to continue their membership for an extended period.
2. Increased Purchase Frequency: Amazon Prime members tend to shop more frequently on the
platform compared to non-Prime members. The access to free and fast shipping, along with other
exclusive benefits, encourages customers to make more purchases.
3. Larger Average Order Value: Prime members often spend more on each order compared to non-Prime
members, partly due to their willingness to take advantage of the free shipping and other benefits, and
also because they tend to be more engaged with Amazon's services.
4. Enhanced Customer Experience: Amazon Prime offers various features that improve the overall
customer experience, such as one-day or two-day delivery, streaming services (Prime Video and Music),
access to exclusive deals during Prime Day, and more. These benefits contribute to increased customer
satisfaction and loyalty.
5. Member Perks: Amazon continually adds new perks and benefits to the Prime membership,
expanding its value proposition and keeping members engaged and loyal. This includes services like
Amazon Fresh, Prime Wardrobe, Prime Reading, and more.
6. Higher Subscription Renewal Rates: Prime members often renew their subscription year after year,
showcasing the service's appeal and value.
7. Cross-Selling Opportunities: Amazon leverages its Prime membership base to cross-sell and upsell
other services and products, further enhancing customer loyalty and the overall ecosystem.
8. Positive Word of Mouth: Satisfied Prime members are more likely to recommend the service to
friends and family, contributing to organic growth through positive word-of-mouth marketing.
It's important to note that specific data and metrics related to Amazon Prime's customer loyalty may
have evolved since my last update in September 2021. To get the most current findings, you would need
to refer to up-to-date sources or conduct your research.
Conclusion
In this study, our research objective was to examine customer loyalty in relation to Amazon
Prime. We employed a research methodology that involved conducting a survey with a
questionnaire. The survey was designed to gather information from Amazon Prime members
regarding their attitudes, behaviors, and experiences with the service, ultimately providing
insights into customer loyalty.
Based on the analysis of the survey responses, it can be concluded that Amazon Prime has a
significant impact on customer loyalty. The majority of respondents expressed high levels of
satisfaction with the service and demonstrated strong loyalty towards Amazon Prime. This
loyalty was evident in their continued subscription, frequent usage of the service, and positive
word-of-mouth recommendations to others.
Furthermore, the survey results indicated that several factors contribute to customer loyalty
towards Amazon Prime. The most prominent factors were the convenience and speed of
delivery, the wide selection of products, and the additional benefits such as access to Prime
Video and Prime Music. These features not only enhance the overall customer experience but
also create a sense of value and exclusivity for Amazon Prime members.
Additionally, the survey revealed that customer service plays a crucial role in fostering customer
loyalty. Respondents who had positive experiences with Amazon's customer service were more
likely to exhibit higher levels of loyalty. This suggests that responsive and efficient customer
support contributes to building trust and strengthening the bond between customers and the
company.
In conclusion, our research findings support the notion that Amazon Prime cultivates customer
loyalty. The convenience, extensive product range, added benefits, and exceptional customer
service provided by Amazon Prime contribute to a positive customer experience and foster a
strong sense of loyalty among members. This study highlights the importance of understanding
customer preferences and delivering exceptional value to maintain and enhance customer loyalty
in the highly competitive e-commerce market.
Recommendations to Enhance Amazon Prime Customer Loyalty
According to the questionnaire the some of the responses are neutral but major of the responses
are in the positive side. But the team of amazon prime has to do some work on it to make it far
better. Amazon Prime has already established itself as a dominant player in the e-commerce and
subscription service industry. However, there is always room for improvement. To further
enhance customer loyalty and maintain a competitive edge, Amazon Prime can consider
implementing the following recommendations:
Gamification of Loyalty Program:
Introduce gamification elements to the Amazon Prime loyalty program. For example, customers
could earn points or badges for completing specific actions, such as writing reviews, referring
friends, or engaging with exclusive content. These gamified experiences create a sense of
achievement and fun, incentivizing customers to remain active within the loyalty program.
Continuous Innovation:
Stay ahead of the competition by continuously innovating and introducing new benefits and
features. Regularly assess customer feedback and preferences to identify areas where the loyalty
program can be improved and enhanced.
Oracle – https://www.oracle.com/in/cx/marketing/customer-loyalty
Business news daily - https://www.businessnewsdaily.com/16017-build-customer-loyalty
Hubspot blog - https://blog.hubspot.com/service/customer-loyalty
Send pulse - https://sendpulse.com/support/glossary/customer-loyalty
Wordstream - https://www.wordstream.com/blog/ws/2016/11/10/customer-loyalty
Qualtrics - https://www.qualtrics.com/au/experience-management/customer/customer-loyalty/
Business - https://www.business.com/articles/what-makes-customer-loyalty
Zendesk - https://www.zendesk.com/blog/customer-loyalty/
Hitachi - https://global.hitachi-solutions.com/blog/customer-loyalty-solutions
Annex cloud - https://www.googleadservices.com
ANNEXURE
2. On a scale of 1 to 10, how likely are you to recommend Amazon Prime to a friend or
colleague?
3. What benefits of Amazon Prime do you find most valuable? (Select all that apply)
4. Have you used any of the additional services provided by Amazon Prime, such as Prime
Video, Prime Music, or Prime Reading?
5. How satisfied are you with the quality of the additional services provided by Amazon Prime
6. Have you experienced any issues or challenges with your Amazon Prime membership? If yes,
please elaborate.
8. How likely are you to renew your Amazon Prime membership when it expires?
9. Do you feel that the benefits provided by Amazon Prime justify the cost of membership?
10. Is there anything Amazon Prime could do to improve your experience as a member?