Amazon, the world's largest online retailer, has just offered me a credit card. And they did it right...Amazon recognizes that banking is a companion activity. It's something we do in support of something else. In this case, some retail therapy on my part.
And it was offered to me right in the Amazon Check-out experience, along with a $70 discount on the purchase I was about to make along with discounts on future Amazon purchases. Now that's a compelling offer delivered at the right time and in the right place.
And with $75bn in 2013 sales (and growing in 2014), I expect the Card divisions of Chase (the bank behind the Amazon card) is on to a winner. Think about it...
- Amazon sells just about everything. And it is a retail juggernaut
- Amazon has approximately 250m customers...similar to the entire adult population of the US.
- Millions of customers are willing to pay $99 a year for an Amazon Prime Membership with 2 day delivery and Amazon are looking for ways to achieve same day delivery with drones
- Beyond Amazon.com, there's fresh food delivery and diapers
Founder and CEO Jeff Bezos has a relentless focus on Customer Experience - he wants customers to be able to find WHAT THEY WANT every time they browse Amazon and THE LOWEST PRICE available anywhere to ensure they buy from Amazon if they're going to buy.
NOW - with the added benefit of offering an Amazon credit card that provides a 3% discount on all Amazon.com purchases. Along with 2% off at gas stations, restaurants and drug stores and 1% off all other purchases.
Everyone knows Amazon has an incredible track record for effectively using customer data in marketing relevant products and services. It would be interesting to understand if they get data on the non-Amazon purchases made on the card to better understand
their customer's buying behavior.
I don't want a credit card - I want to buy stuff. I think Amazon and Chase have recognized this.
(Note - the comments relating to this post were based on a previous version of this post where I incorrectly thought the Amazon card was "new").