Amazon Prime and Walmart+ Membership Stickiness
One of Amazon Prime’s great strengths is the loyalty of its members. Once someone subscribes, they tend to stay for a long time. As it turns out, Walmart+ has begun to enjoy significant loyalty, too.
Recently we looked at basic membership and penetration rates for Amazon Prime and compared this to Walmart+. We showed that although it remains much smaller than Amazon Prime, Walmart+ continues to grow. In this report we look at a key measure of loyalty, the intent of a member to renew their membership.
CIRP generally surveys customers about recent actual behaviors, rather than asking for speculation about planned purchases. This analysis is an exception. We ask Amazon Prime and Walmart+ members about their intent to renew their membership. We derive the figures from separate quarterly surveys of recent Amazon and Walmart.com customers.
Since we started our Amazon research, Amazon has had consistently high renewal intent rates. For the latest twelve-month period, an incredible 97% of US Amazon Prime members indicated they either “definitely” or “probably” will renew their membership, with four out of five of them saying they will “definitely” renew (Chart 1). This rate is roughly consistent with that from three years ago, when Walmart+ was introduced and we started surveying recent Walmart.com customers.