Tips and Practices from the Field – Prime!

By David McMahon

I’m sure you all know how the biggest and fastest-growing retailer in the universe, Amazon, generates recurring revenue from its customers, right? Amazon Prime. I bet at least half you reading this right now are Amazon Prime members. Yes, we Prime members are amongst Amazon’s best retail customers, and for that we get priority shipping, free books and on-demand videos and music. It’s easy – and it’s free.

Wait … it’s not free. But it is worth every penny.

So, why can’t other retailers offer a Prime service of their own? Actually, they can – and they are as the Prime membership model grows in popularity. Retailers of every kind are beginning to offer the same type of services provided by Amazon, and you can too. Here are a few ideas to help you get those mental juices stirring:

  • Come up with a polished, annual (12-month) subscription called: *Your Name Here* PRIME
  • Decide on exactly what your Prime program will offer members (unlimited deliveries, two sofa or bed pillows per year with purchase, buy one, get one 50% off card)
  • Decide on your 12-month subscription rate (ex: if deliveries are normally $99, charge $250)
  • Add the program into your selling system and train sales people on how to properly present and sell it

As you can see, this is mostly a play on increasing delivery fees, right? Well, not really – it is actually much more than that. I’m sure you’re sitting there reading this thinking to yourself, “Who in their right mind would pay $250 for delivery when they could pay $99?”

You might be surprised.

In reality, this is actually a loyalty program in disguise. Say someone is furnishing their whole house or thinking of doing a project in phases – this type of Prime membership would be a perfect fit, and the best part about it is that people pay to join, which means they’re serious.

People shop around, and if they’re looking at you, you can bet they’re also looking at your competitors. Give customers an extra reason to come back and shop with you first by offering them benefits they can’t resist. Be creative – come up with a Prime program of your own and start rewarding your loyal customers, both past and present.

David McMahon, is VP of Consulting and Performance Groups at HighJump. He works in the field improving all aspects of businesses like yours through consulting, speaking and performance group engagements. He can be reached at

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