Amazon Echo users are very loyal and spend more

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Part of Amazon’s strategy over the years has been to tie in consumers ever more closely to the marketplace and other offerings so they shop more. That’s certainly been the approach with Amazon Prime. But it seems that Amazon Echo users are even more loyal and spend more. This is according to Consumer Intelligence Research Partners, (CIRP).

They say that Amazon Prime members spend 27% more than the average shopper but astonishingly Amazon Echo owners spend 66% more than the average, making them even more valuable.

Taking a closer look at the the numbers, CIRP say it believes that in the US, the average annual spending at Amazon.com for Amazon Prime members is approximately $1,300; the average annual spending for Amazon Echo owners is approximately $1,700. Overall, all US Amazon customers spend approximately $1,000 annually. The numbers are true of September 2017

CIRP cofounder Mike Levin said, “Of course, it’s early in the game, for the smart speaker market and therefore for this analysis. Still, we base this analysis on the past 12 months of solid customer survey data, and an unmistakable trend has started to emerge, that Amazon creates products and services that seek to promote retail shopping and deeper affiliation at Amazon.com. Amazon probably wants the Echo device family to stand on its own as a consumer electronics line, while supporting the greater mission of succeeding as an online retailer.”

One aspect of these finding suggest that Amazon could be further subsidising Echo prices to tie users in more closely to spend more and stay loyal.

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