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Can Corporate Culture Derail Customer Loyalty Efforts?

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Can Corporate Culture Derail Customer Loyalty Efforts?
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Amazon Prime has received high praise from many analysts and industry observers. One Businessweek article singled out the program by saying  “Amazon Prime may be the most ingenious and effective customer loyalty program in all of e-commerce, if not retail in general”. You can read more hyperbole here, though its hard to top that quote.

The results derived by Amazon from the program are phenomenal and you’ll find a summary list here. From my own review, I was impressed by this short list of positive outcomes from the program:

  • Annual Prime member spend of $1,515 is 4.9X non-Prime members @ $307.80
  • 92% of members surveyed plan to renew their membership
  • Every 1 million new Amazon Prime members adds 1.5% to total revenue

Amazon has a long runway to enjoy as it further penetrates its customer base with Prime. Even though member growth has been 250% between 2009 – 2011 and membership stands about 5 Million persons today, the penetration of the member base is still only 4%.

With all the good that can be said about Prime, I’ve read several articles documenting the Amazon corporate culture which paint a different picture of Amazon from the inside-out. I also came across a compelling and well-crafted infographic from MBAOnline which summarizes the Amazon culture. Thanks to Emma Brown for allowing me to publish it here below.

What do you think? Can a corporate culture which does not promote key elements of employee loyalty including work-life balance and even passable work conditions interfere with creation of long-term customer loyalty?

Have a look at the graphic below and let me know your opinion. Many thanks again to MBAOnline for allowing use of this graphic.

Amazon MBA: Big, Cheap & Out of Control
Created by: MBAOnline.com

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