THE CLARUS Blog

Why Amazon is Expanding Prime Whole Foods Benefits to More States

Amazon is expanding Prime Whole Foods benefits to more states while dropping its logo from Prime.

The concept of a “set it and forget it” loyalty program never entered the minds of Amazon officials when they launched the enormously popular Prime premium loyalty program in 2005.

The powerful locomotive that is Prime passed the 100 million-member mark in mid-April. One of the big reasons why success shadows this program is because it constantly evolves and continues to offer more appealing, attractive benefits.

 

Prime Whole Foods Benefits Will Expand to 10 More States

Starting on Wednesday, Amazon will offer its new Prime Whole Foods discounts to 10 additional states. These discounts, operated through the Whole Foods Market app, will include 10% on sale items and other special deals for Prime members.

Amazon, which acquired Whole Foods for $13.7 billion last year, will also allow customers to receive savings via the Whole Foods grocery delivery. This is a free service for Prime members via Prime Now for orders above $35. The grocery delivery service is available in 10 cities.

The new discounts are available at Whole Foods stores in Alabama, Arizona, California, Georgia, Hawaii, Mississippi, Oregon, South Carolina, Tennessee, and Washington, along with Arkansas, Colorado, Florida, Idaho, Kansas, Missouri, Louisiana, New Mexico, Nevada, northern California, Oklahoma, Texas, and Utah.

There is an overarching reason that Amazon regularly adds alluring benefits to its Prime program: Prime members spend nearly five time as much as non-Prime members.

After the acquisition of Whole Foods a year ago, the thinking from within the loyalty industry was that if Amazon can move toward nationalizing its lofty Prime-only AmazonFresh delivery ambitions, and lower prices by integrating technology in-store, Amazon could create an enviable shopping experience based on a winning combination of fresh, convenient, and well-priced.

What’s more, if Amazon can figure out a way to integrate crucial Prime-only shopping benefits into Whole Foods, then competitive grocery chains might start to feel the pressure that traditional retail has felt from Amazon over the past decade.

 

Amazon is Well on its Way to Achieving Its Goals with Whole Foods

Here’s an interesting statistic to ponder: Roughly 75 percent of Whole Foods shoppers are  Prime members, but less than 20 percent of Prime members are Whole Foods shoppers.

Amazon officials believe the possibilities are endless as the integration with Whole Foods continues. Whole Foods has begun the process of leveraging the massive volume of new customers via the Prime program.

This new trajectory could place the grocer on a new and more profitable path. Amazon’s gradual entry into grocery has picked up speed since its acquisition of Whole Foods.

Amazon and Whole Foods plan to offer more in-store benefits and lower prices for customers. Over time, the two companies will integrate logistics and point-of-sale and merchandising systems.

Prime has been able to fill the gap between what people expect from these kinds of programs through innovation and technology.

Those key Prime attributes (speed, value, and special treatment) will be evident now in the grocery industry at Whole Foods.

The number of items eligible within Prime’s free two-day shipping offering vastly increased in recent years. They have gone from 20 million to more than 100 million items. The surge of 72 million new Prime members in the past four years speaks to pure value of the program. 

 

Increasing Prime Membership with Whole Foods

Amazon does everything in its power to increase Prime membership.

Prime members already value the program’s free two-day shipping, rich video content, and free photo storage. And now, they can enjoy free two-hour delivery of natural and organic products from Whole Foods Market through Prime Now. Plans are to expand across the U.S. this year.

Members can also now buy Whole Foods’ private label brands, including 365 Everyday Value, Whole Paws, and Whole Catch, through Amazon’s Prime Pantry and Prime Now food delivery programs. Additionally, they can order food items online at Amazon.com and pick them up at an Amazon Locker located at their nearest Whole Foods store.

 

Why is Amazon Dropping Amazon from the Prime Logo?

An interesting phenomenon is happening now also. Amazon has updated its logos for its Prime services and Amazon is no longer in it.

This is a powerful statement from Amazon. It means the Prime program is more than strong enough to stand on its own and positively impact customer behavior. As Amazon dives deeper into Whole Foods (and beyond), Amazon is taking Prime beyond just the Amazon-branded ecosystem.

 

Keeping Prime Members Engaged

Prime, which certainly can stand on its own now, literally, achieves what every other aspiring loyalty program hopes to.

It engages customers in a way that makes them want to become members through offering benefits they desire. These benefits keep them engaged and members become brand advocates.

Simplicity in any loyalty program can never be overlooked. Prime keeps it simple through an engaging value proposition, filled with new and exciting benefits. For members, it keeps getting better and better.

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