Mark Tepper, EO Cleveland member and president of Strategic Wealth Partners
Ever wonder why companies like Amazon.com and AMC Theaters have subscription-based services and if the profits were worth the member benefits? Mark Tepper of EO Cleveland discusses the hidden financial benefits of subscription-based rewards in his blog post. Learn if your company as a billion dollar business just waiting to be tapped into.
Asking customers to pay to join a special group of your best patrons can increase your revenue, encourage customers to buy new products and services from you, and provide a healthy boost to your cash flow. Just ask Jeff Bezos, the founder of Amazon.com and the chief architect behind Amazon Prime. In exchange for $79 a year, Amazon Prime customers get:
- Free two-day shipping on millions of items
- Unlimited streaming videos and TV shows
- 350,000 books to borrow for free.
It’s a compelling offer, which is why, according to TIME Magazine, more than 10 million people have signed up. If you do the math, that makes Prime close to a billion-dollar business for Amazon. And like most programs, members pay upfront, giving Amazon a big injection of positive cash flow.
Read more at the link.