BACK TO ALL NEWS & INSIGHTSAfter analyzing shipping options offered by the top 10 ecommerce stores, Jitsu discovered that 50% of the brands offer paid customer membership programs similar to Amazon Prime.
Brand marketers and customer experience leaders know that a deeply loyal customer base can have a tremendous impact on their long-term ecommerce goals. But what exactly does it take to build a loyal customer base in today’s highly competitive ecommerce landscape—and how does the delivery experience play into a brand’s customer loyalty goals?
As a leading last-mile delivery provider, Jitsu wanted to better understand the connection between customer loyalty trends and the delivery experience—especially after a recent report, created in collaboration with Coresight Research, revealed two-day or faster delivery options are correlated with a nearly 9% increase in repeat purchases.
To get a better handle on what the top ecommerce brands are doing to build loyalty among their customer base, Jitsu analyzed delivery options for the top 10 U.S. ecommerce stores. According to the research, 5 of the top 10 ecommerce brands in the U.S. currently offer paid customer loyalty programs. The throughline for each of these paid programs: Faster delivery options positioned as a key perk.
Here’s a quick snapshot of what that looks like:
- Amazon’s Prime membership priced at $139/year unlocks Amazon’s famous fast and free shipping options.
- Walmart+ membership is priced at $98/year and includes free shipping with no order minimum.
- Target Circle 360 members pay $99/year and get access to unlimited same-day delivery for orders $35+.
- My Best Buy Membership offers three different price tiers. The free option unlocks free standard shipping and the My Best Buy Plus membership unlocks free 2-day shipping at $49.99/year.
- Kroger’s Boost Membership starts at $59/year and offers free delivery on orders of $35 or more for next day deliveries.
While Amazon Prime has been around for nearly two decades (the company first launched its Amazon Prime paid membership program in 2005), the four remaining retail brands all rolled out their membership programs in the last four years: Walmart+ launched in 2020, Kroger Boost Memberships in 2022, My Best Buy program in 2023, and the Target Circle 360 program was announced this year.
Jitsu knows firsthand that delivery times and delivery fees are crucial to the online shopping experience: Customers want fast shipping times and they don’t want to pay extra for expedited delivery services. The research revealed not only do faster delivery times drive repeat purchases, offering faster delivery options is also associated with a 10.5% increase in conversion rates. It’s no surprise the ecommerce space is witnessing an emerging trend that includes retailers cleverly packaging paid membership programs similar to the Amazon Prime model. These paid membership programs enable brands to unlock the fast and free shipping options customers want, while driving new subscription revenue streams that offset the cost of last-mile delivery.
The good news is that brands have more options available to them when they partner with a last-mile delivery provider like Jitsu. Not only is Jitsu able to achieve a 99%+ on-time delivery rate, it provides a superior doorstep delivery experience at a competitive cost. Jitsu’s sustainable delivery processes—powered by cutting-edge, proprietary batching technology helps ecommerce brands fortify long-term customer relationships and drive greater customer lifetime value (CLV).
If you’re curious how Jitsu can help your brand increase customer loyalty through an exceptional last-mile delivery experience, schedule a call to speak with one of our logistics experts today!