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Amazon Case Deck

The document analyzes Amazon's Shopper Panel program. It provides background on the program, which rewards participants with $10 Amazon credit or charity donations for sharing purchase data. It assesses that the program generates ad revenue and customer insights successfully. However, increasing customer data concerns and potential regulation pose threats. It recommends spending 10% of ad budget to advertise the program as mutually beneficial and removing invite-only restrictions to collect more data. Risks include people gaming the system, and uncertainties include public and government responses, and potential competitive actions.

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245 views9 pages

Amazon Case Deck

The document analyzes Amazon's Shopper Panel program. It provides background on the program, which rewards participants with $10 Amazon credit or charity donations for sharing purchase data. It assesses that the program generates ad revenue and customer insights successfully. However, increasing customer data concerns and potential regulation pose threats. It recommends spending 10% of ad budget to advertise the program as mutually beneficial and removing invite-only restrictions to collect more data. Risks include people gaming the system, and uncertainties include public and government responses, and potential competitive actions.

Uploaded by

CPT America
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Amazon Shopper

Panel
472274 Analysis
Press the Button
Agenda
Background.
Assessment.
Recommendations.
Risks.
Assumptions.
Uncertainties.
What is the Shopper Panel?
“The Amazon Shopper Panel is an opt-in, invitation-only
program where participants can earn monthly rewards”
($10 amazon credit or $10 to one of ten eligible charities.)
“Your participation will help brands offer better products
and make Amazon ads more relevant.”
But, Controversy?
does it work?
Of Course it
Does.
Assessment of Current Situation
• Clearly this is a successful system for generating
advertising revenue and helping us understand what our
customers want.
• Consumers increasing discomfort with the amount of
data that companies are collecting about them and
possible regulation from Washington presents a threat to
our Shopper Panel
• We must market Shopper Panel in such a way that our
customers (and the Government) know that we are using
data in fair, transparent, and consensual way that
benefits all parties.
Recommendations
Recommendation: Spend 10% of Current Advertising budget to Advertise the Shopper Panel.
Relentlessly message that the program is a “Win, Win, Win!”
For our Brands
For Customers
For their Privacy
Basis: This is a revolution in Data Analytics and Consumer Privacy and should be advertised as such, once consumers
are educated about this, they are more likely to participate and the government is less likely to shut it down.
Recommendation: Remove “Invite Only” Restrictions.
Basis: The more data we can collect, the better.
For both our advertising revenues and our knowledge of consumer spending habits.
$10 Dollars a month per shopper for this data is a small price to pay for this kind of market research and ad revenue*
Risks/Assumptions
Assumptions: a max of 10% of the 112 Million American Amazon
Shoppers use this program, that only puts our spending on this at
about $1.3 Billion, a mere fraction of our $22 Billion Market Research
budget (2020)

Risks: Gaming the System. To mitigate this safeguards would need to


be implemented to ensure one household gets one “credit” per
month to avoid people “gaming the system.”
Uncertainties
How Should we answer these questions?
How will the public respond to our Answers?
Will any amount of advertising, messaging, or compensation be
enough for customers to willingly hand over their data?
It depends on how persuasively we message the Shopper Panel as a
mutually beneficial arrangement.
*ADDITIONALLY*
Will the government impose regulations that inhibit us from pursuing this market research
strategy?
Is it worth lobbying to prevent this?
*Finally*
Could competitors inhibit the ability of customers to print/upload their receipts? Is there a better
way for us to record this information?

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