Amazon launches Moments physical rewards program

Posted by Edith MacLeod on 19 Feb, 2019
View comments Marketing
Marketers will be able to give physical and digital rewards to users on completion of desired actions.

Amazon Moments reward.

Amazon’s new Moments program, which has been launched in 100 countries, allows developers to reward users by offering tailored physical or digital gifts for carrying out actions it wants them to perform. The gifts are delivered by Amazon, removing the burden of storage and shipping from marketers.

Desired actions, or “Moments”, can range from resubscribing or signing up for services, to very specific targets.  Amazon gave the example of a fitness app incentivizing the completion of 30 workouts if they knew that users completing this task were more likely to continue using the app and make a certain spend over a certain period.

How does it work?

Marketers use a self-service console to define the action they want users to carry out on their app or website, and then choose a reward which will be delivered once the desired action is completed.

Pricing is based on a cost-per-action (CPA) model, so payment is only made when users complete the required action.

Amazon Moments process.

The flexible CPA pricing model means you can set costs which won’t exceed your customer lifetime value.

“For example, if keeping an active payer engaged is worth $50, you can set a high-value action and offer $40 headphone sets with a comfortable margin of error. In addition, customer targeting allows you to tailor rewards to the LTV of each user segment. You could offer a $5 reward to new users, a $25 reward to active payers, and a $200 reward to top spenders.”

Source: Amazon Appstore Blog

Amazon says the Moments cross platform solution has lightweight integration and was created to be “a simple add-on to your existing retention mechanisms”.

As well as digital rewards such as gift vouchers or virtual currencies, physical gifts can be chosen from a catalogue of “millions of products including some of Amazon's most popular items”.

The fact that the companies offering rewards have the delivery and fulfilment side taken care of makes it a much easier proposition, with Amazon’s established global delivery doing the heavy lifting. For Amazon, it maximises use of its existing infrastructure and opens up further opportunities to sell items from its marketplace.

Early users

Testers of the service included The Washington Post, TikTok and Sony Crackle. Amazon said Moments had proved very effective with early users:

“When using Moments, apps across industries have seen improvements in engagement — in gaming, one developer increased their percentage of first time payers by 20x. A streaming video service offered $10 worth of physical rewards and doubled the likelihood of winning back a subscriber.”

Source: Amazon Appstore Blog

Sesame Workshop offered a digital ebook to users signing up for their IAP offers, which Lili Lampasona, Senior Director, Business Development, said had increased net revenue by 16%.

For more details of the scheme including how to sign up, see Amazon's Moments site .

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