Viewpoints on Innovation

Consumer Innovation Shout Out: Amazon Pilots Free Samples Strategy

Strategy Analytics and Decision Support Consumer Goods
Comment

Amazon is piloting a program that sends customers samples, free of charge, based on machine learning using consumer data and purchasing habits. While Amazon is keeping this program relatively quiet, you may find free samples in your next Amazon order that seem conveniently relevant to your life and recent searches. Amazon believes that moving into the samples space will generate more revenue than ads alone by motivating more consumers to point of purchase. The samples strategy is expected to drive sales especially for consumer packaged goods.

In a digital world, there is still something invaluable about the tangible, and Amazon is pushing the boundaries by combining new technology such as machine learning and data analytics with an old strategy of providing consumers with samples.

Even though digital ads make up most of Amazon's 5 billion dollar ad revenue, they are taking a risk and innovating in a different direction than their digital ad competitors such as Google and Facebook. It will be interesting to see how customers perceive the targeted samples strategy, and Amazon has made the smart choice to allow consumers to opt out of the free samples if they are poorly received.

Saluting Amazon for combining old school methods with new technology! I wonder what samples I'll receive?


Like this Blog?

Read more Retail Innovation Shout Out blogs and join the conversation!

Originally published on January 10th, 2019

What's your view? Add your question or comment

Topics: ads, amazon, consumer, consumer behavior, consumer innovation shout out, consumer packaged goods, data analytics, digital ads, facebook, google, hadley bauer, innovation, kalypso, machine learning, methods, online shopping, pilot program, point of purchase, purchase patterns, samples

About the Author

Hadley Bauer

Hadley Bauer

Driven by an entrepreneurial spirit, eye for design, and attention to the latest trends, Hadley has and will continue to develop her passion for service through innovation that proactively adapts to evolving consumer and client expectations.
More Viewpoints by Hadley Bauer

What's Your View?

comments powered by Disqus

Don't miss future posts.
Get Viewpoints Digests delivered right to your inbox.

Subscribe Now Leave me alone