How Amazon increased their annual revenue by £660 million… and how you can do the same!

There is no doubt Amazon are a tech giant, leading the way in all areas.

From a company that started off just selling books online to smart technology, a music streaming platform and a next day delivery service. Amazon has touched our lives in so many ways.

Last month, Amazon announced a price increase to Amazon Music users;

  • Amazon Music Single-Device Plan: increasing from £3.99 per month to £4.99 per month
  • Amazon Music Unlimited Individual Plan: increasing from £7.99 to £8.99 per month, and £79 per year to £89 per year

This small price increase of £1.00 per month has added an additional £55 Million to their monthly revenue, £660 Million annually. They communicated this to their customers via a single email; with a promise to bring new content and features;

Sure, some customers may cancel the service deeming the £1.00 price increase as ‘too expensive’ but most people will continue to pay – probably ignoring the email and only noticing it on the payment date… or maybe not even noticing it at all!

How can you do the same?

As a Telecoms, MSP or Print company, like Amazon, you have a loyal customer base currently paying you for monthly services via Direct Debit. Candio can help you implement a price increase whilst delivering new content & features.

Candio have created a range of popular products for SME businesses.

Take our service Website Optimiser; we can work with you to deliver this to all your customer base for an additional RRP of £9.99 as an opt-out product. So, unlike Amazon, you can give your customer the opportunity to cancel the service if they don’t think they will receive benefits from the service.

Candio will even provide a free trial to all your customers giving them the opportunity to even use the product before being charged.

Based on current partner success we know that if, like Amazon, you implement Website Optimiser via a price increase – 70% of customers will still be paying for the service after 12 months. So, like Amazon, if you have a thousand customers you’ll add an additional £83,000 to your annual revenue.

50% of which is gross profit.

If you’d like to learn more about becoming a Candio partner and increasing your recurring revenue, click here to arrange a meeting with our BDM, Tom Chedham.

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