Instead of having to set up a rewards program in-house, Moments allows brands to leverage Amazon’s product selection and fulfillment reach to offer rewards.
Bottom line is this: The more engaged and invested customers feel invested in a brand and its rewards program, the more likely they are to make purchases and interact with the brand — and share it with their family and friends.  
Amazon Moments has come along at a time when more and more brands are striving to differentiate their rewards programs. Customer loyalty programs are incredibly common. In a survey conducted among consumers in the United States gauging their use of loyalty programs, it was found that in 2022, U.S. consumers belonged to 16.6 loyalty programs.

What is Amazon Moments?

Amazon Moments offers a lightweight API that developers can integrate with their app or website. When a user completes the desired action, the Moments API provides them with a reward URL to redeem their prize through Amazon.
For physical rewards, Amazon handles fulfillment from their warehouses. Rewards must be products or digital downloads already available for purchase on Amazon.
Infographic depicting how Amazon Moments work
An estimated .1 billion in redeemed loyalty points are deemed to be fraudulent, according to the Loyalty Security Association.
When customers complete a certain action on a brand’s app or website, Amazon delivers tailored rewards to those customers on behalf of the brand. Amazon Moments can be implemented on iOS, Android, FireOS (the proprietary operating system for Amazon’s Kindle Fire devices), and web.

How Does Amazon Moments Work?

Amir Kabbara, Head of Amazon Moments (Source)

How Much Does Amazon Moments Cost?

According to Amazon, Moments has increased engagement for a variety of apps, including a 20x increase in the percentage of first-time payers.
Regardless of the reward program you choose, you should always be focused on driving performance and meeting your KPIs. According to Amazon, “Prioritize metrics important to your business goals. Examples include increase payer conversion rate, increase retention, or increase participation in an event.”
Moments uses a cost-per-action (CPA) pricing model, allowing brands of all sizes to scale their rewards programs through Moments based on their budget.
In an effort to minimize abuse and fraud in these rewards programs, Amazon also claims that they have designed the tool to detect users who try to “game the system” for reward URLs.

3 Benefits of Using Amazon Moments

According to Amazon, customers convert better when a complete reward versus a discount is given. For example, customers prefer receiving a free shirt rather than off a shirt that is valued . Items such as electronics or toys are quite popular these days but ultimately it is recommended to run A/B tests to figure out which prize is right for your audience.

1. Encourage desirable customer behaviors

Tools like Amazon Moments and, a platform that helps brands build out and automate customer reward programs and brand communities, are helping brands create these rewards experiences without having to start from scratch.
Brands have to work harder than ever to stand out, increase customer retention, and build loyalty.

2. Simplify your loyalty programs

Ideally, these brands will be coming out ahead in the long-run; the rewarded actions should be those that will encourage future engagement and conversions from users and their friends.
But while it’s expensive to retain customers, it’s even more expensive to lose them — it costs 5x more to acquire a new customer as it does to retain an existing one.

One example? Amazon Moments. Here’s what you should know about this new offering from the ecommerce giant.

Oftentimes, these efforts go beyond the function of a typical ecommerce marketplace, as Amazon strives to be a leader in several different spaces, from media and marketing to shipping.
It is recommended that sellers select a CPA that is less than the lifetime value (LTV) of the customer segment. For example, if a lapsed payer is worth 0, you should set a CPA at .

3. Protect against loyalty program abuse

It’s also worth noting that building a rewards program from the ground up can be cost-prohibitive, especially for smaller brands. According to reports, the Loyalty Programs Market in the U.S. will increase from 6,639 million in 2021 to reach ,5907 million by 2026.
“All the rewards that are part of the program are distributed through Amazon without the marketer having to worry about sourcing or the fulfillment of the rewards. Marketers only pay when they drive actions for their business.”

Best Practices When Choosing Amazon Moments Rewards

Choose appropriate awards

Don’t make any assumptions when it comes to knowing what your customers want and / or value. Let the data lead you! By running A/B tests on your chosen award, brands can figure out if their customers prefer a physical item as a reward versus a gift card.

Keep expense in mind

Brands and apps no longer have to be the middleman when providing rewards and gifts to their customers and users. Amazon’s global footprint allows brands to reward customers in over 100 countries.
Amazon also provides additional suggestions based on the seller’s objective, for example:

  • If you are driving payer conversion, Amazon recommends setting a CPA that is 25% of the LTV.
  • If you are driving engagement, Amazon recommends setting a CPA of $10 or greater.
  • If you are driving new installs, Amazon recommends setting a CPA of $3 to $5.

Use time limits to invoke a sense of urgency

 Portrait of Amir Kabbara

A/B test your chosen award

Amazon Moments can be helpful to retail brands for a variety of reasons. We’ve narrowed it down to the top 3 below:

Ensure your reward is driving ROI

In most cases, we want to make the shoppers experience as seamless and stress-free as possible but in an effort to increase engagement there are certain times when it is useful to invoke a sense of urgency. For example, by providing a “limited time events”, users are encouraged to take action on a select opportunity before it runs out.

Conclusion: Amazon Moments Takes Customer Loyalty Programs to the Next Level

Amazon Moments is a marketing tool created by Amazon to allow brands to deliver physical and digital rewards to customers.
Moments enables brands to reward customers when they perform a commercially valuable action in an app or on a website, such as renewing a subscription or referring a new user.
Many brands offer the entire rewards program through a branded app, requiring that customers download the app, scan it in stores, and even make purchases through the app in exchange for points.
Amazon is always looking for new ways to engage customers and brands alike, as they have with recent initiatives like Amazon Live and Amazon Scout.
Illustration depicting Amazon Moments rewards

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