On the news that Amazon’s Neil Lindsay, who had been senior vice president of Prime and marketing, will now lead the eCommerce titan’s Amazon Care health unit, it’s worth considering how his experiences running Prime may inform and shape the company’s future healthcare offerings.
Keep in mind that the original concept behind Amazon Prime is a subscription-based ecosystem that members never need to leave, giving access to a massive marketplace of retail products with free shipping, along with streaming video and music, exclusive deals and other benefits.
PYMNTS reported that “In his new role with Amazon Care he will be responsible for leading the company’s combined healthcare undertakings — telehealth, pharmacy, and diagnostics,” adding that “Lindsay will also continue supporting Amazon’s global brand and marketing campaigns.”
Developments over the course of the pandemic gave a glimpse at how Amazon may bring its subscription model into play with healthcare. In August 2020 the company introduced its Halo wrist-worn health and wellness monitor, initially priced at $64.99 for a six-month membership.
CNET recently reported that “Amazon has rounded out its Halo membership service with its own workout videos in addition to options from partners like Orangetheory Fitness, and it’s adding a nutrition service in early 2022.”
Given the buying behavior of Prime members it’s a certainty that Amazon wants Lindsay to bring some of that dynamic to its healthcare initiatives.
As news site Quartz reported, “Amazon doesn’t provide detailed data on Prime members, but … Bank of America released a note to investment clients looking at the effect Covid-19 has had on US e-commerce and the use of Prime. In a survey of US shoppers, it found Prime members spent $1,968 per year on Amazon on average, roughly four times as much as the non-Prime shoppers surveyed.”
How that effect translates to Amazon Health will be a closely watched as healthcare becomes the latest line extension of large retail brands from Best Buy to Walmart.
In October, Anthony Chukumba, managing director/senior research analyst at Loop Capital Markets, told CNBC that “he sees $72 billion of potential for Amazon through continued health-care expansion.”
See also: Amazon Moves Prime Marketing Head to Lead Healthcare Efforts
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