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Amazon improves the overall food experience



<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "It's been two years since Amazon (NASDAQ: AMZN) announced its acquisition of Whole Foods. Since the arrival of Amazon, many changes have occurred in the high-end grocery chain, including integration with Amazon Prime for special discounts and online orders. Amazon has also installed lockers in Whole Foods stores to allow customers to take orders online in its market. "Data-reactid =" 11 "> Two years have passed since. Amazon (NASDAQ: AMZN) announced its acquisition of Whole Foods. Since the arrival of Amazon, many changes have occurred in the high-end grocery chain, including integration with Amazon Prime for special discounts and online orders. Amazon has also placed lockers in Whole Foods stores so customers can take their orders online in its market.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Overall, customers liked the Whole Foods saw its score increase by 3.6 points over the year Forrester Customer Experience Index. This is the biggest increase of any brand this year. Analysts note that their number is closely correlated with the 6% increase in Amazon sales (combining physical and digital) reported in the fourth and first quarters. "Data-reactid =" 12 "> Overall, customers appreciate the changes Whole-Foods Forrester Customer Experience Index annual score increased by 3.6 points, the largest increase of any the brands this year.The analysts find a good correlation between these figures and the 6% increase in sales of Amazon (combining both physical and digital) for Whole Foods in the fourth and first quarters.

Here are some of the key changes made by Amazon to improve the customer experience at Whole Foods.

A product stand with a sign indicating "New Lower Price".

Produce at Whole Foods. Source of the image: Amazon.

Digital more physical

The biggest thing Amazon has brought to Whole Foods is a better digital shopping experience. The online retailer has added Whole Foods products to its online market and has made Whole Foods products available to Premium members through its Prime Now program. She currently offers Prime Now Whole Foods food delivery in nearly 90 US metropolitan areas and a pickup option in 30 metros.

The combination of Amazon's online presence with Whole Foods' physical locations has proved very useful. Forrester's data suggest that "customers with experience covering both digital and physical channels have a better experience than those who simply use a digital channel or just a physical channel to achieve a goal."

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Both Walmart (NYSE: WMT) and Target (NYSE: TGT) have also taken steps to increase their presence across multiple channels. Walmart's online grocery ordering platform has introduced new customers to the retailer and has generated greater loyalty. Meanwhile, Target has extended its door-to-door collection service, DriveUp, and recently integrated its same-day delivery service with its online platform. Walmart and Target have seen digital sales growth a significant part of store sales growth over the past two years. "Data-reactid =" 29 "> Both Walmart (NYSE: WMT) and Target (NYSE: TGT) have also taken steps to increase their presence across multiple channels. Walmart's online grocery ordering platform has attracted new retailer customers and generated increased loyalty. Meanwhile, Target has expanded its curbside collection service, DriveUp, and recently integrated Shipt's same-day delivery service into its online platform. Walmart and Target have found that digital sales growth has been an important part of their store sales growth over the last two years.

<p class = "canvas-canvas-text canvas Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Amazon's efforts also seem to be bearing fruit Sales do not exceed the market, but CFO Brian Olsavsky said the combined growth in physical and digital physical store sales was about 6% in the fourth and first quarters. first quarter call. At the same time, the company does not add many new stores. He has added just over 30 new Whole Foods sites in the past two years to over 500 sites. "Data-reactid =" 30 "> Amazon's efforts also seem to bear fruit for comparable store sales growth in Whole Foods market Brian Olsavsky, CFO, said combined growth in physical and digital sales of its physical stores was about 6% in the fourth and first quarters when calling the first quarter results of Amazon.The company does not add many new stores, but a little more 30 new Whole Foods stores in the last two years, bringing the total to over 500.

Give customers a reason to enter the store

<p class = "canvas-atom web-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The addition of Amazon Lockers in some Whole Foods locations combined with other efforts to attract Amazon customers to Whole Foods appears to be paying off: visitor numbers have increased: attendance increased by 16.5% in the last quarter, according to data from in the market. "data-reactid =" 32 "> The addition of Amazon Lockers in some Whole Foods stores, coupled with other efforts to attract Amazon customers to Whole Foods, seems to be wearing its Fruit with a higher number of visits.The grocery chain recorded a 16.5% increase in pedestrian traffic in the last quarter, according to data inMarket.

It is important to note that Amazon's online pickups do not only generate customer traffic. inMarket points out that it has recorded a 10% increase in "micro visits" – that is, visits of less than 5 minutes duration. This is significantly less than the overall increase in the number of visits, suggesting that Amazon's efforts to get Premium members into its stores for in-store purchases also work more often. That said, the average time spent shopping has decreased by 0.2%.

<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Amazon prompted the first members to change their habits. regular purchases at Whole Foods, including to mark members' premium items, who wish to extend their co-branded credit card to include a 5% cash back at Whole Foods. steal the traffic data-reactid = "38"> Amazon has encouraged Premium members to change their regular shopping purchases at Whole Foods. These incentives include solicitation of items intended solely for Premium members to extend its co-branded site. The credit card will include a 5% discount at Whole Foods, which has been successful in stealing traffic from smaller, urban-based grocery stores.

A better customer experience means more sales

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "An essential element of success of success." Amazon in the retail business Over the past two decades, the focus has been on improving the customer experience, which is why the company continues invest in prime benefits and expanding the selection of its products. "data-reactid =" 40 "> Amazon's success in the retail business over the past two decades is largely driven by improving the customer experience, which is why it continues to invest in the benefits Premium and expand its product selection.

Forrester says that an increase of one point in its customer experience index translates to a gain of about 2% in sales per customer. So, as long as Amazon will continue to invest in Whole Foods, improving the availability of online delivery and collection options and giving consumers more reasons to visit the store, Amazon should see sales continue to climb despite fierce competition from major retailers like Walmart and Target.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " More from The Motley Fool "data-reactid =" 42 "> More from The Motley Fool

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "John Mackey, CEO of Whole Foods Market, an affiliate of Amazon, is a board member of The Motley Fool. Adam Levy owns shares of Amazon. The Motley Fool owns shares and recommends Amazon. The Motley Fool has a disclosure policy."data-reactid =" 50 ">John Mackey, CEO of Whole Foods Market, an affiliate of Amazon, is a board member of The Motley Fool. Adam Levy owns shares in Amazon. The Motley Fool owns shares and recommends Amazon. Motley Fool has a disclosure policy.


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