CART and Sense360 reveal the top 5 insights from their recent webinar
By Gary Hawkins on Aug. 14, 2018
It’s been a year since Amazon acquired Whole Foods Market, triggering a grocery industry innovation war and a stampede online. While there has been increasing activity since then, the actual impact of Amazon’s entry into brick-and-mortar retail has been unknown … until now. The integration of Amazon’s Prime loyalty program to Whole Foods has accelerated changing shopping behavior, and a recent study by Sense360 brings to light powerful insights about just what’s going on.
And traditional supermarket retailers have good reason to be concerned. With an estimated 80 million Prime members in the U.S. and an estimated 20 million of them shopping at Whole Foods Market, the potential impact Amazon can have through this integration is massive.
Here are the top 5 insights shared by CART and the Sense360 research team in the recent webinar:
Amazon is well known for personalizing each interaction with online shoppers, presenting products it believes you are interested in from past browsing, searches and purchases. It is only a matter of time until this personalization begins to make its way into Whole Foods’ marketing now that Amazon is gathering shopper-identified transaction data via the Prime integration.
And Amazon will not stop at just marketing relevancy; they will focus on what I think of as strategic personalization, tailoring the information, products, and even pricing, to the individual shopper with a goal of maximizing spending, shopping frequency and retention over time. Very few retailers have the data and systems capabilities to go to market this way; Kroger is perhaps the most attuned to this approach, having focused on precision targeted, personalized promotions for the past decade. But Amazon’s entry onto the grocery field of battle will give Kroger a fight as both companies look to leverage shopper data.
By integrating its Prime loyalty program into Whole Foods, Amazon has fundamentally changed grocery competition. And the battle is just getting started.
The webcast, including all the Sense360 research and data, can be viewed at Real-Time Insights About Amazon Prime at Whole Foods.
Gary Hawkins is the founder and CEO of the Center for Advancing Retail & Technology (CART).
He can be reached at firstname.lastname@example.org.