Amazon is improving the whole food experience
<p class = "canvas-atom canvas text Mb (1[ads1].0em) Mb (0) – sm Mt (0.8em) –sm" type = "text" content = "Overall, customers see the changes. Whole Foods then its score increase 3.6 points on the annual Forrester Customer Experience Index which is the biggest increase of any brand this year Analysts note that their numbers correlate well with Amazon's reported 6% increase in sales (combining both physical and digital) for the whole food in the fourth and first quarter. "data-reactid =" 12 "> Overall, customers like the changes. Whole Foods saw its score increase 3.6 points on the annual Forrester Customer Experience Index. This is the biggest increase of any brand this year. Analysts note that their numbers correlate well with the Amazon's reported 6% increase in sales (combining both physical and digital) for the entire food in the fourth and first quarters.
Here are some of the most important changes Amazon has made to improve the customer experience
A producer stands with a sign saying "New lower price."
Produce at Whole Foods. Image source: Amazon.
Digital plus physical
The biggest thing Amazon brought to Whole Foods is a better digital shopping experience. The online retailer made Whole Foods products to their online marketplace and made whole foods groceries to Prime members through their Prime Now program. It currently offers Prime Now delivery of Whole Foods groceries in nearly 90 US metropolitan areas, and a pickup option of 30 metros.
Combining Amazon's online presence with Whole Foods physical locations has proven to be very valuable. Forrester's data suggests that "customers who have an experience spanning both digital and physical channels have a better experience than those who only use a digital channel or just a physical channel to achieve a goal."
<p class = "canvas-atomic 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 omnichannel presence. Walmart's online store ordering platform has brought in new customers to the dealer and Generated stronger loyalty Goal, Meanwhile, he has expanded his acquisition service, DriveUp, and recently integrated its Shipt same delivery day with its online platform Walmart and Target have seen digital sales volume for a significant portion of their same store sales growth The last couple of years. "Data and Target (NYSE: TGT) have also taken steps to increase their omnichannel presence. Walmart's online store ordering platform has brought in new customers to the dealer and generated stronger loyalty. Target, meanwhile, has expanded its curbside pickup service, DriveUp, and recently integrated its Shipt same day delivery service with its online platform. Walmart and Target have seen a digital sales growth account for a significant portion of their same store growth over the past couple of years.
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) –MM (0.8em) – sm" type = "text" content = "The Amazon effort also seems to be profitable In the same store growth for the Whole Foods market, the company does not break out metrically, but CFO Brian Olsavsky noted combined digital and physical sales growth for his physical stores was about 6% in both the fourth and first quarters of Amazon's first quarter earnings call "At the same time, the company does not add many new stores. Over 30 new Whole Foods sites have been added over the past two years to bring the total to over 500." Data Reaction = "30"> Amazon's efforts also seem to pay in the same store outlet for the Whole Foods market. The company does not break out metric, but CFO Brian Olsavsky noted combined digital and physical sales growth for his physical stores was around 6% in both the fourth and first quarter of the Amazon's first quarter earnings call. At the same time, the company does not add many new stores. Over 30 new Whole Foods locations have been added over the past two years to bring the total to over 500.
Give Customers a Reason to Enter the Store
<p class = "canvas-atom canvas 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 is shown to pay off in a higher number of visits. The food chain increased by 16.5% in foot traffic last year, according to data from inMarket . "data-reactid =" 32 "> The addition of Amazon Lockers in some Whole Foods locations combined with other efforts to attract Amazon customers to Whole Foods seems to pay off in a higher number of visits. The food chain saw a 16.5% increase in foot traffic last year, according to data from the InMarket.
Important is not just online purchase orders from Amazon that run customer traffic. InMarket points out that there was an increase of 10% in "micro visits" – ie visits lasting less than 5 minutes. It is especially smaller than the overall increase in visits, suggesting that Amazon's efforts to drive Prime members to their retail stores in stores, more often, also work. That said, the average time per shopping trip was around 0.2%.
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 = "A large Part of what drives Amazon's success in retailing over the past two decades is a focus on improving the customer experience. Therefore, the company continues to invest in Prime benefits and expand product selection. "data response time =" 40 "> One A big piece of what drives Amazon's success in retailing over the past two decades is a focus on improving the customer experience. That's why the company continues to invest in Prime benefits and expand its product range.
Forrester says that a one-time increase in the customer experience index exceeds an approximately 2% gain in sales per customer. As long as Amazon continues to invest in Whole Foods, enhances the availability of online delivery and pickup options and gives consumers more reasons to visit the store, Amazon should see that sales continue to climb despite fierce competition from major dealers such as 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-response time =" 42 "> More from Motley Fool
<p class =" canvas-atom canvas text Mb (1.0em) Mb John Mackey, CEO of Whole Foods Market, an Amazon subsidiary , is a member of The Motley Fools Board. Adam Levy The Motley Fool has a disclosure rules . "data-response time =" 50 "> John Mackey, CEO for Whole Foods Market, a Amazon subsidiary, is a memory of the Motley Fools Board. Adam Levy owns shares in Amazon. Motley Fool owns shares and recommends Amazon. Motley Fool has a revealing policy.
