THE CLARUS Blog

Will Customers Join Amazon Prime and Walmart+? [Video]

Did you know Walmart makes nearly 57% of its revenue from groceries?

Amazon is a continuous category disruptor and, if its $13.7 billion acquisition of Whole Foods is any indication, grocery might be next.

On top of that, Prime members are fiercely loyal, so it makes sense that Walmart wants to create its own premium loyalty program focused on grocery called Walmart+.

 

Creating Something Distinctly Different Than Prime

Company officials are creating something distinctly different than Prime, something unlike Walmart’s last attempt at a premium loyalty program.

Assuming Walmart can create a unique benefit mix here, this can work for them.

In our Premium Loyalty Data Study we found that nearly two-thirds of consumers who are part of a premium loyalty program plan to join an additional one within a 12-month period.

 

Like Disney+ and Netflix?

This is similar to the launch of Disney+.

A Netflix membership costs $156 per year for the standard plan and Disney+ is $84 per year.

Consumers pay for Netflix and Disney+ because they have different content and experiences.

For most consumers, this didn’t become a “this or that” conversation. It just became: “Is Disney+ worth joining as well?”

And for many people, the answer is yes.

We think the same holds true for Walmart+ and Prime.

Customers, now more than ever, are comfortable paying for loyalty programs that save them time and money or provide unique experiences with the brands they love.

 

Time Will Tell the Fate of Walmart+

At this point, there isn’t enough information to know if Walmart+ will be a success or not.

When it’s all said and done, a loyalty program is only as good as it’s execution.

  • How will their tech work?
  • How will they sell the program to consumers?
  • How will their associates explain the program to customers?

We know this is just as important to the success of the program as the benefits themselves.

Only time will tell how Walmart+ fares in the marketplace, but it seems like company officials have planned this thoughtfully and carefully.

Beating Amazon is nearly impossible for anyone today, but if Walmart+ proves to be an engaging, value-laden program, Walmart customers will be better off for it.

Do you think Walmart+ will be successful?

 

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