The following article written by ForeSee VP of Marketing Eric Feinberg was first published on MediaPost’s MarketingDaily.
It’s easy to see why some observers of the recent Walmart-Google team-up would see this as a huge equalizer in both companies’ efforts to stay competitive with Amazon. But that’s probably the last thing it’ll do.
If Walmart truly wants to gain ground on Amazon, it’ll need to lead by improving its customer experience strategy rather than piggybacking on Google technology in exchange for precious customer data. In doing so, Walmart has a pretty huge blind spot in its logic for the deal that comes down to digital contribution — or the contribution each portion of the customer’s journey that contributes to the overall sale. Below are a few insights showing why this is more likely to boost Google than help Walmart compete against Amazon…
The path to the register
Our research on the retail customer experience reveals half (49%) of customers that visit a store location have had some kind of digital interaction with that retail brand. Customers who are satisfied with their experience are 85% more likely to visit a store from the same brand the time they shop – and 75% said they’re likely to use another channel from the retailer in the future.
Now think about this from the perspective of Walmart’s new partnership, which will allow consumers to link their Walmart accounts to purchase items via Google Express and eventually through Google’s Home smart speaker using voice controls. These seem pretty convenient for Walmart customers, especially those who find Amazon’s search tool useful when researching a product or simple when ordering using devices that utilize Amazon’s Alexa voice assistant. But Walmart doesn’t control those experiences, so it’s leaving it up to Google to make sure that happens.
Read Eric’s entire article via MediaPost’s MarketingDaily: The Blind Spot In The Walmart-Google Partnership Against Amazon