Walmart may be learning the hard way that having the most sought-after digital features barely matters if customers do not know they exist.
PYMNTS’ research highlights that Walmart customers are less likely to realize these features exist than Amazon customers. We collected data on how aware consumers are of selected digital features offered by both Amazon and Walmart.
Amazon holds a double-digit lead when it comes to its customers being familiar with select digital tools and features the eCommerce giant offers to enhance the user shopping journey. Aside from data protection initiatives, the biggest divergence between the world’s top two retailers is in offering consumers the ability to use their preferred payment methods. Here, Amazon customers were aware of the digital feature, with a 20 percentage point higher share than Walmart’s.
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Walmart’s customers’ awareness of an available digital feature was closest to Amazon’s when it comes to knowledge about rewards, but even so, Walmart trails Amazon by 10 percentage points.
Additionally, PYMNTS’ data shows that consumers use Walmart’s and Amazon’s digital features more when they know these tools and innovations exist.
Amazon’s customers are not only more likely to be aware of but also to use these select digital features at notably higher rates than Walmart’s. The smallest difference in digital feature use between the two consumer groups is in ability to pay via preferred method, where Amazon holds a 10 percentage point lead. The greatest use disparity is in free shipping for digital orders, where Amazon customers employed the feature 66% of the time, compared to Walmart’s 42%.
However, the war may not be lost. Walmart’s customers would be willing to use these digital features — if they were aware of them.
Twenty-one percent of Walmart’s customers are willing to opt for free shipping on digital orders and another 26% are open to using the retailer’s real-time inventory tools. Given this willingness, increasing consumer knowledge of digital features is critical for Walmart to achieve its goal of greater eCommerce sales.
It should be noted that Walmart has been making significant changes to its consumer-facing platforms, possibly to try catching up to Amazon’s eCommerce offerings. During a panel call, PYMNTS’ CEO Karen Webster and Walmart U.S. vice president of omni services and capabilities Julia Unger discussed how the retailer’s website and app redesign could assist in raising awareness for some but not all of the features consumers find important.
Walmart’s overhaul, which went live in April after the Global Digital Shopping Index was published, increased integration between the retailer’s website, app and additional in-store capabilities. Walmart realized that the shopping journey “cannot be disjointed; it cannot feel impersonal. It’s really important that one event leads to the next.”
Unger gave examples of how that integration can benefit customers: “If I just bought tires, then [the retailer] should know that I need installation for those, and let’s get that scheduler up in front of the customer so they can schedule an auto service appointment. It’s making sure that the content and the experience are connected, and it’s consistent. … We’re improving how our customers can explore the endless aisles of walmart.com with a sleek new look and experience that offers a more engaging way to browse and discover our incredible assortment.”
Walmart’s efforts to increase its customers’ knowledge of digital features offered relative to Amazon may not be enough to beat the eCommerce giant, but the Arkansas-based retailer could see increased engagement across its platforms. This may lead to Walmart taking some digital retail sales share away from Amazon, but it will likely take a more concerted campaign for Walmart to make any significant gains.
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