To compete with Amazon, merchants must prioritize mobile experience

Amazon made a significant stride toward global dominance last month. It is evident that Amazon intends to disrupt numerous new industries simultaneously, including the beverage alcohol industry, through the acquisition of Whole Foods.

Amazon acquired over 330 liquor licenses in 41 states overnight. These developments are expected to alter the manner in which individuals acquire and engage with alcoholic beverages.

I recently visited Amazon’s Seattle headquarters, and it was immediately evident to me that they are a mobile-first corporation. I was initially taken aback by this, as Amazon is a prominent figure on the internet. It requires a massive audience to transition to a mobile platform. Were they able to execute it so quickly? The simple answer is, absolutely. Today, more than 72 percent of Amazon consumers make purchases on their mobile devices.

Let us examine the ramifications of this. Approximately 40% of all e-commerce is attributed to Amazon. So, when Amazon says they’re mobile-focused, you know your competition isn’t just down the street or on the internet; it’s in your consumers’ wallets.

However, let us return to the subject of bricks and mortar for a moment.

Amazon’s acquisition of Whole Foods also expedites its expansion into physical retail. Amazon is prepared to reinvent brick-and-mortar purchasing, creating a seamless omnichannel experience – they have already begun with Amazon Go stores in pilot locations such as Seattle.

Consumers desire this, since 77 percent of customers in the United States presently use their devices to assist them shop while in a store.

Let me paint a picture for you.
Consider your local Whole Foods with items 40% cheaper than they are now and no delays at the checkout. Actually, there is no register at all. You just walk out the door with bags full of products, and your credit card is instantaneously charged.

When you enter the shop, your phone alerts you to products on sale based on prior purchases, and then directs you to their position within the store. Produce is weighed, packaged, and tagged, and the tags wirelessly notify the merchant how much to charge you. Every product on the shelve has a digital price tag with values that change continuously based on demand, market conditions, sales, brand offers, and so on. When you exit the store, your account receives credit for coupons, rebates, and affiliate points.

Alternatively, you may accomplish all of this from home and have everything delivered to you within a few hours. Alternatively, you may place your purchase online and then proceed to the store to pick up your pre-packaged items at a drive-through kiosk. Regardless, you just saved 50-75% of your time purchasing for weekly provisions while paying a fraction of the price.

Convenience and low prices, made possible by efficiency, economies of scale, ultra-fast delivery, and personalized service: THIS is the future retail paradigm, and Amazon is leading us there, whether we want to or not.

A broader view
In my lifetime, I’ve experienced several major cultural “tipping points” – periods when technology and fresh thinking have resulted in a significant transition in how humans interact with their environment. Consider the PC, the internet, the web, mobile phones, iPhones and applications, Amazon and e-commerce, Prime, Uber, Tesla, and so on. With each innovation and paradigm change, we can achieve more with our time and money while making routine activities simpler.

What Amazon accomplished last month will have long-term repercussions for convenience, purchasing, and how we engage with companies.

So, how does this influence beverage alcohol?

First, let me clarify that wine is sold at 330 Whole Foods stores across the United States. If one is near to you (and by “you,” I mean you, the owner of a liquor store), it is time to start thinking seriously about how you will retain your consumers.

Amazon has been refining local delivery for several years, including Amazon Fresh and Amazon Prime Now. The Whole Foods purchase provides them with countrywide delivery centers, allowing them to compete aggressively in grocery and alcohol delivery.

Their market share exceeds even the main same-day grocery delivery competitors, such as Peapod and Instacart (10 percent owned by Whole Foods), not to mention the lesser alcohol delivery companies. And, with 80 percent of Amazon customers making at least one purchase every month, its user retention much outperforms that of the competition.

Even your most loyal consumer cannot resist the allure of convenience at a low cost.

How can you compete with that?

The brief answer is “customer experience.” Eighty-nine percent of CEOs expect consumer experience to be their primary form of competition this year. With new rivals, laws, and technology swiftly transforming the liquor retail landscape, providing the greatest customer experience imaginable is more important than ever.

Consumers demand more than just a smooth and pleasant purchasing experience; they want to be “wowed.” A tidy and organized business, nice and knowledgeable employees, intriguing products, and alluring bargains are required. To stand out, you must go above and beyond.

To accomplish this, you must be where your consumers are, which is mostly on their phones. Americans spend 90 percent of their digital time on their phones, with apps accounting for 87 percent of that.

Capturing an audience through your own mobile app allows you to engage with customers outside of the shop and delivers vital consumer information that will help you populate the shelves with high-selling products and tailor offers to consumers based on their interests.

Having a mobile app also allows customers to purchase quick, simply, and at their leisure, which increases client spending. Drync-powered applications increased top-line revenues by 4% YoY, which is a significant amount for most merchants.

There are various mobile options available, and many firms would be delighted to utilize your shop as a resource to sell wine via their app. You might wish to do this, but you also need to establish your own mobile brand and audience.

Mobile is where your consumers are. If you’re not present, they’ll find someone else.

Looking for more incredible insights and professional debate around customer experience? Attend the imminent CONNECT 2017/The Mobile CX Summit, which will take place in Philadelphia from August 21 to 23. The event will look at the various options that retailers, restaurants, and other B2C businesses have for using mobile and digital channels to promote their brands, increase sales, and enhance consumer engagement, experience, and loyalty.