As cost-conscious shoppers grow by the thousands, retailers need to apply the same sensitivity to their own pricing.
Price Protection vs. Price Matching
As you may have heard, Walmart rolled out Savings Catcher, a tool comparing competitors’ prices, earlier this year. In-store Walmart shoppers register their purchases online and Walmart then tracks competitive pricing for this basket of goods. The tool tracks competitive pricing for roughly 80,000 products and if Walmart is beat on price, they credit the customer the difference in price. This completely eliminates the customer’s need to shop around for the best price – it’s guaranteed! To deliver on this promise, Walmart has been systematically improving their price competitiveness in select categories relative to their competitive set, including Amazon. The chart below highlights that Walmart and Amazon are now at relative parity in the seasonal home and garden category, priced 7-11% below other major retailers for the sampled assortment.
Customer Data via E-Receipts
Walmart is launching a new program that sends customers their e-receipts through the company’s mobile app. This platform appears to have it all, including:
Tracking shoppers’ buying habits;
Providing personalized suggested items for shopping lists;
Syncing e-receipt to customer’s phone;
Functionality to scan QR codes and add receipts to mobile app;
Ability to review past purchases;
Capability to make returns with digital receipts.
If this program is as successful as Savings Catcher seems to be, competitive retailers will have a lot to live up to.
There’s no predicting what Walmart will come up with next, but you can expect it will take the retail industry by storm. Walmart’s programs are converting more shoppers than ever – can you afford to wait and see what they come up with next?
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