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Insight of the Day: Walmart and Amazon Turn to Fast Food to Sweeten Memberships

  • Walmart and Amazon are offering dining benefits to drive engagement with their paid memberships.

  • Walmart partnered with Burger King to offer Walmart+ members 25% off digital orders and a free Whopper every quarter.

  • Amazon expanded its partnership with Grubhub to offer Prime members free Grubhub+ subscriptions.

  • These moves aim to drive adoption of their paid memberships and increase consumer engagement.

  • Amazon currently has a larger share of consumer spending than Walmart.

  • Consumers have a strong demand for digital restaurant ordering.

  • Many consumers multitask while shopping, including ordering from restaurants.

Key Takeaway:

  • Retail giants are leveraging the popularity of digital restaurant ordering to enhance the value of their paid memberships and boost customer engagement.

Trend:

  • Integration of online shopping and digital dining. Retailers are recognizing the synergy between these two activities and are using it to their advantage.

Consumer Motivation:

  • Convenience: Consumers appreciate the ease and accessibility of ordering food online.

  • Value: Discounts and freebies associated with paid memberships offer cost savings for consumers.

  • Multitasking: Consumers often engage in multiple activities while shopping online, including ordering food.

Driving Trend:

  • Growing demand for digital restaurant ordering: Consumers are increasingly opting for the convenience of ordering food online.

  • Competition in the retail space: Retailers are looking for ways to differentiate themselves and attract new customers.

  • The rise of paid memberships: Retailers are offering exclusive benefits to members to incentivize subscriptions.

Target Audience:

  • Walmart+ and Amazon Prime members: These are the primary audiences for the new dining benefits.

  • Consumers who frequently order food online: These consumers are likely to be attracted to the convenience and savings offered by these memberships.

Product/Service:

  • Walmart+ and Amazon Prime memberships: These are paid subscription services that offer various benefits, including free shipping, discounts, and now, dining benefits.

  • Digital restaurant ordering: This refers to the process of ordering food online from restaurants or aggregators.

Conclusions:

  • The integration of dining benefits into retail memberships is a win-win for both retailers and consumers.

  • This trend highlights the growing importance of digital ordering in the retail landscape.

  • Retailers will likely continue to explore new ways to leverage the intersection of online shopping and digital dining to enhance customer engagement.

Implications for Brands:

  • Brands should consider partnering with retailers to offer exclusive deals and discounts to members.

  • Brands need to ensure a seamless digital ordering experience to meet consumer expectations.

  • Brands should focus on creating high-quality, convenient food options to attract customers in the grab-and-go market.

Implications for Society:

  • The increased convenience of digital ordering may lead to changes in consumer dining habits.

  • The integration of retail and dining benefits could further blur the lines between different industries.

  • The focus on digital ordering could accelerate the adoption of technology in the foodservice industry.

Big Trend Implied:

  • Convergence of online retail and digital services: Retailers are expanding beyond traditional product offerings to provide a wider range of services, including dining, to create a more holistic customer experience. This trend is likely to continue as retailers seek to become one-stop shops for consumers' needs.

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