Redesigning New Markets and Customer Experience: Amazon and Whole Foods
With almost $14 billion paid in cash to e-commerce giant Amazon from acquiring the well-known Whole Foods supermarket brand, this recent deal is still being talked about in the retail/e-commerce market all over the world.
Nowadays, I am convinced that all the actions that different companies does, like strategies, acquisitions, etc., must create impacts in others organization either way in their field that they’re operating or maybe in others fields, i.e. changing the status quo, redesign markets.
With acquisitions like Amazon of Whole Foods, there are many outcomes, ranging from the acquisition itself to an endless number of processes and strategies, including:
- Create new markets
- Create new consumers
- Create new jobs and design new positions
- Innovation and Technology Implementation
- Improve Processes (logistics, storage, distribution, etc.)
- New data
- Promote new producers/suppliers/competitors
- Better and higher standards of quality
According to Business Insider, 62% of Whole Foods’ customers are Amazon Prime customers. This gives Amazon an excellent picture of how to work with customer data to capitalize on their loyalty to both brands. As aforementioned, redesigning markets also involves thinking about the consumer or creating a consumer with new characteristics, new behaviors, inviting or encouraging him or her to see this new way of adapting to change, such as managing two markets — commerce and e-commerce — simultaneously.
Digital Transformation and Customer Experience
Creating a good customer experience is not only about analyzing data and/or making a good app; it requires a business transformation. Its processes, technology, employee mentality ( EX ) and behaviors is a whole, and that is being done by both Amazon and Whole Foods.
In a recent email exchange with one of my influencers, digital analyst Brian Solis, we discussed the many opportunities created by this acquisition.
According to Solis:
“Amazon’s acquisition of Whole Foods is an example of how a hybrid digital and physical model sets the foundation for the future of retail. Customer experience is becoming a serious competitive advantage. While price is important, convenience, selection, insight, integration are all part of the construct of modern commerce and what modern customers value. Amazon is setting up a global network of distribution outlets to sell more than groceries. They are launch-pads for real-time consumer delivery and engagement.”
My experience as a marketing consultant for small businesses gives me some insight into how these processes should be imitated and applied by small and medium businesses, etc and not just Fortune 500 companies. Turning this type of transformation into their own realities, environments, and conditions, countries, and implementing new technological and human processes can help them stay relevant in this changing world.
If you would like to learn more about customer experience (CX ), read Brian’s book, X: The Experience When Business Meets Design.