AMAZON vs. WALMART: The Last Mile

“30 years ago, if you pissed off a customer, they'd call "1-800-CUSTOMERSERVICE," tear your secretary a new one, and forget about it...but times have changed. These days, customers don't want to complain. They want vindication. They want to destroy your business! Almost everybody in North America has a phone in their pocket, and they're DYING to use it to decimate your brand.”

-Kevin O’Leary

Today’s customers are fierce and demanding! They have leveraged the ability of digital supply chains to keep companies on their heels as they attempt to anticipate their customers’ next moves. It has become many executives’ full-time duty to their organization to step up their chess game with the ever-changing demands in the market. 

Customer experience comes first, and companies that are successful innovate. Organizations that cannot keep pace usually have limited data analysis capabilities, are not forward-thinking or simply not agile enough.

Amazon and Walmart are two of the world’s largest consumer-focused enterprises and have taken on ‘Last Mile’ initiatives. This has become the latest and greatest in a battle of customer-driven innovation.

THE LAST MILE IS THE LAST SMILE:

“75% Of Companies Said Top Objective Was To Improve Customer Experience”

-Forbes

How can you differentiate form process that has become the adopted norm? Any customer can order from any online marketplace…track their order…and have it delivered. 

According to Forbes, 86% of customers will pay more in exchange for better customer service. The astonishing fact is, only 1% believe vendors meet their expectations with consistency. The result – a huge opportunity for businesses shift their approach and get things right!

The ‘LAST MILE’ in supply chain logistics is often considered the most important. This is an industry term that is gaining attention as it involves the package being picked up from the warehouse and delivered to the customer. Customers want to ensure they receive their packages where and when they want it…how many of you have ever had the thought of someone taking your parcel from your porch before you come home from work? When was the last time you interacted personally with someone from Amazon or any other online business?

Amazon and Walmart are giants that are leading innovation of the ‘Last Mile’. Not only are they ensuring reliable transportation and timing – they are delivering the Last Smile

This approach coupled with omni-channel support is driving an evolution on end to end customer experience.

BATTLE OF THE TITANS:

“The goal as a company is to have customer service that is not just the best, but legendary.”

- Sam Walton

Amazon and Walmart are two of the world’s top brands and have been battling for years. Although Amazon has eaten into Walmart’s business, Walmart has been making global strides and executing on delivery strategies to bite back categories left open by Amazon. Both are putting customers at the forefront as they look to leave competitors behind.

Amazon’s new Delivery Service Partners offers the opportunity for entrepreneurs to run a fleet of delivery vans to deliver the best experience in the Last Mile. Since announced on June 28th, Amazon has received tens of thousands of applications from people dying to partner with the digital behemoth.

This is another brainchild of Bezos and his team that capitalize from separating themselves from traditional service partners such as UPS and FedEx. The innovative business model, derived from detailed data analysis, also formalizes a brand of delivery that Amazon can control through design, marketing and implementation. This approach keeps their customers’ experiences at the forefront and offers agility to be continually re-evaluated for improvement.

On June 29th, Walmart responded to Amazon’s announcement with a plan to close the gap between their $11.5B online shopping business and new Trillion Dollar monster. Failed pilots and negatively-received attempts at innovative delivery programs have led them to create another pilot they feel is the answer. Despite most Americans living within 15kms of a Walmart store, this week they have announced another consumer-centric pilot – Spark Delivery.

Spark Delivery zones in on grocery consumers and lower cost delivery. This stays true to Walmart’s ‘low-price’ branding and offers growth opportunity to expand into other categories in the future. They have enlisted the support of Bringg and DDI to ensure the customer experience is simplified through technology.

These corporate titans have innovated to compete with market competitors. Lagging organizations should be triggered to follow suit and invest in their customers with similar or sleeker innovations that are designed for the customers’ best interests.

Innovative business models driven by intelligent technologies and data, combined with an emphasis on customers will be the algorithm of future success for most enterprises.

CHANGE IS CONSTANT…BUT, THE CUSTOMER IS ALWAYS RIGHT!!!