Tom Caporaso, CEO of Clarus Commerce, which also works with retailers to develop loyalty programs, noted that 97% of Amazon Prime customers renew their memberships each year. However, despite this edge, the consumer data that Walmart stands to gain will be extremely valuable in steering Walmart’s future offerings, he said, adding that it’s not a foregone conclusion the two membership programs will devolve into an either-or choice for consumers.
“Many modern consumers are comfortable paying for multiple loyalty programs that save them money with immediate rewards, especially as they continue to provide unique experiences that make their daily lives easier,” Caporaso said. “According to our recent data study, 65% of consumers said that they would join another premium program even if they were enrolled in another, meaning that several consumers may end up using both Prime and Walmart+.”
Walmart killed off its standalone Jet Black text ordering service just a few weeks ago, saying that it plans to leverage the learnings. Its Delivery Unlimited service, which debuted last year, is currently offered through 1,600 stores.
Separately, Walmart is in talks with Verizon to bring 5G to its stores, the Wall Street Journal reported. The retailer would use the high-speed service to power its digital health services for consumers and employees, as well as amplify current store operations.
The reduced latency that 5G provides over current 4G networks would widen the type of health services Walmart can offer consumers, WSJ notes, as well as improve network security. It could also better manage inventory by upgrading security cameras’ ability to scan for out-of-stocks and alert associates about shoplifters.
Although Walmart’s fourth-quarter results fell short of expectations, it reported strong performances in grocery.