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Amazon Vs Walmart: Lessons From the Retail Marketing Battle

Amazon rules the world of ecommerce. And Walmart has been the leader in the US retail segment with its brick-and-mortar stores. But then we saw Amazon launch its convenience stores. And Walmart going big with its ecommerce sales. As the lines blurred out between the two, we have been seeing stiff competition. The Amazon Vs Walmart battle has been getting stronger by the day. The result? Both these brands have turned towards the use of fierce marketing strategies for promotion and customer engagement.

Naturally, battles like these turn out to be great sources of ideas for brands that are wondering how to tackle competition. And how to stay ahead in a rapidly changing environment. And that’s exactly what we are going to discuss today. The Amazon Vs Walmart war for retail dominance. And marketing lessons that retailers can gain from them. 

Amazon Vs Walmart – the battle of retail giants 

The retail market in the U.S. is projected to hit a value of 5.35 trillion USD by the year 2025. Currently, Walmart is at the top rank but Amazon is not far behind. In fact, Amazon has been growing steadily and rapidly. With that said, we’ll see how both these brands manage to make such steady progress. We’ll talk about marketing strategies that set them apart. Shall we begin? 

Areas where Amazon shines and marketing lessons from them 

Giving back to the community 

Amazon does this in many ways. And Amazon Smile is one such step. 

So far, Amazon Smile has donated $355 million to US charities. And Amazon talks about these community-focused measures on social media and through its social media ads. (As you can see in the above example). That’s one way to make an emotional connection with your customers. Customers love brands that are responsible. And knowing that to join the good cause all they have to do is shop on smile.amazon.com they would be glad to take part. Relationships built out of respect last longer. 

Kimp Tip: 

Talking about your corporate social responsibility measures has its perks. Do not hesitate to talk about all the steps your brand takes towards a noble cause. This just helps these steps gain momentum. Remember that visuals convey this message quickly and more powerfully. 

Dismantling the design of the above video, here are a few things we love:

  • The video is crisp and to the point – perfect for customers with a short attention span
  • You see the brand color filling the screen soon after the footage. Making a branding impression adds more value to your video. 
  • A CTA drops right after that – so the video effortlessly navigates customers to the next step. 
  • Finally, the relatable logo animation leaves a lasting impression on the viewers. 

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Cross-selling like a pro 

Amazon is the king of omnichannel marketing and we all know it. But besides meeting customers wherever they are it also sends customers to all of its businesses. 

Have you ever shopped for groceries and received an Amazon Restaurants coupon? When this happens, even if you do not have any plans of ordering from there, you will still be ready to give it a try. Because you have the coupon! That’s a brilliant way to use rewards for cross-selling. 

Kimp Tip: 

So, if you are looking to make the most of reward programs for customers, but do not have too much of a budget there, you can use ideas like these. Instead of a direct cashback, in this case, you can offer a discount code for customers to use with their next purchase. Or for purchasing from a different category. And this could be a category where the sales have not been that great recently. This way, you can succeed in cross-selling. 

Email marketing to continuously update customer data 

Does the above meme feel relatable? And let’s face it. We have all been there. Amazon has a knack for getting you to buy that crazy-looking cookie-shaped throw pillow. And before you can come out from the guilt of making an unwanted purchase, you somehow find yourself adding that comical burrito blanket to your cart. Have you ever wondered how? Amazon’s omnichannel approach pays off here. 

When you are looking for something to buy, you see the products popping up everywhere. Like in the Amazon recommendations section on the website, ads on external websites, Google Ads, and social media ads. Another channel Amazon relies on quite a lot is email. You will see emails reminding you of the items in your cart. Or emails about discounts on items based on your browsing history. From there you can directly head on to the product page and hit checkout. 

The emails you receive post an order are slightly different. They focus more on the customer rather than on the item itself. 

Emails like the one above work best especially since customers encounter them at the time of peak interaction. Just when they have had a good experience (or a bad one) your email arrives asking for feedback. This shows them that you strive to enhance the experience in every way. 

Kimp Tip:

What’s the one thing you notice with all the above email scenarios with Amazon? These emails are all personalized. Meaning, the emails one customer receives might not always be the same as those another customer receives. And this personalization is what gives Amazon an edge over its competitors. 

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Keep customers updated about what’s new 

One area where Amazon has a clear advantage over several other retailers is the sheer magnitude of home brands and products from Amazon. Echo smart devices, Fire TV for entertainment, and a whole lot of services like in-garage delivery, to name a few. 

You will see simple ads from Amazon on several digital and print channels talking about these new and less-known services. Like this YouTube video about in-garage delivery.

Kimp Tip: 

When you have an announcement to make or some critical piece of information to convey, videos work better. And given that most social media channels today are in favor of video content, regularly posting videos is one way to boost your engagement on social media. 

Nearly 85% of videos on Facebook are watched muted. So, to ensure that your informative video is actually informative use clear captions. And add text overlays to draw attention to critical sections. 

Want to edit your videos and add text overlays to personalize them for muted plays? Choose a Kimp Video subscription. 

Show customers how you do it 

Amazon regularly gives customers a peek into its processes. From what happens at the fulfillment centers to the effort that goes into achieving super-fast delivery! All of these little behind-the-scenes videos help customers appreciate the brand and the teams that make it happen. 

Kimp Tip: 

Taking customers behind the scene will work wonders for your business. This shows your transparency and authenticity. And thus builds better relationships. If you do not have enough content to create long-form behind-the-scenes videos, record some quick ones that can be used in Instagram Reels or Stories. 

Areas where Walmart shines and lessons from them 

Focus on the people and their emotions 

Retail businesses like Walmart have diverse demographics to serve. In such cases, the best kinds of ads that work will be the ones that show the actual people that the brand serves. And their stories and experiences. 

Walmart does this pretty well. The ads for the Walmart+ membership are the best examples of this. 

Source

The Walmart+ membership is about free home deliveries and other perks. The idea looks simple. But the way the brand shows the value of this service and what difference it makes in customers’ lives is what makes the ad special. 

Kimp Tip:

Notice how the ad focuses more on emotions and lets the brand take a back seat. You need ads like these every now and then. But again, you cannot ignore your brand completely. Instead of directly promoting the brand, the Walmart shopping bags and the outro scene with the core message are enough to leave a lasting impression on the customers. 

Find new ways to engage your customers

As retailers are struggling to retain customers, Walmart always comes up with creative ways to do that. Its regular social media live sessions tell enough about this. Talkshoplive is another campaign that is slowly becoming a trendsetter. And redefining the way customers shop.

Talkshoplive consists of live sessions with virtual shopping. This is very similar to conventional live streams on social media. However, these live streams also come with shoppable content. It gives you a nostalgic TV shopping kind of experience but online. That’s one way to combine old-school and modern marketing strategies. 

In one live session as you see in the above post Walmart also includes exclusive discount codes for those shopping during the live stream. This ensures maximum participation from customers. 

Kimp Tip:

Novel concepts like this one are sometimes not clear to customers. You should have clear ads that convey the message leading to landing pages that elaborate on the concept. Or you can have a separate portal dedicated to these campaigns. Also, promote them regularly on social media. These consistent efforts help your campaigns gain traction. 

Figure out creative ways to reward your customers 

Retailers often use customer reward schemes as a way to express their gratitude for the customer choosing that brand over competitors. One way to use this will be to plan cross-selling through reward points as Amazon does. But Walmart takes this to a whole new level. Besides the regular rewards for customers, Walmart has initiatives like Wellness Day where customers can avail free medical screening and affordable vaccinations. 

These are excellent ways to give back to customers. And they can positively impact customer loyalty. 

Kimp Tip: 

Rewards for customers do not always have to be monetary. Little steps to show that you care about your customers go a long way in shaping your brand. 

Campaigns and events like these provide an opportunity to focus on the holistic experience of your customers. And they also provide a good opportunity to strengthen your branding efforts. For this, create a visual theme for your campaign while also incorporating your brand aesthetics into it. And then use this theme across promotional designs like social media ads, flyers, event venue banners, and more. 

Did you know that you can have all of these designs in one place by choosing a Kimp subscription? 

A few quick things to learn from the Amazon Vs Walmart comparison 

Now that we have seen what each retailer does differently, here are a few common marketing trends you will notice with both these brands:

  • Both these brands use visuals extensively. And these visuals go beyond product images. There are videos that demonstrate how to use the services and images that make an emotional connection. 
  • They both have strong brand colors and you will find these colors appearing on almost all the marketing and branding designs. 
  • Though Amazon is more in the digital space, Amazon uses a lot of billboard ads and print ads too. While Walmart is mostly about physical stores, it has a strong online presence. Both these brands show the perks of having an omnichannel marketing plan. 
  • Focus on your customers and your customers will love you. 
  • Reward programs, loyalty schemes, referrals, and other traditional marketing ideas are still relevant. Just make them more practical for omnichannel shoppers. 

Using these ideas to create your marketing designs with Kimp 

There is always something new in the world of retail marketing. A dependable team that can execute your ideas and delivers marketing designs that communicate the message to your customers is just what you need. And with every Kimp subscription, you get a dedicated team to work on your brand’s marketing designs. 

Start your free 7-day trial today. 

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