I caught Simeon Gutman’s (Morgan Stanley) assessment on Walmart’s outlook, and the insight that the broadening of WMT’s customer base is core to their strategy, and success.
Simeon points out that WMT’s primary customer demographic is middle to lower income (unlike Amazon, which attracts middle to upper income), and that Walmart+ looks to be a key element in the retailer’s aspiration to expand shopper reach.
Simeon’s points sparked a few thoughts based on our longitudinal tracking of Walmart’s shopper, and those who prefer other retailers – specifically, what really drives and hinders them at a subconscious level.
And it turns out, WMT indeed has much potential with higher-income households, but the first step is recognizing that shopper behavior is driven by far more than income levels.
If you lead a CPG brand, then Walmart is undoubtedly asking for guidance, and fresh thinking.
Here are 3 facts to help brands win with WMT:
Fact 1: Amazon wins on eComm not because it lets shoppers save money, but because it lets them explore.
We see in our data that shoppers who prefer eComm like exploration, and a bit of adventure – not drop-down menus and query boxes. Winning brands / CX will let shoppers follow their senses vs. reading and typing.
Fact 2: Walmart shoppers are driven by access to exclusive, unique offerings – not just the same stuff as everywhere else for less.
Shoppers drawn to Walmart like to feel like they’re ‘winning.’ This means exclusive offers, access to experiences, and shopper strategy that lets them feel just a little bit like a rock-star (not a coupon-clipping manager).
Fact 3: Walmart’s investment in the metaverse can leverage ‘the wisdom of the tribe.’
Walmart shoppers are uniquely tribal – using the wisdom of the tribe as good decision-making data. The metaverse can let shoppers compare notes on a whole new scale to create advocacy – and the penetration that follows – tapping this unique mindset.
