Woolworths And Amazon - Business Analysis Report Assignment Solution

Consumer loyalty 

“Customer is king” how many times have we heard this phrase? The reason we hear this is a lot is simple that your product needs to be sold and the customer is the one buying it. Amazon’s international popularity suggests its loyalty is higher than any other online store and 83% food retail executives (according to a survey) say that amazon is the biggest threat to traditional grocery stores (Redman, 2018). All this suggests that other online store are not considered that big a threat, the reason for that is amazon’s customer is loyal. How to make sure your consumers are loyal? This is key to retaining a good market share. 

To understand consumer loyalty we have to look at the consumer decision-making process. 

Problem recognition is when the consumers learns that he/she needs a certain product after that the information search begins in which the consumer starts to search where to buy the product this search generally includes the quality, the price and the ease of purchase. After gathering the data the consumer evaluates the alternative products (or platforms where he/she could purchase the same product from) to choose the most suitable option and then the all-important purchase takes place, the process does not end here once the product is purchased the consumer evaluates how satisfying the product is and if the consumer is satisfied he/she will be more willing to come back to the same store to buy the same product (Marshal, n.d.). 

Now that we know the general layout out of the consumer decision-making process we need to know where to act to get the consumer to purchase our products and make him/her loyal to Woolworth. It is clear that after the consumer recognizes his/her need of a product the information search begins, Woolworth should be on the top of their search list. To do this Woolworth needs to spend marketing budgets to make sure that it is coming on top in the google searches, for example https://www.google.com/search?q=online+store+australia&rlz=1C1OKWM_enPK786PK786&oq=online+store+aus&aqs=chrome.1.69i57j0l5.6350j0j7&sourceid=chrome&ie=UTF-8 if you click on this link you can see that Woolworth is not appearing on the first page so when a customer searches for an online store Amazon is the first option he/she sees and due to its popularity the customer is almost bound to click on that and order the product from there. Woolworth should be present on the search history on the top and to do this we need to invest in SEO (search engine optimization) marketing, this process takes into account the keywords related to your business and optimizes your name so that it appears on top of a google search that is related to your product or services (MOZ, n.d.). Apart from investing in SEO marketing Woolworth needs to use social platforms to market its product and services so that when people search through the net they can see sponsored ads on their social media feeds. Browser history has enough information to link them to customer’s social media platforms. Algorithm’s work to show people what they inquire about online on their social media new feeds which makes this marketing very efficient (Zorz, 2017). Investing in these options will make sure that you land in the information search of your consumer which means the consumer will be more likely to purchase from you. 

Woolworth’s online contact with customer should be the best so when the customer lands on Woolworth’s page to research for any product he/she should get all the information very easily. Once the purchase is made the quality of the product and the service that the consumer experiences determines whether the consumer will be retained or not. Satisfied consumers lead to loyal consumers and that is what we need to achieve in order to have a significant share of the online store market in Australia.