Consumer confusion hinders Walmart use: Survey

Walmart Inc.’s new subscription program seeks to entice customers with benefits such as cheap gas and no checkout lines. But it turns out that many members are not using them much.

According to this month’s survey of 264 Walmart + members by an industry researcher, three out of four users do not take advantage of perks like less-expensive fuel and Scan & Go technology, which allow shoppers to pay for items on their phones gives. Agent. The survey found that the main appeal of the $ 98 per year program is unlimited free delivery.

The most common reason respondents gave for not using other benefits? They were simply not aware of them.

The results provide a rare glimpse into a business that Walmart has refused to say much about since launching in September. According to analysts, its size is estimated at around 7.4 million members to 10 million. Simeon Gutman of Morgan Stanley said in a recent note that most consumers consider it as a single-day grocery service only.

A representative at Walmart declined to comment.

Based on their experience so far, 77% of Walmart + members surveyed the plan to renew their membership, the field agent found. According to estimates by Consumer Intelligence Research Partners, Inc. Is below the 93% first-year renewal rate of prime service. Nearly nine out of 10 Walmart + members surveyed by field agents are also key members.

Walmart has said it will roll out more perks, but its biggest move so far was to eliminate the minimum $ 35 to receive free shipping on non-food orders.

Henry Ho, Field Agent Co-Founder and Chief Strategy Officer, Henry Ho said, “We are responding primarily to the distribution benefits of membership to shoppers, which is the expectation of people shopping from home during the epidemic. “

‘Winning model’

Membership programs have become increasingly popular among retailers, as they consistently deliver revenue and generally encourage members to spend more with the retailer over time to maximize profit. Best Buy Co., for one, is testing a $ 200-year program called Best Buy Beta that offers unlimited technical support, free installations, and exclusive pricing.

“The winning model in retail is usually one that creates lifelong value,” Gutman said in a note. “Membership is essentially necessary to make the customer an ‘owner’.”

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