According to Digital Commerce 360, Walmart can expect consumers who shop online frequently to give its new membership program a warm response, even a lot of those that shop Amazon.
In a survey, 47.7% of consumers who shop online at least once a week said they are very, at 19.2%, or somewhat, at 28.5%, likely to sign up for the recently announced Walmart+ membership program. Even Amazon Prime program members expressed interest, with 42.7% willing to check out the Walmart program. Walmart will launch the program on September 15.
Lauren Freedman, director of consumer insights for Digital Commerce 360, noted that 88% of the respondents targeted by the survey, consumers who shop online at least once a month, belonged to Amazon Prime, an indicator of how popular that membership program has become among heavy e-commerce shoppers.
Overall, 41.1% of online shoppers surveyed said they were very, at 14.9%, or somewhat, at 26.2%, likely to pay the $98 fee, join Walmart+ and get free product delivery and other program benefits including a fuel price discount. Consideration of the program is higher the more often a consumer purchases online, with 56.5% of those who shop websites daily acknowledging interest in the program versus 46.6% of those who shop online a few times a week and 42.9% of weekly online shoppers. Of Amazon customers who don’t shop on Walmart.com, 29.8% say they are interested in joining Walmart+. Among those consumers who shop on Walmart.com, including those who shop on Amazon, 52.6% said they are at least somewhat likely to sign up.
“The big takeaway is that quite a few consumers may be interested in another program like Amazon Prime, and it may be that shopper satisfaction with Prime and its convenience makes them more inclined to try a program like Walmart+,” said Freedman.
She added that the coronavirus pandemic likely contributed to consumer interest in Walmart+.
“More shoppers are now buying groceries online, and Walmart is the country’s leading grocery retailer and has reported a big increase in online food sales,” she said. “Plus, many consumers are consolidating their purchasing among fewer retailers, and Walmart seems to be among those gaining ground as a result.”
Digital Commerce 360 conducted its study via Survey Monkey on September 3, two days after Walmart announced the planned launch of Walmart+.