Report: Combat Amazon by improving Customer Experience

Every second word or article recently seems to include the word Amazon…… so rather than focus on what Amazon are doing, we are going to concentrate on what you can do to combat Amazon. We will look very briefly at what Amazon do well, then focus our attention on the ways to thrive in this new age competitive space.   

Amazons Strategy

Amazon’s strategy in the US can be found in their mission statement and consists of three main components:

  1. The Lowest Prices
  2. Best Available Selection
  3. Utmost Convenience

The convenience of using their e-commerce platform has made the shopping experience of some bricks and mortar retail stores less appealing. This was made possible by two of their competitive advantages: data processing and operational efficiency. 

Their data systems make product recommendations based on user data and enable efficient order processing, both of which improve a customer’s experience. Their operational efficiency with logistics enables them to deliver products quickly to their customers, often making it faster and cheaper than going out and buying it in-store

We strive to offer our customers the lowest possible prices, the best available selection, and the utmost convenience
— Amazon

So how can bricks and mortar and e-commerce retailers remain competitive? 

The Omni Channel Eco System    * IRI Worldwide – September 2016

The Omni Channel Eco System

* IRI Worldwide – September 2016

By implementing a Omni channel customer-centric strategy

** Two Goldman Sachs executives recently via a firm podcast quoted: 

“We’re never going to be 100% bricks and mortar and we’re never going to be 100% e-commerce, Success to me is what is best for that consumer in that particular vertical, for that particular product, and there’s different approaches from an e-commerce standpoint.”

“Omni channel - what really matters is engaging the customer and selling product, regardless of the specific channel.”

The Omni Channel Eco System

Retailers who create a retail environment that is taking a customer centric approach: one that has a seamless integration between the online and offline world will win. Retailers need to offer their customers the benefits of shopping in-store, with the convenience of the internet with collect in store and vice versa.

ESL’s allow retailers to create a fully synchronised loop, where the price/stock levels/product information/marketing is all the same no matter where the customer is.

Nordstrom incorporating an Omni channel customer centric Strategy

Nordstrom has been investing heavily in data-driven, personalised customer experiences. They track popular items pinned on social network Pinterest, then display on labels instore “top-pinned items” then a Pinterest logo. By incorporating social feedback into the shopping experience, Nordstrom can take the lead from the customer, to ensure that merchandise in-stores is personalised and in better alignment with what shoppers actually want.

Nordstrom Omnichannel Shopping Experience
By having ESLs you can incorporate real time data for the customer on ratings or “top-pinned items”, likes etc.

Electronic Shelf Labels allow retailers to connect online social proof to products in their bricks & mortar stores.  Social proof has the power to drive sales as popularity for certain products surges.  Consumers are far more likely to purchase an item if the masses have given it the universal thumbs up.

Connect Wine Reviews to retail wine sales

For all the fanatical wine lovers out there, there are APPs available to see information about the product. And people like to know what other customers are drinking. On the Vivino APP you can see the ratings and price comparisons. This information can be readily available on the ESL, making the experience easier and more appealing for the customer. It will give the customer confidence that you are stocking a good selection of wines and are competitive on price.

Example of App using Reviews and applying to e-pricing labels


Case Studies : Electronic Shelf Labels

Read about the latest installations of Electronic Shelf labels in the Australian market. 

The Future

Ensure you stay ahead of the game:

  • Influence trends and redefine buying habits
  • Adopt new technologies to connect with your shoppers and enhance their experience
  • Synchronise your online and offline worlds

Let the team at esLabels help you transform your store today. Contact us today.



** Kim Posnett, head of internet investment banking, and Kathy Elsesser, head of the healthcare and consumer and retail investment banking divisions.


* IRI Worldwide – September 2016