Customer Journey Via AIDA Model

Part-1     Introduction

This assignment relates to assessing and comparing the customer buying processes of two giants of the retail e-business, Amazon and Walmart, using different customer journey models, including AIDA (Awareness, Interest, Desire, Action) and Customer Decision Journey (Lemon & Verhoef, 2016). Such models ease the process of segmenting the activities consumers undertake when taking a product from their awareness level to the point of usage after purchase and their utility in evaluating the strategies of each business.

Amazon and Walmart were chosen for analysis as the largest retailers. They have different strategies regarding their direct customer engagement. Amazon has a clear advantage regarding digital innovation and the extension of personalization and convenience. With a broad store coverage, Walmart is better positioned in terms of the Omni-Channel shopping experience. With this comparison, this review gives a balanced view of benchmark practices in the online retail environment.

Based on this analysis, this paper has introduced a new e-business concept called GreenCart. The GreenCart proposal will focus on selling environmentally friendly products, combined with Amazon’s orientation to personalized recommendations and Walmart’s store-within-a-store concept. Realizing the emergence of the need for sustainable shopping, GreenCart established itself as a company that provides added value through concern for the environment and customer satisfaction (Tueanrat et al., 2021). This concept shows that the strong points of the existing e-business models can drive the creativity of new models that will meet the requirements of the modern world.

Part 2     Main Finding

Effectiveness of Features and Processes in Amazon and Walmart Across the Customer Journey Phases.

The customer buying journey can be segmented into key phases:

• Awareness
• Considerations
• Decision
• Post Purchase

By incorporating theoretical models and concepts, a critical evaluation of the feature and process brought by Amazon’s and Walmart’s e-commerce platforms in achieving consumer engagement and satisfaction throughout each phase would be possible through the use of the AIDA model (Awareness, Interest, Desire, Action) (Hassan et al., 2015) and the Customer Decision Journey, besides, theoretical framework to e-commerce such as the 4C’s Framework (Convenience, Cost, Communication, Customer Need) .

1-   Awareness Phase

Theoretical Perspective: The AIDA model means that the awareness phase focuses on advertisement and how to get customers’ attention through advertisement, search engine optimization, and branding (Kulkarni et al., 2019).

Amazon Strengths & Limitations

• Strengths: Market medium, internet and computer communications, strategies, advertisement. Amazon uses stiff digital media advertising, search engine optimization (SEO), and third-party placement. Its brand name suggests torrents of online shopping, thus instilling almost an automatic recall among consumers.
• Limitations: The use of online channels only reduces customer interaction in the offline mode.

Walmart Strengths & Limitations

• Strengths: Thus, Walmart has a combined model of actual store branding and an online advertising campaign. The primary reason for using storefronts is that they are some sort of boundary markers for the brand, helping people remember where they found it.
• Limitations: In fact, Walmart’s digital visibility and engagement on international social media platforms have continued to be low, even lower than that of Amazon.

Effectiveness Comparison:

Amazon is more efficient in creating online awareness because it has better SEO techniques and online commercialism. Due to its store network, Walmart has a direct advantage over competitors in offline interaction.

2-   Consideration Phase

Theoretical Perspective: The Customer Decision Journey points to this phase as the time whereby customers think, including factors such as testimonials, scores, and word-of-mouth (Wei et al., 2022).

Amazon Strengths & Weakness

• Strengths: Recommending products based on the customer’s history and preferences allows for more personalization. This leads to consideration by employing detailed product descriptions, customer reviews from third-party social proof, and seller ratings.
• Limitations: For some customers, excessive choices result in decision overload.

Walmart Strength & Weakness

• Strengths: In price promotions, customers who rush for low prices are enticed by comparison prices, stock checks, and Walmart’s “Rollback” offers. It also increases convenience by providing its inventory visibility across physical stores.
• Limitations: Amazon needs to be Stronger in product recommendations and personalization than It is in product and service recommendations.

Effectiveness Comparison:

Amazon has a strong competitive advantage in personalized experiences, whereas Walmart has a strong field in one-price pluses and hybrid models.

3-   Decision Phase

Theoretical Perspective: The 4C’s models indicate Convenience and Customer Needs at the current stage. Customers care about a quick and effortless checkout and many different ways to pay (Kapoor et al., 2024).

Amazon Strengths & Limitation

• Strengths: Features such as ‘1-Click Checkout’ and more payment methods, including BNPL, further provide convenience. This is further complemented by the ability afforded to the client holding an Amazon Prime subscription to access expedited shipping.
• Limitations: Sometimes, it becomes expensive for a Non-Prime member to have his/her items shipped, or the delivery takes quite a while.

Walmart’s Strengths & limitation

• Strengths: Walmart appears to blend online and physical modes, including pickup, curbside and same-day delivery. Customers can also pick up in-store orders and incorporate online purchases into the pickups, thus improving the purchasing experience.
• Limitations: Walmart still needs to adopt a powerful tool that facilitates easy checkouts like Amazon’s One-Click.

Effectiveness Comparison:

Amazon is way ahead in terms of digital convenience and quickness, while Walmart does well in the Omnichannel blend of physical marts and online purchases.

4-   Post-Purchase / Customer LoyalityPhase

Theoretical Perspective: Based on the Customer Loyalty Loop model, it was concluded that the level of engagement, support and satisfied customers contribute to customer retention (Ming & Djubair, 2022).

Amazon’s Strengths & limitation

• Strengths: Good tracking systems, artificial intelligence customer support (chatbots), effective refund/return policies, and a guarantee of high customer satisfaction.
• Limitations: Restricted human involvement may make it unemotional to handle complex issues.

Walmart’s Strengths & limitation

• Strengths: Walmart’s flexibility in return policies means that customers can return merchandise from the store if they originally bought it online, making convenience meet trust. Having one’s order number to track it provides customers with feedback invitations.
• Limitations: Follow-up communication and other types of online interactions after the sale have yet to be explored or implemented as much as Amazon has.

Effectiveness Comparison:

Through digital engagement and automation, Walmart stumbled slightly while Amazon performed well, though Walmart’s hybrid online/offline return policy also appealed to customers.

5-   Examples of Best Practices in E-Commerce

• Amazon’s Personalized recommendations based on AI technology have made shopping more engaging. Easy and quick checkouts, along with fast delivery, help customers stay.
• Walmart integrates physical stores and online services with a flexible approach and competitive pricing strategies that target frugal customers.

6-   Examples of Less Effective Practices in E-commerce

• Amazon’s power of overwhelming choice can be detrimental simply because it makes people incapable of making decisions.
• This detracts from Walmart’s ability to challenge Amazon regarding digital interaction, where very little personalization is possible.

Part-3     Analysis :

Comparing and Contrasting Amazon and Walmart’s Customer-Buying Journeys

The customer buying journeys of Amazon and Walmart using AIDA (Awareness, Interest, Desire, Action) and Customer Decision Journey models were examined. Such trips entail inside access to their e-business sites and outside entities such as branding, advertisement, and linking up with physical retail outlets. Every stage of the customer journey thus indicates the efficiency of the strategies employed in the respective phase (Grewal & Roggeveen, 2020).

1-   Phase Awareness

• Amazon is undisputedly the king/queen of the World Wide Web; nothing comes close to it. It employs web optimization techniques such as Search Engine Optimization (SEO), digital advertising, and affiliate marketing to acquire customer attention. One thing that helps its brand equity is that it sells almost everything. Social activities such as creating social media pages to pass information and creating or partnering with other institutions take it a notch higher.
• Walmart: Walmart has been in both worlds—the physical and the online worlds—though to different extents. It sees its physical stores as a strong avenue for recall, while digital ads and promotions influence people on the digital front. Local marketing promotions that often involve stores bolster its standing in secondary markets.
• Justification: Amazon is more effective in most regions for creating digital awareness, especially among new customers, due to its SEO strategy. However, Walmart serves physical stores, allowing it to focus on localized and in-person contact, which is unaffordable to traditional buyers.

2-   Phase Consideration

• Amazon: The platform’s leading features are sophisticated, including Amazon’s AI-based suggestions based on browsing or purchasing histories and incorporating reviews. Ratings and reviews, which are, in fact, customer-generated content, are coupled with specific product descriptions. In addition to steering clients to the site, Amazon uses individualized advertising targeted at consumers and re-engages them with the site (Grewal & Roggeveen, 2020).
• Walmart: This continues to be Walmart’s Strength because its price matching tools and “show the price lower” aspects like “Rollback” are easily spotted. Availability checks in-store and curbside pickup are most suitable for value-seeking and convenience-seeking customers. Nevertheless, Walmart’s personalization strategies are not as strong as Amazon’s, and the chain has become less efficient at maintaining exclusive online clients.
• Although the conclusions are similar, Amazon is preferable for digital natives due to its extended personalization and orientation toward online shopping. Walmart is more suitable for price-sensitive and place-loyal customers, providing a mix of online and offline offers.

3-   Phase Decision

• Amazon: Conveniences such as “Buy Now with 1-Click,” multiple payment options, and faster shipment if the buyer is a Prime member make this process easier. Amazon’s adoption of BNPL incorporates financial access, creating the desired flexibility. Beyond the platform, the same creates what it calls “Amazon Prime Day,” which leads to buying.
• Walmart: Walmart also has the in-between model where online and store sales intersect: same-day delivery and curbside pickup. However, its platform does not offer elaborate attributes like 1-Click Checkout. Earlier, the company had an edge because the promotions took place in stores, and customers could touch and feel the products before making a purchase.
• Justification: These advantages include being able to check out directly from products, fast and easy Amazon checkout, convenience, and others such as BNPL, where Amazon has a superior approach than Walmart with less digitized services. Yet, its delivery and pickup services are better tailored to enable Walmart to meet impulse buyers’ needs or gain physical sensory satisfaction.

4-   Phase- Post Purchase

• Amazon: Effective tracking, artificially intelligent conversational interfaces, and liberal return/refund policies are some measures adopted to enhance the flow post-purchase. Another area where Amazon is strong is anticipatory fulfilment, where the company suggests the likely needs of the consumers and offers loyalty programs such as Amazon Prime (Patti et al., 2020).
• Walmart: Walmart’s post-purchase experience is smooth, given that its customers can return products bought online at the physical store and vice versa, giving synergy between the two. Yet Amazon has a more comprehensive form of engagement in its digital aftercare than Santander.
• Justification: Amazon utilizes automation and individual communication much better and creates reliable customer relationships in the online environment. This one is classic Walmart in its particular focus on a physical object—the cardboard box—and specific touchpoint—store returns—but it is charmingly and endearingly unsophisticated compared to the reach and grandiosity of Amazon’s solution.

Part-4     Proposed E-Business: “GreenCart”

1-   Product Preposition

The concept behind GreenCart is to create an e-commerce site with a primary focus on environmentally friendly consumables, reusable home items, compostable packing material, and natural/organic food items. This initiative encourages consumers to embrace environmentally friendly products and services. While adopting features from platforms such as Amazon and Walmart, GreenCart believes it can help stakeholders achieve gratifying shopping experiences with sustainability at the forefront.

2-   Incorporating Best Features

Like them, GreenCart will incorporate an artificial intelligence system for product recommendations based on customers’ previous purchases similar to Amazon. A familiar website and application interface, similar to Walmart, will also be used at GreenCart. Some of the delivery options will involve subscription delivery services for fast shipping, like Amazon’s Prime subscription options, while others will include delivery and pickup centres, much like Walmart. A new yet similar approach to Amazon’s Prime and Walmart+ approach is called GreenCart Rewards, which will provide its customers with discounts, free shipping, and priority access to newly launched sustainable products. Every product will be described in detail; there will be customers’ feedback, sustainability scores and Delivery & In-store pickup options. Also, customer support will remain open 24/7, using chatbots and emails to support this plan.

3-   Uniqueness and Social Impact

As a result, the key differentiation point of GreenCart is the core value proposition that brands the program as environmentally friendly. The platform will unveil a first-of-its-kind “Impact Tracker,” which will bring consumption’s social and environmental impact into customers’ homes. This feature makes GreenCart stand out by encouraging users to feel responsible and accomplished. The relationship with local suppliers will be more significant, as the shares of products produced by accredited local, sustainable brands will become a part of its inventory, which will be attractive to green shoppers.

4-   Customer-Centric Offerings

For the benefit of its customers, GreenCart will offer tips, guides, and items from like-minded brands accompanied by green products that a customer is likely to buy based on a record of previous purchases. Also, the profits will be proportionately shared with environmental causes, which makes the project socially responsible. Applying the strategic concepts of the market leaders Amazon and Walmart together with the emphasis on sustainability, GreenCart is tailored to meet the growing needs of the environmentally aware consumers of the 21st century.

References

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