Growing in popularity year-on-year, Amazon Prime Day is now unmissable. But does all this attention on the retail giant mean that other retail brands are losing out? Using real-time Agile Survey Platform reactions, Maru/edr investigate the true impact Amazon Prime Day is having on British retailing
Since it landed on UK shores four years ago, Amazon Prime Day has grown in popularity. Analysts have predicted that Amazon sales could amount to an estimated £2.6bn during the 36-hour event, despite reports of technical glitches (felt most heavily in the US).
Amazon’s Bark – awareness at an all-time high
In fact, real-time results on the day revealed that awareness of Prime Day amongst UK consumers is the highest it has ever been – 93% of those surveyed had heard of the retail event, an impressive 16% increase from 2017.
Amazon have been counting down to this year’s Prime Day over the past week, building excitement and anticipation. Their television adverts have encouraged users online while banner ads and customer emails have attempted to whet people’s appetites for limited-time deals.
And Amazon’s efforts appear to be paying off – almost half (41%) of respondents to Maru/edr’s Agile Survey said that they were still considering making a Prime Day purchase with less than 12 hours of event left. But perhaps more impressively, almost a quarter (23%) had already placed a Prime Day order just 24 hours since deals started to launch.
Amazon’s bite – how big a chunk will the retailer take from the UK market?
Less inquisitive researchers would suggest Amazon Prime Day spells disaster for other retailers. With both awareness and purchases on the rise, it appears that the retail giant has once again diverted attention and some much-needed sales away from UK retailers.
67% of UK shoppers visited other retail sites on Prime Day
However, further analysis shows that two thirds (67%) of UK shoppers visited other retail websites on Prime Day itself – an increase of 26% year-on-year. And even more encouraging, one in five of those completed a purchase.
We’ve seen this behaviour before, particularly for online shoppers who can quickly and easily compare prices for items across websites. During 2017’s Black Friday event, Maru/edr research found that many on-the-day shoppers were less frequent visitors to the sites they ventured onto and were, instead, ‘bargain hunters’ looking for the best deal with minimal loyalty or affirmation for the retailer.
It reaffirms the belief that, despite all hype surrounding Amazon Prime Day, the British retail industry continues to benefit from the attention. Amazon are driving shoppers online with their limited-time deals and widespread advertising, yet consumers continue to stray outside Amazon’s boundary, especially if the price is not competitive or the offer not compelling enough. In fact, 19% of respondents to our Agile survey reported they’d visited Amazon over Prime Day but had left empty-handed, 63% of whom had visited the site with a specific item in mind.
Capitalising on Amazon’s bite
Luckily for retailers, Amazon Prime Day falls comfortably within the British retail calendar and ties in with traditional summer sales – retailers do not need to invest in new strategies or realign calendars.
Retailers must focus on their digital strategies and customer experience to capitalise on the Prime Day effect
Instead, however, retailers must focus on their digital strategies and customer experience to capitalise on the Prime Day effect. We’ve seen already this year the real-term impact that failing to keep up with changing consumer preferences can have – stores closures, job losses and falling profits are hitting retailers, suppliers and staff hard. Robust digital experiences that delight customers are no longer a nice-to-have – they are a necessity for survival.
Elevating online experiences
As digital VoC pioneers, we know what good looks like. We’ve benchmarked the digital retail space since 1999 and found exceptional online experiences are driven by four fundamentals – product, service, ease and fulfilment.
Perform well in all four areas and on-the-day satisfaction more than doubles. But fail to deliver in any area and satisfaction drops to below 50%.
Our years of experience have taught us that satisfaction is important – it is a key indicator of both repeat visits and loyalty, both of which have a direct effect on a retailer’s bottom line.
It means effectively measuring digital experiences is more important than ever before – by measuring the things that matter the most, retailers can take better, more informed actions to elevate their online experience above the (growing) competition.