RETAIL INDUSTRY USE CASE Email Subscriber Analysis vs.C onnection Engine, in partnership with eDataSource, compared attributes of consumers who receiveemail communications from Amazon and Walmart. This brief examines the demographics, interestsand purchasing habits of Amazon and Walmart email subscribers. eDataSource’s panel of 800,000email users was profiled using Connection Engine’s InsightConnect customer intelligence platform tomeasure key similarities and differences between Amazon and Walmart email subscribers. Panelmembers were segmented based on their subscription status: those who receive email from Walmartbut not Amazon, and those who receive emails from Amazon but not Walmart. n The analysisalso includes eDataSource’s ecommerce tracking capabilities to analyze the online purchases ofAmazon and Walmart and compare how these purchases relate to the demographics of their subscriberbase. n Comparisons are presented as relative index values. An index is a way to examine the relativerelationship between two values, for example an index value of 150 for Amazon indicates that Amazonhas a value 1.5 times more or 50% higher than Walmart on that particular measure. A similar index valuefor Walmart indicates that Walmart has a higher value compared to Amazon on this measure.
Demographics: Who are they? DEMOGRAPHICSAmazon subscribers look similar to Walmart subscribers interms of age and household composition, though they areslightly older and less likely to have children. The major 108 Children Under 18difference is income, with Amazon subscribers tending tohave higher household incomes demonstrated by their 103 Marrieddominance in the “greater than $100k” category. In contrast, 108 Age 18-40Walmart’s email promotions often include in-store pick-up withthe option for cash purchases, presumably for lower-income 163 Income Over $100ksubscribers who are more likely to lack access to credit.Geography: Where do they live?Amazon subscribers are over 60% more likely than Walmart subscribers to be fromNew York and California. Compared to Walmart, a higher percentage of Amazonsubscribers reside in urban areas, while Walmart subscribers are more likely to residein rural areas. This finding supports common perceptions about the type of shopper who frequents GEOGRAPHIC Walmart versus those who seek the convenience of an online shopping An Amazon email promoting their Highly Urban 123 experience. high-end apparel category. 194 Highly Rural The geographic split along with brick and mortar presence affirms a notable difference in the mix of products each companysells and promotes online. Walmart.com emphasizes larger ticket items that support an in-store pick up option. A recentnon-logged in visit to walmart.com features grills, outdoor furniture, and HDTVs prominently – all items where in-store pick-upand free ship-to-store options are a key competitive advantage. This results in a higher average order value and higheraverage unit retail value at walmart.com. COMPETITIVE SPEND Average # of Orders Per Person 198 Average 241 Order Value Walmart email promotions include incentives for in-store pick-up along with cash payments.
Interests and Lifestyle: What do they like? INTERESTSExamining interests in the area of reading topics, Amazonsubscribers are more likely than Walmart subscribers toenjoy reading about science and technology. Looking at Hunting 146sports, Amazon subscribers are more likely than Walmart 121 Snow Skiingsubscribers to enjoy skiing and less likely to be huntersor fishermen. 121 Science/Technology Reading Important differences between Amazon andWalmart subscribers are also apparent upon examination Romance Reading 117of Lifestyle Segments, where buyers are grouped based onexhibited lifestyle behaviors. Amazon subscribers are nearly twice as likely as Walmart subscribers to be Trendy Homemakers,who devote time and effort to decorating their home, and Green Consumers, who make the effort to shop for products thatreflect their beliefs in sustainability. Walmart subscribers are more likely than Amazon subscribers to be New Parents, whotend to purchase baby gear and accessories, and Sportsmen, who enjoy the outdoors while hunting and fishing. Purchasing Behavior: How do they shop LIFESTYLE SEGMENTS and spend? Amazon subscribers have an average household spend that is 1.6 times that of Walmart subscribers, with a web 261 Green Consumers spend index nearly as high. This variation in average 229 Trendy Homemakers spend can be examined using Connection Engine’s Buyer Score which measures the level of purchasing activity and 129 Sportsmen capacity as compared to the U.S. population. Amazon 116 New Parents subscribers are over three times as likely as Walmart subscribers to be Super Buyers, defined as buyers in the top 5% of spend behavior. Measures of buying behaviors show that the interests of Amazon and Walmart subscribers are supported by theirpurchase activities. Amazon.com subscribers are more than three times as likely as Walmart subscribers to be frequentbuyers of running, cycling, hiking, camping and winter sports products while Walmart subscribers tend to be more frequentpurchasers of hunting and fishing equipment. BUYER SCORE Super Buyer 328 161 Low Buyer