How to stop Amazon eating your lunch

Worried about Amazon’s UK imminent grocery launch? Buyapowa’s work with the likes of Ocado and Tesco demonstrates there is an answer…

So, that’s it, then. It was fun while it lasted but, the grocery sector is set to go the way of Blockbuster, Borders and Comet – crushed under the steel jackboot of Amazon. Pack up the peas, put away the pasta; when Bezos lines you up in his sights, there’s only one possible outcome. And it ain’t no picnic.

Except… no. Wait. Just like Pep Guardiola coming to the Premier League or Bruce Willis’s best-forgotten singing career, Amazon are completely unproven in this environment. And, while they definitely will attract a bunch of shoppers keen to try something new, instant success is far from a sure thing.

That said, Britain’s supermarkets can’t just sit back and hope for the best. They need to use the one thing Amazon don’t have to shore up their advantage, and that’s their existing grocery customers. They’ve got tens of millions, Amazon have precisely zero. But it won’t be enough simply to enter into a price war, hoping to gouge extra pennies from every existing loyalty card holder – Amazon are notoriously happy to scorch the earth with subsidised pricing underwritten by their tech services billions.

No, what the UK grocers need to do is unlock the power their customers have not just of spending more themselves, but getting their FRIENDS to start spending, too. Which is where referral comes in. And, happily, referral really is the magic bullet in this sector, more than any other in fact. Take a look at this data:

That’s right. Customers who are introduced to grocers via referrals from their friend convert 69% of the time. That means you can almost double your customer base by getting your existing shoppers to bring in just one friend each. And if you use a referral platform like Buyapowa’s, one that focuses on getting multiple referrals per customer via tiered rewards and gamification, you can achieve much more than that.

Take a look at how Ocado are using our platform to achieve incredible results!

And get in touch if you’d like to know more. It might be the only weapon grocers have right now, but it’s something even Amazon should fear.

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