[2021 유통포럼] Homin Kim, Amazon Web Service Manager “Untact strategy, you should find it in’physical'”

Input 2021.03.25 17:19 | Revision 2021.03.25 17:35

Amazon Increases Customer Satisfaction with’Growth Flywheel’
Amazon Go, Scout, Key, etc.
It is necessary to strengthen non-face-to-face services by incorporating ICT even offline.

“The untact (non-face-to-face) trend is bound to become a new normal of consumption. Amazon’s response strategy is to use digital in the physical environment of stores. ) It is a’physital’ that expands the customer’s experience by grafting experience.”

Ho-min Kim, in charge of retail and CPG business development at Amazon Web Services (AWS), said on the 25th at the ‘2021 Distribution Industry Forum’ hosted by Chosun Biz. He suggested that the retail industry should maximize the customer experience from three perspectives: offline, last mile, and customer data.

The theme of the distribution industry forum, which marks its ninth this year, is’Retail Technomics’. Homin Kim, who was in charge of the special lecture, talked about’Amazon’s strategy to maximize customer experience to respond to untact trends’.

Kim predicts that non-face-to-face consumption will become the mainstream in the retail industry due to the fact that the coronavirus infection (Corona 19) has raised consumers’ awareness of safety, consumers are changing, and the repetition cycle of global infectious diseases is shortening. did.

“In Korea, 43.9% of all consumers are Millennials (born in the 1980s) and Generation Z (born after the 1990s), and MZ generations naturally prefer non-face-to-face consumption.” (Generation born in 1965~1975) and Baby Boomers, they overwhelm other generations, and their purchasing power will continue to increase over the next 15 years,” he stressed.

Kim also said, “Because of the fact that the global epidemic trend has become more frequent in the 2000s, a new pandemic (infectious disease pandemic) will continue to appear even if the COVID-19 outbreak is stabilized.” I predicted it would remain.

◇”Applying non-face-to-face service to stores and delivery…All customer data must be analyzed”

Homin Kim said, “When converting a face-to-face service to a non-face-to-face service, customer discomfort or resistance may occur,” said computer vision, augmented reality (AR) and virtual reality (VR), robots, Internet of Things (IoT), and voice recognition. He emphasized that the inconvenience of customers should be minimized by introducing technologies such as mobile, etc.

Amazon’s basic strategy is a’growth flywheel’ based on customer experience. When a convenient website is established, many consumers visit, and products increase as many sellers enter the store based on this, which in turn creates a virtuous cycle that leads to customer satisfaction. Based on this, economies of scale will be achieved, business will be sustainable, and customer experience will be improved as a result.

Amazon Web Services is seeking ways to improve consumer convenience even in offline stores through various information and communication technologies (ICT). ‘Amazon Go’ is an unmanned store that recognizes products with computer vision and automatically pays with a registered credit card without waiting in line at the checkout counter. It is currently operating 36 branches in the United States and is considered a successful case of introducing’physical’.

Homin Kim explained that in online shopping, various non-face-to-face services can be introduced even in the delivery stage, when consumers meet with employees only. Amazon Fresh, a food store, provides a non-face-to-face pick-up service where an employee loads the product into the trunk without getting out of the car when you order products online and arrive at the store by setting the desired pick-up time.

Other examples were “Amazon Scout,” which uses an unmanned delivery robot to deliver final products to consumers’ homes, and “Amazon Key,” which is a non-face-to-face delivery service that delivers products to the house.

Finally, Kim emphasized the importance of data. This means that you can induce you to purchase a product in an online mall only by collecting as much data as possible, such as the product price, price fluctuation, and weather, as well as basic information such as the customer’s gender, age, and address, and recommending the product in a customized way.

“According to the’purchase conversion funnel model’ of e-commerce, when 100 people visit online shopping malls, only 43.8% of them are interested in looking for products, and only 14.5% of them put products in their shopping carts, and 3.3% of customers actually purchase them. “It’s just that,” he said. “In Korea, the average purchase conversion rate of online malls is lower than that, which is less than 1%.”

On the other hand, Amazon’s purchase conversion rate averages 13%, and the paid membership’Prime’ customers are higher than that. “We need to collect all data about consumers, regardless of internal or external, and collect them and analyze them in multiple ways to find hidden meanings, what customers want, and what kind of discomfort they feel.” “You can maximize the customer experience when you establish and implement it.