Amazon Shopper Panel

Is the Shopper Panel beneficial for consumers? If yes, how so? If no, why not? Provide two to three reasons for either case. Amazon recently debuted a new initiative called Amazon Shopper Panel, which rewards users for completing questionnaires and sharing their shopping data from transactions done outside of Amazon's marketplace. The program is only available to American consumers and is opt-in and invitation-only. Through the iOS and Android versions of the Amazon Shopper Panel mobile app, interested customers can register to be added to the waitlist. Due to the controversy surrounding privacy regulations Amazon confirmed they will be compensating their customers for their information in the form of Amazon store credit, therefore making the platform safer and more appealing to consumers. The Shopper Panel is not only beneficial to Amazon, but also to consumers. Amazon addresses consumer’s main concerns regarding privacy to assuage their fears and encourage participation. Additionally, Amazon clarified this program is completely optional and consumers are in control of what information they choose to share or not. Shifting the control to the hands of the consumer appeases some of the worries that many individuals possess regarding the exploitation of their personal information. What is more, the worries surrounding lack of privacy do not bother every consumer. For example, one consumer responded to a hate comment surrounding the Shopper Panel by saying that so long as they are compensated for the information provided, “that’s fine with me” (2) and added that they had partook in similar programs like Google’s Opinion Rewards. On page 3 of the case, Amazon describes the benefit of enhanced user satisfaction and experience due to the personally directed and “more relevant ads to more relevant audiences.” Amazon generated a list of conditions under their Privacy Terms section of the app, in order to help make consumers feel more comfortable about partaking in the Shopper Panel. Not only does Amazon demonstrate the ways in which they will protect private information, but they also show why consumer information and behavior is important. In fact, customers can benefit by seeing more of their favorite items due to “survey responses to improve the product selection on amazon” (6). Amazon declared it would remove private customer data from drugstore receipts, including prescription information. However, it won't remove the participants' personal data; instead, it will preserve it in accordance with its Privacy Policy. Previously uploaded receipts can always be deleted by participants. Amazon has recently made progress in following trends and popular items in the clothing and beauty department and attempting to make similar products at lower prices. Thus, if customers want to keep seeing their favorite products be sold for better prices, or cheaper versions of popular clothing items, Amazon needs a way to gather this information. Should other retailers adopt these types of programs? Why or why not? If yes, provide examples of two retailers that should adopt and how it would benefit them specifically. The Amazon Shopper Panel is not a completely new idea. Indeed, many brands use third party consumer panels and business intelligence firms to gather consumer feedback and shopping insights. This can help brands better understand their market segment, make advertising more productive and efficient, and adjust their products to meet customer satisfaction. In fact, it is obvious that a company’s marketing division benefits from gathering as much information about their customer base as possible. While surveys, reviews, and chat sections are all beneficial ways to help a company improve their products, tracking customer behavior and insights could help predict future trends that can significantly boost sales and strengthen brand identity. In fact, in an article written by Feedvisor, there is evidence showing how this kind of data and “improve their engagement and conversion rate”, and paying customers attracts them to this service so there is a mutual benefit. This also builds loyalty and a relationship with customers who are now engaging in the brand more so than they would have done just shopping. Additionally, if brands have access to their customer’s preferences and other shopping behaviors, they can have a better understanding of their competition, and plan how to market accordingly. - Amazon recently debuted a new initiative called Amazon Shopper Panel, which rewards users for completing questionnaires and sharing their shopping data from transactions done outside of Amazon's marketplace. The program is only available to American consumers and is opt-in and invitation-only. Through the iOS and Android versions of the Amazon Shopper Panel mobile app, interested customers can register to be added to the waitlist. Due to the controversy surrounding privacy regulations Amazon confirmed they will be compensating their customers for their information in the form of Amazon store credit, therefore making the platform safer and more appealing to consumers. There are many factors incorporated into this new program that will be beneficial for Amazon. First, this new app will help Amazon be more competitive among in person stores by having access to data they would not otherwise possess. Secondly, Amazon has been increasing its advertising techniques and has grown by 44% in 2020, and they hope with the continuation of the Shopper Panel, that this will increase. The reason behind this is due to the fact that Amazon will be able to promote “more relevant ads to more relevant audiences” (3), thus increasing the likelihood of consumer’s in that segment responding to ads and purchasing the items. Another key aspect of the launch of Shopper Panel is that Amazon is boosting its consumer engagement rate, and encouraging them to do so with a financial incentive. Whenever a consumer is dedicating time to a brand, more so than just making a purchase, the brand is building customer loyalty and increasing the likelihood of repeat purchases. Furthermore, Amazon not only hopes to see benefits on their end, but also predict that the Shopper Panel will help small businesses and allow brands to better market their products on Amazon. Third party retailers will be encouraged to sell on Amazon due to increased sales and access to information on how to better market to their customers.