Panera Bread has announced that it will be integrating Amazon One checkout technology into its loyalty program to enhance customer experience and speed up checkout time. With this new technology, customers will be able to make purchases without the need for credit cards, loyalty cards or mobile devices. After enrollment, customers will simply need to scan their palm to checkout, with their loyalty account and saved payment method used for the transaction.
This new checkout technology is being compared to Amazon’s One-Click, which has established the lowest possible friction for e-commerce purchases. With Amazon One the friction is arguably even lower, as it eliminates the need for a checkout process altogether.
The “benefits” of this technology are evident, particularly for customers who will benefit from a frictionless checkout experience. According to Dilip Kumar, Vice President for AWS Applications at Amazon, Panera associates will be able to welcome customers by name and provide a “highly personalized experience”.
The technology will also enable staff members to inform customers about any available rewards and reorder their favorite menu items if desired. Such benefits are expected to increase sales and encourage habit formation, leading to greater loyalty over time.
The use of Amazon One technology is also expected to increase the number of non-Amazon locations offering frictionless checkout, as Panera Bread has more than 2,000 stores in the US alone. While Amazon One’s website currently lists only a few hundred locations, many of which are Amazon or Whole Foods properties, the integration of this technology with Panera’s loyalty program is expected to set a new standard for frictionless checkout and encourage other companies to adopt similar measures.
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The adoption of Amazon One technology is expected to have long-term benefits, as many customers are discouraged from enrolling or consistently using rewards programs due to the need to scan cards or open mobile apps every time they make a purchase. The frictionless checkout experience will encourage both new enrollments and increased use by members, leading to greater customer loyalty over time.
In addition, research by Gartner shows that a low-effort experience is a key factor in building true customer loyalty. Even unconsciously, customers will be more likely to gravitate towards brands that offer simpler, easier interactions.
While the technology itself may not provide truly personalized service, it is likely that staff members who greet customers by name after they scan their palm will actually learn the names of regular customers. A human connection is an experience that engenders a deeper level of loyalty.
Overall, the integration of Amazon One technology with Panera Bread’s loyalty program is expected to set a new standard for frictionless checkout and encourage other companies to adopt similar measures. The benefits for customers include a faster, more personalized checkout experience and increased rewards for loyalty program members. The long-term benefits include increased enrollment and use of rewards programs, as well as greater customer loyalty over time.
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