There are two very different questions posed by this article. The first, “are there ways for Publix to effectively extend the elite customer service found at its stores to the online experience?” – absolutely. In fact, online is really “in-home” … where real human, interpersonal connections are more important than in-store. Regarding the second question about whether Publix’s lack of a “conventional loyalty program” hurts their online positioning – absolutely not. In fact, I’d say that while other retailers have confused reward systems with “loyalty” Publix has remained focused on what creates real loyalty in people – enjoyable (“pleasurable”) experiences, consistently delivered over time, person to person. There is a real risk that an attempt to translate that kind of loyalty into technology terms will change the nature of it, along with real opportunity to enhance their quality of service across different touch points. The net takeaway – real loyalty is a complex, delicate, HUMAN thing and if I were to start somewhere, I’d rather be at Publix’s starting point than just about any other.

The last mile, including the final delivery by a Publix or non-Publix employee is not important. The key is on-time delivery, and the online customer experience. There are certain brands, how they are available, and what it means to be part of the experiential Publix family that must be captured in the Publix online environment. This is the key, not who delivers the product. Part of the experience includes full 360 degree feedback and super Publix customer service. Sustaining these and growing their online presence are all critical for Publix in the online world.

Warning! Warning! Instacart is not the long-term answer if Publix hopes to maintain their experience advantage! If Publix’s deployment of Instacart is an indicator of how they will outsource other elements of the online experience, I see trouble ahead…

For Publix, extending its brand to digital channels is really about delivering convenience to its customers. Just because the person delivering the groceries to a customer is an Instacart employee, doesn’t mean the customer forgets they placed this order with Publix. Sometimes we over-analyze brand relationships and in this case, we risk doing just that. Publix customers have such strong loyalty to the brand, I doubt their loyalties will shift away just because they see an Instacart logo deliver their groceries. If anything, this will cause those customers to appreciate their in-store visits even more next time they visit a Publix store. The real issue for Publix is how they go beyond this effort to further enhance their brand relationship. Offering curbside pickup where a Publix associate brings the groceries to the customer’s car is one way. Even if leveraging Instacart’s platform to do this, it can be done in a way that reinforces the Publix brand. And that’s just a beginning!

I believe as others today have mentioned that Publix employees need to deliver the last mile. The experience at Publix today is enhanced by associates interaction with customers. Today they help people to their cars with their order every time, they do things like offer free cookies and balloons to children. Instacart employees will not be offering those brand enhancing experience. I do feel that they need to create a loyalty program as they will be playing catch up, but not for long. Their winning combination will extend to the online shopper very quickly.

Publix’s decision to retain Instacart is not a surprise. They, more than anyone, recognize their reputation as an elite provider of service is more myth than reality.