wal-mart service strategies

“ The secret of successful retailing is to give your customers what they want. And really, if you think about it from your point of view as a customer, you want everything: a wide assortment of good-quality merchandise; the lowest possible prices; guaranteed satisfaction with what you buy; friendly, knowledgeable service; convenient hours; free parking; a pleasant shopping experience.”

- Sam Walton (1918-1992)

Interesting Facts of Wal-Mart

Wal-Mart has the biggest single day sales in history

In 1900, Wal-Mart became nation's No. 1 retailer.

2002: Internationally, Wal-Mart is ranked #2!

Has a great commitment to people and diversity.

Wal-Mart’s Retail Mix

Retail Strategy

Customer Service

Location

MerchandiseAssortment

PricingCommunication Mix

Store DesignAnd Display

Customer Satisfaction

Customer Satisfaction

Quality Value

Service

Good Quality

+

Good Value

+

Good Service

=

Customer Satisfaction!

Wal-Mart’s 3 Basic Beliefs

1. Respect for the Individual

2. Service to Our Customers

3. Strive for Excellence

Wal-Mart's Customer-Centric Policies

Wal-Mart's pricing policies : consumers always wanted

the best bargain on the products purchased by them

without compromising on the quality.

Walton had used the captions -"We Sell for Less" and

"Satisfaction Guaranteed" on the very first Wal-Mart

signboard.

Wal-Mart followed concept of Every Day Low Price

(EDLP) policy.

Continued

The main policy :Wal-Mart would always provide a

wide variety of high quality, branded and unbranded

products at the lowest possible price, offering better

value for the customer's money.

Their belief: Because you work hard for every dollar,

you deserve the lowest price we can offer every time

you make a purchase.

The Service Philosophy

• Half price.

• The price goes down, the more customers buying the

products.

• Every Day Low Price

• Rollback

• Special Buy

Services at store

Great return policy.

Separate podiums are being set up in the middle of

the main isle behind the cashier area for customer

queries.

Photo gift card service. The capability to place a

personal photo, business card and phrases on the

front of a gift card – plus the option to recharge the

card at local Wal-Mart.

Returning Policy: 100% Guaranteed

• Everything is returnable.

• Items can be returned through mail.

• To return computers, hardware or perishable items, call

Wal-Mart.

• Exchanging items are also allowed.

Ten Foot Rule

Sam’s ten-foot rule - one that ensures that a customer who passes within ten feet of an employee is assisted in a courteous and helpful manner. Time is also spent understanding customer needs and how filling those needs can affect customer behavior.

Look at the customer in the eye

Greet the customer

Ask the customer if s/he needs any help.

Service strategy Services must have

High responsiveness Timely Accurate in speed and quality in fast time, every time and

last time Increases its employee productivity Replenish shelves up to three times faster Keep proper track on the products Low inventory cost Make customer happy

Services

Shipping services

Internet services

Trial offers

Pharmacy services

Credit card services

Vacation Photo center Gift registry Social services Return policy Personalized gift card

Wal-Mart’s Asset Program

It allows the resale of excess or outdated fixtures and equipment.

Everything from glass showcases, metal shelving, apparel racks, trash compactors to front end alignment lifts may be available to purchase.

Following are 3 methods to sale the excess

1) Public Auctions

2) On-line Auctions

3) Existing store sales.

Site-to-store program

This program allows customers to shop for thousands

of products at www.walmart.com

Most of those products which are not available in

stores, and have their purchase shipped for free to

Wal-Mart stores nationwide, excluding Alaska,

Hawaii, and Neighborhood Markets.

RV travelers parking

Wal-Mart values RV travelers and considers them

among our best customers.

Consequently, they permit RV parking on their

stores

Permission to park is extended by individual store

managers, based on availability of parking space and

local laws.

Service for disables

Wal-Mart Stores, Inc., is committed to making

reasonable modifications to its policies, practices,

and procedures to permit the use of service animals

by its customers ensuring the independence of people

with disabilities.

Walmart Card (Wal Mart Credit Card)

Features and benefits of Walmart Credit Cards

No annual fee. No liability in case of fraudulent transactions. Savings of up to 3¢ on every gallon that is purchased

at participating gas stations of Walmart. Cash advances of up to $100 on every Walmart

purchase. 25-day grace period. Over limit and returned check

fee of $25.

How they attain service excellence

By using IT technology

ASDA

RFID

Use of IT for services - ASDA

Wal-Mart uses computers to help further educate and to train their employees.

Wal-Mart’s 1.2 million employees in the U.S. are offered e-learning programs to help develop their personal skills.

Using this information technology Wal-Mart offers classes that help to increase productivity at both work and in employees personal lives.

Continued

Wal-Mart’s e-learning training includes times

management and goal setting courses.

In the United Kingdom. Wal-Mart owned, Asda

stores also offers e-learning.

Asda not only offers e-learning for its store

employees but also to their 1,800 employees who

work at their headquarters

Use of IT for services - RFID

Wal-Mart uses RFID to increase its employee’s productivity.

Wal-Mart is experimenting with a radio-frequency identification system.

With the use of RFID information technology, employees can replenish shelves up to three times faster than with the old bar code technology.

Products have a radio frequency that a scanner and detect determine the amount of products and where they are located.

Continued

Employees can also find products stored in the back room of the store quicker, helping to make the employee more productive and the customer happier.

Using RFID technology also helps to keep inventory costs down.

RFID can automatically tell when products need to be reordered, which is more efficient than being recorded when the employee determines the product needs to be restocked.

Helping People Make A Difference

• Provides scholarships

• Helps children’s hospitals

• Provides money to fund raisers

• Cares about environment

Wal-Mart doesn’t only help their customers at their stores but they do help their customers with their life.

Online services

Some of the key services provided by Walmart online

Awards & Recognition

Ranked #1 Consumer Staples Company - Carbon Disclosure Project

(CDP) 2008 report and scored 89 out of a possible 100

Corporate Energy Conservation, Energy and Environment Award

2009 Green Choice Award

2009 Sustainability Excellence Award

Top 50 Companies for People with Disabilities

Top Organizations for Multicultural Business

Number One Most Admired Company in America

Best Place to Work in the United Kingdom (ASDA)

Top Organizations for Multicultural Business