wal-mart service strategies
TRANSCRIPT
“ 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.
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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.
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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.
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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