How Walmart Use CRM, Research Paper Example

Introduction

Walmart is one of America’s most successful international companies. It is serving customers over the world, in 26 countries, and builds its international strategy on engaging with buyers through aligning the company’s culture with the country’s diverse expectations (Walmart). As in the United States the population of buyers is becoming extremely diverse, the company uses advanced customer relationship management (CRM) programs to engage with the niche and deliver meaningful messages. Employee diversity programs are in place (Walmart) to educate workers about ways to connect with diverse customers. According to the company’s website (Walmart, 3), “Walmart is one of the most diverse employers in the United States”. The below essay will argue that diversity and inclusion within human resource management is one of the key success factors of Walmart’s CRM strategy.

Review Of Walmart’s Crm

Tharp (2005) states that the culture of the organization has a direct impact on the overall performance of the firm. The culture should focus on engaging with stakeholders and building meaningful relationships.  Samovar, Porter and McDaniel (8) also conclude that intercultural communication within a global organization is essential to bridge cultural and value-based differences. Within Walmart, the strategy of the international and domestic operations includes intercultural communication.

Information Systems

A recent review (Cantor) examined the increasing role of social media within Walmart’s customer relationship strategy. The authors found that while creating a strong homogenous brand image and communicating it, the company might reduce its ability to connect with customers on the personal level. As the analyst confirms: “By creating social engagement on the global brand-level, the organizations minimize the ability of the individual stores to mobilize their customers” (Cantor, para 5). However, the review of Walmart’s CRM also indicates that by partnering with Facebook, the social media giant, Walmart is now able to create a balance between global corporate engagement and local marketing communication.

Benefits of the Information System for Walmart

The success of Walmart’s corporate communication strategy, related to CRM, therefore, lies in being able to drive activity to individual stores while strengthening the corporate image at the same time.

A study by Davey reviewed the technology behind Walmart’s customer relationship management strategy. Walmart has the ability to track customer purchases, store and analyze their data, spending and shopping habits, as well as the changes in their lifestyle. While the author of the study deems the above practices unethical, they are extremely beneficial for understanding individual customers, and finding consumption patterns to tailor marketing and corporate communication messages to the needs of the market. Smith, the CFO of Walmart stated in a 2013 interview that the management of the company often visits shoppers in their homes to find out more about their lifestyle, consumption and shopping patterns, culture, and preferences. This type of personal level engagement does not only help the company create marketing messages that are relevant to the individual buyer, but  also provides the company with invaluable information about the target market. This way, Walmart is able to continuously tailor its culture and mission to be aligned with its most important stakeholders: customers.

One of the main aspects of Walmart’s customer relationship management is loyalty programs based on various levels of engagement. Discounts and coupons are provided for customers through email newsletters, social media, in store, and within local newspapers. The main strength of Walmart’s loyalty program is that it offers immediate savings for customers for products that are general commodities. Further, through the programs, the company is able to gain valuable information about their customer. If the customer simply walked into one of the large Walmart stores, the company would not have any information about them. However, if they sign up for the social media page of the company or request a card, provide the management with their basic information, the company will be able to use their data to review their customer data and tailor its strategy to the market. Further, Oracle’s study reveals that “Large retailers (such as Wal-Mart) stay competitive by offering very low prices. Other retailers, if they cannot match these low prices, need to compete in ways other than price alone”. The company uses a system to track prices across the country and differentiate its brand based on price.

Walmart, on the other hand, has successfully integrated customer relationship in its corporate global strategy. As Wei et al. Summarizes: the company focuses on providing customers with the products they want at the price they are willing to pay for it. For this, systems to obtain in-depth knowledge about individual customers and the entire market is necessary. Walmart now uses apps, social media communication, and advanced mobile strategies to engage in a two-way communication with customers. One of the tools that was introduced to customers in the United States recently is Savings Catcher. It is a good way of engaging with customers and strengthening the brand’s image at the same time as the lowest price retailer. Customers are able to scan their store receipt , and the system compares the prices across large retailers. If a lower price is found, the company refunds the difference. Further, the company is looking to introduce further website and mobile tools, such as eCoupons, automated creation of shopping lists, and electronic receipts.

The website of Walmart also offers several customer-friendly tools that serve shoppers’ needs. From Christmas gift buying guides to recipes, Daily Saving Center, and registries for weddings or special occasions, there are several tools designed to engage with individual shoppers on a personal level and provide added value in order to differentiate the brand. The new local strategy of Walmart (Cantor) includes focuses on sending out attractive and actionable messages. By creating announcements based on the customer’s location, sending out information of price cuts and product arrivals in individual stores, the company is finally able to match the content to the need of the shopper, creating a connection on the personal level. Understanding the shopping preferences of buyers enables Walmart to send out highly relevant messages via email, social media, flyers, or through the WalMart app.

Conclusion

The above review of Walmart’s corporate customer relationship management strategy has revealed that the main driver of development is to get to know the habits and preferences of the shopper and tailor the messages to individual needs. While some authors (Davey) claim that the company goes too far by tracking customers across the store and recording their purchases, it is a  valuable strategy that enables Walmart to get to know the market and connect with consumers on a personal level. This stated, the main strength of Walmar’s CRM lies in utilizing customer information to make communication more relevant and more engaging than competitors’.

Works Cited

Cantor, B. “Wal-Mart Seeks to Redefine Social CRM with New Local Strategy”. Call Center IQ. 2011. Web.

Davey, I. “Consumers, Big Data, and OnlineTracking in the Retail Industry. A Case Study Of Walmart”. 2013. Web.

Oracle. “Gaining Competitive Advantage Through Effective Retail Loyalty Programs” An Oracle White Paper Updated June 2006. 2006. Web.

Samovar, L A, Porter, R E, McDaniel, E R (2011) Intercultural communication: A reader. Cengage Learning.

Smith, C. “Global vision, local flavour: Walmart International’s expansion strategy. The Financial Director” 2013. Web.  http://www.the-financedirector.com/features/featurefinance-director-europe-cathy-smith-walmart-international/

Tharp, B.  Four Organizational Culture Types. Haworth. 2009. Print.

Walmart. (n.d.) Website.

Wei, L., Wang, S., Zhang, J. & Ao, Y. Strategic Analysis For Wal-Mart. 2013. Web. http://www.sfu.ca/~sheppard/478/syn/1137/G_6_1137.pdf