Running head: CUSTOMER SATISFACTION IN WALMART
CUSTOMER SATISFACTION IN WALMART
Unit 4 Individual Project: Develop Customer Satisfaction and Product Guarantee Plan
Section I: Company and Brand Information
In the small town in Arkansas, Bentonville sits the headquarters of one of the largest and most prosperous retailers in the globe called Walmart. The founder of the retail giant was Sam Walton in the 1950`s with a five-and-dime store in 1962 opened his first Walmart store. In four years, the stores had increased to 24. By the 90`s, the organization was trading publicly and became one of the country’s top retailers. The company decided to go global expanding to countries like Mexico, Canada, and China. By 2002, the retail company had led the Fortune 500 as the biggest company in America (Roberts & Berg, 2012).
Currently, the company enjoys more than 2 million sales accomplices worldwide, procures its merchandise in more than 50 countries and serves more than 250 million clients a week in 11,700 stores in 28 states. Being a great company by itself, creating many subsidiaries does not seem like a bad plan. The internet retail market is one that has great potential all over the globe at this time. Walmart has hence tried to enter this promising market by acquiring Jet.com for $3 billion to rival Amazon for the e-commerce market. By the end of 2016, the brand established was ranked 3rd in revenue generation in the country.
When it comes to customer satisfaction, it means the predetermined nature of how the interests of clients are met. It is directly linked to the needs of the clients. The magnitude to which these needs are fulfilled determines the enjoyment in the case of conformity. In the retail industry, customer satisfaction is primarily determined by the services and quality of the product. However, in this industry, satisfaction is not referred to as a specific product or service but a combination of different features. The company has regular contact with it customers hence monitoring and evaluating their satisfaction is the key goal of the organization (Roberts & Berg, 2012).
The formation process of customer satisfaction initiates with the purchase objective setting. As a policy, this objective is to reach different requirements by the clients. After the problem appears, the customer goes through the store to check through the various products to choose the best product. Upon picking the preferred products, the customer has their own expectation from the product or service which is experienced when they use it.
In the company`s return policy, the firm has the right to limit, warn or refuse returns or exchanges disregarding the client having a receipt. Every non-receipt return is subject to refund verification. Clients are advised to retain their receipts for any case of return with each decision made by the manager on a return being based on the set laws. In the company, all products bought can be returned within 90 days of buying them. However, there are exceptions for the 92 days (Rowley, 2003).
The company allows receipt returns and non-receipt returns. In receipt return, a person can return a product during the permitted period and a refund will be given in the original means of payment. For a client who paid via cash or check, they may get a cash refund. In the case of debit and credit cards, a refund is given to the same cards but if they aren’t present after scanning through the TC number, a refund is made to a gift card.
For non-receipted returns, several conditions need to be met to accept the return. One of the conditions is that the refund verification process accepts the return and the client’s national ID has not been altered and accepted in the store. The customer is hence expected to provide a valid national ID for non-receipted items for the information to be stored in a database. When return is accepted, the client can send the product to the manufacturer for repair, the product is replaced with another, the product is returned, and a cash refund offered if the refund value doesn’t exceed $25. The company has a holiday extended return policy that runs from November to December 24th where products like digital cameras and music players, drones, computers, and portable video players are subject to a 15-day return policy (Rowley, 2003).
Pitching the E-commerce Brand
In business, the primary objective is to establish an army of loyal clients. Irrespective of the stage that the business is in, all other aspects will come through smoothly. Loyal customers keep the wheel of the business spinning hence the need to retain them. In creating a brand in e-commerce, Walmart needs to pitch it in the right manner, quite difficult when it comes to implementing. The first thing is renovating the Jet.com website to give a fantastic appearance. One factor that people in general use to judge you is the look of the e-commerce website. The website needs to look appealing to the eye and have an intuitive architecture. It is unnecessary to follow recent trends as long as the website is attractive, user-friendly and updated (Cockerell, 2013).
The brand should show the customers that it cares. It`s only when the clients believe that the e-commerce brand cares for them that they will return the favor by becoming loyal to the store and recommending it. The best way to achieve this is by creating a customer-centric business. Another way to pitch is making customers offers they can’t refuse. Since Walmart is entering a new field, it is wise for them to make offers. It initially involves providing the existing clients additional benefits like discounts and free shipping. One key reason people buy from online stores like Amazon is that of their price difference compared to brick-and-mortar stores (Cockerell, 2013).
Online marketing is essential hence the need to use influential bloggers to review the platform. These bloggers can be the best allies since they tend to have thousands of followers who may generate traffic to the website. It is essential that the brand is pitched to clients on Twitter. A great way to involve clients is through using Twitter. The brand only needs to set and follow a proper tweeting technique if they want it to work out. It is crucial to ensure that enough material is available to compel the clients to get interested and read what is pitched to them. The idea is to engage the clients and encourage curiosity about the brand.
Features and Benefit
Selling products using this new method means that Walmart can overcome geographical limitations. Having a physical store limits sale to a specific area that one can serve. In e-commerce websites, the entire globe is the market field. The new platforms allow the company to gain more customers through search engine visibility. Selling at a certain location is motivated by branding and associations. Additionally, to the two, internet retail is directed by traffic. It is normal for clients to click a link in a search engine outcome and come to an e-commerce site they have previously heard (Poirier & Bauer, 2000).
E-commerce has the benefit of lower costs. Among the most physical positives of e-commerce is the minimized cost. A section of the reduced cost could be directed to the clients in the mode of discounted fees. Costs can be minimized by cheaper advertising, less personnel is needed and the lack of physical presence. The new brand has the advantage that a customer can easily locate the product they need. It is no longer pushing a cart to the right corner of the store to find the product one needs (Poirier & Bauer, 2000). The website needs clients to only click through intuitive exploration or use a search dialogue.
The e-commerce platform eliminates costs and travel time. It`s normal for customers to tour long distances to get to their favored physical store. E-commerce permits going to the store virtually. The platform will allow bargains, group purchasing and coupons through convenience. When a customer has a deep discount voucher for a television at a physical store and utensils at another, they may find it improbable to provide both discounts. Online sale eliminated the inconvenience. The platform offers a 24/7/365 open period for sales. The websites run all the time ensuring that a customer can shop at any time of the day they want (Poirier & Bauer, 2000).
Cross Selling and Promotional Opportunities
Cross-selling is one of the best ways to maximize on average order value and forms a crucial metric for the selling. It entails providing unique complementary products to the clients. They are the products that enhance the original product by adding new functionalities. At Jet.com, cross-selling can attribute as much as 35% of the total sales through its clients who buy their items and frequently buy them together. The approach can prompt a shopper to purchase a compatible product. The website can suggest that a customer buying a digital camera to buy a memory card. The digital camera has the ability to take numerous pictures hence the added advantage to add memory to store the images. The memory card comes as a complementary product for the digital camera.
The best practices for cross-selling include recommending the product, in this case, the memory card for the correct operation and use of the digital camera bought. It is essential to bundle these related products, so the client doesn’t need to look for needed components. An added advantage is when a discount is offered to bundled products to promote immediate buying with temporary savings. The use of cross-selling ensures more sales through buying in bundles. It also minimizes costs since it involves managing one product with a few other products hence making it cheaper (Aksoy, Keiningham & Bejou, 2014). Cross-selling results to greater loyalty among clients by foreseeing the user’s needs thus the feeling of satisfaction.
There exist three main kinds of cross-sells in e-commerce stores mainly:
• Package deals
• Volume discounts
• Premium offerings
These strategies can be implemented through the shopping cart, email receipts, email drip campaigns or direct contact.
The use of the automatic cross-selling through the tag, other products you may be interested in can be useful. The internet shows some products depending on what the person is searching for and his or her choice. The more the client personalizes the offer, the more effective the strategy is. In out two products, when the client adds the digital camera to the cart, a good product to offer would be a storage device to store the images. Such a domain would prove effective in a website showing products based on one’s browsing history, wish list and the products discovered. The tag can also appear as other users bought as another automatism. The website indicates what other users bought together with the selected product.
Aksoy, L., Keiningham, T. & Bejou, D. (2014). Profit Maximization Through Customer Relationship Marketing: Measurement, Prediction, and Implementation. Hoboken: Taylor and Francis.
Cockerell, L. (2013). The customer rules: the 39 essential rules for delivering sensational service. London: Profile Books.
Poirier, C. & Bauer, M. (2000). E-supply chain: using the Internet to revolutionize your business: how market leaders focus their entire organization on driving value to customers. San Francisco: Berrett-Koehler.
Roberts, B. & Berg, N. (2012). Walmart: key insights and practical lessons from the world’s largest retailer. London Philadelphia, PA: Kogan Page.
Rowley, L. (2003). On Target: How the world’s hottest retailer hit a bullseye. Hoboken, N.J: J. Wiley.