The Walmart’s history goes way back to 1996, when the first store was open by founder Sam Walton in Roger, Ark. Sam Walton Believed firmly in customers getting the best service possible. Competitors doubted Sam when he share his idea of low price along with great customer service. Walmart was built on the principle that customers comes first no matter what. Sam rely solely on give the best customer service great customer experience. In 1992, he was awarded the President of Freedom by President George Bush because of his commitment to serve customers.
"If we work together," he said, "we'll lower the cost of living for everyone...we'll give the world an opportunity to see what it's like to save and have a better life." (Walton).
The legendary Sam Walton died in that same year 1992 but Walmart continue to be one of the leading company in the industry. McMillon the CEO of Walmart, set very high standards that complies with Walton’s strategies. In an interview he discuss Walmart’s future outlook. "First, we will be a customer-driven company. We've always said the customer is our boss and we'll make decisions based on how we can serve them better, second, we will invest in our people. As we change and grow, it will be our associates who will make the difference.
Finally, we need to be at the forefront of innovation and technology. We will lead with urgency to get ahead of change." (McMillon). From the statement made by McMillon, It’s clear that customer service is the main priority; this in turn will change customer experience for the better.
Walmart strive to improve its customer experience by investing in numerous tests. The first test is the new ship to store option that allow customers to pick up items in lockers in the store with a customize code (Business Insight). This process speeds up the process of shopping and give customers the ability to not wait on line of taking forever to get out of the store. This option is appreciated by customers because most of the time they are in a rush and just want to get in and get out of the store in minutes. The second test is the smartphone app that also eliminate waiting on line all together.
The app is use to scan item as you shop then pay and pick up receipt on the way out. Again, customers find these tests very useful because it save them time and the Hassle. Walmart didn’t just stop at those two tests, they found bigger and better ways to better customer’s experience. Walmart launched a prescription service where customers get a 30-day supply for $4. Walmart is said to offer the lowest price for generic medications in addition to being the lowest pricing company in the industry; creating the perception that they offer the lowest price on everything.
This model attract customers even more because they can get almost everything in one location at a very low price. “Walmart's Supercenters have tended to focus on offering an enormous array of products at very low prices” (Business Insight), Walmart stay on top of competitors because of this smart invention with prices. While this low price is good for customers and create competitors advantage, creating the perception of the Best Value is great.
If the communication of the value provided with the business is not clear, customers will choose the lowest perceived price so either way Walmart is winning. Walmart continue to improve on its customer service by renovating its store. This give customers a better in-store experience that will allow them to feel welcomed. The aisles are being widen and signage are being improved. As a result of these chances customers have a friendlier experience inside the store. Walton came up with the idea “Save the Money Live Better.”
This includes a price leading strategy that implies that the customers get low prices every day. While give the lowest price for products, Walmart also create great value for each product. Another idea implemented is “Win. Play. Show”; by reducing the quality of products in the stores, Walmart encourage supplies to give a better deal on the price of products so that they can also reduce the cost for customers. Products are categorized in the Win, Play and Show. The Win category is the top category of all three. Product in this category makes it possible for the company to gain market shares. The play category uses balances and profit to determine market performance. Show category is where the quantity of product is being reduced.
This diagram indicates that these was a drop in Walmart’s earning as of Jan 31. Walmart earnings reportedly is $4.43 billion which result in a 21% decline. The number of people per household as dropped; hence, revenue for retailers lessens. Walmart strive to make these change because of the decline they experienced. Inventing initial changes may help the Walmart stock, earring, and profit increase.
The whole idea is to get customer in and provide great customer service so that it will boast the overall performance. Although Walmart believe highly in great customer service, one of the reason the witness these decline is because of employee satisfaction. This is one of the main problem the company is facing. If the employees aren’t happy, customers will be affected. Because of this problem, shareholders vote for changes that will result in new management. According to an article on business Insight, Walmart executives on projected optimism about the future and celebrated the company's performance. Walmart revenue last year was $473 billion, the World Bank's figures equal to the gross domestic product of Argentina.
Walmart has its struggles and success when it comes to customer service. It has proven countless time that Walmart is improving its customer experience by taking several measures. The core root of Walmart has to do with how customers are treated. From Walton beliefs to McMillon strong commitment to its purpose, mission and beliefs allow customers to feel welcome, experience great service from workers and enjoy buying items for the lowest price on the market. Walmart has witnessed several declines in revenue and include; because of this the management term came up with strategies that will diminish the causes of those declines and anything that has a negative impact on the company.
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