It's About the Customer

What your business can learn from Walmart

Even in times of economic trouble, Walmart manages to come out on top, and not only in sales. According to a recent survey of U.S. companies by MSN Money, Walmart is rated near the top for excellent customer service. Walmart has gone from a 45.5% positive customer service rating in 2008 to 56.9% in 2010, one of the largest jumps made by any company in the study. So why is Walmart thriving as the economy dips? When it comes down to it, Walmart's success relies on simple strategic changes, ones that could be applied to your own company:

• They're changing their pitch. A noticeable change in Walmart's marketing strategy has been a change from its previous "Always Low Prices" pitch to the phrase "Save Money, Live Better." Rather than just touting cost savings, they now have a message that demonstrates how much they care about their customer's quality of life. Generating customer loyalty relies on a good customer relationship; customers need to feel appreciated.
• They're improving the shopping experience. The retailer has launched a new customer service strategy called Project Impact. Walmart conducted research on how to improve the shopping experience in their stores, and then followed through on the findings. The chain has widened aisles and lowered shelves, installed nicer flooring, and increased staffing at registers to shorten lines. They've even placed TVs along the checkout area in case lines still get long. They've discovered what many other companies haven't: customers aren't willing to put up with a miserable shopping experience just to save money.
• They know it's about the bottom line. In a tough economic atmosphere, a customer's decision to buy often boils down to price. One of Walmart's new markets is upper-middle-class Americans who may have taken a hit financially but still want quality products. In response to this, Walmart has increased its selection of higher-end products while keeping its signature low prices. It's possible to grow your business, even in a recession. You just have to know your customer, learn what they want, and then find a way to offer it at a price they can afford.