Customer Relationship Management of Wal-Mart : Wal-Mart Stores, Inc. (formerly branded as Wal-Mart, branded as Walmart since 2008) (NYSE: WMT) is an American public multinational corporation that runs a chain of large discount department stores and a chain of warehouse stores. In 2010 it was the world's largest public corporation by revenue, according to the Forbes Global 2000 for that year.[6] The company was founded by Sam Walton in 1962, incorporated on October 31, 1969, and publicly traded on the New York Stock Exchange in 1972. Wal-Mart, headquartered in Bentonville, Arkansas, is the largest majority private employer[7] and the largest grocery retailer in the United States. In 2009, it generated 51% of its US$258 billion sales in the U.S. from grocery business.[8] It also owns and operates the Sam's Club retail warehouses in North America.

Wal-Mart has 8,500 stores in 15 countries, with 55 different names.[9] The company operates under its own name in the United States, including the 50 states. It also operates under its own name in Puerto Rico. Wal-Mart operates in Mexico as Walmex, in the United Kingdom as Asda ("Asda Wal-Mart" in some branches), in Japan as Seiyu, and in India as Best Price. It has wholly owned operations in Argentina, Brazil, and Canada. Wal-Mart's investments outside North America have had mixed results: its operations in the United Kingdom, South America and China are highly successful, while it was forced to pull out of Germany and South Korea when ventures there were unsuccessful.
The Wal-Mart greeting was the original method used by the giant retailer to show customers that they are appreciated. A greeter at the door thanks customers for coming in, assists with a shopping cart, and provides a "goodbye thank you" upon departing the store. The friendly senior citizen dressed in the blue vest conveys warmth and personality to every guest entering or exiting a Wal-Mart store.

So why don't others adopt this simple marketing tactic?

Some do. Meijer retail stores also use greeters; many restaurants, hotels and other businesses do the same. But most don't—because relationship marketing is not as simple as it seems. It takes a type of commitment different than traditional marketing.

Relationship Marketing Has 4 Key Components:

* It has to be personalized. Personalization can come in the form of a highly targeted direct mail piece, a phone call or email. Obviously the handshake and a smile illustrated by Wal-Mart greeters also work well in personalizing the relationship.
* It has to be targeted. Wal-Mart invests money in maintaining relationships with existing customers. By targeting this group, Wal-Mart establishes long-term relationships with their most loyal shoppers. Targeting customers through programs that reward loyalty can result in big returns over the life of the customer.
* It has to be meaningful. Your marketing message has to connect in an emotional way to establish a lasting relationship. If the Wal-Mart greeter did not look you in the eye while saying "hello," the greeting would not have a lasting impact.
* It should be interactive. Many Wal-Mart greeters learn the names of frequent shoppers. Walmart.com, a subsidiary of Wal-Mart Stores Inc., does a great job of asking for the relationship online by providing special offers to those who supply their email address. It is important to make relationship marketing interactive so you can hear feedback, determine what is working and what is not.

These key components are essential in relationship marketing programs even if your target audience is not the price-conscious retail shopper that Wal-Mart attracts.

Business Relationship Marketing Can Be Achieved By Following These Tactics:

* Develop a relationship by mixing knowledge with fun. Plan events for clients and prospects that educate while offering entertainment and social interaction.
* Send out a monthly eNewsletter or eZine with useful content that connects to your clients and prospects. This tactic will show them that you care about their business and value their time by providing them information they can use. Stay away from a sales focus. Instead, provide industry and product news with some entertainment value.
* Initiate an appreciation program. Send customers thank you cards or gifts after making a purchase. You can also send a thank you gift to show appreciation for their business on the account anniversary date.
* Look for ways to help your clients and prospects beyond your own capabilities. Refer them to other quality vendors, share an article related to their business or put them in touch with someone who can help. This will go a long way in building a relationship.
* Make phone calls. Email is easy but picking up the phone and thanking someone for using your company can go a long way. Don't forget the value of real conversations and face-to-face meetings

To understand the Wal-Mart customer, you must understand almost every other facet of the retailer's business. The fact is that everything Wal-Mart does from store design to bar coding to lighting to greeters--regardless of how simple or complex--is implemented only after carefully considering the impact on the customer. Virtually nothing is done without the guarantee that it benefits the customer in some way.

Furthermore, the relationship with the customer evolves from the retailer's own corporate culture. The whole idea of an associate being involved in the decision-making process, sharing the good news and the bad news, and being positively reinforced for their ideas and performance, has created a tremendous company spirit and pride of workmanship on every level of management from the headquarters office to the stock room.

"Day in and day out," said Glass, "it's the little things that you do."

And inevitably all those "little things" that Wal-Mart does for its associates, its associates do for the customer.

As a result, Wal-Mart has been able to build loyalty and trust among its customers that is unparalleled among other retail giants.

Currently, according to the DSN/Leo J. Shapiro study, Wal-Mart stores are within reach of 37 percent of U.S. households, and remarkably, 34 percent of the households report having shopped at Wal-Mart within the past year. In 1987, Wal-Mart stores were within reach of 28 percent of U.S. households and 22 percent reported that they had shopped Wal-Mart within the past year. In two years, Wal-Mart has increased its customer base by more than 50 percent, with an increase of only about one-third in store coverage.

By contrast, during the same two year period, K mart's coverage and customer base held steady. Currently, K mart stores are within reach of 85 percent of U.S. households and 72 percent report having shopped at K mart within the past year compared with 84 percent and 69 percent, respectively, in 1987.

Target stores are within reach of 40 percent of U.S. households while 32 percent report having shopped Target during the past year.

Another interesting fact revealed in the DSN/Shapiro study is that not only do customers spend more time getting to Wal-Mart then they do getting to K mart and Target, but they also spend more time shopping the store.

For example, survey respondents reported that it took them an average of 20.2 minutes to get from home to a Wal-Mart store and they spent an average of 41.1 minutes shopping the last time they visited a Wal-Mart store. By contrast, K mart was closest to home with an average of 15.9 minutes, but customers spent the least time shopping, reporting an average of 35.6 minutes. Respondents said that it took them 18.2 minutes to get to a Target store, and they spent an average of 39.5 minutes in the store.

It could be argued that with Wal-Mart's rural strategy and K mart's more urban presence that people would generally have to travel longer to get to a Wal-Mart store. However, Wal-Mart draws from a greater distance as well.

"We have an unbelievable number of people that travel from the major metro areas to the small communities to shop our stores there which is the exact opposite of what is historically taking place in industry," said Don Soderquist, vice chairman of Wal-Mart. "Our strategy is to go into smaller markets first before we hit major metro areas because you've got a smaller population base to convince over. So you begin to get the acceptance in smaller markets and the word begins to travel around and people begin to travel further and further to get to your stores."
 
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As the competition is increasing, customer is getting more confused about brands and product s and because of that, tracking of consumer behavior is very difficult. Near about all the brands keeps on trying to induce more customers and build long term relationship with them. Customer relationship management should be effective to convey your message effectively.
 
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